In its filing to the Securities and Exchange Commission (SEC) the group said it believed "the intruder had access to the decryption tool for the encryption software utilized by TJX".
In April, an appeals court in another jurisdiction found in favour of Peter Junger, a law professor who had posted the code for encryption software on the Internet, in violation of American export controls.
Liberty, now with more than 40 members, is finishing work on software standards for encryption, user authentication and other functions, which members and nonmembers will share.
Wilson compares his new legal troubles to the widely-followed case in the mid-1990s of Philip Zimmermann, the inventor of the cryptographic software PGP, who was threatened with indictment under ITAR for putting his military-grade encryption software online.
In November, Twitter bought Whisper Systems, an encryption startup that originally built encryption software for Android.
When Paul was in high school he and his dad worked together to write encryption software for a calculator.
For instance, requiring encryption software and hardware makers to hold a decoding key in "key escrow" is the equivalent of asking a bank to hold an extra set of safe-deposit-box keys.
The music, consumer-electronics and software industries continue to struggle to agree on an encryption system for protecting copyright-owners.
In 2000, member studios of the Motion Picture Association of America successfully sued the hacker magazine 2600 for offering readers access to DeCSS, a piece of software used to break DVD encryption.
Then there's encryption software to seal off your hard drive in case your computer goes for a walk.
For increased data protection of backed-up files, the software also features an AES 256-bit government-grade encryption.
Its password encryption scheme, dubbed WEP for "wired equivalent privacy, " was nothing of the sort, and software to crack these passwords has been available for more than a year.
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