BXA Takes First Public Encryption Export Enforcement Action

[Donald ramsbottom]

Below is a snippet from E Commerce Law week a legal list I'm on:

I would expect things to get a bit tighter from now on (exports and
scruitiny wise), we will see.




" BXA Takes First Public Encryption Export Enforcement Action 
At the end of February, the Bureau of Export Administration (BXA) of the US
Department of Commerce imposed a $95,000 penalty on Neopoint, Inc., a San
Diego based wireless phone maker, for illegal exports of 128-bit encryption
software to two firms in South Korea.  The exports in question took place
on ten occasions between March 1998 and June 1999, before the substantial
liberalization of export rules for strong encryption software, hardware and
technology that took effect in January 2000.  At the time of the Neopoint
shipments, export licenses were required for such shipments, and BXA
reached the conclusion that Neopoint knew of that requirement.  Since such
knowing violations of export rules often result in significant enforcement
action, the penalties imposed on Neopoint do not necessarily indicate that
BXA is now taking an aggressive approach to encryption export enforcement.
But the action does suggest that, although the re-regulation of encryption
exports suggested by some after September 11 has not come to pass, US
government interest in encryption exports is far from dormant."





Donald Ramsbottom BA LLb (Hons) PGdip
Ramsbottom & Co Solicitors
Internet and Global Encryption Law Specialists & General UK  Law Matters
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