Below is the section on security from a consultation paper entitled "Towards the Age of Digital Economy," released by Japan's Ministry of International Trade and Industry (MITI). Overall, the report seems to follow the Magaziner report's antiregulatory tone. It does not, however, change that tone on encryption. Instead, it discusses security and encryption without mentioning criminal investigation risks or key recovery. This likely reflects some skepticism in MITI about the wisdom of promoting key recovery encryption.

Towards the Age of Digital Economy

Issue: Ensuring Security

It is extremely important to keep the computer networks which is infrastructure for sound development of electronic commerce, from unauthorized threats. From this viewpoint, technological development and educational activities should be promoted to cope with infringement such as computer viruses and unauthorized computer access. Security technologies such as encryption and authentication should be developed as well.

I) Problems

As computer networks develop, the threats to which electronic commerce is exposed by the infringement such as unauthorized computer access and computer viruses are getting larger.

Actually, there is a growing trend of unauthorized computer access and computer viruses.

Example:

There were 755 virus-related incidents reported to IPA (Information-technology Promotion Agency, Japan) in 1996, which is a 13% increase to the previous year. The Japan Computer Emergency Response Team/Coordination Center (JPCERT/CC) provided advise for 142 incidents of unauthorized computer access between October 1996 and January 1997.

For making business contracts and transferring the property and services safely through electronic commerce safely, it will be essential to maintain the integrity of electronic data, as well as to establish means for avoiding the alteration and impersonation. From this point, encryption and authentication technology is now the part of the infrastructure of economy.

Recently, the menace of the infringement against basic social systems, so called cyberterrorism, has been pointed out.

II) Basic Stance

There is an argument in favor of taking measures for legally controlling infringement behavior such as unauthorized computer access and computer viruses. In some cases in Europe and the United States, unauthorized computer access is stipulated as a crime. However, since it is extremely difficult to catch the perpetrator of such electronic infringement, it is pointed out that legal restriction may not be able to work effectively as expected. Anyway, it is most important to establish measures for protection on user side. Thus, it is necessary to develop technology for such purposes as well as to establish guidelines for users to cope with these infringements.

On the other hand, the encryption and authentication technology for EC and various kinds of applications using such technologies should be sophisticated through market competition. Policy measures to cope with the infringement should be focused on improving the business environment in which market competition can work smoothly. It is not appropriate to establish national standards for encryption and authentication technology which utilized in specific areas. It would be the obstacle for market competition.

III) Policy Direction

Much emphasis should be placed on raising the public awareness and promoting the technological development against the infringement.

For encryption and authentication technology, precursory development in the universities and private companies and experiment of projects should be promoted. Network users should be provided with much more information about them.

It might be necessary to consider measures of coping with cyberterrorism in the future as well.

Dear colleagues, 

I am writing this mail to inform you of the Japan's activities on electronic commerce. 

Last May, MITI released a consultation paper entitled "Towards the Age of Digital Economy." 

The English version of this announcement has been posted on the Web recently. 

The URL address for the paper is : http://www.miti.go.jp/intro-e/a228100e.html 

I hope this paper will be helpful to you. 

Also, we welcome your questions or comments on this paper. 

Please contact me at  Click Contact Link  or  Click Contact Link 

Best regards,

Masaaki Kobashi 
Director Office of Int'l Affairs for Information Society MITI, Japan Kentro FUNAKI, MITI

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