Scrambled Evidence

THREE YEARS AGO KEVIN
Mitnick, a computer hacker
with a heavy mystique, made
the front page of the nation's news-
papers after his capture by federal
authorities. Today, Mitnick is in jail
awaiting trial on hacking charges,
but he's still creating static.
   A federal judge has ruled that
Mitnick is not entitled to see en-
crypted computer files seized after
his arrest, unless he unscrambles
them first. The ruling by Los Ange-
les federal judge Mariana Pfaelzer
marks the first time that a court has
ruled on how to handle encrypted
evidence.
crimination for Mitnick to reveal his
key to decrypt the files. Randolph
says that he is considering an expe-
dited appeal of Pfaelzer's ruling.
   The Mitnick decision may mark
the start of court battles over encrypt-
ed electronic battles. With busi-
nesses jumping aboard the encryption
bandwagon, it won't be long before
encrypted files will be seen in court
nearly as often as a navy blue suit. The
Federal Bureau of Investigation's
forensics laboratory says that 7-8 per-
cent of the computer evidence it re-
ceives is encrypted. "As we're increas-
ingly unable to decrypt the material, I
   Encryption was once solely the domain of math ematicians and computer experts. But, as electronic commerce and communications have grown, so too has the use of encryption, which is the digital equivalent of sealing an envelope shut. In the not-too-distant future, it may be as com mon to encrypt a file as send a fax. Even today, it's the best way, for example, for a lawyer to send a draft of a confidential document electronically to a client. Or for a hacker to keep secret the tools of his trade.
   Mitnick has been imprisoned since his capture in 1995 on a parole violation. While in jail, he was charged with computer fraud relating to breaking into computer systems at Motorola, Inc., and other companies.
   The case has taken a long
time to develop. There have
been numerous discovery disputes
over Mitnick's computer files. The
government's inability to unscramble
Mitnick's encrypted files has added
further complications.
   When Mitnick asked the court to
order the government to turn the en-
crypted files over, Pfaelzer refused. In
her terse ruling from the bench, she
said that possibly exculpatory evi-
dence--Brady material--should not
be returned to the defense until it is
readable. Trial is now set for January.
   Both sides say they would like to
see the material. Mitnick's court-ap-
pointed attorney, Donald Randolph
of Santa Monica's Randolph & Lev-
anas, says he believes that the files
contain exculpatory material. But
there could be incriminating evi-
dence, too. Randolph argued to the
judge that under federal rules, Mit-
nick is entitled to a copy to prepare
his defense. He further contended
that it would violate his Fifth
Amendment right against self-in-
don't know what that'll do to our
prosecutions," says Edward Allen, an
FBI information resources expert.
   For years, the FBI has been urging
the Clinton administration to build a backdoor
into encryption products. Using it,
police agencies would be able to un-
scramble a document, but only if
they had a court order. The computer
industry and civil libertarians have
fought such proposals vigorously.
   A judge could conceivably order a
defendant to decrypt files being held
as evidence. Federal prosecutors have
never made the request, according to
Susan Kelley Koeppen of the Justice
Department's computer crimes and
intellectual property section.
   As Mitnick's case heads to trial, it
is unlikely that his prosecutors will
ask the judge to order Mitnick to
unscramble the files. The final word
on encryption in the courtroom has
not yet been deciphered.

      ---MATTHEW FLEISCHER