Bonum Certa Men Certa

Microsoft Strikes Back In Vietnam (Leaked)

Ho Chi Minh



Summary: Microsoft co-opts diplomats that the US public pays for to lobby for changes in law overseas and "MICROSOFT CHOSE TO USE ITS SINGAPORE LEGAL OFFICE AS THE "BAD COP" IN ORDER TO KEEP MR. CUONG OUT OF THE LIMELIGHT AND PRESERVE HIS "GOOD COP" ROLE WITH LOCAL COMPANIES," reveals a secret diplomatic cable

In a record labelled "VIETNAM'S IPR ENFORCEMENT: MICROSOFT STRIKES BACK UNCLASSIFIED", information is revealed regarding Microsoft's operations in Vietnam, which we recently covered in this post. Also see:





Let's go through he cable very quickly and highlight some bits of interest:








060441Z Nov 02

2002HOCHI01123 - UNCLASSIFIED

UNCLASSIFIED PTQ0090

PAGE 01 HO CHI 01123 01 OF 02 060451Z ACTION STR-00

INFO LOG-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00 COME-00 CTME-00 DINT-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 LAB-01 LOC-01 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OES-00 OMB-01 OPIC-01 PA-00 PRS-00 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 DRL-02 G-00 NFAT-00 SAS-00 /010W ------------------040D37 060550Z /38 FM AMCONSUL HO CHI MINH CITY TO SECSTATE WASHDC 7037 INFO AMEMBASSY HANOI AMEMBASSY BANGKOK AMEMBASSY BEIJING AMEMBASSY SINGAPORE

UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 001123

SIPDIS

SENSITIVE

STATE PLS PASS TO USTR EBRYAN AND KALVAREZ

E.O. 12958: N/A TAGS: VM, ECON, ETRD, KIPR, IPROP SUBJECT: VIETNAM\'S IPR ENFORCEMENT: MICROSOFT STRIKES BACK UNCLASSIFIED

PAGE 02 HO CHI 01123 01 OF 02 060451Z

1. (SBU) SUMMARY: INTELLECTUAL PROPERTY RIGHTS (IPR) ENFORCEMENT AUTHORITIES IN HO CHI MINH CITY, VIETNAM RAIDED LOCAL COMPUTER SHOPS ON OCTOBER 17, SEIZING APPROXIMATELY 7000 PIRATED DISKS. THIS ACTION MARKS THE FIRST ILLEGAL SOFTWARE RAID IN VIETNAM. ALTHOUGH MICROSOFT CLAIMED VICTORY, THE RAID IN FACT HAD LIMITED SUCCESS DUE TO INADEQUATE TRAINING AND MICROSOFT\'S OWN INTERNAL DILEMMA - WHETHER TO PUSH FOR STRONG IPR ENFORCEMENT OR GOOD RELATIONS WITH RETAIL DISTRIBUTORS. END SUMMARY.

2. (SBU) MICROSOFT ESTABLISHED A REPRESENTATIVE OFFICE IN HANOI IN 1996 AND A BRANCH IN HCMC TWO MONTHS AGO. IT IS THE FIRST SOFTWARE COMPANY TO TRY TO ENFORCE THE 1997 U.S-VIETNAM COPYRIGHT AGREEMENT. WHEN MICROSOFT\'S CHIEF REPRESENTATIVE IN VIETNAM, MR. NGO P HUC CUONG, OPENED THE HCMC OFFICE, HE TOLD CONSUL GENERAL AND ECONOFF THAT MICROSOFT PLANNED TO RAID ILLEGAL SOFTWARE SHOPS AND CRACK DOWN ON VIETNAM\'S RAMPANT PIRACY RATE. MR. CUONG ESTIMATED THIS RATE AT 94 PERCENT, DOWN FROM THE PREVIOUS YEAR\'S 97 PERCENT.

3. (SBU) PLANNING FOR THE ACTUAL RAID REACHED HIGH LEVELS OF INTRIGUE, AND ILLUSTRATES WHY IPR ENFORCEMENT IS SO DIFFICULT IN VIETNAM. MICROSOFT CHOSE TO USE ITS SINGAPORE LEGAL OFFICE AS THE \"BAD COP\" IN ORDER TO KEEP MR. CUONG OUT OF THE LIMELIGHT AND PRESERVE HIS \"GOOD COP\" ROLE WITH LOCAL COMPANIES. THE SINGAPORE REPRESENTATIVE WORKED CLOSELY WITH AN EXPATRIATE LAW FIRM IN HCMC, AS WELL AS MR. HUYNH TAN PHONG, THE HEAD OF THE MARKET MANAGEMENT BOARD (MMB). (NOTE: SOURCES SAY THAT MICROSOFT\'S DECISION TO USE ITS SINGAPORE OFFICE MAY HAVE BACKFIRED. THE SINGAPORE OFFICE, FAMILIAR WITH THAILAND AND INDIA, FAILED TO APPRECIATE THE DIFFICULTY OF WORKING IN A COMMUNIST COUNTRY WHERE IPR ENFORCEMENT UNCLASSIFIED

PAGE 03 HO CHI 01123 01 OF 02 060451Z IS A BRAND-NEW AND SUSPECT CONCEPT. MISUNDERSTANDINGS AND MUTUAL FRUSTRATION WERE FREQUENT. CONGEN NOMINATED MR. PHONG FOR AN IPR INTERNATIONAL VISITORS GRANT LAST SUMMER AND WILL CONTINUE TO FOCUS ON BUILDING IPR ENFORCEMENT CAPACITY AS PART OF THE MISSIONWIDE STRATEGY. END NOTE.)

4. (SBU) THE MMB IS THE RELEVANT IPR INSPECTION AUTHORITY ON SOFTWARE PIRACY. MICROSOFT HELD A ONE-DAY TRAINING FOR 40 MMB INSPECTORS ON HOW TO IDENTIFY COUNTERFEIT DISKS, WHICH ARE EASILY DISTINGUISHABLE FROM GENUINE PRODUCTS. HOWEVER, MR. PHONG WAS RELUCTANT TO PROCEED WITHOUT SPECIFIC AUTHORITY FROM THE HCMC PEOPLE\'S COMMITTEE. MICROSOFT ACCORDINGLY SOUGHT AND OBTAINED STRONG ENDORSEMENT FOR THE RAID FROM DR. NGUYEN THIEN NHAN, THE COMMITTEE\'S FIRST VICE CHAIRMAN AND AN ACTIVE IT SUPPORTER. BUT AT THE LAST MINUTE, MR. PHONG POSTPONED THE RAID - WITHOUT EXPLANATION - POSSIBLY TO ASSERT HIS INDEPENDENCE.

5. (U) ON THE APPOINTED DAY, MMB INSPECTION TEAMS, WITH REPRESENTATIVES FROM MICROSOFT AND THE EXPAT LAW FIRM IN TOW, SIMULTANEOUSLY RAIDED SEVEN RETAIL OUTLETS AND SEIZED APPROXIMATELY 7000 DISKS. THE STORES RANGED FROM SMALL \"MOM AND POP\" SHOPS TO LARGE SOPHISTICATED OPERATIONS. ONE STORE WAS EVEN SELLING PIRATED SOFTWARE ON ITS WEBSITE, WWW.PCLEHOAN.COM. MMB TEAMS CONFISCATED THE DISKS AND WILL EVENTUALLY DESTROY THEM. SOME OF THE SHOP OWNERS COMPLAINED, \"HOW CAN YOU DO THIS WHEN THE GOVERNMENT ITSELF IS USING OUR (COUNTERFEIT) STUFF?\" THE MMB, ALSO RESPONSIBLE FOR SETTING THE FINES, HAS NOT YET ANNOUNCED THE CHARGES OR THE AMOUNTS. FINES COULD REACH VND 20-40 MILLION (USD1300-2600) FOR THE FIRST VIOLATION AND VND 50-70 MILLION (USD3300-4600) FOR EACH ADDITIONAL VIOLATION. EACH PIRATED DISK COULD BE CONSIDERED A SEPARATE VIOLATION. UNCLASSIFIED

PAGE 04 HO CHI 01123 01 OF 02 060451Z

6. (SBU) THE EXPATRIATE LAWYER WORKING WITH MICROSOFT CALLED THE RAID A SUCCESS, BUT POINTED OUT VARIOUS WEAKNESSES IN THE ENFORCEMENT CHAIN. FIRST, THE MMB TEAMS FOCUSED ONLY ON THE MICROSOFT TRADEMARK VIOLATION. TEAMS SEIZED MICROSOFT SOFTWARE AND LEFT BEHIND BLANK DISKS OR BLATANTLY PIRATED SOFTWARE OF NON- MICROSOFT ORIGIN. SECOND, EACH MMB TEAM HAD A DIFFERENT APPROACH. SOME TEAMS LEFT BEHIND DISKS LABELED ONLY AS \"MS WORD,\" WHILE OTHERS SEIZED ANY MICROSOFT PRODUCT, REGARDLESS OF LABELING. THIRD, THE TEAMS SEIZED ONLY A SMALL NUMBER OF DISKS, ALTHOUGH MICROSOFT\'S PRE-RAID SURVEY SHOWED THAT EACH STORE STOCKED 5000- 10,000 PIRATED DISKS. THE LAW FIRM REPRESENTATIVE WHO ACCOMPANIED MMB ON THE RAID URGED MICROSOFT TO INSTRUCT MMB TO SEIZE GREATER QUANTITIES OF PIRATED MATERIAL, BUT THE MICROSOFT REPRESENTATIVE BACKED DOWN IN THE FACE OF ANGRY PROTESTS FROM SHOP OWNERS. FINALLY, THE TEAMS SEIZED A DISPROPORTIONATE AMOUNT OF DISKS FROM SMALL OPERATORS, WHOSE SALES HAVE LITTLE IMPACT ON THE MARKET. THE MMB SEIZED ONLY APPROXIMATELY 500 DISKS FROM EACH OF THE BIG OPERATORS, AND LESS THAN 100 FROM THE STORE SELLING PIRATED SOFTWARE ON THE INTERNET (AFTER SHOP MANAGERS AGAIN DISPUTED MICROSOFT\'S RIGHT TO SEIZE NON-MICROSOFT PRODUCT). THE TEAM SEIZED ONLY 40 DISKS FROM THE BIGGEST KNOWN COMMERCIAL DEALER.

7. (SBU) MICROSOFT ANNOUNCED ITS SATISFACTION WITH THE RAID AND PLANS TO CONDUCT MORE IN COMING MONTHS. MR. CUONG WANTS FUTURE RAIDS TO FOCUS ON THE REAL PROBLEMS IN VIETNAM: COMPUTER STORES LOADING SOFTWARE DIRECTLY ONTO HARD DRIVES AND MULTIPLE COPIES DISTRIBUTED THROUGH AN ORGANIZATION WITH ONLY ONE LICENSED DISK.

UNCLASSIFIED

UNCLASSIFIED PTQ0096

PAGE 01 HO CHI 01123 02 OF 02 060451Z ACTION STR-00

INFO LOG-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00 COME-00 CTME-00 DINT-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 LAB-01 LOC-01 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OES-00 OMB-01 OPIC-01 PA-00 PRS-00 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 DRL-02 G-00 NFAT-00 SAS-00 /010W ------------------040D60 060552Z /38 R 060441Z NOV 02 FM AMCONSUL HO CHI MINH CITY TO SECSTATE WASHDC 7038 INFO AMEMBASSY HANOI AMEMBASSY BANGKOK AMEMBASSY BEIJING AMEMBASSY SINGAPORE

UNCLAS SECTION 02 OF 02 HO CHI MINH CITY 001123

SIPDIS

SENSITIVE

STATE PLS PASS TO USTR EBRYAN AND KALVAREZ

THE LAW FIRM, HOWEVER, BELIEVES MMB FEELS IT HAS DONE ENOUGH FOR MICROSOFT THIS YEAR AND WILL BE RELUCTANT TO EMBARK UPON ANOTHER RAID SOON.

8. (SBU) COMMENT: MICROSOFT\'S ENFORCEMENT EFFORT DEMONSTRATES SOME OF THE COMPLEXITY IN TRYING TO DEFEND IPR RIGHTS IN VIETNAM\'S OVERWHELMINGLY COUNTERFEIT SOFTWARE MARKET. POST HAS LEARNED THAT AS MANY AS HALF OF THE SEIZED DISKS WILL BE RETURNED TO THE SHOPS BECAUSE THEY ARE BLANK OR CONTAIN NON-MICROSOFT SOFTWARE. WITHOUT ADEQUATE TRAINING AND CLEAR UNDERSTANDING OF TRADEMARK AND COPYRIGHT LAW, THESE RAIDS CAN ONLY BE HALF-MEASURES. MICROSOFT REPRESENTATIVES EXPRESSED FRUSTRATION THAT OTHER SOFTWARE COMPANIES ARE NOT ACTIVELY ENFORCING THEIR IPR RIGHTS IN VIETNAM. THESE OTHER COMPANIES ARE CONTENT TO LET MICROSOFT CARRY THE WATER -- AND ALSO INCUR THE WRATH OF POTENTIAL RETAIL DISTRIBUTORS. WHILE THE CONFLICT BETWEEN STRONG IPR ENFORCEMENT AND GOOD RETAIL RELATIONS REFLECTS THE ALMOST TOTAL LACK OF PURE, LEGITIMATE DISTRIBUTORS IN VIETNAM, MICROSOFT AND OTHER COMPANIES WILL HAVE TO ADDRESS THESE COMPETING GOALS MORE EFFECTIVELY BEFORE THEY CAN EXPECT STRONG ENFORCEMENT OR SALES. MEANWHILE, IPR ISSUES WILL CONTINUE TO UNDERMINE VIETNAM\'S OWN AMBITIONS TO BECOME AN IT CENTER. YAMAUCHI

UNCLASSIFIED







So taxpayers in Vietnam pay their police/authorities in order to serve as extended Microsoft staff (who are used as a proxy like the BSA). They then attack the Vietnamese population. Why? Because the US says it needs to be done. Those who think outside the box can easily see what's wrong with this picture.

“They’ll get sort of addicted, and then we’ll somehow figure out how to collect sometime in the next decade.”

--Bill Gates



Recent Techrights' Posts

SLAPP Censorship - Part 64 Out of 200: Not Amused by Repeated Threats (to "Shut Down" My "Existence" While Mentioning My Wife Too)
it's about censorship
The NHS is Under Attack by Anthropic and Microsoft (or Their Lemmings That Infect the NHS)
They are kidding themselves if they seriously believe Web-facing source code repositories are the real threat to patients
cPanel is Not Linux, cPanel is Proprietary Software
It's fair to say I've used cPanel for 23 years
Storage and Memory Prices Are Rising Not Because of High Demand (Production Can Match Demand), It's Partly Because of Price-Fixing (Same as Food Price Increases)
Sophisticated robberies are still robberies
Thousands of Layoffs at IBM, So IBM Pays Mainstream Media to Claim That IBM is Hiring (Paid Lies)
This is a story about the media failing us, not just IBM failing as a company
A Look at DataStax Bluewashing (IBM and Layoffs)
IBM is a place that many people leave or get pushed out of
 
Gemini Links 02/05/2026: Strange Psychosis and TUIs
Links for the day
Links 02/05/2026: Microsoft Has Begun Rebranding Vista 11 as 'XBox' (Because the Console is Dying), Slop Rejected by Oscars
Links for the day
IBM's CEO 10 Years Ago in IBM-Sponsored Forbes: "For those willing to embrace [blockchains], the future will indeed be bright."
How well did this prediction materialise?
RightsCon Cancellation as a Data Point in a World Gone Astray
RightsCon should not even be controversial
Links 02/05/2026: Gen Z is Turning Against Slop and OpenAI/Microsoft Rift Explained
Links for the day
Gemini Links 02/05/2026: Leaving Session, Alhena 5.5.7, and Slop Failing Customers
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, May 01, 2026
IRC logs for Friday, May 01, 2026
Links 01/05/2026: Microsoft 'Headcount' Decreasing, Apple Quietly Killing Vision Pro
Links for the day
Oracle's Debt Grew by Over 50 Billion Dollars in 6 Months
Larry Ellison spent a lot of money buying a lot of the corporate media
In Praise of Debian
30 hours ago we began an upgrade
What Linus (Torvalds, the Linux Dude) Meant by "Show Me the Code"
"Show Me the Code" is a common cultural reference
Yes, GNU/Linux Can Run on Playstation 5, But Don't Buy It, Learn From Sony's Past of Rootkit and PS3 Betrayal
Millions of Playstation 3 owners will never forget what Sony did to them
XBox Will Not Last Much Longer, XBox Chief Admits Problems
Microsoft's latest "results"
Dealing With Demagogue in Free Software
Don't spread their ideology and never participate in any of their projects
What May 1 Means to Us (and to Many Others)
To me, May 1 means something
Microsoft Lunduke is 'Pulling a Garrett' by Turning Technical and Legal Debate Over Rust Into a 'Trans Debate'
Don't fall for the demagogue
Links 01/05/2026: Regulatory Trouble for Apple, Now Even Mozilla Pushes Back Against Google
Links for the day
Microsoft "Buyout" Offer is Less Than One Year's Salary
So our assumption about this was correct
The Corrupt Lecture the Non-Corrupt - Part X - European Patent Office Managers Have Crossed Red Lines, According to Themselves
The girlfriend of the President of the European Patent Office (EPO) is trying to muzzle EPO critics
Techrights is Still Growing, Attacking Techrights Does Not Weaken the Community
Bullying us for 2+ years does not result in fear, it results in us feeling more emboldened and motivated
SLAPP Censorship - Part 63 Out of 200: Graveley as a Stripped-Down Version of Garrett in the Particulars of Claim (5RB Barrister Could Do This in One Minute)
Lazily and sloppily, it looks like the barrister took Garrett's claims and tweaked them a little (shortened) for Graveley
Lots of People Leave IBM, Today IBM Has About 1,000 Workers Fewer Than Yesterday
Confluent "last day" for 800+ people
Been a Very Busy Week
Next week, as we have no upgrades to prepare for, we should be able to publish at the usual pace of 20+ pages per day
In New Letter Sent to Chair and Heads of Delegation of the Administrative Council of the European Patent Organisation the Staff Union Explains How to End European Patent Office Strikes
If Campinos continues to behave as he does right now, the Council can show him the door
Links 01/05/2026: Poems and Continuous Privacy Policy
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 30, 2026
IRC logs for Thursday, April 30, 2026
Microsoft Debt Rose Almost $50 Billion Since We Moved to Debian
GAFAM has a new name for debt
Google News Sloppy Again
Today was disappointing
European Patent Office Management Mocked for Trying to 'Bribe' Staff With a Little Food
The Office is having a crisis; a little breakfast treat won't solve it
SLAPP Censorship - Part 62 Out of 200: Garrett and Graveley Issue Astounding Copy-Paste Masterpiece Asserting Publicly-Accessible Embarrassing Facts Must Remain Hidden
Are Garrett and Graveley twins separated at birth but joined by GNOME and Microsoft?
Links 30/04/2026: Barrage of Lawsuits Against Slop, Microsoft's Stock Crashes
Links for the day
Microsoft Says Mass Layoffs Are Coming and Puts a Price on Them
Microsoft will shrink
The Corporate Media Intentionally Overlooks How Google's Debt Trebles in Just Over a Year
We'll soon see how much more money Microsoft has borrowed
(Trigger Warning) Jeremy Bicha & Debian-Edu, TecKids, Ubuntu incest scandal at DebConf25
Reprinted with permission from Daniel Pocock
Upgrade Successful
we had a downtime of only 1-2 minutes overall (for two reboots)
Links 30/04/2026: Slop Industry Cannot Keep Up With Bills, "The World Is Getting Too Hot to Feed Itself"
Links for the day
Then Come the DDoS Attacks
Is someone trying to 'kill' Techrights?
The Corrupt Lecture the Non-Corrupt - Part X - Deliberately Violate European Patent Convention (EPC), Tolerate Cocaine Use in Management, Hide That From Staff and Stakeholders
The "Alicante Mafia" (as staff calls it) is a disgrace to Europe
The Register MS Running Spam Pieces for Huawei, a Banned Company
Money does not excuse bad behaviour
Apparently Last Day for Nearly 1,000 Confluent Workers IBM Laid Off Last Month
IBM is a dying company pretending to be strong because of its age
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 29, 2026
IRC logs for Wednesday, April 29, 2026
Gemini Links 30/04/2026: Outdoor Time, Old Computers, and Joining Geminispace
Links for the day