Commerce Announces Rule for Selling Hacking Tools to Foreign Governments
A new interim rule takes aim at Russia and China.
By FRANK KONKELOCTOBER 20, 2021 03:34 PM ET
https://www.nextgov.com/cybersecurity/2021/10/commerce-announces-rule-selling-hacking-tools-foreign-governments/186248/

U.S. companies will need to obtain a license from the Commerce Department to 
sell certain kinds of software—specifically cybersecurity tools that could be 
used for hacking or surveillance purposes—to foreign governments.

An interim rule announced Wednesday by the agency’s Bureau of Industry and 
Security establishes “controls on the export, re-export or transfer 
(in-country) of certain items that can be used for malicious cyber activities.”

The lengthy rule is complicated, but would require U.S. firms to secure a 
license to export select cyber technologies to countries “of national security 
or weapons of mass destruction concern,” including Russia and China. The rule 
further includes license requirements for companies that wish to sell cyber 
technologies to companies under U.S. arms embargo, or users who could 
intentionally misuse products.

“These items warrant controls because these tools could be used for 
surveillance, espionage, or other actions that disrupt, deny or degrade the 
network or devices on it,” the interim rule reads.

The rule will go into effect in 90 days, but has been in the works for several 
years. Most recently, BIS received nearly 300 comments about the proposed rule, 
including concerns that changes might curtail legitimate cyber research and 
incident response activities. According to BIS, the agency “conducted extensive 
outreach with the security industry, financial institutions, and government 
agencies that manage cybersecurity” before scrapping some of the rule’s 
original verbiage. Wednesday’s interim rule brings the U.S. government on par 
with 42 other nations that are members of the Wassenaar Arrangement. The pact 
sets voluntary export controls on some military and civilian purposes. The 
interim rule imposes regulations on the sale of hacking tools, which most other 
member nations had already done.

“The United States is committed to working with our multilateral partners to 
deter the spread of certain technologies that can be used for malicious 
activities that threaten cybersecurity and human rights,” Secretary of Commerce 
Gina Raimondo said in a statement. “The Commerce Department’s interim final 
rule imposing export controls on certain cybersecurity items is an 
appropriately tailored approach that protects America’s national security 
against malicious cyber actors while ensuring legitimate cybersecurity 
activities.”

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