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daemon@ATHENA.MIT.EDU (Central America)
Tue Jul 25 04:15:17 1995

Date: Tue, 25 Jul 1995 04:15:05 -0400
From: Central America <root@charon.MIT.EDU>
To: ca-mtg@charon.MIT.EDU


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aramchek (Lawrence W Chang):

{from system: This user's .plan file is a symlink!}

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othomas (oliver thomas):

"We lived for days
     on nothing
 but food and water."
        - W.C. Fields

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rlcarr (Rich Carreiro):

[0067] daemon@ATHENA.MIT.EDU (PRIVACY Forum)  Privacy_Forum  07/22/95 02:43 (937 lines)
Subject: PRIVACY Forum Digest V04 #16
Date: Fri, 21 Jul 95 22:06 PDT
From: privacy@vortex.com (PRIVACY Forum)
To: PRIVACY-Forum-List@vortex.com

PRIVACY Forum Digest     Friday, 21 July 1995     Volume 04 : Issue 16

            Moderated by Lauren Weinstein (lauren@vortex.com)         
              Vortex Technology, Woodland Hills, CA, U.S.A.
	
                       ===== PRIVACY FORUM =====              

   	  The PRIVACY Forum digest is supported in part by the 
	      ACM Committee on Computers and Public Policy,
     		     and the Data Services Division 
	           of MCI Communications Corporation.


CONTENTS 
	S.974 - Beyond Clipper and Digital Wiretap (Jim Gillogly)
[deleted]

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Date:    Wed, 19 Jul 95 19:20:53 PDT
From:    Jim Gillogly <jim@rand.org>
Subject: S.974 - Beyond Clipper and Digital Wiretap

Sen. Grassley introduced a bill in the Senate on 27 Jun 1995 which he
calls "The Anti-electronic Racketeering Act", defining newly-identified
computer crimes to be subject to the confiscatory RICO laws.  It betrays
an astonishing lack of understanding of the Net it tries to regulate, but
its draconian penalties for ill-defined acts still make it potentially a
very effective means of selectively harassing privacy advocates.  While
it has a good chance of stalling out in the Judiciary Committee, even a
10% chance of passage would be too high for comfort whether or not its
most startling malapropisms were made coherent.

The bill includes total inanities, such as making it "unlawful for any
person to damage or threaten to damage electronically or digitally stored
data."  You evidently can't delete or edit files under the new regime.
Further, "It shall be unlawful to use a computer or computer network to
transfer unlicensed computer software, regardless of whether the transfer
is performed for economic consideration."  This means no more code
fragments, shareware, or freeware to be distributed on the Net.  Are they
thinking just of commercial software?  Are they thinking?  The key concepts
such as "computer network" are not defined, another source of concern.

The main assaults on privacy are intentional though, outlawing
distribution of encryption programs (strong or weak) and anonymous
financial transactions, and explicitly weakening the parts of the Privacy
Act that the government violated in the Steve Jackson case.
The encryption part:

  `Sec. 1030A. Racketeering-related crimes involving computers
    `(a) It shall be unlawful--
...     `(2) to distribute computer software that encodes or encrypts
      electronic or digital communications to computer networks that
      the person distributing the software knows or reasonably should
      know, is  accessible  to  foreign  nationals  and  foreign
      governments, regardless of whether such software has been
      designated as nonexportable;

Since foreign nationals and foreign governments are on virtually all
networks, including (for example) my company's internal network, this
means no encryption code can be distributed on any network at all.  The
"regardless" clause indicates that the bill isn't restricting just strong
encryption programs, but any encryption programs at all -- well beyond the
already onerous ITAR restrictions.

An exception is given that allows distribution of encryption programs
under one circumstance:

	`(c) It shall be an affirmative defense to prosecution under this
      section that the software at issue used a universal decoding device
      or program that was provided to the Department of Justice prior to
      the distribution.'.

This is even more restrictive than the ill-judged Clipper initiative, which
was to have key escrow be (a) voluntary, and (b) distributed between two
agents which were not necessarily in DoJ.  Further, since the issue at hand
is software rather than hardware, it means in effect that there must be a
back door in the encryption algorithm itself, since  otherwise the
algorithm could be used with keys that had not been handed over to DoJ.

If the intent of the bill is to prevent racketeers from using encryption,
it misses the mark entirely by not making encryption itself illegal.
It makes net-based authors responsible for acts committed by their users.
Encryption, and even strong encryption, is an integral part of many
commercial packages available to foreign nationals and others in U.S.
software stores; this bill does not address distribution of strong (or
weak) encryption through commercial channels.

[Sarcasm mode ON.]  This would seem at first to ignore the international
nature of the Net, since obviously people in Finland, the U.K., Italy, and
Germany have excellent cryptography FTP sites accessible to foreign (i.e.
non-U.S.) nationals.  However, this is covered also:

	`(g)(1)(A) Any act prohibited by this section that is committed
      using any computer, computer facility, or computer network that is
      physically located within the territorial jurisdiction of the
      United States shall be deemed to have been committed within the
      territorial jurisdiction of the United States.
	`(B) Any action taken in furtherance of an act described in
      subparagraph (A) shall be deemed to have been committed in the
      territorial jurisdiction of the United States.
	`(2) In any prosecution under this section involving acts deemed
      to be committed within the territorial jurisdiction of the United
      States under this subsection, venue shall be proper where the
      computer, computer facility, or computer network was physically
      situated at the time at least one of the wrongful acts was
      committed.'.

Do we look forward to a U.S. commando raid on an FTP site in Milan to
bring the perpetrators back to stand trial here?  [Sarcasm mode OFF.]

Declaring these new crimes racketeering under the RICO statutes is
the real perniciousness of the bill.  Any act of accessing the software
by a foreign national is considered a separate offense, so that (for
example) posting a simulation of the Captain Midnight Secret Squadron
Decoder Badge to Usenet would result in millions of separate violations,
making your computer subject to confiscation without due (or any) process.

Sen. Grassley regards this as a positive feature, and has even gone
further.  When introducing the bill he said:

   It is not enough to simply modernize the Criminal Code. We also
   have to reconsider many of the difficult procedural burdens that
   prosecutors must overcome...

   ... for law enforcers--both State and Federal--who have seized a
   computer which contains both contraband or evidence and purely private
   material, I have created a good-faith standard so that law enforcers
   are not shackled by undue restrictions...

So what can we do about it?  Petitions appear to be ineffective: the one
we sent to Sen. Leahy made no impression at all -- perhaps Net people
have been so demonized lately that having their bad opinion is considered
a positive good.  We could try supporting lobbying organizations, but we
need to be careful that the ones we support will oppose these bills --
many privacy advocates felt betrayed in the Digital Wiretap fight.
We could try to educate our own representatives, but there's no evidence
that they read incoming mail any further than checking the "favors" or
"opposes" box on the "constituent responses" form.  Do we engage in
pro-active resistance, such as making sure widespread plug-and-play strong
cryptography and digital cash are firmly in place before nonsensical
legislation like this or its successors can be enacted?

Whatever we do, we'd better do it soon:  Washington has discovered the
Net, and they <will> pass regulations, whether they understand what
they're doing or not.  When the trial balloon for Clipper was floated
it seemed clear to many of us that it didn't make sense as long as it
was voluntary.  This proposed bill would outlaw distribution of effective
crypto software, and the next one could well criminalize encryption itself.

Required reading: ftp://ftp.loc.gov/pub/thomas/c104/s974.is.FTP

	Jim Gillogly
	Highday, 27 Afterlithe S.R. 1995, 02:10

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