In recent years, U.S. companies have hired an increasing number of engineers from outside the United States to develop new and innovative hardware and software products, including products with encryption capabilities. Export controls on technical data can apply to a wide variety of information, including technology related to the design and development of certain telecommunications products, computers, semiconductors, integrated circuits, voice, fingerprint, or other identification systems, lasers, etc. In particular, if a foreign national is developing encryption products, it is highly likely that the company engaging a foreign national employee or consultant for such purpose must obtain an export license from Commerce prior to permitting the foreign national access to such encryption technology. Generally, encryption is used to render or transform text or data into an unreadable or unintelligible form. In response to customer needs, telecommunications and software companies with products designed to store or transmit electronic information require solutions that protect the confidentiality, privacy, and secrecy of such stored and transmitted information.
Encryption provides such a solution.
These products include encryption capabilities to protect everything from the content of e-mail to credit card numbers and bank account numbers used to purchase goods over the Internet. The U.S. government maintains a series of controls on the export of products and technology containing encryption capabilities. Foreign Nationals As noted previously, the U.S. government controls not only the export of products but also technology. Technology is broadly defined in the EAR and includes instruction, skills training, working knowledge, consulting services, or the transfer of blueprints, plans, diagrams, models, formulae, tables, engineering designs and specifications, manuals, and instructions written or recorded on other media. The export regulations require Commerce to approve or reject license applications within ninety days.