German code breaking in World War II German code breaking in World War II German code breaking in World War II achieved some notable successes cracking British Naval ciphers until well into the fourth year of the war, but also suffered from a problem typical of the German armed forces of the time: numerous branches and institutions maintained their own cryptographic departments, working on their own without collaboration or sharing results with equivalent units. This led to duplicated effort, to a fragmentation of potential, and to lower efficiency than might have been achieved. There was no central German cryptography agency comparable to the British Bletchley Park facility.
Enigma machine adapted the design for their own cipher machines. An estimated 100,000 Enigma machines were constructed. After the end of World War II, the Allies sold captured Enigma machines, still widely considered secure, to developing countries. On 23 February 1918, Arthur Scherbius applied for a patent for a ciphering machine that used rotors. Scherbius and E. Richard Ritter founded the firm of Scherbius & Ritter. They approached the German Navy and Foreign Office with their design, but neither agency was interested. Scherbius & Ritter then assigned the patent rights to Gewerkschaft Securitas, who founded the "Chiffriermaschinen Aktien-Gesellschaft" (Cipher Machines Stock Corporation)