Atlanta attorney Ken Cutshaw has notified GlobalFax of a new ruling of the U.S. Commerce Department concerning the exporting of encryption software that may be of special interest to multinational companies seeking to ship their software to overseas offices and subsidiaries.

The department now allows the export of encryption software up to 128 bits without special licenses and authorization, he said, enabling the export under license exceptions to subsidiaries and to customers in foreign markets.  He also said that most mass-produced encryption software falls within this category.

He warned, however, that Commerce Department regulations do not permit self-classification and that the new license exceptions must fall within expert classifications and comply with the new rules.

“This is not an incredibly difficult procedure,” he told GlobalFax last week, “but it requires a formal request of the department with supporting documentation.”

Mr. Cutshaw was an official in the Commerce Department during the Reagan and Bush administrations at which time he chaired an inter-agency task force charged with revising export control rules for technical data and software.

He said that the new ruling would enable Georgia companies to compete more effectively with their technology in international markets.

He may be reached at Smith, Gambrell & Russell by calling (404) 815-3765 or send an E-mail to kcutshaw@sgrlaw.com