EEMA/ EEMA Slams UK Government Over Encryption Restrictions

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23 June 1997

M2 Communications

EEMA/ EEMA Slams UK Government Over Encryption Restrictions

European electronic commerce may be threatened by key escrow proposals

EEMA, the leading European Forum for Advanced Business Communications, has made public its exceptions to the Department of Trade and Industry (DTI) proposals for digital data encryption. EEMA warns that implementation of these proposals will seriously hamper the take up of Electronic Commerce. The UK's plans copy those suggested by the Clinton administration in the states namely the adoption of 'key escrow'.

Key escrow is based on the requirement that anyone that sends an encrypted message must make the key to decrypt it available to the Government. The DTI's proposal will involve Trusted Third Parties (TTP) who will hold copies of the keys to unscramble the data. The TTPs will be obliged to hand over the keys to the judicial authorities upon request.

Threat to UK Companies

In some European countries individuals have the legal right to confidentiality of communications. If the proposals are accepted the DTI will insist on having access to the decryption key of any encrypted mail entering the UK. EEMA believes this could cause many of Britain's foreign trading partners to cease trading electronically with British companies.

EEMA Calls for Common European Legislation

Whilst individual countries within Europe are developing national approaches to the encryption issue, EEMA strongly recommends that European legislation is developed to provide a common market platform. This legislation should encourage and stimulate the growth of Electronic Commerce rather than stifle it. If the DTI proposals are passed the UK government is in danger of forcing the UK industry out of the electronic marketplace by setting inappropriate and non- compatible regulations.

Handicapping Electronic Commerce

The proposal for setting up trusted third parties is unlikely to assist the Government in its battle to safeguard the public by being able to intercept messages and data transmissions. It is probable that only legitimate businesses will comply, as it is unlikely that criminals will obey the law and overtly place their keys with a TTP. EEMA reasons that rather than combating the terrorists and distributors of child pornography the DTI proposals will only serve to reduce UK companies' competitiveness.

Alex Drobik, Chairman of EEMA, comments: "The implications of this key escrow proposal for UK businesses are frightening. Not only are European organisations as a whole disadvantaged by US Encryption export legislation, but now UK companies would be further handicapped within the European marketplace." Alex adds, "Just as Electronic Commerce is set to take off in Europe the UK Government and the DTI is about to clip its wings."

A full copy of EEMA's response to the DTI proposal is available by calling James Hanson at Noiseworks.

Note to Editors:

EEMA, the leading European Forum for Advanced Business Communications, is an international, non-profit making organisation formed in March 1987. It provides an independent forum for the creation of a market platform for all participants in electronic messaging - from users, hardware and software vendors, and government bodies to public and private systems and service providers. The scope of the membership includes companies active in Electronic Commerce specifically those involved in business transactions via EDI, Email, Computer Fax, the Internet, X.400 and the World Wide Web.

CONTACT: James Hanson, Noiseworks Tel: +44 (0)1628 28080 e-mail: james.hanson@noiseworks.com Roger Dean, EEMA Tel: +44 (0)1386 793028 e-mail: EEMA@attmail.com