true, but from the phrasing in the story, it appears any company encrypting data will be required to provide the FBI a backdoor, including the application layer.

What I find interesting / related is Google, Yahoo and other internet companies and ISPs are pushing for less invasive probes from the DOJ (http://news.cnet.com/8301-13578_3-20002423-38.html), maybe the Feds need some draconian laws to bargin with.