Because he was competing with a private military contractor, and the US government is a wholly owned subsidiary of the MIC: or often acts like it is. Customs should have told RSA "no", "this is a private contract dispute", "hire a lawyer and file suit". Of course it was much more than that. Zimmerman put real privacy protecting encryption in the hands of the public, and the Many Eyes (that included state allies and adversaries) couldn't have that. But they needn't have worried: decades on the public is still ignorant about encryption, except as a marketing term, and most have no idea what a key pair is or what to do with it. Fraud around unauthorized access to government and commercial accounts is rampant (you _have_ set up and secured your online identity on your government's social security and revenue collection sites, haven't you?). That could have been prevented by early adoption and distribution of key pairs, alongside a serious public education campaign. Problem is, that would be at cross purposes with the goal of keeping the public uneducatable. Better for them to while away their time watching cable TV or delving into the latest conspiracy theory (pro or con).