09.09.11
Posted in America, GNU/Linux at 3:54 am by Dr. Roy Schestowitz
Summary: In a cable marked “sensitive”, US diplomats look at the digital state which Argentina is in
TECHRIGHTS covered Argentina several times over the years. Argentina, being a south American nation, has been quite GNU/Linux-friendly. Here are some posts that may be relevant to today’s Cablegate cable on “BRIDGING ARGENTINA’S DIGITAL DIVIDE”:
According to the following cable (¶11), “Linux is popular in Argentina due to its low cost, and 42 percent of Argentine firms use Linux on at least some of their computers.” Here is the cable in full:
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UNCLAS SECTION 01 OF 03 BUENOS AIRES 000748
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SOUTHCOM FOR POLAD AND J5 FOR JUAN RENTA
USDOC FOR 4322/MAC/OLAC/BASTIAN/PEACHER
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], EIND [Industry and Manufacturing], AR [Argentina]
SUBJECT: BRIDGING ARGENTINA'S DIGITAL DIVIDE
¶1. (U) Sensitive but unclassified. Not for Internet
distribution.
-------
Summary
-------
¶2. (U) Argentina's IT industry is the third largest in
Latin America. Argentina's IT industry enjoys many
advantages and is growing quickly. IT companies expect
continued rapid growth and are investing heavily in
Argentina. There has been a boom in the number of small
U.S. hardware and software companies in Argentina in the
past two years. The growth in Argentina's IT industry has
left many Argentines behind. The GOA has instituted a
number of projects with mixed results to combat this digital
divide. Private companies are also sponsoring programs to
bridge the digital divide, and strong competition in both
the hardware and software sectors is driving prices down.
The private sector will likely prove more able than the GOA
to bridge Argentina's digital divide. End summary.
--------
Overview
--------
¶3. (SBU) Argentina's IT industry is the third largest in
Latin America. Total IT production amounted to USD 1.3
billion in 2005, of which USD 250 million were exports. The
IT industry is responsible for one percent of Argentine GDP,
and employs over 48,000 Argentines, or 1.44 percent of the
total labor force. The largest IT consumers within
Argentina are the financial, government, telecom, oil, and
manufacturing industries. IBM, which is the largest IT
company in Argentina in terms of both sales and employment,
has 3,500 Argentine employees. IBM and EDS provide services
to many Latin American clients from Argentina. Intel will
soon begin its first production in South America with a
software development facility in Cordoba. Microsoft
maintains a presence in Argentina only for public relations
and marketing purposes. Smaller domestic and foreign firms
produce software, hardware, and services for mostly local
clients.
------------
Rapid Growth
------------
¶4. (U) Argentina's IT industry enjoys many advantages.
Argentine workers are comparatively well educated. Since
the 2002 devaluation of the peso, Argentine skilled labor
has been competitively priced. The relatively large
domestic market allows firms to gain experience in the local
market before exporting, while the predominance of the
Spanish language gives Argentine companies access to
important export markets.
¶5. (U) Argentina's IT sector is growing quickly. IT grew
29.3 percent in 2005, roughly triple the rate of the
Argentine economy as a whole, and generated 20,000 new jobs.
Domestic and export sales contributed equally to this growth
as exports increased 30 percent in 2005. Revenues from
hardware grew 37.6 percent, while revenues from software
grew 22 percent and revenues from services grew 20 percent
in 2005.
¶6. (SBU) IT companies expect continued rapid growth and are
investing heavily in Argentina. IBM added 750 employees in
2005 and expects to add 500 employees per year over the next
four years. IBM would like to double this number of new
employees, but it is limited by the number of qualified
graduates, its ability to develop new managers to supervise
these new employees, and available office space. IBM is
currently looking for a local company to build and lease a
BUENOS AIR 00000748 002 OF 003
large new office building to house its new employees. Intel
recently began work on a multimillion-dollar facility in
Cordoba for 450 employees.
----------------------------------------
Explosive Growth of Small U.S. Companies
----------------------------------------
¶7. (U) There has been a boom in the number of small U.S.
hardware and software companies in the Buenos Aires
neighborhoods of Palermo, Palermo Chico and Palermo
Hollywood during the past two years, according to industry
sources. Most of the firms are subsidiaries of U.S.
companies that are based in Silicon Valley, California,
Austin, Texas, and Raleigh, North Carolina. They generally
employ 50 to 100 people and maintain a relatively low
profile. This expansion is also being felt in the
provinces. For example, a government official in the
province of Salta recently told the Economic Counselor about
a former Argentine employee of a U.S. software company who
now operates a company in Salta providing software for U.S.
companies. This is one of several such companies in that
province. U.S. firms move operations or outsource to
Argentina to take advantage of Argentina's relatively high
educational levels and low labor costs.
--------------
Digital Divide
--------------
¶8. (U) The rapid growth in Argentina's IT industry has left
many Argentines behind. The population of Internet users
grew 40 percent in 2005, but computer use in Argentina is
still limited to the middle and upper classes. Only ten
million Argentines, or roughly a fourth of the population,
have regular access to the Internet. The vast majority of
these computer users are concentrated in the nation's
largest cities, according to a survey by Microsoft.
Approximately 20 percent of the population does not have an
equal opportunity to access the Internet because broadband
has not reached their poorer neighborhoods.
¶9. (U) The GOA has instituted a number of projects with
mixed results to combat this digital divide. Argentina's
Ministry of Education together with the Massachusetts
Institute of Technology launched "One Laptop Per Child" in
2005. This program intends to distribute between 500,000
and 1 million low-cost laptops to poor children in
Argentina. Another Ministry of Education plan launched in
2005 intends to distribute 100,000 computers to 12,000
schools. The GOA also partly revived a plan to establish
Community Technological Centers (CTCs) after abandoning it
during the recession of 1999-2002. There are now 1,350 CTCs
in Argentina. A lack of funding and training hampers these
programs, according to the director of the Argentine
Telework Association and the director of projects for the
educ.ar program. An estimated 71 percent of Argentine
educators have never used the Internet, and only 3 percent
of Argentine Internet users regularly access the Internet
from an educational institution. By contrast, 60 percent of
Internet users go online in cybercafs, 41 percent go online
at home, and 14 percent go online at work, with many having
more than one mode of Internet access.
¶10. (U) Private companies are also sponsoring programs to
bridge the digital divide. The "My PC Program," jointly
funded by 40 mostly Argentine firms, is designed to bridge
the digital divide by providing low-cost PCs to the nation's
poor. Seven of the eight largest supporters are U.S. firms,
including Intel, Microsoft, and HP. The eighth firm is
South Korean. The program sold more than 20,000 PCs for
approximately USD 800 per unit in April 2005. Other
programs, such as Intel's "Quality in Teaching" program and
BUENOS AIR 00000748 003 OF 003
Microsoft's "Alliance for Education Program" are also
bringing Internet access to the nation's poor.
¶11. (U) Strong competition in both the hardware and
software sectors is driving prices down. The hardware
market in Argentina is extremely competitive and offers low
profit margins. The number of PC manufacturers with sales
and service networks in Argentina has increased from four to
17 in recent years. The software market is also
competitive. Linux is popular in Argentina due to its low
cost, and 42 percent of Argentine firms use Linux on at
least some of their computers. Microsoft released a Spanish-
language Windows XP "starter edition" to compete with Linux,
further reducing the cost of a new Internet-ready PC. The
impact of this competition is clear. Sales of PCs for home
use increased 93 percent to reach over one million units in
2005.
-------
Comment
-------
¶12. (U) The results of GOA programs to bridge the digital
divide have so far been disappointing. The private sector
will likely prove more successful in this area. End
Comment.
¶13. (U) To see more Buenos Aires reporting, visit our
classified website at:
http://www.state.sgov.gov/p/wha/buenosaires
A 2009 survey in Italy showed that OpenOffice.org usage in the country is 50% among companies, with GNU/Linux at 63%. Just how understated is the impact of Free software as viewed from the States? A lot of the English-speaking news comes from there, pushing aside other claims and measurements, thus establishing a biased consensus. █
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Posted in America, GNU/Linux, Microsoft at 3:35 am by Dr. Roy Schestowitz
Summary: A lot of FUD is being spread by Microsoft along with the US government in order to suppress adoption of Free software in Venezuela’s government
A FAMOUS fallacy, one which seeks to portray Open Source as the opposite of “commercial” (rather than proprietary), has been spread by Microsoft and we are finding this pattern of FUD even in diplomatic cables that say open source is “a “revolutionary” alternative to profit-driven commercial software”. Well, at least they said “revolutionary” and not “terrorist”. The cable seeks to daemonise nations that don’t want to depend on the United States digitally. How dare they?
Further down in this Cablegate cable there is a long FUD section about “Commercial v. Open-Source”. It starts by saying that “Tascon recently attended the Global Leadership Forum in Washington, DC as a guest of Microsoft, where he met Bill Gates.”
The section titled “Conspiracy Theories” says: “Microsoft’s General Manager, Gonzalo Fernandez (protect), showed EconOff an internal PDVSA memo which claimed that all U.S. software companies had a “back door” mechanism whereby the U.S. government could at any time access information, citing the supposed CALEA Law (United States Law of Assistance in Communications for Security Systems). The memo made a claim that the USG simultaneously shut down all Microsoft operating systems in Iraq before attacking, and then detailed various NSA and CIA hacker programs. The memo concludes that the BRV should not contract any services from American providers.”
Watch how much FUD the cable ends with (lies mixed with distortion of facts): “If the law passes in current form, the provisions for mandatory use of OSS will have grave repercussions for BRV operations. By nature, OSS requires code sharing, and could pose security concerns for important BRV institutions, such as PDVSA, EDELCA (the electric company), or CADIVI (the Foreign Exchange Control Authority). Though OSS software has only a one-time license fee — and therefore seems more cost-effective — critics claim the system can be less-user friendly and requires frequent technical support (which can often be costlier than licensing). According to Microsoft, no government in the world has successfully used Linux for large operations (Brazil and Cuba reportedly attempted this, but then abandoned the effort). The issue of BRV software has become political — with PQrez trying to bill OSS as a “revolutionary” software that would promote endogenous development, and Tasc”n siding with commercial software providers by promoting “neutrality” in selection of operating systems. Most National Assembly deputies are uninformed on the issue and though the law was to be presented in second session in early May, there has been no news as of yet.”
“[P]romoting “neutrality” in selection of operating systems,” eh? That’s rich. It’s like Microsoft’s misuse of the word “choice”.
VZCZCXRO1794
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FM AMEMBASSY CARACAS
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USDOC FOR ITA MARGARET KESHISHIAN
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], KIPR [Intellectual Property Rights], VE [Venezuela]
SUBJECT: BRV INFORMATION TECHNOLOGY DRAFT LAW AND THE
OPEN-SOURCE SOFTWARE DEBATE
This message is sensitive but unclassified, please treat
accordingly.
-------
Summary
-------
¶1. (U) As part of an ongoing effort by the BRV to promote
open-source software (OSS) as a "revolutionary" alternative
to profit-driven commercial software, the National Assembly
has proposed a draft Information Technology Law. The
legislation would require government entitites at all levels
(plus their contractors and anyone receiving public funds) to
use OSS. Currently, most of the BRV uses commercial
software, whose largest provider in Venezuela is Microsoft.
IBM is the country's largest provider of OSS. Deputy Luis
Tascon, who was hosted by Microsoft in the U.S. earlier this
year, is fighting the mandatory OSS provisions in the law.
Felipe Perez, an influential Chavista ex-minister (and owner
of a Linux distribution company) is one of the main
proponents of the law. Fighting between the two factions has
stalled the drafting of the final version. End summary.
------------------------
"Revolutionary" Software
------------------------
¶2. (U) The BRV began a trend years ago to favor open-source
software (OSS) over commercial software. The rationales for
the move are the perception that intellectual property rights
are against the "revolution," that open-source software is
better for the consumer, and that it would lower costs for
the BRV. In 2004, President Chavez issued a decree requiring
all executive-branch agencies to migrate their operating
systems to OSS. However, implementation has been lackluster,
and often users violate the terms of the software (such as
making open modifications or using without license).
Microsoft is the top provider of commercial software
(Windows) in Venezuela, while IBM is the main provider of OSS
(Linux).
¶3. (U) The Information Technology draft law (Ley de
Infogobierno) was passed in first discussion in the National
Assembly on August 2005. It mandates exclusive use of OSS in
all government entities (from the executive to municipal
government), the Central Bank, public universities, companies
who receive public funds or are directed by a government
employee (at any level), and companies or persons who provide
temporary services or goods to the government or to
government employees. It also requires migration of existing
platforms to OSS, establishes criminal sanctions for
non-compliance, and creates a National Commission for
Information Technology (CONATI) that would have
confidentiality agreements with software providers.
SIPDIS
-------------------------
Commercial v. Open-Source
-------------------------
¶4. (U) In April 2006, the National Assembly established a
working group, led by Deputy Luis Tascon, to review the draft
law. The group was comprised of private sector companies,
business chambers, labor groups, PDVSA, OSS groups, and
universities. Two camps emerged. One group, under Tascon,
has pushed to amend the law to allow each government entity
to choose between OSS and commercial software according to
their needs. Tascon recently attended the Global Leadership
Forum in Washington, DC as a guest of Microsoft, where he met
Bill Gates. (Comment: It is ironic that Tascon, who is
infamous for publicly disseminating personal information on
those who voted against Chavez, would champion licensed
software. End Comment).
¶5. (U) The other group is comprised of proponents of OSS,
led by Felipe Perez Marti, President of the Venezuelan
Association of Open-Source Software (and former Minister of
Planning). They strongly favor using OSS exclusively, as
stipulated by the draft law. Perez, the original drafter of
CARACAS 00001778 002 OF 002
the pro-OSS 2004 decree, is the owner of SOLVE (Free Software
of Venezuela), a Linux distributor, whose board (known as
"Los Felipillos") is composed of many BRV leaders, reportedly
including the Minister of Education. According to Microsoft,
Perez's company is positioned to provide the BRV with Linux
and all the technical support. His company would
exponentially benefit from mandated government use of OSS,
which is currently minimal. IBM's Venezuela operations
manager noted that they have great relations with the public
sector (their largest client), but expressed concern that the
BRV wants to buy the software but not agree to maintenance
contracts with IBM.
¶6. (U) During a May 5 working group meeting, Perez publicly
called Tascon a "traitor." Tascon expelled him from the room
and then declared he would finish drafting the law behind
closed doors due to the "impossibility of consensus" between
commercial software providers and OSS groups. The media has
largely portrayed this as Tascon barring Perez for personal
reasons.
-------------------
Conspiracy Theories
-------------------
¶7. (SBU) Microsoft's General Manager, Gonzalo Fernandez
(protect), showed EconOff an internal PDVSA memo which
claimed that all U.S. software companies had a "back door"
mechanism whereby the U.S. government could at any time
access information, citing the supposed CALEA Law (United
States Law of Assistance in Communications for Security
Systems). The memo made a claim that the USG simultaneously
shut down all Microsoft operating systems in Iraq before
attacking, and then detailed various NSA and CIA hacker
programs. The memo concludes that the BRV should not
contract any services from American providers.
-------
Comment
-------
¶8. (SBU) If the law passes in current form, the provisions
for mandatory use of OSS will have grave repercussions for
BRV operations. By nature, OSS requires code sharing, and
could pose security concerns for important BRV institutions,
such as PDVSA, EDELCA (the electric company), or CADIVI (the
Foreign Exchange Control Authority). Though OSS software has
only a one-time license fee -- and therefore seems more
cost-effective -- critics claim the system can be less-user
friendly and requires frequent technical support (which can
often be costlier than licensing). According to Microsoft,
no government in the world has successfully used Linux for
large operations (Brazil and Cuba reportedly attempted this,
but then abandoned the effort). The issue of BRV software
has become political -- with PQrez trying to bill OSS as a
"revolutionary" software that would promote endogenous
development, and Tasc"n siding with commercial software
providers by promoting "neutrality" in selection of operating
systems. Most National Assembly deputies are uninformed on
the issue and though the law was to be presented in second
session in early May, there has been no news as of yet. END
COMMENT.
WHITAKER
Microsoft is just trying to associate GNU/Linux with AK-47s, “conspiracy theorists”, and an attack on corporation. Why is the government playing along with this? Does it use Microsoft for colonisation (digital) of south America? █
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Posted in Africa, Cablegate, GNU/Linux, Microsoft at 3:08 am by Dr. Roy Schestowitz
Summary: A look at how Microsoft representatives describe GNU/Linux behind the scenes
THE scandal of Microsoft in Tunisia has received a lot of press attention. It now has a detailed Wikipedia page about it. Techrights looked into several other cables from Tunisia and found the following Cablegate cable which says: “Microsoft gave the example of PC procurement, in which the GOT procurement commission does not specify an operating system in their RFPs. This results in the PCs being shipped with the Linux,s open source operating system, which does not support Microsoft software. The Microsoft representative argued that this has encouraged piracy and resulted in GOT PCs using pirated Microsoft software. She continued that the fact that the EU Commission and the African Development Bank accept these GOT procurement laws only encourages the GOT to maintain government procurement on lowest cost basis.”
To Microsoft, “Linux” and “piracy” are interchangeable. Microsoft wants officials to believe that nothing except Windows can ever be used. Here is the cable in its entirety.
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RUEHC/SECSTATE WASHDC PRIORITY 3899
INFO RUCNMGH/MAGHREB COLLECTIVE PRIORITY
RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0928
UNCLAS TUNIS 001286
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EEB (DIBBLE), NEA/MAG (HOPKINS AND HARRIS)
STATE PASS USTR (BURKHEAD)
USDOC FOR (VINEYARD AND MASON), ADVOCACY CTR (JAMES),
USDOC PASS USPTO (ADAMS, BROWN AND MARSHALL)
CAIRO FOR FINANCIAL ATTACHE (SEVERENS)
LONDON AND PARIS FOR NEA WATCHER
EB/CBA (WINSTEAD), EB/TRA/AN(FINSTON),
CASABLANCA FOR FCS (ORTIZ)
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], EFIN [Financial and Monetary Affairs], ETRD [Foreign Trade], TS [Tunisia]
SUBJECT: TUNISIA: US BUSINESSES BRIEF ECONOMIC DELEGATION
ON BUSINESS CLIMATE
REF: A. TUNIS 1249
B. TUNIS 1261
-------
Summary
-------
¶1. (SBU) During the September 9-12 visit of an interagency
business delegation (reftels), EEB PDAS Dibble met with
representatives from a cross-section of US businesses
currently operating in Tunisia to discuss the business
climate in general and the issues that impede their
operations. PDAS Dibble gave an overview of the
delegation's meetings with the GOT and the unique nature of
this delegation. She indicated that the primary purpose of
this visit was to push the GOT for improvements in the
investment climate and to discuss the way forward in the
US/Tunisia bilateral economic relationship. Department of
Commerce DAS Holly Vineyard outlined the IPR points that were
presented to GOT representatives from all relevant ministries
attending the delegation's meeting with the Minister of
Development and International Cooperation. USTR Director for
European and Middle Eastern Trade Affairs, Paul Burkhead
outlined the Trade Investment Framework Agreement (TIFA) and
the USG's objective of an eventual Free Trade Agreement (FTA)
between the United States and Tunisia. US companies said
that Tunisia is a central location for entering other
markets, but bureaucracy and lack of transparency hinder
their expansion. End Summary.
-----------------------------
What Tunisia has Going for It
-----------------------------
¶2. (SBU) Nearly all of the US business representatives
agreed that Tunisia is an attractive base from which to
target and serve the Mahgreb, European, and Sub-Saharan
African markets. They emphasized that the business climate
is improving and the mobility and quality and talent of
available human resources is above average. Tunisian
employees are highly educated and interested in learning new
technologies. The US IT firms represented opined that
Tunisian interest in new technologies presents an opportunity
to sell and to install the latest technologies. Business
representatives also said that the comparatively favorable
cost of labor also makes Tunisia an attractive venue for
investment.
--------------------------------
Frustrating Impediments to Trade
--------------------------------
¶3. (SBU) While Tunisia has many good qualities, it is the
domestic impediments to operating a business in Tunisia that
have some US businesspeople thinking twice about investing in
or expanding their investment in Tunisia. Issues raised
included a lack of transparency and predictability, lack of
access to the local market, GOT procurement laws, limits on
the number of expatriate employees permitted in country, visa
issues, the slowness and arbitrarily high price of internet
service, and the language barrier.
-------------------------------
Transparency and Predictability
-------------------------------
¶4. (U) Company representatives explained that GOT
decision-making is extremely slow and there is no central
contact for a company to approach and receive a definitive
answer to their particular concerns. Information on upcoming
projects or tenders is also difficult to obtain and major
projects are often pre-awarded before a tender becomes
public. One US representative stated that the lack of
predictability affected his ability to do long-term business
planning/forecasting. Participants noted that, because US
businesses forecast based on risk, the lack of predictability
in Tunisia makes them more reticent to invest.
--------------------------------------------- -------------
Access to the Local Market & Government Procurement Policy
--------------------------------------------- -------------
¶5. (U) In general, the GOT seldom permits foreign businesses
to compete on the local market but instead encourages FDI in
the off-shore and manufacturing for export sectors. US
companies told PDAS Dibble that establishing a subsidiary
branch in Tunisia is not cost-effective unless they are
allowed to compete on the local market. There are several US
companies who have been authorized to compete on the local
market. They admitted that it was neither easy nor quick to
obtain such permission, but indicated that GOT ministers are
open to hearing about specific proposals. Further, if a
company can demonstrate the benefits of its
projects/products, the relevant ministers can obtain
authorizations to compete on the local market. Several of
the high tech companies said that the product registration
and certification process is extremely long and must be
conducted for each reseller. In order to simplify this
process, they would like to see a homologation law passed
which would authorize registration and certification on a per
product basis.
¶6. (SBU) Companies also complained that the GOT government
procurement law and policy, which is based on lowest price
rather than best quality, excludes them from competing in the
marketplace. A Prime Ministry commission controls
procurement and, instead of requiring that a product meet
certain specifications or technical standards, its requests
for proposals (RFPs) always go for the lowest priced product.
US companies selling quality products cannot compete on a
price basis. Microsoft gave the example of PC procurement,
in which the GOT procurement commission does not specify an
operating system in their RFPs. This results in the PCs
being shipped with the Linux,s open source operating system,
which does not support Microsoft software. The Microsoft
representative argued that this has encouraged piracy and
resulted in GOT PCs using pirated Microsoft software. She
continued that the fact that the EU Commission and the
African Development Bank accept these GOT procurement laws
only encourages the GOT to maintain government procurement on
a lowest cost basis.
-----------------------
Authorized Expatriates
-----------------------
¶7. (SBU) Tunisian law currently allows foreign companies to
obtain visas for only four expatriate employees at any given
time, but companies report that this number can be increased
on a case-by-case basis. (Note: GOT officials had indicated
to EmbOffs last year that the law was going to be updated to
allow 10 expatriates per company, but this has not yet been
implemented. End Note.) This limitation on expatriates is a
problem for US companies particularly when they are initially
starting up their operations in Tunisia. For example,
Parsons Corporation, a major US engineering firm currently
considering investing in Tunisia, said that this restriction
would present a problem. The Parsons representative argued
that his company has a quality product to deliver and an
excellent reputation to maintain. Thus, if it were to invest
in Tunisia, Parsons would need to bring in a minimum of 12
expatriate Parsons engineers per project. The GOT has told
Parsons that the number of expatriates allowed is negotiable,
but the company would prefer that the law be repealed, so
that there would be not uncertainty. Most US companies
present concurred. Similarly, US companies mentioned that
their ability to provide quality services to their clients
was impeded by the difficulty some of their expatriate staff
face in obtaining visas to enter Tunisia on a temporary basis
in order to train Tunisian employees or to provide expertise
on a particular project.
---------------
Internet Access
---------------
¶8. (U) US companies said that 95 percent of business today
is conducted over the Internet. Thus, reliable and
cost-effective Internet access was paramount to their
success. Most of the companies present at the roundtable
complained about the slow speed of Internet connections in
Tunisia and the high cost of dedicated leased lines between
two points. Another issue related to Internet access was
GOT's encryption requirement that all encryption keys must be
provided to the National Digital Encryption Agency (ANCE).
Providing such information was described as a nonstarter by
US companies providing services where protection of fiscal or
personal data was critical. While most companies indicated
that they could find ways around this requirement, they
nonetheless argued that the encryption key requirement should
be abolished.
--------
Language
--------
¶9. (U) Several participants raised English language
capabilities of the Tunisian work force as an important
factor when considering whether to set up business operations
in Tunisia. Acknowledging that most US company executives
are not multi-lingual and conduct business in English, all
companies said that English language capability was a
necessary element to allow the Tunisian subsidiary management
to effectively communicate with its employees and with its US
headquarters. Several Tunisian nationals representing US
companies noted, however, that the GOT recognizes the
importance of English and has made efforts to address this
issue. They pointed out that Tunisian schools now encourage
English language study from the primary to the university
level.
-------
Comment
-------
¶10. (SBU) Although the business roundtable was a late
addition to the economic delegation,s program, it proved to
be an excellent opportunity for all. Members of the
delegation were able to learn first-hand about the benefits
achieved and drawbacks faced by US businesses in Tunisia. At
the same time, US businesses were able to learn about USG
advocacy for an improved business climate in Tunisia. The
general consensus drawn from this discussion seems to be that
despite the shortcomings, US companies investing in Tunisia
have made the right decision. End Comment.
¶11. (SBU) This cable has been cleared by EEB/PDAS Dibble.
GODEC
Worth noting is the part which says: “Business representatives also said that the comparatively favorable cost of labor also makes Tunisia an attractive venue for investment.”
This is how they value people, eh? █
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Posted in America, Cablegate, Microsoft at 2:49 am by Dr. Roy Schestowitz
Summary: Another fine and rather recent example of US government intervention in Microsoft cases overseas
THE following Cablegate cable is from last year, so it is relatively recent. It shows Microsoft using the Business Software Alliance (BSA) to hammer on a country where-unpaid for copies are assumed to be lost sales (which they are not, it is a common fallacy) and people are being hurt after intervention from Microsoft’s government, demonstrating kowtowing yet again.
Here is the full text:
VZCZCXYZ0001
RR RUEHWEB
DE RUEHBD #0018 0270813
ZNR UUUUU ZZH
R 270813Z JAN 10
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC 4769
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHBK/AMEMBASSY BANGKOK 2095
UNCLAS BANDAR SERI BEGAWAN 000018
SIPDIS
STATE PASS FOR EAP/MTS/COPPOLAMG, EEB/TPP/IPE/URBANJ
STATE PASS USTR/EHLERSK
STATE PASS FOR USPTO
BANGKOK FOR FCS/NESSJ
SENSITIVE
E.O. 12958: N/A
TAGS: ETRD, KIPR, ECON, EINV, USTR, BX
SUBJECT: Microsoft Finds Light At The End Of The
IPL Tunnel
1.(SBU) The U.S. Mission to Brunei and Ambassador Todd's relentless
pursuit of advancing Intellectual Property Rights (IPR) over the
past year by the U.S. Mission to Brunei along with USTR's able
assistance showed a real dividend this week when Microsoft won a
landmark, first ever case against a Brunei IT firm January 26, 2010.
EcoPrime Networks, an IT training institution, became the first
Brunei firm to be convicted under Brunei's Intellectual Property
law. The firm has to cough up a fine of B$10,000 on top of losing
most of their IT equipment, which was confiscated in the raid by the
Police in September 2008. End Summary
2. (SBU) After more than a year of litigation processing, Microsoft
can claim a tangible victory and send a serious shot across the bow
to other would-be vendors and end users of illegal pirated software
in Brunei. EcoPrime Networks, an IT training institution, received
a painful lesson that times are changing in Brunei. The modest fine
of $10,000 Brunei is seriously augmented by the loss of 90 computers
and servers along with 200 copies of illegal software. These
combined losses in addition to their credibility as a legitimate
training facility will serve as a visible deterrent for other such
potential violators. Senior Director for Anti-Piracy (Asia Pacific)
Tarun Sawney of the Business Software Alliance was quoted as saying,
"This is a reminder that even companies that use pirated software
are breaking the law and subject to prosecution. Businesses must
stay legally compliant and this includes ensuring they continue to
use only legal and genuine software."
3. (SBU) This successful conviction and sentencing of EcoPrime
combined along with the ongoing successes of Recording Industry
Malaysia's (RIM) actions against pirated music, are both strong
messages to the local community that rights holders and law
enforcement will not hesitate to take action on IPR infringement.
These recent improvements are directly related to the multiple
efforts taken by US Embassy Brunei to educate both law enforcement
and legal entities, not to mention the general public as to the
dangers of violating such rights. The Microsoft case should be an
encouragement to American rights holders (like the Motion Picture
Association (MPA)) to engage with local authorities to create a
piracy-free environment for their products. Note: USTR
representative Karl Ehlers and members of the MPA will visit Brunei
February 9-10 to open such a dialogue directly with Brunei officials
at the Attorney General's Chambers. End Note. Ambassador Todd and
U.S. Embassy Brunei will continue to lead the charge on this key
issue for Brunei especially as preparations commence for this year's
Special 301 Watch List report.
TODD
Yet more proof that software is political and even imperialistic when it wants to. Brunei would be better off respecting Free software and not so-called “IPR”. █
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Posted in Asia, Cablegate, Microsoft at 2:35 am by Dr. Roy Schestowitz
Summary: Insight into Microsoft’s censorship in China/Hong Kong and what was causing it (or not causing it)
CENSORSHIP in search is a subjective issue and in order to understand it better, one might wish to know who is pressuring who.
A manager from Microsoft “insisted Microsoft was not asked by the Hong Kong government or any other government to implement filtering but then said she would have to confirm this. She added that Microsoft had used this filtering functionality since Bing’s launch but that the strict setting in some Asia countries was implemented only in September 2009.”
It is also said “that Microsoft had not received any customer complaints or inquiries about the strict SafeSearch setting used in Hong Kong until the SCMP article appeared. She also noted that her office had received inquires from the Hong Kong government.”
Here is the full Cablegate cable.
VZCZCXRO2783
PP RUEHCN RUEHGH
DE RUEHHK #0112 0201048
ZNR UUUUU ZZH
P 201048Z JAN 10
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 9438
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS HONG KONG 000112
SENSITIVE
SIPDIS
STATE FOR EAP/CM, EEB/CIP, OES/STC AND OES/PCI
E.O. 12958: N/A
TAGS: ECON, ETRD, HK, TINT, SOCI, CH
SUBJECT: HONG KONG YAHOO AND MICROSOFT BLOCK ADULT CONTENT
1. (U) Hong Kong's major English daily, the South China
Morning Post (SCMP), reported January 17 that both
Yahoo.com.hk and Microsoft's Bing search engine in Hong Kong
were now blocking adult content through the use of strict
"SafeSearch" filters. Users of the Yahoo-owned Flickr photo
sharing website in Hong Kong were also reportedly prohibited
from posting or sharing adult content. Although users in
most jurisdictions are able to customize search parameters to
include or exclude adult content, Hong Kong users do not have
that option. The SCMP reported both Yahoo and Microsoft
attributed their strict filtering to their desire to respect
"local customs, norms and laws," and noted that both
companies enforced similar restrictions in South Korea, India
and Singapore.
2. (SBU) Yahoo! Asia Director for Public Policy Patrick Chu
confirmed to EconOff that Yahoo! did use SafeSearch to filter
pornographic images from its Hong Kong searches. He denied
the SCMP implication that this was a new policy, however.
Yahoo! had been filtering adult content since 2007, said Chu.
Hong Kong law makes it an offense to publish obscene
articles or pictures. In the wake of legal cases in 2007 and
2008 that resulted in fines for individuals convicted of
linking to or posting lewd material, Yahoo! decided to filter
searches to protect its local staff and directors, said Chu.
Yahoo!'s decision to filter this material was purely its own,
he said, and denied that the Hong Kong government had ever
contacted Yahoo! Asia regarding its treatment of adult
content. Chu insisted that Yahoo! Asia was committed to
internet freedom and did not filter searches for other
content. The SCMP article was the first time anyone had
raised the issue since Yahoo! Asia began using SafeSearch,
said Chu.
3. (SBU) Microsoft's Director of Legal and Corporate Affairs
Winnie Yeung similarly told EconOff that Microsoft used
SafeSearch to filter adult content from its Hong Kong
searches. Yeung felt the SCMP article was misleading since
the strict SafeSearch setting was used in several Asian
countries, not just Hong Kong. The reason was that these
countries were considered "more conservative." She insisted
Microsoft was not asked by the Hong Kong government or any
other government to implement filtering but then said she
would have to confirm this. She added that Microsoft had
used this filtering functionality since Bing's launch but
that the strict setting in some Asia countries was
implemented only in September 2009. Yeung stated that
Microsoft had not received any customer complaints or
inquiries about the strict SafeSearch setting used in Hong
Kong until the SCMP article appeared. She also noted that
her office had received inquires from the Hong Kong
government.
MARUT
Around that same time Microsoft was slammed for censoring results not just for sexual content. Some called for a boycott, even in the New York Times.█
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Posted in Antitrust, Cablegate, Europe, Microsoft at 2:19 am by Dr. Roy Schestowitz
Summary: Unnamed politicians offer to help Microsoft escape scrutiny from the EU Commission (for its antitrust abuses)
AMID trouble for its corruption regarding OOXML (with an impending European investigation), Microsoft hired Vassallo to play politics.
The following Cablegate cable shows us that when Microsoft was working on the browser ballot, for example, the US government got involved. It also offered to get involved by pressing on the EU Commission.
VZCZCBSI597
PP RUEHC RUCPDOC RUEAWJA RHEHNSC RUCNMEM RUCNMEU
DE RUEHBS #1310/01 2721346
ZNR UUUUU ZZH
P 291346Z SEP 09
FM USEU BRUSSELS
TO RUEHC/SECSTATE WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNMEU/EU INTEREST COLLECTIVE
UNCLAS SECTION 01 OF 03 BRUSSELS 001310
SENSITIVE
SIPDIS
DOJ FOR CALDWELL HARROP
DOC FOR DAVID DEFALCO
STATE FOR EUR/ERA, EEB/TPP/MTA, EEB/OIA
STATE PLEASE PASS TO USTR/DAVID WEINER AND FTC/JOHN PARISI
NOT FOR INTERNET DISTRIBUTION
E.O. 12958: N/A
TAGS: ECIN, ECON, EINT, ECPS, ETRD, EUN
SUBJECT: MICROSOFT: CLOSE TO FINAL DEAL WITH EU TO END COMPETITION
CASES
1. (SBU) SUMMARY. John Vassallo, Microsoft (MS) VP for EU Affairs,
told Charge Sept. 24 that the company "is very close" to concluding
an overarching deal with the European Commission on three antitrust
issues: 1) the Commission's case against Microsoft's tying of
Internet Explorer to Windows; 2) a five-year deal on sharing
interoperability information with rival firms; and 3) a 10-year
agreement to support PDF and other file format compatibility with
Microsoft's own file format. Vassallo said there are only a few
small issues to resolve over the tying case, which will involve MS
agreeing to provide within the EU all new Windows computer buyers,
and all customers upgrading Windows versions, a "ballot screen"
whereby customers can select from 12 internet browsers to use as
their default browser. Customers would also be able to deactivate
Internet Explorer completely. This element of the deal will require
a four-week EU market test and formal approval by the College of
Commissioners, which MS hopes for by October 28.
2. (SBU) Vassallo said the whole package represents a historic
opportunity for the Commission and Microsoft to resolve past
disputes and move into a new era of cooperative relations.
Commissioner Neelie Kroes has been publicly advertising her interest
in concluding the total deal (as part of her legacy before she
leaves the Commission), increasing its likelihood of success.
Charge asked if MS requested U.S. engagement; Vassallo said not
directly, but stressed the value of emphasizing that reaching a deal
would be good for all parties concerned. After an 11-year battle
involving nearly $2.5 billion in Commission fines against Microsoft,
both sides of this epic competition battle may be ready to end
confrontation and resolve their differences. END SUMMARY.
MICROSOFT SEES OVERALL AGREEMENT NEAR
-------------------------------------
3. (SBU) John Vassallo, Microsoft (MS) VP for EU Affairs, told
Charge d'Affaires and Acting EconCouns September 24 that press
statements by Competition Commissioner Neelie Kroes and Director
General Philip Lowe, in the U.S. for conferences, that an overall
Commission-Microsoft deal is close are correct. He explained that
Microsoft and the Commission have been in intensive negotiations
since July that have brought the two parties close to an overarching
package agreement on three outstanding antitrust issues (one formal
and two informal).
THREE ELEMENTS OF PACKAGE DEAL
------------------------------
I. FORMAL AGREEMENT ON REMEDIES FOR IE-WINDOWS TYING CASE
--------------------------------------------- -------
4. (SBU) The major element of the proposed deal, Vassallo said, is
Microsoft's proposed remedy for the Commission antitrust case
against MS tying of Internet Explorer to its Windows operating
system. Vassallo briefly recounted the history of the Commission
case against MS for tying Media Player to Windows, which resulted in
a 2004 Commission decision and massive (497 million euro) fine
against Microsoft, which was upheld in 2007 by the EU Court of First
Instance. The remedy required by the Commission, that of MS
offering a version of Windows without Media Player, failed to
resolve concerns since it was commercially unsuccessful.
5. (SBU) In 2006, Vassallo said, Opera, a small Norwegian browser
company, filed a similar antitrust complaint over MS tying of IE to
Windows. The Commission took up the case, and MS began negotiations
with the Commission over a solution. In December, 2008, the two
sides were close to informal agreement, Vassallo said, but the
Commission stuck to its desire to have computer makers (OEMs)
include all major browsers in software bundles for new computers,
with customers able to choose one as a default browser.
6. (SBU) This agreement was not acceptable to MS, and the Commission
filed a formal antitrust charge (Statement of Objections) in January
2009. The Commission then offered a hearing date that MS could not
take due to scheduling conflicts, Vassallo said. Faced with an
enormous potential Commission fine (2-6 billion euros, retroactive
to 1996), MS began new informal negotiations with the Commission
towards a solution.
7. (SBU) In July MS and the Commission came to initial agreement on
a remedy that would resolve the complaint. MS agreed to direct all
new computer buyers within the EU, upon their first connection to
the Internet, to a "ballot screen" that would allow them to download
any of12 competing browsers, make it their default browser, and
deactivate IE if desired. This would only be true for OEMs who
include IE as the initial default browser; if OEMs reach a better
financial deal with another browser maker (e.g. Google) to make that
browser the default, the customer would not get the ballot screen
option. Vassallo added that existing Windows computer users would
get the same ballot screen and IE deactivation option when upgrading
their version of Windows.
8. (SBU) This formal agreement to resolve the tying case is subject
to approval by the College of Commissioners, Vassallo continued,
which is only possible after a four-week mandatory market test of
the proposed remedy. MS hopes to begin this test extremely soon, he
said, to allow time for formal Commission approval by October 28.
9. (SBU) Vassallo said there are a few very minor issues to resolve
over this part of the deal, including such points as: required
security awareness messages for ballot screen users, the order in
which browser options might be displayed, and the size of different
logos. He hoped to resolve these within days and thought none are
likely to upset a final deal.
10. (SBU) Vassallo clarified that MS will launch Windows 7 in Europe
on October 22, in advance of likely final approval of the agreement.
This would not include a ballot screen option, but if a deal is in
fact concluded within the following weeks, MS would link Windows 7
computers automatically back to the ballot screen webpage, so the
launch timing should not disrupt conclusion of a deal.
II. INFORMAL AGREEMENT ON INTEROPERABILITY
------------------------------------------
11. (SBU) Vassallo said that a second part of the deal would resolve
a Commission investigation, based on a complaint by anti-MS lobby
group ECIS (which counts Sun, IBM and other U.S. and EU firms as
members) of MS alleged failure to share adequate code or information
on understanding MS code to allow MS competitors and develop and run
products that would work properly with MS operating systems and
other software. This agreement will involve MS offering licenses on
certain code for a nominal fee, posting 75,000 pages on its code on
the web and establishing labs where competitors' software developers
can come for instruction on how to develop products to work with MS
code. There will also be a rapid arbitration procedure for
disputes, Vassallo added, and MS will agree to pay 135,000 euros/day
to operators who cannot get their system to work with MS products
after recourse to the above.
III. INFORMAL AGREEMENT ON PDF AND OTHER FILE SUPPORT
--------------------------------------------- --------
12. (SBU) The third and final part of the package is an agreement
under which MS will be obliged to support for 10 years compatibility
of Adobe PDF files and other similar document files with Microsoft's
Open XML proprietary format. The support will be
backwards-compatible, allowing billions of documents in older
formats to be accessible. Vassallo noted here the Commission's
positive July statement on MS efforts to promote interoperability,
which he said was without precedent.
13. (SBU) Both informal agreements will only come into effect once
the formal agreement is concluded, Vassallo added.
MICROSOFT: DEAL REPRESENTS "HISTORIC OPPORTUNITY" FOR COMMISSION
--------------------------------------------- --------
14. (SBU) Vassallo underscored that the whole package represents a
historic opportunity for the Commission and Microsoft to resolve
past disputes and move into a new era of cooperative relations. If
the small pending issues for the formal agreement on tying are
resolved quickly, the Commission can move to the market test.
Vassallo said that MS had seen a remarkable turnaround in the
willingness of the Commission to deal directly and openly with
Microsoft, which he attributed to Commissioner Kroes' strong,
publicly-stated interest in resolving the Microsoft cases as part of
her legacy before she leaves the Commission in the next few months.
15. (SBU) Vassallo said his only major fear was that the Commission
might use the results of the ballot screen market test to come back
to MS and ask for more concessions/changes before final Commission
approval. This could scotch a final deal. If the deal falls apart,
the Commission would face the choice of proceeding with a fine and
forced remedy, which Microsoft would challenge in court. Vassallo
said he understood that Kroes and DOJ AAG Varney have been in close
touch on the overall deal.
16. (SBU) The Charge asked about MS outreach to USG officials in
Washington; Vassallo noted that Microsoft has briefed DOJ on the
impending settlement. Charge then asked if MS is requesting direct
USEU engagement; Vassallo said no, but , but added that if senior
USEU or visiting USG officials happen to meet with relevant EU
decisionmakers, they could stress the value of reaching a deal for
all parties concerned. The proposed deal is good for the EU, the
market and consumers, Vassallo concluded.
COMMENT
-------
17. (SBU) Vassallo's story reflects Microsoft's point of view, and
it is unclear how the Commission sees prospects and potential
obstacles involved in an overarching package deal on Microsoft's
competition cases. Microsoft does have other potential issues in
Europe, with the possibility of a Commission review of its
advertising alliance with Yahoo, and with browser competition with
Google turning increasingly nasty. Nevertheless, after an 11-year
battle involving nearly $2.5 billion in Commission fines against
Microsoft, both sides of this epic competition policy battle may be
ready to end confrontation and resolve their differences, for now.
END COMMENT.
MURRAY
Why can they not let the EU Commission.decide on its own? And never mind the fact that this settlement was rather ineffective as it hardly punished Microsoft for illegally getting market share (breaking competition rules), as we explained in prior years… █
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09.08.11
Posted in America, Microsoft at 3:53 pm by Dr. Roy Schestowitz
Summary: A demonstration of how — with help from the US government — Microsoft was able to influence affairs overseas and also raid shops that spread Microsoft products
THIS morning we showed a few cables from Saudi Arabia. Microsoft was trying to change laws and practices there, in order of course to better accommodate Microsoft’s profit model, not to help Saudi citizens. Well, this leaning on the government — helped by US officials — seems to have paid off. We’ve just found another Cablegate cable from exactly 2 years ago. It shows the role of the BSA behind the scenes too:
VZCZCXRO5063
PP RUEHDE RUEHDH RUEHDIR
DE RUEHRH #1202/01 2571429
ZNR UUUUU ZZH
P 141429Z SEP 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 1567
INFO RUEHZM/GCC COLLECTIVE PRIORITY
UNCLAS SECTION 01 OF 02 RIYADH 001202
SIPDIS
SENSITIVE
STATE FOR NEA/ARP (HARRIS, BERNDT) AND EEB/TPP/IPE
DEPT PLEASE PASS TO USTR (BUNTIN)
E.O. 12958: N/A
TAGS: ECON, ETRD, KIPR, SA
SUBJECT: Microsoft and Saudi leaders cite progress on IPR
Ref: Jeddah 297
1. (SBU) Summary: The Saudi Ministry of Culture continues to make
progress working through a backlog of cases of suspected copyright
violators. The Ministry reports it has closed several stores for
brief periods until they resolve copyright violations. It plans for
the first time to refer a repeat offender to the Board of
Grievances. The Ministry supports greater public relations efforts
to increase awareness of IPR issues, and it is willing to work with
industry on training and awareness campaigns. Meanwhile, local
Microsoft representatives tell us they have seen the Saudi
government show improvement in both attitude and enforcement, and
they confirmed to us that one computer store has been closed for IPR
violations. The company remains willing to work with Saudi
ministries to provide training and increase awareness, although they
still say enforcement could be stronger, including within the SAG.
End summary.
Microsoft exec: Saudi record on IPR has improved...
--------------------------------------------- -------
2. (SBU) On September 8, Fernando De Sousa, Microsoft's chief
operating officer in Saudi Arabia, paid a farewell call on Charge
Ambassador Erdman, thanking him for the Embassy's strong support on
IPR issues. The Ambassador briefed De Sousa on his recent
conversations with Minister of Commerce and Industry Abdullah Zainal
Alireza (reftel), in which the Minister reiterated Saudi Arabia's
commitment to fulfill all of its WTO commitments to protect
intellectual property. The Minister had said he welcomed the
interest of companies like Microsoft in supporting SAG enforcement
efforts, including through training. Econ Counselor also briefed
the Microsoft team on recent conversations with Assistant Deputy
Culture Minister for Internal Information Abdulrahman Al-Hazzaa, who
also welcomed cooperation with Microsoft and other companies on
training and public awareness campaigns.
3. (SBU) Hazzaa reported that the Ministry of Culture and
Information is processing the backlog of IPR enforcement cases that
had been awaiting review by the violations review committee,
finishing an average of 7 a week, and on track to finish reviewing
all old cases by the end of September (the committee was meeting in
the adjoining room while Econoffs called on Hazzaa). Hazzaa said
that this will allow the committee to focus on bringing new cases
from inspectors, which will help improve awareness of enforcement
efforts. Hazzaa reported that, as a result of the committee's
reviews, several shops have been closed with the posting of large
public notices explaining why until the owners come and settle their
fines with the Ministry. The point, according to Hazzaa, is to
impress upon store owners that they cannot sell pirated goods with
impunity. (Microsoft reps separately confirmed they are aware of
one computer store having been closed down and said that closures
may help stores selling legitimate software compete if enforcement
is seen as more pervasive.) Hazzaa also reported that increased
Ministry inspections and enforcement efforts have disrupted the
ability of black market vendors to sell a range of pirated products.
Econoffs have observed a reduction in the public sale of pirated
software and other items, like movies, over the last year.
Microsoft representatives agree that there has been some reduction
in street-level sales, although they believe stores in malls
continue to sell pirated software.
4. (SBU) Hazzaa also reported that the committee had found one
commercial entity had engaged in so many violations that the
committee has recommended, for the first time, that the case be sent
to the Board of Grievances with a recommended fine of SR 100,000.
He explained that the Minister of Culture and Information will have
to approve this referral, and he promised to push hard for this
approval, noting that this will send an important message to the
Saudi public and business owners that the Ministry is serious about
enforcing copyright laws.
... and the issue now is sustainment
------------------------------------
5. (SBU) De Sousa told the Ambassador that there has been
improvement in IPR copyright protection in the last several years,
although he said the issue now is to make this improvement
sustainable. He also stressed Microsoft's willingness to support
efforts by the Ministries of Culture and Commerce to publicize
enforcement efforts and assist public campaigns to raise awareness
of IPR issues.
6. (SBU) Despite the improvement in the overall climate, De Souza
noted that problems remain. He noted that Microsoft has discovered
a software activation key licensed to the Ministry of Interior has
been used in Pakistan and other south Asian countries to attempt to
register product upgrades. The Ambassador suggested that Microsoft
work with the Business Software Alliance and other companies to come
up with a white paper listing specific problems on which it would be
RIYADH 00001202 002 OF 002
useful to have greater cooperation with the SAG, including the
Ministry of Interior.
7. (SBU) Comment: The Embassy will continue to work with the
Ministries of Culture and Commerce and with industry representatives
to foster agreement on a public relations campaign to increase
awareness about IPR issues. We will also continue to support
industry offers to provide training to SAG inspectors, and efforts
to achieve SAG support to allow an audit of its own software to
ensure it does not exceed its existing license requirements. End
comment.
MUENCH
As one of our readers put it earlier today, “More and more, governments act as butlers for big companies.” █
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Posted in America, Cablegate, Microsoft at 3:33 pm by Dr. Roy Schestowitz
Summary: A confidential cable from just 2 years ago shows the background to Microsoft’s IM ban in several countries that the US views as enemies
IN MAY of 2009 we wrote repeatedly about Microsoft playing along with political sanctions by banning particular countries. The following Cablegate cable, titled “CUBANS DISAPPOINTED BY MICROSOFT; INSPIRED BY IRAN,” shows what diplomats were saying about it. It’s marked “C O N F I D E N T I A L” (far higher than most cables of this kind) and it is easy to see why. We are highlighting a few bits of interest:
VZCZCXRO4534
RR RUEHAG RUEHBC RUEHDE RUEHDIR RUEHKUK RUEHROV RUEHSL RUEHSR RUEHTRO
DE RUEHUB #0361/01 1701858
ZNY CCCCC ZZH
R 191858Z JUN 09
FM USINT HAVANA
TO RUEHC/SECSTATE WASHDC 4494
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNIRA/IRAN COLLECTIVE
RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEHBS/USEU BRUSSELS
RUCOWCV/CCGDSEVEN MIAMI FL
RUEAIIA/CIA WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCOGCA/COMNAVBASE GUANTANAMO BAY CU
RHMFISS/HQ USSOUTHCOM MIAMI FL
RHMFISS/JOINT STAFF WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 HAVANA 000361
SIPDIS
DEPT FOR WHA/CCA
DEPT FOR EEB/ESC/TFS
E.O. 12958: DECL: 06/18/2029
TAGS: EINT, PREL, ECON, CU, IR
SUBJECT: CUBANS DISAPPOINTED BY MICROSOFT; INSPIRED BY IRAN
HAVANA 00000361 001.2 OF 002
Classified By: COM Jonathan Farrar for reasons 1.4 (b) and (d)
-------
SUMMARY
-------
1. (C) The decision by Microsoft and others to block certain
internet communication services in Cuba works directly
against U.S. goals to advance people-to-people interaction.
The growing Cuban virtual community has privately and
publicly expressed its disappointment. Bloggers remain
undeterred, however, in their effort to break Cuba's
information blockade and are inspired by current events in
Iran and the expanded use of mobile phones to receive and
transmit information. This cable contains an action request
in paragraph 6. End Summary.
------------------------------------------
DOING THE CUBAN GOVERNMENT'S WORK FOR THEM
------------------------------------------
2. (C) Cuban bloggers Yoani Sanchez and Claudia Cadelo
recently expressed disappointment in Microsoft's decision to
block access to Windows Live Instant Messenger for internet
users in Cuba (and other state sponsors of terrorism) through
their respective blogs, Generacion Y and Octavo Cerco. The
Cuban Government strictly controls internet usage and
restricts access to several internet sites (including many
blogs), even for tourists in Cuban hotels. In shutting down
Instant Messenger, both bloggers commented that Microsoft is
in effect doing the work of Cuban Government censors for
them. The bloggers worry that potential further action to
avoid violations of the U.S. embargo by foreign internet and
software companies may negatively affect the growing cyber
community in Cuba. Tech savvy Cubans can get around the
restrictions by using proxy servers based outside Cuba or
third party messenger hosts, but most Cubans are simply
forced to do without.
3. (C) Microsoft and other providers of similar free,
downloadable software (Note: Google Talk is also blocked.
End Note) claim that the encrypted code used in these
programs is restricted by U.S. Export Administration
Regulations. The Cuban official press predictably (and
hypocritically) took advantage of the situation to criticize
Microsoft's decision as "the latest turn of the screw in the
United States' technological blockage against the island" and
"a truly harsh violation" of Cuba's rights. Publicity around
Microsoft's decision comes at a critical time in U.S.-Cuba
relations as we await the pending implementation of the
policy changes announced by the White House on April 13 to
"authorize greater telecommunications links with Cuba to
advance people-to-people interaction at no cost to the U.S.
government." Furthermore, Claudia Cadelo wrote in her June
10 blog that she had heard rumors that the social networking
site Facebook may follow Microsoft's example. Operating a
Facebook account does not require the user to download any
software. Thus, Facebook does not share the same concerns
related to export restrictions as the downloadable messenger
sites. Per conversations with the Department, Facebook
reported this week that it blocks Cuban access to
applications and advertising, but not to normal social
networking operations. We understand from Cuban contacts
that Cubans continue to successfully access Facebook
accounts, although a local USINT employee tried to sign up
for an account at a hotel on June 17 and received a message
from Facebook that he was "ineligible to sign up."
----------------
INSPIRED BY IRAN
----------------
4. (C) At the same time, Cuban bloggers are paying close
attention to current events in Iran, in particular the use of
social media such as Twitter, Facebook, and mobile phones to
inform and influence domestic and international opinion.
Yoani Sanchez wrote in her blog on June 17 that what is
HAVANA 00000361 002.2 OF 002
happening in Iran and its dissemination through the Internet
is a lesson for Cuban bloggers. Sanchez told us separately
that the use of mobile phones (including iphones) to transmit
information, share blogs, and even access the internet is a
significant and growing phenomenon in Cuba. As a great
source of information hidden by the official press, she also
praised the new service called "Granpa" (www.granpa.info)
that sends news articles to Cuban mobile phones via SMS text
messages (Note: USINT staff have since signed up for this
service and receive several articles a day. As of yet,
neither we nor our contacts know who runs Granpa. End Note.)
She lamented, however, that Cuba was clearly not yet at the
same level of connectivity as Iranian society.
5. (SBU) Cuban dissidents are also following developments in
the cyber community. Well known dissident Oswaldo Paya
published, through the blog Bitacora, a message of solidarity
with the Cuban blogger community in early June. Paya urged
bloggers to "be the voice of those who have no blog" and
congratulated them for "this initiative to proclaim the
people's right to the internet and for their courage in the
struggle for the liberation of truth, which is imprisoned in
Cuba."
---------------------------
COMMENTS AND ACTION REQUEST
---------------------------
6. (C) The Cuban government continues to see the internet as
a threat and remains committed to restricting and controlling
access. Internet communication and social networking sites
are becoming more and more popular in Cuba as a means of
communicating across the island and accessing family,
friends, and information from off the island. This new media
is important not just for increasing people-to-people
contact, but also for helping Cubans share their stories and
as a way to inform, organize, and mobilize civil society.
ACTION REQUEST: Post requests Department assistance in
removing any regulatory obstacles that limit Cuban access to
free internet communications without jeopardizing national
security.
7. (C) Cuban state telecommunications monopoly ETESCA
announced earlier this year that it hopes to add 250,000 new
mobile phone users in 2009, which is nearly twice as many new
subscribers as in 2008 and a 50 percent increase over the
current total (about 470,000). We hear that within days
ETECSA may announce a significant drop in prices for
initiating service and making international calls in an
effort to capture more hard currency. In this context, a
liberal implementation of the changes in U.S. policy
announced on April 13 regarding telecommunications may help
facilitate Iran-style democratic ferment in Cuba.
FARRAR
It does not say that among the US population the sanctions against Cuba are overwhelmingly unpopular. Those in positions of power in the US just want to oppress and somehow get rid of the existing Cuban government, even if they do so by hurting innocent civilians (collateral damage). It is actually part of the strategy, as by making the population upset they hope to incite the population against the government and perhaps overthrow it without outside intervention. █
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