CLINTON OKAYS ENCRYPTION POLICY CHANGE
President Clinton has signed an executive order loosening U.S. encryption
export policy, allowing companies to begin exporting encryption technology
with key lengths longer than the previous limit of 40 bits. At the same
time, the order mandates third party "key escrow," ensuring that U.S. law
officials could obtain decoding keys on a case by case basis from a
"trusted" third party. Hewlett-Packard has already developed an encryption
technology that can be built into any computer, but must be activated by a
third party before it can be used. Theoretically, that would give the
government the ability, through licensing and other restrictions, to
determine whose encryption system gets activated. "We support any move that
encourages electronic commerce in a safe and sensible manner," says an HP
spokesman. (Wall Street Journal 18 Nov 96 B3)
TIME PATHFINDER MOVES TO SUBSCRIPTION MODEL
Time Inc. has launched its Pathfinder Personal Edition, offering customized
Web content to subscribers at $4.95 a month. Readers can choose content
from Time, Sports Illustrated, Fortune and Entertainment Weekly, as well as
30 news feeds and other content sources. Time hopes its new format will
experience the same success that the Wall Street Journal's online
subscription service has enjoyed. The Journal currently claims 30,000
online subscribers. (Broadcasting & Cable 11 Nov 96 p65)
MASTERCARD TAKES 51% STAKE IN MONDEX
MasterCard is acquiring a 51% stake in Mondex International, a company which
issues prepaid smart cards containing embedded computer chips that store
value and allow a card holder to make small retail purchases. Additional
value can be added to a card from the card holder's bank account. (New York
Times 19 Nov 96 C19)