Publications
Publications
- March 1999 (Revised May 1999)
- HBS Case Collection
Network Associates: Securing the Internet
By: Debora L. Spar
Abstract
Follows one company's path through the uncharted terrain of government regulation and the Internet. In March 1998, Network Associates announced it would begin selling powerful encryption software from its Dutch subsidiary. Such a move looked to the U.S. government like a violation of export regulations, but the company was confident it had operated within the bounds of law. Indeed, Network Associates appeared to have deftly exploited the uncertain nature of government regulation in a time of rapidly changing technology. Encryption export regulations had become highly controversial in the mid-1990s, and were the subject of ongoing legislative debate in 1998. While the regulations had been slowly evolving toward permissiveness, the pace of change did not meet the expectations of many companies in Silicon Valley. Network Associates was the first company to boldly challenge the export regulations and assert its commercial rights to sell its encryption products to foreign users. While such a move gave the company distinct first-mover advantages, it was also a strategy that contained significant political risks.
Keywords
Internet; Information Technology Industry; Public Administration Industry; Telecommunications Industry; United States
Citation
Spar, Debora L., and Jennifer Burns. "Network Associates: Securing the Internet." Harvard Business School Case 799-087, March 1999. (Revised May 1999.)