Concessions include introducing a safeguard that allows companies to sue security services in the event of the interception of e-mails resulting in a breach of company confidentiality.
A further attempt to restore confidence in the bill was made by announcing plans to establish a Technical Advisory Board that will oversee the implementation of orders made to ISPs. This is expected to be financed by part of the government’s £20million fund set aside for implementing the bill.
As part of the compromise, the Home Office issued Codes of Practice on 10th July requiring that police must always request access to encryption keys from a director of the company before forcing companies to hand over keys.
An exception to this obligation is made where the company director is a suspect in a criminal investigation.
Despite these concessions the police will still have the power to demand keys to aid decryption. The UK is unique in intending to operate such a system and many observers believe that it will drive e-commerce initiatives and ISPs away from the UK.
At least three UK based ISPs, including Poptel and Claranet, have already expressed their intention to leave if the bill is passed.