note from the corporate side ... is was specifically the escrow of encryption keys for data at rest ... as part of prudent corporate asset protection; it was not escrow of authentication keys nor escrow of encryption keys used for communication.

the internal network was larger than the arpanet/internet from just about the beginning until possibly around summer of 85. at the time of the great change-over to internetworking protocol on 1/1/83, the number of arpanet/internet nodes was approx. 250 (a number that the internal network had passed in the mid-70s, the internal network passed 1000 nodes a little later in 83).
http://www.garlic.com/~lynn/subnetwork.html#internalnet

corporate inter-site links had to be encrypted ... which at the time met link encryptors .. there was claims that the internal network had over half of all the link encryptors in the world. there wasn't any corporate escrow issues with link encryptor keys. there were various problems with gov. agencies ... significant problems especially in europe getting gov/ptt authorization for corporate link encryptors (on corporate links, between corporate sites, purely carrying corporate data) especially when the links crossed country boundaries.

issues did start showing up in the mid-90s in the corporate world ... there were a large number of former gov. employees starting to show up in different corporate security-related positions (apparently after being turfed from the gov). their interests appeared to possibly reflect what they may have been doing prior to leaving the gov.


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