June 21, 2013
Partner Eric R. McClafferty was quoted in The Wall Street Journal Blog article, "Encryption Vendor's Compliance Claim Questioned." The article discusses a claim made by the startup CipherCloud that its software can allow companies to legally upload sensitive defense technology data to public online services. This claim is being questioned by the State Department and export law experts. Mr. McClafferty said, "It is still an export. If the data crosses a border, it doesn't matter whether it's encrypted or not." The government has not issued specific guidance on technology recommendations related to the cloud, but the company believes the rules will be changed to include encryption as a standard for compliance with the export rules.
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