4 April 1998

    Date: Sat, 4 Apr 1998 09:40:56 -0800
    To: cypherpunks@cyberpass.net
    From: Martin Minow <minow@apple.com>
    Subject: Sweden strengthens encryption export restrictions
    Cc: jon@worldbenders.com, markoff@nytimes.com

    An article in the Swedish newspaper, Svenska Dagbladet, states that
    Sweden plans to restrict encryption software export.  While there is
    no current requirement to obtain export-permission for encryption
    products, Staffan Sohlman, head of the Inspectorate for Strategic
    Products, recommends that the government implement the Wassenaar-agreement
    limitations.

    This has led to the government refusing permission for the "Roxen"
    encryption program manufactured by the Idonex corporation.

    According to what Staffan Sohlman said to the Swedish magazine
    Ny Teknik ("New Technology"), Sweden has unwritten and secret
    political obligations that date back to cold war days.

    Currently, Swedish export regulations exempt computer programs
    that are "generally available" and, for example, are sold by mail
    order or telephone and can be installed "without significant
    assistance" from the seller.

    -----

    Idonex is at

       http://www.idonex.se/ (Swedish) or

       http://www.idonex.com/ (English).

    Roxen Challengar is a web server supporting 128-bit SSL encryption
    and cannot be exported from Sweden. There is more information on
    the denial of their export application at

       http://www.roxen.com/crypto/

    including the linkage to the Wassenaar agreement. Idorex was, however,
    granted permission for 40-bit encrypted products.

    You may also find this "non-paper" interesting:

       http://www.roxen.com/crypto/docs/commission_non-paper_en.html

    In particular, export regulations are currently restricted to
    "tangible goods:" "The export-control system dopted by the Community
    limits its scope to the export of goods and technology in tangible forms.
    It therefore does  not provide for controls on the transfer of know-how if
    the latter is  not in tangible form of a blue-print or a written or recorded
    document  for instance." ... "The existence of this loophole is not satisfactory. On the other hand, it must be rememberd that the control
    of technology transfer by intangible forms is technically difficult
    (inforcement problems) an  politically sensitive (questions of restrictions
    to the freedom of providing services or even the free movement of persons). "

    Staffan Sohlman, "War material inspector" also recommends that Idonex
    not be given permission to "Pike," an encryption package written in the
    Pike programming language where a number of strong encryption algorithms
    are made available. [my translation of Sohlman's report to the government]
    at

       http://www.roxen.com/crypto/docs/statement_isp_19971219_se.html

    ------

    Martin Minow
    minow@apple.com