What was the outcome of the data encryption issue?

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In 1994 the Clipper algorithm (called Skipjack) was specified in the Escrow Encryption Standard (EES), a voluntary federal standard for encryption of voice, facsimile (fax), and data communications over ordinary telephone lines. A subsequent compromise escrow scheme intended to create a standard for data encryption that balanced the needs of national security, law enforcement, and personal freedom was rejected in 1995; a compromise proposed in 1999 was also controversial.

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