U.S. Representative Adam Smith is fighting his National Security Committee colleagues to eliminate the current U.S. ban on high-level encryption software exports.

"Our self-imposed ban on encryption exports is disadvantaging U.S. software companies and threatening our competitiveness in this emerging new technology," said Smith.

Proponents of the export ban argue that it is necessary to maintain national security. "Many of my colleagues on the National Security Committee want to keep the export ban intact, because they fear that international criminals and terrorists will get their hands on encryption technology and use it against us," Smith explained. "If our export ban actually kept the technology away from criminals, that would make sense. But that's not the case — the encryption technology is still available to whoever wants it, but U.S. firms can't sell it."

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. Forty bit encryption technology is so elementary, it took a graduate student a mere 3 ½ hours to break a code last January. 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.

"Since foreign companies naturally want to buy secure software, the demand for 40 bit encryption is waning since higher level encryption technology is available," said Smith. "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. "Companies like Microsoft and Web TV are the worldwide leaders in information technology," he said. "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. "The Clinton administration is trying to force companies to develop encryption software that can be decrypted using ‘keys' and then hand the ‘keys' over to government or a third party," explained Smith. "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. "The technology has already proliferated throughout the world," he said. "Our export restrictions are not protecting our national security, they're simply giving foreign software companies a chance to capture the global encryption technology market."

Other countries either have much looser restrictions on encryption technology or no restrictions at all. Canada just recently allowed a company to export its encryption software, and it sells 128 bit encryption for less than fifty dollars. They also offer some encryption software free over the Internet.

The House National Security Committee will consider H.R. 695, The Security and Freedom through Encryption Act, tomorrow, September 9 at 1:00 in Rayburn 2118. H.R. 695, which Smith has cosponsored, would allow any encryption technology to be used by a U.S. citizen or any person in the United States, and would relax export controls on encryption technology so that U.S. software firms are competitive with foreign firms.

A coalition of Members is expected to support a substitute amendment to H.R. 695 consisting of language directing the President to approve all requests for encryption technology exports within sixty days. Smith will fight the change to the legislation.

"I'm prepared to articulate my position to my colleagues and explain why I am so opposed to this unilateral trade restriction on our encryption technology," Smith said. "I hope I can convince some of my committee colleagues to change their position, but if not, I am prepared to continue fighting when this bill reaches the House floor."