January 2010 Update from the EDA Consortium Export Committee
Larry Disenhof, Chair

“Third, we need to export more of our goods. Because the more products we make and sell to other countries, the more jobs we support right here in America. So tonight, we set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America. To help meet this goal, we’re launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security.”

It was a single line in the State of the Union address, but it was there! Export control reforms will be brought up before Congress and the Administration this year. This will have an impact on the EDA industry, and potentially a larger impact on the Semiconductor industry and our customers, who today are increasing bogged down adhering to controls designed during the cold war.

Today US technology is being designed out of new products created in Europe and Asia because of export restrictions. Universities are unable to collaborate and fully engage in new fields of exploration due to deemed export regulations. If done right, export controls reforms will enhance US national security while reducing current restrictions and complexity.

The EDA Consortium has joined with many other groups in providing a list of Export Reform Principles to Congress and the Administration. These principles are being taken seriously by key House and Adminstration officials as they craft reform legislation.

In terms of our industry, our goal is to ensure that reforms do not unintentionally add restrictions to our products. Case in point: this last summer a proposal was drafted to reform controls on encryption. Today your cellphone is considered an encryption device due to the existance of what is known as "ancillary encryption" – which is defined as being not user controlled, nor the primary feature of the device.

This draft regulation change had a direct implication for EDA. In 2005 our committee successfully attained language in the Export Regulations to exempt encryption when used for the protection of IP in electronics design. The proposal stripped out this existing language.

Working with Commerce we were able to have a clause inserted into the new control language that grandfathers the existing exemptions. This provides protection to our industry – needed since you'll discover the new control language is confusing on a good day.

We’ll continue to actively monitor proposals coming out Washington to work towards streamlining of the regulations, meanwhile protecting our industry. And we will provide guidance to officials in Washington, and instruction to industry members as new regulations and reforms are brought forward.