WEBVTT

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JACK: My grandfather went most of his life without using or needing encryption but now we

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live in a time where encryption is intertwined in almost all of our electronic communications. That

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shift to go from a world where everyday people didn’t use encryption at all to a world where

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everyone uses it and doesn’t even know it was a major transformation and there was nothing easy

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about it. There were powers at play that didn’t want everyday people to encrypt their messages

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but human rights and civil rights activists fought and fought and fought. You know the

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outcome of this story but you may not know what it took for us to get here. Let’s take a journey

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through time back to the 1990s and understand exactly what were to be known as the Crypto Wars.

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JACK (INTRO): [INTRO MUSIC] This is Darknet Diaries, true stories

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from the dark side of the internet. I’m Jack Rhysider. [INTRO MUSIC ENDS]

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JACK: Before we get started, I feel like I should say something. It’s really hard for

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me to stay neutral on this topic because I’m such a privacy and security advocate.

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This is a topic that’s important to me and I’m staunchly on a specific side,

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so upfront I just want to say that I apologize if I don’t represent both sides fairly in this story.

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To help take us through this pivotal piece of history, we have a very special guest.

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CINDY: My name is Cindy Cohn and I’m the Executive Director of the Electronic Frontier Foundation.

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JACK: The EFF is a non-profit digital rights group. It helps protect your

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civil liberties online. Cindy has been with the EFF for over twenty years and

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she’s played a crucial part in the Crypto Wars as we’ll soon discover. But before we get into

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her role in it we need to take a quick glimpse into the history of cryptography.

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CINDY: Cryptography has been used by military people to protect their plans and share

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information say, across between the generals and the front lines for as far back as Julius

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Caesar. Caesar had a cypher that they used. In World War II there’s some great stories about

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how the ability to break the German code, the enigma machine which they were using to code had

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a tremendous influence on the ability of the allies to win the war. There’s great stories

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about both the code breakers in Bletchley Park breaking the German code, there were also really

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successful efforts to break the Japanese codes. Lots of people will, I think quite credibly say

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that the allies’ ability to break encryption codes had a lot to do with us actually winning the war.

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JACK: [BEEPING] Encryption is when you take a message and encode it in such a

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way that if someone else were to get that message,

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they would not be able to read it. But then whenever the receiver gets the message,

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they would be able to decode it and read the message. This is also known as cryptography.

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CINDY: The military has always viewed encryption as a part of its tool set, part of what they

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needed to do in order to help us win military wars. The US State Department keeps a list

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called the US Munitions List that has all of the things that the government treats as a military

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tool such that it can’t be exported without a license from the government. The US Munitions

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List is pretty long. It has things that will be – it has tanks and surface-to-air missiles and

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submarines and things like that that you can’t – and military subs, that if you build them

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or a piece of them you need to get a license from the US government before you export it.

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JACK: During the Cold War era, sometime in the 1970s or 80s,

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the US State Department added cryptography to the Munitions List.

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CINDY: It wasn’t particularly important to the rest of us [00:05:00] because the rest of us

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didn’t really need to have strong encryption in what we did every day. [MUSIC] That’s kind of what

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the world looked like heading into the early days of the internet. The shift came as the internet

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was getting to be developed, especially in the early 1990s, just before the World Wide Web but

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when a lot more people were beginning to think about what the world would look like if we had

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everybody in the world connected via digital technology. The realization that we were going

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to need to have privacy and security in this new world and that encryption was

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one of the ways that you could get it was fairly obvious to a lot of early thinkers about this.

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Suddenly this thing that wasn’t particularly relevant to the rest of us,

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the fact that the government controlled encryption technology suddenly became very

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relevant as we started thinking about how to build an internet that would really work for

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every day, ordinary people who wanted to do commerce or have a private conversation or

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use this technology to develop new tools that they might need to protect as trade secrets,

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or keep confidential. Also, keep the network secure. Encryption does both of these things;

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it both keeps things private and it keeps things secure. It emerged as one of the really important

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technologies that we were going to have to have available if we were going to have an

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internet that really worked for everybody. The government created an encryption standard that

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it let people use so that there could at least be some encryption but it was very, very weak.

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JACK: This standard was known as DES and stood for Data Encryption Standard. With

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it you can encrypt your data or a message and anyone who reads the encrypted message

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could not understand what it said. The person receiving the message had a key

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to decrypt the message but by the time the internet was taking shape

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DES had already been around for twenty years and was starting to show its age.

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CINDY: Most cryptographers, most mathematicians knew this for years. By the 90s DES was clearly

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not good security anymore. The government was pretending like it was, and one of the

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– it was kind of one of those situations in which the government policy people wanted

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something to be true, that DES was really secure, because they had back-doored it,

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because they knew that it wasn’t really secure. They could always break it and were pretending

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like it was really secure and hoping that nobody noticed. But of course, people did notice.

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JACK: The government knew 40-bit DES encryption was

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not very strong but insisted we use it anyways.

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CINDY: A guy named Bobby Inman who was the head of the NSA in the 90s,

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but there are other people as well, who were making representations about DES that were I

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think not really true. You have to either think that they knew what they were talking about and

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were basically trying to convince the rest of us that it wasn’t, or that they didn’t

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know what they were talking about, in which case it’s a little troubling because they’re the NSA.

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JACK: Businesses and banks were digitizing their data and the need for all this data

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to be encrypted slowly became more and more important. The early 90s was a place where…

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CINDY: The people are engaging in various kinds of protest activity, political organizing,

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all of that sort of activity. Encryption is tremendously important for people who

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are trying to change the government, who are trying to change corporate polices,

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who are trying to stand up for building a world that is better than the one that

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we have. We know that the US government has traditionally spied on people who

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are engaging in political protests. We know they spied on Martin Luther King,

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we know they spied on John Lennon, we know that they spied on all of the civil rights movement.

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JACK: This is why PGP got started. Phil Zimmermann, a software engineer,

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developed a much more secure way of communicating called PGP which stood for Pretty Good Privacy. He

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helped human rights activists use it. He put his PGP code on a FTP server for anyone to download

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and use. While Phil said he did not spread it outside the US, it eventually found its way to the

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other side of the US borders. Because cryptography was considered a munition, Phil was investigated

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by the US Customs Service for violating the Arms Export [00:10:00] Control Act. This would be the

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same violation if someone were to export stinger missiles outside the US without an Arms Permit.

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Businesses were originally fine with DES as the standard even though they knew stronger

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encryption existed, because in the 80s the only adversary to businesses were other businesses.

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They knew other businesses didn’t have strong crypto analytic capabilities. Even if it was weak,

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nobody had the ability to crack it except for governments but it started to become

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clear that other nations were trying to develop ways to break DES so businesses

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were starting to get a little worried and wanted to use stronger encryption.

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Businesses started using PGP as a form of communicating trade secrets and sensitive

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data. Using PGP internally was legal as long as the encryption didn’t cross the US border.

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For the next few years Phil would be continually investigated for spreading his encryption method

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around the world. A case was brought against him by the government for violating the Arms Export

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Control Act. From what I can tell, the battle between Phil Zimmermann and the US government was

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the first battle of the Crypto Wars. The users of the internet, security companies, and banks

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were all starting to request higher and higher security encryptions to be used by the people.

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CINDY: On the other side was the military and law enforcement saying no,

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we need to keep the encryption weak so we can catch the bad guys. We were pointing out that

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most of us would rather be secure in the first instance and not get robbed than have very

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low security but slightly increase the chance that they might catch the robbers afterwards.

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JACK: In 1993 Bruce Schneier published a book called Applied Cryptography. This book

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describes various cryptographic algorithms and how to use them. It even contains algorithms

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which were not allowed to be used on the internet. An electronic engineer named Phil

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Karn asked US State Department for a commodities jurisdiction for the book. He wanted to know if he

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could legally ship the book across US borders. Since there’s no export regulations on books,

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he was given permission to export the book. Then Phil Karn took a few pages

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from the book which contained some cryptographic algorithms and placed them on a floppy disc. He

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then requested a commodity jurisdiction for the floppy disc. The State Department

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had a discussion with the NSA and denied the request. We know they had a discussion with

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the NSA because of records requested through the Freedom of Information Act years later.

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Because the encryption was in electronic form it was now considered a regulated munition

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and was not allowed to cross US borders in that form. This created quite a controversy.

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A book containing a mathematical algorithm can be sent across the border but a floppy disc with the

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same algorithm cannot? So Phil Karn sued the US State Department. He believed that if the

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data contained in a book was considered protected under the First Amendment, then data contained on

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a floppy disc should also be protected in the same way. Once Phil Zimmermann heard of this

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lawsuit he decided to print his PGP source code in a book format. He even took great care into making

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the book easily scannable. He too, asked for a commodity jurisdiction on his book but the State

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Department was now more aware of the situation and did not grant him the right to export the book,

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but really didn’t deny him either. The State Department just sat on the request for a while.

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Phil Zimmermann’s publisher didn’t wait for a response;

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instead they started shipping the book containing his PGP code all over the world.

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The security community took this in various other directions too, such as

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printing algorithms on t-shirts which would then make the t-shirt a regulated munition, and when

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something is a regulated munition like that, you can’t even allow foreigners to read the

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t-shirt. Simply wearing that shirt in front of a foreigner violated the Arms Export Control Act.

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CINDY: Several things happened; I launched a team from EFF with the EFF lawyers,

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launched a lawsuit against the encryption technologies. There were actually three

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lawsuits that were filed. We handled one called Bernstein vs. Department of Justice.

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JACK: Another cryptographer named Dan Bernstein was developing encryption methods that were above

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the regulated limit. In 1995 Bernstein wanted to write about his encryption,

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give talks about it, and publish the source code on the internet. The Arms Export Control

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Act and the International Traffic and Arms Regulation required Bernstein to

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submit his ideas about cryptography to the government for review which also required him

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to register as an arms dealer and to apply for a license. All this simply to publish his ideas

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about cryptography to the internet. Bernstein decided to do battle against the [00:15:00] US

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Department of Justice and he got help from the EFF; specifically, Cindy Cohn herself.

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CINDY: Yeah.

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JACK: The EFF took their best lawyers to go and help out Bernstein.

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CINDY: Yeah, that was exactly what the goal of the litigation was, to make sure

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that people could publish. Publishing on the internet always is an export, right,

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because everybody in the world can see what gets published on the internet.

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We wanted people to be able to publish and share strong encryption on the internet.

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To get there, what we did was we argued that computer programs, computer code was protected

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speech under the First Amendment and that the government’s regulations of that speech

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in the form of the Munitions List Regulations were not consistent with the First Amendment.

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JACK: For the next year Bernstein, Cindy,

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and the EFF did battle against the US Department of Justice. [MUSIC] In

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1996 a professor at Case Western University named Peter Junger also joined the battle.

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CINDY: Yeah, Peter Junger is the third case. He also was arguing – he was a

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law professor but he also had a computer science background. He argued basically

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the same thing as professor Bernstein, that he wanted to publish code as well.

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JACK: Not only did he want to publish code to the internet but he also wanted

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to teach a class on cryptography. But because he included cryptography as a topic of his class,

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he was restricted from accepting foreign students

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in his class. This resulted in Junger challenging the export laws as well.

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CINDY: That case was going on in Cleveland. Our case, the EFF’s case was going on in California

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and then Phil Karn’s case was going on in DC. The three of us all worked together to try to

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make sure that we were putting as much pressure on the government as we could collectively.

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JACK: By this point there were numerous businesses expressing a need for stronger

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encryption for their data. Banks in particular were requesting the government allow them to

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use a stronger encryption method. Specifically, the US government was not allowing encryption

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that was over 40 bits in length to be used on the internet. Around this time AT&T created a

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phone that would encrypt a phone call. It basically created a modem connection from

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one end to the other and digitized the voice and then did a DES encryption on the data. AT&T sold

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these phones for $1,400 in the mid-90s. The US government freaked out about this phone. They

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contacted AT&T and said they have a better solution. The government had been working on

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a new way to encrypt data electronically using a specialized computer microchip.

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The encryption was far superior to the common DES, possibly even unbreakable. The government

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called this the Clipper Chip. The government developed this chip for anyone who wanted to

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use stronger encryption and so, a solution was found. The government urged AT&T to use the chip

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on their phone. AT&T was hesitant at first but the government offered to buy a bunch of these

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phones if they added the chip. AT&T added the Clipper Chip into the phone and the US

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government bought a ton of these phones, but in the features of the Clipper Chip there was

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one rather large asterisk. The Clipper Chip had a backdoor key built into it which allowed the

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government to decrypt any message encrypted by the chip. The government was basically allowing people

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to use a rather strong encryption method but had a key to break the encryption if they needed it.

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The idea was that the government would be the only one who would ever have the key.

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CINDY: One of the things that happened right after that got released, is a guy by the name of Matt

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Blaze, who’s now a professor at the University of Pennsylvania of Computer Science, a very famous

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computer science professor demonstrated that these Clipper Chips were really insecure and

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demonstrated what we all know is true right now, is that if you’re going – you can’t build a door

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into strong encryption and only expect the good guys to ever figure out what the key is,

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to ever have a key to it. If you’re going to weaken the encryption, they’ll let the good guys

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have a key. You’re going to weaken the encryption such so that the bad guys will have access too.

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The demonstration of the flaws in the Clipper Chip that Matt Blaze did was really central to

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this [00:20:00] conversation because ultimately it meant that the government dropped the Clipper

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Chip idea. That was the first nail in the coffin of the government’s crypto policy. The second

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thing that happened was we were beginning to win our lawsuit. We won it at the District Court and

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then we also won it at the Court of Appeals. At the same time there were efforts in Congress that

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were moving along a little more slowly. There was also direct pressure on the administration from

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the tech companies and Al Gore, who was wanting to be president after Clinton and was a pretty

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technically savvy guy. He understood that this position wasn’t very good and he wanted

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to curry favor with this growing Silicon Valley group of companies. Ultimately what happened,

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the government decided that they were not going to keep encryption on the Munitions List anymore.

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JACK: On November 15, 1996, Bill Clinton signed Executive Order

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13026 which removed encryption from the Munitions List. The Executive Order also

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moved who oversees encryption from the US State Department to the US Department of

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Commerce. Signing the Executive Order was a major victory for the civil rights activists.

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CINDY: I’m sure that we had a party because we always had parties back

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then. I’m sure that we did. I think there was much champagne and

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we were really happy about it. We were a little nervous that they would backtrack. We actually

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had some meetings with the government about it and ultimately I flew to DC

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and we had some meetings with them to settle on exactly what this was going to look like.

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JACK: Actually, it turns out the government was still holding a position on the battlefront.

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See, the government was still requiring you to get a license for encryption and still regulated it.

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CINDY: The government only licensed 40-bit DES. They said you can have all the encryption you

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want as long as it’s 40-bit which is a little like saying you can have all the security you

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want as long as there’s nothing but a really weak lock on your door. It was becoming obvious

00:20:55.200 --> 00:21:00.240
that people needed more encryption than something that was stronger encryption than just 40 bits.

00:21:00.240 --> 00:21:06.400
JACK: Because encryption was limited to only 40 bits in length it severely limited how secure our

00:21:06.400 --> 00:21:12.160
computers could be. There were numerous stronger cyphers available but under government regulation

00:21:12.160 --> 00:21:19.760
this was not allowed to be used. A company called RSA Security sponsored a DES challenge.

00:21:19.760 --> 00:21:25.920
They offered a reward for anyone who could crack the DES cypher. In 1997 a group found

00:21:25.920 --> 00:21:32.160
a way to brute-force and crack a DES message. It took them 39 days to decipher the message.

00:21:32.160 --> 00:21:35.920
Cryptographers thought this would be enough for the government to allow people to use stronger

00:21:35.920 --> 00:21:41.840
encryption but that didn’t happen. NIST, the National Institute of Standards and Technology,

00:21:41.840 --> 00:21:46.480
still considered DES to be safe. The government downplayed the issue by

00:21:46.480 --> 00:21:51.680
saying 39 days to crack the code was too long of a time for it to be a significant threat.

00:21:51.680 --> 00:21:59.680
CINDY: One of the things that happened as a result of this weird disconnect is that EFF

00:21:59.680 --> 00:22:08.480
created a tool called the DES Cracker. They still exist. It was a hardware tool that basically,

00:22:08.480 --> 00:22:17.600
very cheaply, could break DES. The reason to do that was to demonstrate that the government wasn’t

00:22:17.600 --> 00:22:21.840
being straight with people about how secure the technology was and that we needed to move

00:22:21.840 --> 00:22:26.880
to a more secure government standard. DES is a government standard. If you’re going to sell to

00:22:26.880 --> 00:22:30.560
the government or you’re in the financial industry you need to be licensed by the government.

00:22:30.560 --> 00:22:38.240
JACK: The EFF called this tool Deep Crack and could crack a DES message in just 56 hours.

00:22:38.240 --> 00:22:44.640
But still, the government did not change their stance on DES and still continued to endorse it.

00:22:44.640 --> 00:22:50.880
A few months after that the EFF and the winners of the first DES challenge joined together to

00:22:50.880 --> 00:22:57.680
develop an even faster way to crack DES. They were able to crack a message in just 22 hours.

00:22:57.680 --> 00:23:00.880
CINDY: We did it because we weren’t getting anywhere with the government.

00:23:00.880 --> 00:23:05.520
They were pretending, again, continuing to pretend that the emperor had clothes on when

00:23:05.520 --> 00:23:09.360
we were pointing out that the emperor didn’t have any clothes. What EFF built

00:23:09.360 --> 00:23:14.800
was completely available for bad guys to build all over the world. We didn’t create anything.

00:23:14.800 --> 00:23:20.000
We just demonstrated to the public what was long-known privately which was any bad guys

00:23:20.000 --> 00:23:24.560
with access to really straightforward, off the shelf technology could build something that

00:23:24.560 --> 00:23:31.280
would break the security that all these financial institutions were relying on to protect our money.

00:23:31.280 --> 00:23:36.320
JACK: This was the [00:25:00] last battle of the war. Once someone could crack a DES message in

00:23:36.320 --> 00:23:41.680
under a day, the US government agreed it was no longer secure. They released a new cypher

00:23:41.680 --> 00:23:48.320
called Advanced Encryption Standard, or AES. AES used 120-bit strength and was far superior

00:23:48.320 --> 00:23:56.720
to the 40-bit DES. They also allowed triple DES which was a stronger version of DES. By 1999 all

00:23:56.720 --> 00:24:02.560
court cases were dropped by the US government and new, stronger encryption methods were allowed. By

00:24:02.560 --> 00:24:08.720
the year 2000 the government stopped requiring licensing or restricting key lengths altogether.

00:24:08.720 --> 00:24:12.720
People were now allowed to encrypt their communication with as strong of encryption

00:24:12.720 --> 00:24:17.840
method as they wanted. Businesses were able to utilize the most cutting-edge encryption

00:24:17.840 --> 00:24:23.760
to secure their transactions and data. Of course, Phil Zimmermann could publish his code online and

00:24:23.760 --> 00:24:29.440
Peter Junger could accept non-US students in his class that talks about cryptography. By the year

00:24:29.440 --> 00:24:35.200
2000 the first set of the Crypto Wars were over, marking a major victory for our civil rights.

00:24:35.200 --> 00:24:39.840
We are now safer and our privacy is more protected because of it. We have

00:24:39.840 --> 00:24:44.560
these internet crypto warriors to thank for paving the way for our privacy and security.

00:24:44.560 --> 00:24:47.600
CINDY: I think personally, it’s the thing I’m most proud of,

00:24:47.600 --> 00:24:52.400
that I’ve accomplished by working with EFF. I think EFF has done lots of other things but I

00:24:52.400 --> 00:24:59.920
had such a central role in this. I’m very, very proud of the work that we did. I think

00:24:59.920 --> 00:25:06.760
we set up today’s internet to be a place where people have the right to have strong security.

00:25:06.760 --> 00:25:13.120
JACK: But this story’s not over. This is just the story of the first Crypto Wars. Shortly

00:25:13.120 --> 00:25:19.520
after this the government began attacking crypto in new ways which went entirely undetected for a

00:25:19.520 --> 00:25:25.520
long time. But that’s a story for another time. People ask me if I think we’re becoming more

00:25:25.520 --> 00:25:31.840
secure or less secure online over time. After researching this episode I definitely think

00:25:31.840 --> 00:25:37.040
we’re becoming more secure because once crypto was allowed at any strength on the internet,

00:25:37.040 --> 00:25:40.800
it opened up the doors for websites to encrypt their whole website and not just

00:25:40.800 --> 00:25:46.720
a log-in page or a credit card page. More and more websites are going full HTTPS,

00:25:46.720 --> 00:25:53.440
making all of their communication to it private. The EFF creates tools like HTTPS everywhere,

00:25:53.440 --> 00:26:00.160
which is a browser plug-in to allow us to use HTTPS where available. What’s more is when strong

00:26:00.160 --> 00:26:04.800
encryption is showing up in our everyday lives without us even knowing it’s there.

00:26:04.800 --> 00:26:09.040
We don’t even have to enable it and in fact, we can’t disable the encryption even if we wanted

00:26:09.040 --> 00:26:14.320
to. For instance, Facebook uses a protocol called Signal to do end-to-end encryption of

00:26:14.320 --> 00:26:19.360
their messaging service. PGP had a hard time getting mass adoption because it was hard

00:26:19.360 --> 00:26:24.640
to use but now even the most technologically illiterate people are using strong encryption

00:26:24.640 --> 00:26:29.200
when talking with their friends on Facebook. When these strong encryption methods become

00:26:29.200 --> 00:26:34.560
integrated into our lives in ways that make it easy for us to use, we become safer and our

00:26:34.560 --> 00:26:41.440
privacy is protected. Encryption is becoming more seamless and more integrated in so many products.

00:26:41.440 --> 00:26:46.560
Yes, a lot of technology we use every day still isn’t using good security practices

00:26:46.560 --> 00:26:50.720
like text messaging and standard phone calls. But there are still major wins

00:26:50.720 --> 00:26:56.000
in the name of privacy and online security that happen all the time. We’ll never become

00:26:56.000 --> 00:27:00.960
fully safe and secure online because it’s simply a hostile environment but

00:27:00.960 --> 00:27:05.280
we can stay vigilant and speak up when we feel our privacy and security is not

00:27:05.280 --> 00:27:16.292
being looked after. When enough of us raise our voices, we can win the next Crypto War.

00:27:16.292 --> 00:27:19.280
JACK (OUTRO): [OUTRO MUSIC] You’ve been listening to Darknet Diaries. For show notes

00:27:19.280 --> 00:27:24.800
and links check out darknetdiaries.com. There you’ll be able to see a picture of the Clipper

00:27:24.800 --> 00:27:34.800
Chip and Deep Crack. Music in this episode is provided by Ian Alex Mac and Kevin MacLeod.
