Encryption and a New Paradigm for Security’s Data-Centric Future

Titima Ongkantong/Shutterstock.com

ITAR’s new encryption carve-out paves the way for secure and private collaboration.

On December 26, after more than four years of deliberation, the U.S. government issued a ruling modernizing and unifying the role of end-to-end encryption in securing sensitive data and enabling cloud modernization. The International Traffic in Arms Regulations’ new encryption rule promises to dramatically improve data security while lowering costs and enhancing the productivity of our defense industrial base. 

Unless you are familiar with the complexities of the ITAR and export policies in general, this news may not be on your radar. Know this: The impact of this new ruling extends far beyond manufacturers of defense-related items (including satellites, drones, internet-of-things sensors and much more) and is a significant step toward the U.S. recognizing the powerful roles that encryption and control play in data security and privacy.

The two of us come from backgrounds that stand at the intersection of technology and policy—John as White House technology policy adviser and the director of policy and planning at the Commerce Department, and Robert as a former foreign affairs officer at the State Department squarely focused on ITAR export controls—which have allowed us to see firsthand the perils and inefficiencies of legacy approaches to data protection. With this ruling, the U.S. government deserves praise for creating a new data protection paradigm, one which we expect both will drive cloud adoption and enhance data security for organizations handling extremely sensitive data. 

Freeing an Industry Captive to a Legacy Approach

More than four years after discussions first began, the Directorate of Defense Trade Controls (DDTC) and State Department have released a new amendment to the ITAR—which controls exports of military- and defense-related items, technology, and associated data—stating that technical data protected with end-to-end encryption, such that it cannot be accessed by foreign entities, is no longer considered to be “exported” under the ITAR. As a result, organizations no longer have to apply and wait for an export license to share data with authorized individuals domestically or overseas.

Having recognized where the center of control needs to be (encryption and key management), the State Department has freed ITAR-compliant organizations from an antiquated approach to security. Where the sharing of ITAR technical data was previously a roadblock, it is now an opportunity to unlock innovation within the heavy manufacturing, aerospace and defense, defense contracting and telecommunications industries.

Due to ITAR’s geolocation and access requirements, compliant organizations have exhausted thousands of hours and tens of millions of dollars maintaining multiple systems—one in the cloud that affords them all the benefits of a digital workplace and another on-premises system solely for their ITAR technical data that met stringent requirements. 

Now organizations can operate a unified system, and collaboration with overseas partners, U.S. officials, and other authorized individuals will become more seamless. At the same time, the security and integrity of ITAR technical data are maintained, and our country’s defense initiatives remain protected from unauthorized access.

Although the implications of this new rule for military and defense supply chain organizations are tangible, most significant perhaps is the represented shift that is underway: securing data at the network level is no longer sufficient or productive; a data-centric approach is required for optimal security while empowering organizations to collaborate, innovate, and push their business forward. 

Where Security Meets Privacy

This shift toward a data-centric approach to cybersecurity also signifies a noteworthy inflection point: one in which security meets privacy.

Cybersecurity challenges—such as the sharing of ITAR technical data—and privacy regulations, have positively affected the crossover of these two traditionally separate spaces. Where security is defined as protecting digital data from unwanted actions and unauthorized users, privacy boils down to one key component of that: preventing unauthorized access. 

It is our hope that ITAR’s encryption carve-out represents both an intersection of security and privacy and a digital transformation that will inspire other organizations, across all industries, to shake their legacy approach to cybersecurity, and begin to realize the benefits of a secure digital workplace. If this new rule is any indication, organizations can trust that both the security and privacy communities, as well as the U.S. government, are focused on empowering organizations and individuals to have complete control over their data by knowing where it is and who has access. As we commend the State Department for embedding privacy to secure mission-critical workflows, we have reason to remain hopeful that similar compliance regimes will follow suit, all in the name of protecting our most sensitive data. 

John Ackerly is the chief executive officer and co-founder of Virtru and was formerly responsible for technology policy at the White House and was the policy and strategic planning director at the U.S. Department of Commerce.

Robert Monjay is an attorney at Akin, Gump, Strauss, Hauer and Feld LLP. He previously served as a foreign affairs officer at the U.S. Department of State's Directorate of Defense Trade Controls Policy Office.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.