As promised, I spoke today with the company mentioned in a Washington
Times article about the Clipper chip announcement. The name of the company
is Secure Communicatiions Technology (Information will be given at the end
of this message on how to contact them).

   Basically they are disturbed about the announcement for many reasons that
we are. More specifically however, Mr. Bryen of Secure Communications
brought to light many points that might interest most of the readers.

   His belief is that AT&T was made known of the clipper well before the
rest of the industry. This is for several reasons, several of which are:

 - A company of AT&T's size could never be able to make a decision to use
   the new chip on the SAME DAY it was announced.

 - Months ago they proposed using their own chip for AT&T's secure telephone
   devices. AT&T basically blew them off as being not interested at all.
   This stuck them as strange, until now...


   Also I spoke with Art Melnick, their cryptographer, he expressed several
concerns over the new Clipper Chip:

  - The obvious backdoor will be able to let many people decrypt the code.

  - Once the key is released to authorities the security of the crypto
    system is lost forever. These keys can end up in the hands of any agency
    of the government.

  - The fact that the escrowed keys never change means that the algorithm
    is vulnerable over time to an attacker.

  - The classified algorithm may hide another backdoor. But he feels that
    it is probably to keep people from forging fake serial numbers, or
    changing the keys themselves.

  - Additionally he feels that the NSA has probably spent enough time and
    money in working on a way to keep this chip from being reversed
    engineered, that he feels that reverse engineering it will be very
    difficult to do. He feels that they have developed a suitable technique
    to protect the chip from this attack. Also he feels that the chip is
    hardware encoded with the algorithm and not microcoded onto the chip.

Additonally I spoke with Mr. Melnick about their algorithm. He couldn't tell
me much about their new agorithm because it hasn't been patented yet.
However he told me a little:

 - The algorithm will be released for public review after patents have been
   granted for it. This is so the crypto community can see that it is
   secure.

 - The algorithm is called NEA for New Encryption Algorithm.
   The details were sketchy because now it is held as a trade secret
   until the patent was issued, but I was told that it will incorporate
   the following:

    - It will have fast encryption of data (Exact specs not given, but
      Mr. Melnick stated "Much faster than what an RS-232 can put out.")

    - It is a symmetric cipher, just like IDEA and DES.

    - It will use 64 bit data blocks for encryption (like DES and IDEA).

    - The key length was not given to me, but Mr. Melnick states that
      it is _adujustable_ and is "More than adequate for security."

    - The algorithm is written in C and Assembler in software form, and
      can be ported to many platforms (Unlike the the Clipper Chip which
      is hardware ONLY and cannot be made into software) This I
      consider a definite plus for the NEA for widespread use.

    - The algorithm will accomodate public key distribution techniques
      such as RSA or Diffie-Hellman. This will also be supported in the
      hardware chip.

    - Right now the projected cost of the NEA chip will be about 10 dollars
      for each!! (Clipper will run 25 each chip [that is if it is produced
      enough, which probably won't happen]).

    - They currently sell a program called C-COM that uses the algorithm
      and a special streaming protocol that does not divide the encrypted
      data into "blocks." This could prevent plaintext attacks if you know
      what the block header is. This program operates at all supported
      RS-232 speeds and uses the software implementation of the algorithm.

    - Most importantly: IT DOES NOT HAVE A BACKDOOR!!



Right now the company is afraid that the new clipper chip will put them out
of business. This is a very real possibility. So they really need help in
stopping the clipper chip from becoming a standard. If you want to contact
them, they can be reached at..

Secure Communications Technology
8700 Georgia Ave. Suite 302
Silver Spring, MD

(301) 588-2200

I talked to Mr. Bryen who represents the company. He can answer any
questions you have.




Any factual errors occurring in this write up are my own and I apologize for
them ahead of time.

 