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Immediately, DN273 came under the international spotlight
and attracted much criticism and comments such as, "the
new Chinese encryption regulation directly threaten
the privacy of computer users".
So why did such regulation attracted so much controversy?
Basically, encryption is all about secrecy and privacy.
It is a technology enabling information or data to be
read by the intended recipient only. This is achieved
by converting a message or data into a different form,
such that no one can understand them without having
access to a "key" in order to convert the
encrypted data into understandable text.
In general, DN273 is an attempt by the Chinese government
to regulate the levels of privacy. However, not surprisingly
though, PRC is not the only government endeavoring to
regulate encryption or communication security. Regulations
has been proposed and implemented by various countries
in one way or another.
For example, the United States, one of the 33 signatory
countries to the Wassenaar Arrangement (WA) - the first
international multilateral arrangement on export controls
for firearms, sensitive dual-use goods and technologies
whose intention is to promote transparency, exchange
of views, information and greater responsibility - has
long been at the opposition against export regulation
or any ruling on encryption technology and products.
As protest against encryption export regulation grew
immense, the US government relaxed their export regulations.
Nevertheless, such move does not come un-supplemented.
Proposals had been put forward to establish key management
systems or publicly recognised certificate authorities,
as a counterpart.
Without doubt, privacy for communication of sensitive
commercial information is of great importance. However,
if businesses are to set up their own costly encryption
system, many of the SMEs (small-to-medium enterprises)
would be out of the scope for such benefits.
Accordingly, Governments around the world have been
proposing schemes to promote data security by use of
encryption keys generated by publicly recognised certificate
authorities, while at the same time setting regulations
on export of commercial encryption products. The results
of these schemes, as expected, have spawned heated arguments
as it has been regarded as a threat to the free-flow
of encryption technology. However, when weighting against
the running costs of maintaining an encryption system
and recovery plans where keys have been lost or under
situations where decryption of the previously protected
(encrypted) commercial information become temporarily
or permanently suspended (e.g. in he case of computer
system breakdown), encryption tools by these authorities
then became justifiable to a lot of SMEs to resort to
for the sake of its financial viability.
Furthermore, when encryption tools and technology are
standardised, users of keys provided by publicly recognised
certificate authorities would save themselves from the
trouble and time of going through the necessary hardware
and software requirements in order to execute the encryption
and decryption process, while the level of achievable
security are known and accepted across users of the
business community.
With the passing of laws, such as the Electronic Transactions
Ordinance (ETO) in Hong Kong and similar laws in other
countries, encryption technology will strengthen businesses'
confidence in negotiating and concluding business transactions
electronically over the internet. This is because parties
to such "over-the-air" transactions will have
equal legal force as is the case under a written contract.
Accordingly, disputes on a transaction which was negotiated
and concluded on the internet could be brought before
the court without having to concern about the fact that
there are no paper evidence.
An added benefit to such over-the-air business deals
is that it allows businesses around the world to be
conducted seamlessly, boundlessly and simultaneously
in the global markets and thus promote and benefit from
globalisation which was traditionally privileged to
large multinational companies (MNCs).
These ideas are similar to those of i-LegalService,
whereby it is the objective of the company to promote
working anytime and anywhere in one of the oldest industry,
the legal profession. Through the employment of encryption
keys and related products provided by recognised certificate
authorities, confidentiality and document authenticity
is assured to the extent that current technology employed
avails, accordingly, these should no longer be issues
concerning lawyers when working over the internet. Lawyers
are encouraged to catch up with the modern fast paced
world and have the mobility that is now becoming common
in many industries and be a truly modern Lawyer!
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