Encryption uses mathematical algorithms to scramble information, like an e-mail message or financial transactions, as it is sent from one computer to another. Without the proper software, encrypted messages cannot be read. Under current law, the United States allows only forty bit encryption codes to be exported, although most software companies produce and sell encryption codes of up to 128 bits within the United States. Fifty-six bit encryption, the next highest level, is 65,000 times more difficult to decode than forty bit encryption. 128 bit encryption codes are virtually unbreakable.
Nobody wants to buy software that can be broken into in a few hours.
Smith says that the export ban is a threat to the future health of the U.S. software industry. But they are losing customers because our government isn't letting them sell high-level encryption software. Furthermore, argues Smith, government should not interfere in the U.S. software export market. That completely violates individuals' and businesses' privacy rights and makes foreign companies less likely to purchase U.S. software because they know our government can break into their programs. Smith says that relaxing export restrictions will not threaten national security.