The Bureau charged that, on ten occasions between March 1998 and June 1999, Neopoint Inc. exported 128-bit encryption software to two firms in South Korea without the required export licenses. In all but one of these shipments, the Bureau alleged that Neopoint knew that an export license was required.
"This case demonstrates that the US Government can and will enforce its export controls on encryption products," said Assistant Secretary of Commerce for Export Enforcement Michael Garcia.
The Bureau administers and enforces export controls on dual-use items and technology for reasons of national security, foreign policy, non-proliferation, anti-terrorism, and short supply. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations.