Union officials, speaking on the condition of anonymity, said the divide was over the mechanics of an escrow system proposed by the owners.

So most lenders will insist on an escrow system.

Another initiative proposed a software-based key escrow system, in which keys to all encrypted data and communications would reside with a trusted third party.

Owners have proposed an escrow system in which players would receive no more than 50 percent of revenue.

After an unproductive exchange Monday over how an escrow system would work, the two sides are concerned that talks may break off soon after they start today.

Among them are the distribution of total revenue and the implementation of an escrow system.

While both sides are close on other issues, they cannot agree on the percentage at which an escrow system would be triggered.

It pointed out that the Clipper's escrow system has a serious vulnerability.

Thus far, no key escrow system has been designed which meets both objections and nearly all have failed to meet even one.

The programme used an escrow system.