Companies welcome French encryption change

French software companies are delighted at the government's relaxation of encryption regulations earlier this week.

Prime Minister, Lionel Jospin, announced on Wednesday that the government would permit the export of 128bit encryption, rather than insist on 40bit data strings. The decision puts France at the forefront of Europe when it comes to a free market in software security.

Shiva's marketing development manager for Southern Europe, Isabelle Flory, said: "We are very happy at the news." Shiva, which develops security software, had previously suffered delays of up to three months while waiting for authorisation of its exports.

Flory said the French government had realised the need for a global market where enterprises could exchange information securely online.

"France was at an initial disadvantage for electronic commerce, because of Minitel. But with these laws, the government will strengthen France's Internet presence," she said.