The Commerce Department will likely release new rules Monday to control encryption exports and switch their jurisdiction from the State Department to the Commerce Department.
In what appears to be a response to a ruling last week by a federal judge in San Francisco, the new rules exclude printed books containing encryption source code - for now. The judge struck down the Clinton administration's restrictions on the export of some forms of encryption software on the grounds that they violate free-speech rights.
"In what might best be described as a 'wiseguy' exception to the new book rule, the notice specifically states that the government may yet decide to require export licenses for printed works that contain scannable encryption source or object code," said encryption lawyer Stewart Baker.
Under the new rules, products that unscramble encrypted text could receive export licenses through 1998 without identifying a key-recovery agent, or a third party who can be called on to undo encryption, on one condition: Those products must "facilitate establishment of a key management infrastructure." This exemption is allowed because development of acceptable key-recovery systems "may take some time," the report said.
Pending license applications must be re-filed with the Commerce Department and will be processed under the new regulations. The regulations would take effect immediately, but will be under review for 45 days, Baker said.
