Although encryption is essential for organizations and individuals with sensitive information to protect, it presents an enormous challenge to law enforcement and criminal justice. The technology can be used not only by honest persons to protect against espionage and other forms of illegal activity, but also by criminals who use the technology to conceal their illegal activities from law enforcement. In 1993 the Federal Government announced its key escrow encryption initiative, based on a tamper- resistance hardware encryption device called the Clipper Chip, as well as a key escrow system that allows an authorized government official to decrypt communications encrypted by a particular chip. The announcement of the Clipper Chip has prompted much debate. The government has maintained its commitment to key escrow but has met with representatives from Congress, industry, and interest groups to understand their concerns and explore alternative approaches to key escrow. Although several alternatives are promising, they appear to be options better suited than Clipper for some applications rather than replacements for it. Key escrow encryption offers the possibility of providing strong cryptographic protection while meetings the needs of society for law enforcement and national security and the needs of organizations for a backup decryption capability. Figure and footnotes