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""Technical ability" means that yes, it's doable if someone does work. It's doesn't mean that they 'already had the ability' other than in a theoretical sense."

That is a meaningless distinction. It is the difference between having to type a large number of characters (not even that large -- how hard is it to capture a password?), or a small number of characters. Lavabit, as designed, could access any user's email the moment that user logged in. That is obvious to anyone who understands what encryption is. It is an inherent vulnerability in every system that does what Lavabit/Hushmail/etc. do.

"And even so, it still doesn't change the fact that it would have turned all their business claims into giant lies, possibly even exposing them to suits for false advertising, etc."

If Lavabit advertised itself as an email service that cannot read your email, then that suit could have happened regardless, because the claim is untrue. If, on the other hand, it was advertised as a service that will not read your email and that protects your email while it is stored, that is different and would not have been affected by their cooperation with the FBI's demands.




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