UPDATE 2-RIM suggests forum on BlackBerry solution in India

* RIM says respects India’s legal, security needs

* Ban on Blackberry will hit Indian corporate interests- RIM

* India to take decision on RIM on Monday – source

(Recasts with RIM statement)

By Devidutta Tripathy and Bappa Majumdar

NEW DELHI, Aug 26 (BestGrowthStock) – Research in Motion (RIM.TO: )
offered on Thursday to lead an industry forum to look at India’s
need to have “lawful access” to BlackBerry’s encrypted mail and
messenger in the latest effort to stave off the blocking of the
popular service in the world’s fastest growing telecoms market.

Executives of the Canadian firm have been meeting government
officials in last-ditch negotiations aimed at finding a solution
to India’s desire to access the encrypted data that security
agencies fear could be misused to launch attacks or create
political instability.

“RIM would lead an industry forum focused on supporting the
lawful access needs of law enforcement agencies while preserving
the legitimate information security needs of corporations and
other organizations in India,” the firm said in a statement.

“RIM has assured the government of India of its continued
support and respect for India’s legal and national security
requirements.”

RIM said singling out BlackBerry for blocking would be
counter-productive for India, as it would limit the efficiency
and productivity of local firms.

Earlier, a senior government source said Home Secretary
Gopal Pillai would be presented a report on the talks on
Saturday, and on Monday would take a decision on RIM’s fate.
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For a Q+A on BlackBerry’s security, click [ID:nN12132220]

For a graphic, click: http://link.reuters.com/ryr37n

For a FACTBOX on BlackBerry’s problems in India, click,
[ID:nSGE67P0AR]
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Governments around the world have been concerned that
BlackBerry’s encrypted services could be used for activities
from terrorism to peddling pornography.

Last week, an Indian official said BlackBerry’s messenger
service may be allowed to continue beyond an Aug. 31 deadline
after RIM assured India of manual access to instant messages by
Sept. 1, and automated access by November.

The government reiterated on Thursday it will shut down
RIM’s secure email service if no solution is found.

“In case no solution is provided those services which cannot
be intercepted and monitored in readable format may be banned by
the government,” India’s junior telecoms minister, Sachin Pilot,
said in parliament.

A shutdown would affect about 1 million users in India out
of a total 41 million BlackBerry users worldwide, allowing them
to use the devices only for calls and Internet browsing.

RIM uses powerful codes to scramble, or encrypt, email
messages as they travel between a BlackBerry device and a
computer known as a BlackBerry Enterprise Server (BES) that is
designed to secure those emails.

Indian telecommunications officials say they had been told
by RIM the only way an email could be intercepted is when it
temporarily stores itself in a server in a decrypted form before
it gets delivered.

“We will discuss all possibilities and see if we can come up
with any solution,” another Indian government source said.

India is one of a number of countries putting pressure on
RIM, which has built the reputation of the BlackBerry, popular
with business professionals and politicians, around
confidentiality.
(Writing by C.J. Kuncheria)

UPDATE 2-RIM suggests forum on BlackBerry solution in India