Not only can computer-based steganography be used to embed a watermark in a file to protect intellectual property, new steganographic tools can be used to hide messages in digital images and sounds. This has profound implications for government-certified encryption schemes (e.g., the U.S. Clipper chip initiative and other key-escrow techniques) because with messages hidden in a digital image, anyone can inconspicuously exchange secrets and thus overcome restrictions on cryptography (see "Europe: Who Holds the Keys?," BYTE international edition, April 1996).
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