In this regard, we have several specific concerns with respect to the draft encryption regulations as they apply to the downloading of products which include security features. We may have more recommendations, after further study of the draft encryption regulations. Such precautions shall be approved in writing through an Advisory Opinion . Although the State Department's Office of Defense Trade Controls did issue advisory opinions on this subject in the past, current practice under the Arms Export Control Act and International Traffic in Arms Regulations does not require companies to obtain an advisory opinion prior to making encryption software available electronically within the United States. Since there are no restrictions on the domestic dissemination of encryption software, it is contradictory to require that an advisory opinion to be obtained in order to do so.
Many companies already make such software available for domestic download today.
The regulations, if issued as drafted, would create a major disruption in the business practices of those companies, and could have an extreme negative affect on the revenues of those companies. We do not believe that it is appropriate for the Department of Commerce to control domestic distribution of products within the realm of export controls. If the BXA wishes to issue guidelines which must be followed in order to prevent inadvertent export, then those guidelines should be explicitly stated and amended into the EAR, rather than issued through required advisory opinions. If an address or phone number is required from the person downloading the software then the zip code and area code information must be verified as corresponding to a U.S. or Canadian address. However, the regulation should make clear that anonymous downloads are not prohibited.