Research in Motion (RIM) and the Indian government are believed to be developing a workaround to allow security agencies to read encrypted Blackberry data.
The smartphone maker is expected to offer tools and information for the surveillance of wireless e-mail and messaging services on Blackberry smartphones, according to a report in the Wall Street Journal.
The government of India has given RIM until 31 August to address its security concerns over encrypted messaging services.
RIM said, "Although RIM cannot disclose confidential regulatory discussions that take place with any government, RIM assures its customers that it genuinely tries to be as co-operative as possible with governments in the spirit of supporting legal and national security requirements, while also preserving the lawful needs of citizens and corporations," RIM said in a statement.
RIM is under increasing pressure to provide access to some of its data and has faced criticism from other countries, including Saudi Arabia, India and United Arab Emirates. All three governments want access to Blackberry's encrypted corporate e-mail service and messaging services amid fears these could be used by terrorists.