U.S. Department of Commerce approves export of strong encryption products by Ascend Communications, Cisco Systems, 3Com, Hewlett-Packard Company, Network Associates, Nortel Networks, Novell, RedCreek Communications, Secure Computing Corporation, and Sun Microsystems
SAN JOSE, Calif. -- October 19, 1998 -- The Alliance for Network Security (ANS) today hailed the Commerce Department's decision to approve the export of strong encryption as a good first step toward ensuring U.S. high-tech competitiveness and jobs in this growing industry.
In July, 10 members of ANS, a coalition of high-tech companies seekingencryption export reform, asked the Commerce Department for the approval of "private doorbell" encryption products. This "private doorbell" approach toencryption products ensures privacy while responding to the concerns of lawenforcement authorities. Using this operator action technology, informationtraveling over a data network remains secure and private unless a networkoperator is served with a legal warrant or court order to give access to lawenforcement. In no case does law enforcement obtain access to data without the knowledge of the systems administrator.
The license approvals permit exports of 56-bit DES products including mostfirewalls, VPNs (Virtual Private Networks), and E-commerce products tovirtually all customers and countries, and those products with stronger levelsof encryption to commercial end users in certain countries. While theapprovals mark the first step in the effort to find constructive technicalsolutions, they do not address customers' needs for stronger security in many key sectors such as telecommunications and Internet service providers (ISPs).
"These license approvals are an excellent example of the ability of government and the private sector to partner to find solutions to the encryption issue," said Commerce Under Secretary for Export Administration, William A. Reinsch. "We are optimistic that the industry will be able to build on this market-driven solution to further expand its world market share."
"It is encouraging that industry and national security interests can workhand-in-hand to find simple and efficient solutions. With our approved exportlicense, Ascend's international and domestic customers are empowered to conduct business on the Internet more securely. We look forward to further cooperation between technology forerunners and legislative bodies,"said Dick Slezak, Vice President, Ascend Enterprise Access Division.
"We are pleased with the Commerce Department's decision because it means we can now offer stronger security solutions to many of our customers," said Cisco Systems General Counsel and Vice President of Government Affairs, Dan Scheinman. "While this is an excellent example of how government and business can work together, more needs to be done on encryption export reform to promote U.S. leadership in this critical area and foster American job growth."
"This export policy breakthrough by the Department of Commerce exemplifies the benefits of practical cooperation between leaders of the networking industry and the U.S. Government," said Mark Michael, 3Com's Senior Vice President and General Counsel. "Converged networking is transforming global communication between people and organizations, and users connected to either the edge or the core of the network require the benefit of information security. This relief takes us all a big step forward to a workable global solution."
"This decision represents a tremendous effort on the part of government andindustry to modernize our export policy on encryption and will allow us toincrease our exports of products containing strong encryption, which is goodfor the U.S. economy and good for U.S. jobs," said Dave House, president ofNortel Networks. "It isn't a perfect solution, but it is certainly an indication of both groups' willingness to work together in an effort to promote U.S. business abroad."
"Security for our customers' data and electronic transactions has always been a bedrock of our technology strategy," said Novell's Chief Technology Officer Glenn Ricart. "With this license, we are finally seeing some progress in the long debate about U.S. encryption policy."
"As a start-up focused exclusively on the security market, a levelinternational playing field is essential to RedCreek's success," said Dr. TomSteding, CEO, RedCreek Communications Inc. "This license agreement is positive evidence that improved government regulations can also accrue directly to early stage, high-growth companies. We look forward to further progress in strengthening the competitive position of U.S. security companies through continuing relaxed regulations."
"The 'private doorbell' approach proposed by this group in June was a strongfirst step,"said Jeff Waxman, Chairman and CEO of Secure ComputingCorporation. "This decision by the Commerce Department is an outstanding next step in ensuring that we are able to deliver the strongest security solutions to our customers who make up today's global marketplace."
The Alliance for Network Security includes:
Ascend Communications, Bay Networks, Cisco Systems, 3Com, Hewlett-Packard Company, Intel, Microsoft, Netscape Communications Corporation, Network Associates, Novell, RedCreek Communications, Secure Computing, and Sun MicrosystemsPress Contacts:
| Ascend Communications Lee Kallman Alexander Communications (404) 897-2300 ext. 332 lkallman@alexandercom.com |
Ascend Communications Eric Warren (510) 747-6683 eric.warren@ascend.com |
| Cisco Systems, Inc. Tom Galvin (408) 525-8530 tgalvin@cisco.com |
3Com Peter Ruzicka (408) 326-5000 peter_ruzicka@3com.com |
| Hewlett Packard Company Louise Runkle (650) 858-3826 lrunkle@ccipr.com |
Intel Bill Calder (503) 264-5669 bill.calder@intel.com |
| Microsoft Mark Murray (425) 936-3306 mark_murray@microsoft.com |
Netscape Communications Chris Holten (650) 937-2521 chrish@netscape.com |
| Network Associates Cabe Franklin (415) 975-2223 cabe.franklin@cbpr.com |
Nortel Networks Mike Deshaies (408) 495-3292 |
| Novell Julie Hatchett (801) 228-5073 jahatchett@novell.com |
Secure Computing Ken Montgomery (408) 918-6120 Ken_Montgomery@securecomputing.com |
| Sun Microsystems Jeffrey Brainard (650) 786-7484 jeff.brainard@eng.sun.com |
Redcreek Communications Rich Farana (510) 745-3951 rfarana@redcreek.com |
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