He says a policy of key escrow - placing the keys to encrypteddata with Trusted Third Parties - would have to be global to be effective and there is no prospect of this.
Basically it's a USB security key that supposedly encrypts data stored to the thumb drive using AES, provides remote encrypted storage, creates a secure connection to the internet, and deletes your browser's cookies and history files.
At the time, the federal government was also pushing hard to get companies to add so-called "key escrow" type technologies to their encryption products so that law enforcement could obtain access to encrypteddata on demand.