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Wouldn't it be illegal for an American company to export strong encryption to Iran? At least, that's the gist I get from the JCE unlimited strength policy file. If not illegal, it would definitely go against the agreement for distribution of that.

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Historically, clearly so. But since 2010 there has been a "General License" for exporting "Personal Communication Services" technology (essentially based on the idea that individuals' communication weakens the government's hold on society, or, as OFAC put it, "are a vital tool for change").

http://www.treasury.gov/resource-center/sanctions/Programs/D...

I don't know how the General License applies to cryptographic technology in particular. Paging Collin Anderson...

I do know there are requirements that need to be met for exportation of cryptography [0]. Interesting fact related to this: Strong crypto used to be considered a weapon. This is why the DVD standard is 40 bits (iirc, it's possibly 64 bits).

0: http://en.wikipedia.org/wiki/Export_of_cryptography_from_the...

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