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Virtru Policy
Trends in Federal Surveillance Law
May 8, 2014
CONFIDENTIAL
Why is Virtru Tracking Surveillance Law?
While Virtru hasn’t been affected by a national
security order we need to be prepared.
Our product predates the “startup clause” of the
recent DOJ settlement. We intend to continue
publishing transparency reports.
Virtru’s strategy hinges upon how the courts view
encryption keys and what is required to access these
keys.
Internet	
  Backbone	
  in	
  2010	
  
•  For	
  beCer	
  or	
  worse,	
  US	
  is	
  the	
  hub	
  of	
  the	
  global	
  Internet.	
  	
  
•  Very	
  hard	
  for	
  foreign	
  countries	
  to	
  wall	
  themselves	
  off	
  and	
  ineffec4ve	
  anyway.	
  
•  Special	
  responsibility	
  and	
  sensi4vity	
  for	
  US	
  companies	
  given	
  recent	
  revela4ons.	
  
US	
  Technology	
  Companies:	
  	
  
Bad	
  Rep	
  on	
  Privacy	
  
Mark	
  Zuckerberg	
  (Facebook):	
  	
  
“That	
  social	
  norm	
  is	
  just	
  
something	
  that	
  has	
  evolved	
  over	
  
4me.”	
  
	
  
ScoC	
  McNealy	
  (Sun	
  
Microsystems):	
  	
  “You	
  have	
  zero	
  
privacy	
  anyway.	
  	
  Get	
  over	
  it.”	
  
	
  
	
  
	
  
Data:	
  How	
  Law	
  Sees	
  It	
  
Data:	
  generally	
  treated	
  as	
  
wri4ng	
  
	
  
Analogies	
  
	
  	
  -­‐-­‐files	
  =	
  documents	
  
	
  	
  -­‐-­‐computer	
  =	
  container	
  
	
  
In	
  transit	
  versus	
  at	
  rest	
  
	
  	
  -­‐-­‐at	
  rest	
  =	
  document?	
  
	
  	
  -­‐-­‐in	
  transit	
  =	
  wiretap?	
  
	
  	
  	
  
Metadata	
  Collec4on	
  
•  Despite	
  major	
  debate,	
  
few	
  real	
  changes	
  to	
  
surveillance	
  laws	
  in	
  the	
  
past	
  year.	
  
•  Most	
  likely	
  reform	
  in	
  the	
  
short	
  run	
  is	
  to	
  bulk	
  
telephony	
  metadata	
  
collec4on	
  
–  Internet	
  bulk	
  metadata	
  
collec4on	
  under	
  
different	
  provision	
  of	
  
FISA	
  could	
  affect	
  Virtru;	
  
ended	
  in	
  2011	
  
Content	
  Collec4on	
  
•  Methods	
  of	
  collec4on:	
  criminal	
  
tools,	
  FISA	
  (tradi4onal	
  and	
  sec4on	
  
702),	
  overseas	
  signals	
  intelligence	
  
•  ECPA	
  reform	
  (criminal)	
  hasn’t	
  gone	
  
anywhere	
  
•  President’s	
  reform	
  direc4ve	
  
(PPD-­‐28)	
  guidelines	
  to	
  protect	
  
privacy	
  interests	
  of	
  foreigners	
  	
  
•  Reform	
  coali4on:	
  4ghten	
  sec4on	
  702	
  
of	
  FISA	
  (e.g.,	
  restrict	
  categories	
  of	
  
intelligence);	
  not	
  in	
  current	
  FISA	
  
reform	
  bills	
  
•  PCLOB	
  to	
  provide	
  recommenda4ons	
  
on	
  sec4on	
  702	
  in	
  June	
  
Encryp4on	
  Keys	
  
•  S4ll	
  unclear	
  what	
  legal	
  tools	
  are	
  permiCed	
  to	
  access	
  
encryp4on	
  keys:	
  subpoena,	
  pen/trap,	
  search	
  warrant?	
  
•  Lavabit	
  –	
  raised	
  “master	
  key”	
  issue	
  because	
  architecture	
  
was	
  flawed;	
  Virtru’s	
  is	
  different,	
  would	
  not	
  raise	
  same	
  issue	
  
•  Lavabit	
  case	
  sidestepped	
  issue:	
  dismissed	
  appeal	
  because	
  
Lavabit	
  failed	
  to	
  properly	
  raise	
  arguments	
  in	
  district	
  court	
  
Mobile	
  Phone	
  Search	
  Cases	
  
Is	
  a	
  warrant	
  needed	
  to	
  search	
  phone	
  upon	
  arrest?	
  
United	
  States	
  v.	
  Wurie,	
  13-­‐212	
  
Boston	
  case	
  –	
  following	
  up	
  on	
  
informa4on	
  from	
  review	
  of	
  cell	
  
phone	
  logs	
  on	
  arrest	
  at	
  a	
  drug	
  
deal	
  resulted	
  in	
  search	
  of	
  
suspect’s	
  apartment	
  
	
  
Riley	
  v.	
  California,	
  No.	
  13-­‐132	
  
California	
  case	
  –	
  forensic	
  
analysis	
  of	
  photos	
  on	
  phone	
  
lead	
  to	
  arrest	
  for	
  gang	
  ac4vity,	
  
following	
  arrest	
  on	
  traffic	
  
viola4on	
  
	
  	
  	
  
Transparency	
  
•  Google,	
  other	
  major	
  tech	
  companies	
  agreed	
  
with	
  DOJ	
  on	
  rules	
  for	
  transparency	
  reports;	
  
withdrew	
  legal	
  challenge.	
  
•  Agreement	
  sets	
  forth	
  DOJ	
  posi4on;	
  contains	
  2-­‐
year	
  gag	
  rule	
  for	
  “new	
  capabili4es”	
  
•  Virtru	
  published	
  a	
  transparency	
  report	
  and	
  
promised	
  to	
  update	
  regularly;	
  would	
  test	
  this	
  
rule	
  

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Virtru: Trends in Federal Surveillance Law Q2 2014

  • 1. Virtru Policy Trends in Federal Surveillance Law May 8, 2014
  • 2. CONFIDENTIAL Why is Virtru Tracking Surveillance Law? While Virtru hasn’t been affected by a national security order we need to be prepared. Our product predates the “startup clause” of the recent DOJ settlement. We intend to continue publishing transparency reports. Virtru’s strategy hinges upon how the courts view encryption keys and what is required to access these keys.
  • 3. Internet  Backbone  in  2010   •  For  beCer  or  worse,  US  is  the  hub  of  the  global  Internet.     •  Very  hard  for  foreign  countries  to  wall  themselves  off  and  ineffec4ve  anyway.   •  Special  responsibility  and  sensi4vity  for  US  companies  given  recent  revela4ons.  
  • 4. US  Technology  Companies:     Bad  Rep  on  Privacy   Mark  Zuckerberg  (Facebook):     “That  social  norm  is  just   something  that  has  evolved  over   4me.”     ScoC  McNealy  (Sun   Microsystems):    “You  have  zero   privacy  anyway.    Get  over  it.”        
  • 5. Data:  How  Law  Sees  It   Data:  generally  treated  as   wri4ng     Analogies      -­‐-­‐files  =  documents      -­‐-­‐computer  =  container     In  transit  versus  at  rest      -­‐-­‐at  rest  =  document?      -­‐-­‐in  transit  =  wiretap?        
  • 6. Metadata  Collec4on   •  Despite  major  debate,   few  real  changes  to   surveillance  laws  in  the   past  year.   •  Most  likely  reform  in  the   short  run  is  to  bulk   telephony  metadata   collec4on   –  Internet  bulk  metadata   collec4on  under   different  provision  of   FISA  could  affect  Virtru;   ended  in  2011  
  • 7. Content  Collec4on   •  Methods  of  collec4on:  criminal   tools,  FISA  (tradi4onal  and  sec4on   702),  overseas  signals  intelligence   •  ECPA  reform  (criminal)  hasn’t  gone   anywhere   •  President’s  reform  direc4ve   (PPD-­‐28)  guidelines  to  protect   privacy  interests  of  foreigners     •  Reform  coali4on:  4ghten  sec4on  702   of  FISA  (e.g.,  restrict  categories  of   intelligence);  not  in  current  FISA   reform  bills   •  PCLOB  to  provide  recommenda4ons   on  sec4on  702  in  June  
  • 8. Encryp4on  Keys   •  S4ll  unclear  what  legal  tools  are  permiCed  to  access   encryp4on  keys:  subpoena,  pen/trap,  search  warrant?   •  Lavabit  –  raised  “master  key”  issue  because  architecture   was  flawed;  Virtru’s  is  different,  would  not  raise  same  issue   •  Lavabit  case  sidestepped  issue:  dismissed  appeal  because   Lavabit  failed  to  properly  raise  arguments  in  district  court  
  • 9. Mobile  Phone  Search  Cases   Is  a  warrant  needed  to  search  phone  upon  arrest?   United  States  v.  Wurie,  13-­‐212   Boston  case  –  following  up  on   informa4on  from  review  of  cell   phone  logs  on  arrest  at  a  drug   deal  resulted  in  search  of   suspect’s  apartment     Riley  v.  California,  No.  13-­‐132   California  case  –  forensic   analysis  of  photos  on  phone   lead  to  arrest  for  gang  ac4vity,   following  arrest  on  traffic   viola4on        
  • 10. Transparency   •  Google,  other  major  tech  companies  agreed   with  DOJ  on  rules  for  transparency  reports;   withdrew  legal  challenge.   •  Agreement  sets  forth  DOJ  posi4on;  contains  2-­‐ year  gag  rule  for  “new  capabili4es”   •  Virtru  published  a  transparency  report  and   promised  to  update  regularly;  would  test  this   rule