FC: European update: MI5 codebreaking, Net-taxation, surveillance

[Declan McCullagh <declan () well com>]

http://www.the-times.co.uk/news/pages/Times/frontpage.html?1124027

The Times [London], Monday, 12 June 2000
New MI5 Unit to Crack Criminal Computer Codes
By Michael Evans, Defence Editor

A special codebreaking organisation is to be set up inside the
headquarters of MI5 to crack encrypted communications and computer
discs belonging to suspected organised criminals and terrorists.
The new centre, which will begin to recruit expert codebreakers soon,
will cost about £25 million over the next few years, and has already
been budgeted for by the Home Office.
It is one of the elements of the Government's Regulation of
Investigatory Powers Bill which is to begin the committee stage in the
House of Lords today.
Under the Bill's proposals, law enforcement agencies will be entitled
to request the code keys for encrypted e-mails and Internet networks
from the service providers if an individual or company refuses to hand
over a decrypted version of a message.

[...]


http://www.observer.co.uk/uk_news/story/0,6903,330725,00.html
Father of the web lashes snooping Bill
Jamie Doward
Sunday June 11, 2000
Tim Berners-Lee, regarded as the father of the world wide web, has launched
a blistering attack on government plans to give the security services
sweeping powers to intercept emails and monitor traffic on the internet.
The computer scientist who invented the technologies which underpin the web
told The Observer that the Regulation of Investigatory Powers Bill would
stifle the development of the internet.
He said the Bill - now going through the House of Lords - would have been
thrown out 'in a second' in the US. 'It gives a government great power to
abuse personal and commercial innovation.'



http://www.worldnetdaily.com/bluesky_exnews/20000612_xex_eu_wants_to_.shtml

                  EU wants to force
                  Net tax on U.S.
                  Europeans can now skirt fee by
                  getting American software online

                  By Joseph A. D'Agostino

                  Two disputes percolating through the World
                  Trade Organization system are threatening to
                  pressure the United States to change its laws
                  relating to music royalties and Internet taxation.

                  The Internet dispute could force the United
                  States to reverse a moratorium on Internet
                  taxation that was initially passed in 1998 and
                  that Congress now wants to extend through
                  2006.

                  On the royalties matter, a WTO panel issued a
                  preliminary report in April calling on the
                  United States to make all U.S. restaurants, bars
                  and shopping malls pay royalties to European
                  songwriters and musicians when their music is
                  broadcast in a restaurant, bar or shopping mall
                  over a radio or a television.

                  U.S. law currently exempts most public
                  establishments from paying royalties to either
                  foreign or domestic recording artists when
                  music is broadcast into a facility on a radio or
                  TV only.

                  The Internet dispute arises from a tax advantage
                  enjoyed by American software distributors. In
                  Europe, when a consumer purchases software
                  over the Internet that is then delivered via the
                  Internet, he must pay a sales tax to the European
                  Union. Because the United States does not
                  impose a similar tax, Europeans can now
                  purchase software from U.S.-based companies
                  for delivery via the Internet that is not taxed --
                  thereby getting a better deal than buying the
                  same product from a Europe-based distributor.

                  [...]



> From: "Caspar Bowden" <cb () fipr org>
> Subject: IoD voices its concern over e-mail interception plan (9th June 
> Press Release
> Date: Sun, 11 Jun 2000 11:28:07 +0100
> X-Mailer: Microsoft Outlook CWS, Build 9.0.2416 (9.0.2911.0)
> Importance: Normal
>
> FYI - in case you have not seen
>
> --
> Caspar Bowden               Tel: +44(0)20 7354 2333
> Director, Foundation for Information Policy Research
> RIP Information Centre at:    www.fipr.org/rip#media
>
> from http://www.iod.co.uk/rip.html
>
> IoD voices its concern over e-mail interception plan
>
> The Institute of Directors has added its voice to the growing concern within
> the business community over the Government's proposed e-mail interception
> bill. The Regulation of Investigatory Powers Bill (the "RIP Bill") should be
> amended during its passage through the House of Lords next week, urged the
> IoD's head of e-business policy, Prof. Jim Norton.
>
> The IoD is concerned that, despite the obviously worthy anti-crime aims, the
> definitions used in the Bill could be interpreted far too broadly. Prof.
> Norton said:
>
> "I fully support the aims of this Bill in bringing UK interception powers
> within the scope of the European Convention on Human Rights. However I have
> real worries about much of the detail. Loose definitions and drafting might
> allow future administrations scope to re-interpret and extend the use of
> these powers far beyond the Government's stated goals.
>
> "They could, for example, be used by a wide range of officials, and not just
> the more obvious police and security services, to require access to
> encryption keys. Is it really the intention to provide Inland Revenue or VAT
> inspectors or DTI Company investigators with these powers? Even the car park
> attendant at the Home Office seems to have them under current drafting!"
>
> Prof. Norton went on to say:
>
> "Confusion also exists between law enforcement access to the content of
> 'messages' which requires at least some form of authorising warrant; and
> access to information about these messages Ð so called 'communications data'
> which under present drafting does not require a warrant. In the e-commerce
> world such 'communications data' is much more meaningful than simply the
> source and destination telephone numbers and the duration of the call that
> was the equivalent for telephone calls. In principle every click of the
> mouse, every page visited, or button clicked could be regarded as such data
> and collected with impunity."
>
> Worried that the Government is scoring an 'own goal' for the UK e-commerce
> industry with the RIP Bill, Prof. Norton urges that Internet policy should
> not be treated as a national issue and the DTI should act to secure
> international agreement.
>
> Prof. Norton said:
>
> "Individuals in multi-national businesses may find themselves placed in an
> invidious position through the operation of this Bill. If an employee is
> served with an order to release highly sensitive encryption keys, they are
> likely also to be served with a 'gagging order' preventing them from
> informing others in the company (such as senior management or security
> staff) that the integrity of their encryption systems has been potentially
> compromised. The employee is protected in this country against the
> consequences of that action. This protection does not extend outside the UK
> to other jurisdictions such as that of the parent company. They may made
> need to be very careful where they travel!"
>
> Prof. Norton commented that:
>
> "The UK stance on this Bill is worrying many companies Ð especially
> multi-nationals who contrast the proposed UK legislation against far more
> business friendly proposals in Ireland, France and Germany and even the
> USA."
>
> As he endorsed suggested amendments to the Bill, already put forward by the
> British Chambers of Commerce, Prof. Norton nevertheless reiterated the IoD's
> determination to work with the Government to achieve the common goal of
> making the UK the best location in the world for e-commerce.
>
> Ends
>
> 9.6.00
>
> Contact Points:
> Jim Norton, head of e-business policy, tel: 020 7451 3111
> Steve Reardon, Director of Communications, tel: 020 7451 3263
> Richard Taylor, Press Officer, tel: 020 7451 3264 e-mail: press () iod co uk


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