Ingo,
> Any clarifications from you British fellows here, are highly
> appreciated.
Sorry, we can't because it's against the law to talk about it in public.
Just joking you understand!!.
The act itself (only for reference really, it's not bedtime reading!) is at
http://www.legislation.hmso.gov.uk/acts/acts2000/20000023.htmA web search looking for "RIP and act" will find a fair number of hits, none
of them seem particularly comprehensive but they might give you a bit more
information.
Re: the specific bit you mentioned. I think (and I haven't been closely
following the twists and turns of legislation that seems to have changed a
number of times) that the authorities can demand an encryption key, with the
penalties you quoted, *only as part of a criminal investigation*. If they
have no suspicion that you are using encryption for nefarious (I've always
wanted to use that word <g>) purposes then they won't ask you for any keys.
Regards
AgentX