01.09.12
Posted in Africa, Free/Libre Software, Microsoft at 4:25 am by Dr. Roy Schestowitz
Summary: The crackdowns on counterfeiting in at least one African nation help the adoption of Free/open source software
WHENEVER we hear about Kenya [1, 2, 3, 4, 5] we tend to hear about corporate corruption and other misuses of positions of power. The counterfeiting wars are mentioned quite frequently too because the pirates from Microsoft and its front groups (such as the BSA) raid local businesses, sparking adoption of Free/open source software, which Microsoft in turn attacks in a variety of nefarious ways. To quote a new report:
Kenyans are turning to open source software, which are freely available to the public, after the fight against piracy was stepped up in the East African nation.
Microsoft East and Southern Africa and Kenya Copyright Board (Kecobo) have in the past months intensified war on pirated software, raiding several businesses suspected to be dealing in unlicensed software, confiscating computers and instituting legal action against offenders.
This is a good and very new example of why counterfeiting is actually beneficial to Microsoft. The report contains some common mistakes and myths, but it’s still worth reading. █
“Microsoft boss Bill Gates threatened to kill 800 Danish jobs if Denmark opposed the European Computer Implemented Inventions Directive, reports today’s Danish financial daily Børsen, quoted by NoSoftwarePatents.com”
–P2PNet, 2005
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12.30.11
Posted in Africa, Cablegate at 1:33 pm by Dr. Roy Schestowitz
Summary: More cables from South Africa and new information that they provide
Frost and Sullivan, a familiar source of anti-FOSS, pro-Microsoft FUD, brings back memories of South Africa's interesting podcast where experts claimed that Microsoft buddies did a lot of work to derail the government’s migration to Free software. According to the following Cablegate cable, the FUD from Frost and Sullivan is bordering the ridiculous. To them, Internet speed if an impediment of Free software development. What utter crock. From the Cablegate cable: “High cost of internet access is stifling South Africa’s software development industry and thwarting the SAG’s open source procurement policy and commitment to use locally developed software. According to Linda McDonald, an analyst for Frost and Sullivan, the SAG’s plan to save million of rands yearly by cutting out annual software license fees, boost local skills and create more jobs as developers are hired to modify open source software to suit the government’s needs, is a false hope unless the cost of Internet access drops. Unless developers can spend numerous hours in online discussions at an affordable rate, they will not be able to create the necessary programs for the SAG’s software. (Business Day, September 25, 2007)”
What utter nonsense. So accessing forums is the impediment for Free software implementation and the primary cost constraint? This sounds so made up that one might consider it a hoax. A sceptic might ask, how can we know she was not sincere? Well, there is an implicit suggestion there that Free software needs a lot of querying (as though proprietary software needs none), that online forums/E-mail are bandwidth intensive, and that the country is not talented enough for the task (Microsoft used the same insulting talking points and it backfired). So if Linda McDonald was honest, she should probably be fired. But we gave examples of some other Microsoft proxies (like Computing Technology Industry Association) that did similar things to have South Africa abandon its ODF and FOSS plans. It’s like a cult assault. Here is another cable from the same nation. From ¶3: “One Laptop Per Child (OLPC) is a nonprofit initiative launched by MIT Media Labs’ Nicholas Negroponte to donate low-cost and rugged notebook computers to poor children of the third world. (For details see http://laptop.org and http://wiki.laptop.org.) The resulting “XO” machine is designed for kids: smaller and lighter than regular PCs, with a waterproof keyboard sized to small fingers, and a carrying handle. Its bright colors prompt comparison to Fischer- Price toys. The XO’s screen resolution is sharp, however, and it comes loaded with an open-source operating system and software ranging from a web browser to e-book reader and puzzle games, as well as applications for word processing, drawing, and composing music. A built-in video camera and wireless modem enable video chat with other users.”
Here is another interesting cable from South Africa. The two newer ones (to us) are:
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09.17.11
Posted in Africa, America, Asia, Cablegate, Law, Patents at 4:24 am by Dr. Roy Schestowitz
Summary: How US diplomats view negotiations whose goal is to legitimise monopolies in countries that have no interest in these
According to the following year-old cable, specifically in ¶5, “Member States negotiated informally a compromise work program that ensured balanced and focused work for the SCP [Standing Committee on the Law of Patents]. The proposed work program included: 1. further study on technology transfer concerning the relationship of patent technology transfer and innovation; 2. work on limitations and exceptions that included the external expert study and Brazil’s work program proposal; 3. patent administration issues that included work on patent quality management and further work on dissemination of patent information that looked at digitization issues and access to complete patent information; 4. further work on client-attorney privilege to solicit Member State input on national experiences; 5. future conference on public health and food security issues; and 6. reaffirming that the non-exhaustive list of issues for possible discussion by the SCP remain open for further elaboration at the next meeting, but agreeing that Member States would refrain from adding on to the list at this session, so as to ensure that work on the existing studies could be more focused. These items were truly a compromise text, particularly for Group B, as our primary objective to discuss patent harmonization issues was not part of this list and many of the items had more of a developing country interest/slant. On day one of our conversation concerning future work, we reached agreement among Group B countries, GRULAC, Eastern European countries, Singapore, Korea, the regional coordinator of Africa, Angola.”
They are trying to convince developing countries to give up and accept a system which harms them greatly. With our emphasis on the relevant parts, ¶7 carries on by noting that “While Group B and the U.S. were disappointed that the agreement reached the day before did not satisfy all of the Africa Group and the Asia Group, we were willing to negotiate further from our compromise text. However, it became clear that the Africa Group and some Asian Group countries were not willing to move from their position. Group B in particular was willing to add on to the non exhaustive list with the inclusion of “work sharing” and the “strategic use of IP in business” as proposed by the Group of Eastern European Countries. Despite developing countries’ insistence that the non exhaustive list remain open, Indonesia and India opposed the Group B suggestion of “work sharing”, arguing that it was duplicative of work at the PCT working group and that it was patent harmonization-related and therefore not welcomed by developing countries. Further, even though Group B reminded these countries that their proposed suggestions on the list were duplicative of work occurring in the Committee on Development and IP (CDIP), Egypt’s response was that development agenda work in CDIP was a cross-cutting issue throughout the Organization, and therefore duplication was needed.”
Here is the cable in full:
VZCZCXYZ0005
RR RUEHWEB
DE RUEHGV #0136/01 0491710
ZNR UUUUU ZZH
R 181701Z FEB 10
FM USMISSION GENEVA
TO RUEHC/SECSTATE WASHDC 0238
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGV/USMISSION GENEVA
RUEHGV/USMISSION USTR GENEVA
UNCLAS GENEVA 000136
SIPDIS
STATE FOR EEB/IPC, IO/HS, OES
COMMERCE FOR USPTO
E.O. 12958: N/A
TAGS: ECON [Economic Conditions],
KIPR [Intellectual Property Rights],
WIPO [World Intellectual Property Organization]
SUBJECT: Fourteenth Session of the WIPO Standing Committee on the Law
of Patents
¶1. The World Intellectual Property Organization's Standing
Committee on the Law of Patents (WIPO SCP) continued to discuss
preliminary studies requested by the SCP in June 2008 and March
2009, and commenced a discussion on Brazil's proposal concerning
exceptions and limitations to patent rights. However, an impasse
resulted at the SCP on the future work of the committee. As a
result, the agenda from this session will be used for the next
meeting in October 2010. During two days worth of negotiations on
the future work topic, it became clear that Member States fail to
see eye to eye on the international patent system itself, as some
view the system to be a threat to development and oppose any global
efforts - whether normative or cooperative technical assistance
work -- in improving the patent system. END SUMMARY.
¶2. The WIPO SCP met from January 25-29, 2010. Delegations from 103
countries, 10 international organizations and 28 non-governmental
organizations participated in the Committee which was chaired by
Mr. Maximiliano Santa Cruz from Chile. The United States
delegation was represented by USPTO External Affairs Administrator
Arti Rai, Charles Eloshway of USPTO, Janet Speck, Deputy Director,
State Department and Deborah Lashley-Johnson, IP Attach???? at the
U.S. Mission to the UN.
¶3. Discussions were based on preliminary studies written by the
International Bureau at WIPO concerning the relationship of
standards and patents, client-attorney privilege, dissemination of
patent information, transfer of technology, and opposition systems.
Many delegations stated that these documents constituted a good
basis for discussions, and requested further clarifications on
various issues contained in the documents. However, certain
statements made by developing countries and NGO were worrisome,
such as: equating work on the client-attorney disclosure problem to
patent law harmonization work; viewing the topic of dissemination
of patent information to include the disclosure of proprietary
information and trade secrets; and stating that a study should
include how the patent system hinders technology transfer.
¶4. The topic of limitations and exceptions was also discussed,
although the external experts' study was not available for this
meeting. A proposal in respect of exceptions and limitations to
patent rights was submitted by the Delegation of Brazil, which
received support by many developing countries. The proposal has
three phases: discussion on national experiences on patent right
exceptions and limitations; focus work on exceptions and
limitations that help to address developmental concerns; and the
development of an exceptions and limitations manual. Other
delegations, such as the U.S., Switzerland and other industrialized
countries expressed concern that they had not received the document
in advance of the meeting, and therefore had insufficient time to
consider the proposal, and expressed a wish to consider the
proposal at the following session in October 2010 when the external
expert study would also be presented. Nonetheless, the U.S. noted
that it was interested in studying the issue more and saw strong
intellectual property rights and enforcement to be consistent with
proper, basic limitations and exceptions.
¶5. Gridlock, however, occurred once the committee moved onto the
topic of future work. Several regional coordinators and interested
Member States negotiated informally a compromise work program that
ensured balanced and focused work for the SCP. The proposed work
program included: 1. further study on technology transfer
concerning the relationship of patent technology transfer and
innovation; 2. work on limitations and exceptions that included the
external expert study and Brazil's work program proposal; 3. patent
administration issues that included work on patent quality
management and further work on dissemination of patent information
that looked at digitization issues and access to complete patent
information; 4. further work on client-attorney privilege to
solicit Member State input on national experiences; 5. future
conference on public health and food security issues; and 6.
reaffirming that the non-exhaustive list of issues for possible
discussion by the SCP remain open for further elaboration at the
next meeting, but agreeing that Member States would refrain from
adding on to the list at this session, so as to ensure that work on
the existing studies could be more focused. These items were truly
a compromise text, particularly for Group B, as our primary
objective to discuss patent harmonization issues was not part of
this list and many of the items had more of a developing country
interest/slant. On day one of our conversation concerning future
work, we reached agreement among Group B countries, GRULAC, Eastern
European countries, Singapore, Korea, the regional coordinator of
Africa, Angola.
¶6. However, on day two, Angola, members of the Africa Group, such
as Egypt and South Africa, Pakistan, India, Sri Lanka, Malaysia,
Yemen, Iran and Indonesia, opposed the compromise text. Their
amendments suggested future studies on the negative impacts patents
have on technology transfer and standards, and a new study on
patents and public health. There was also a proposal on the
establishment of a technology transfer commission to focus on the
problems of technology transfer. Their proposal further lacked
balance in their deletion of the only two issues offered by Group B
in the initial compromise proposal concerning patent quality
management and further work on client-attorney privilege. The
counter-proposal also included another large conference on patents
and public policy issues as a follow up to the one held in July
2009. Lastly, they pushed to expand the non-exhaustive list to
include topics such as the impact of the patent system on
developing countries and LDCs, and the relationship of patents and
food security.
¶7. While Group B and the U.S. were disappointed that the agreement
reached the day before did not satisfy all of the Africa Group and
the Asia Group, we were willing to negotiate further from our
compromise text. However, it became clear that the Africa Group
and some Asian Group countries were not willing to move from their
position. Group B in particular was willing to add on to the non
exhaustive list with the inclusion of "work sharing" and the
"strategic use of IP in business" as proposed by the Group of
Eastern European Countries. Despite developing countries'
insistence that the non exhaustive list remain open, Indonesia and
India opposed the Group B suggestion of "work sharing", arguing
that it was duplicative of work at the PCT working group and that
it was patent harmonization-related and therefore not welcomed by
developing countries. Further, even though Group B reminded these
countries that their proposed suggestions on the list were
duplicative of work occurring in the Committee on Development and
IP (CDIP), Egypt's response was that development agenda work in
CDIP was a cross-cutting issue throughout the Organization, and
therefore duplication was needed.
¶8. COMMENT: Group B member states expressed deep concern about the
events that transpired at this meeting. Several countries refused
to negotiate from their maximalist positions, which has been a
concern in other committees at WIPO. The inflexibility of
developing country positions will make reaching a compromise on any
SCP work program impossible, particularly when this committee has
had a history of disbanding for three years due to similar
political impasses. Further, it is clear that the development
agenda is the only work these delegations are interested in at the
expense of issues related to patent law that are important to Group
B and their constituents. Targeted demarches to the few countries
that are blocking progress and preventing the SCP to function are
being considered. In addition, Group B will increase its
coordination to advance its agenda on the various issues before the
SCP, such as in the areas of technology transfer, limitation and
exceptions, client-attorney privilege, opposition systems, and
dissemination of patent information. END COMMENT.
GRIFFITHS
Next, we are going to look at some EU positions on the subject. █
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09.15.11
Posted in Africa, Bill Gates, Cablegate, Microsoft at 4:58 pm by Dr. Roy Schestowitz
Summary: A good demonstration of how Microsoft and Gates manage to manage governments by proxy
According to the following Cablegate cable, the Ministry of Investment (MOI) in Egypt is not quite working on its own. “On behalf of MOI,” says ¶6, “Microsoft Chairman Bill Gates launched a website, www.investment.gov.eg in January 2005, to serve as Egypt’s investment portal.”
Since when does Bill govern Egypt or run its economy? There is a lot of other interesting stuff in the cables below, but it is probably of most interest to Egyptians who wish to understand how Mubarak’s regime has harmed them by giving control to imperialists who export weapons (at taxpayers’ expense).
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09.14.11
Posted in Africa, Microsoft at 5:30 pm by Dr. Roy Schestowitz
Summary: A cable explaining Microsoft’s affairs with the Algerian government
THE FOLLOWING Cablegate cable is from almost 4 years ago and it helps complete this other insulting cable from in Algeria.
VZCZCXRO2537
RR RUEHTRO
DE RUEHAS #1581/01 3030607
ZNR UUUUU ZZH
R 300607Z OCT 07
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC 4760
INFO RUEHFR/AMEMBASSY PARIS 2384
RUEHLO/AMEMBASSY LONDON 1738
RUEHMD/AMEMBASSY MADRID 8660
RUEHRB/AMEMBASSY RABAT 1990
RUEHTU/AMEMBASSY TUNIS 6841
RUEHTRO/AMEMBASSY TRIPOLI
RUEHNK/AMEMBASSY NOUAKCHOTT 6077
RUEHNM/AMEMBASSY NIAMEY 1332
RUEHBP/AMEMBASSY BAMAKO 0280
RUEHCL/AMCONSUL CASABLANCA 3105
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS SECTION 01 OF 02 ALGIERS 001581
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON [Economic Conditions], EINV [Foreign Investments], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], AG [Algeria]
SUBJECT: (MICRO)SOFT DIPLOMACY, VERSION 1.0
¶1. (U) SUMMARY: Microsoft CEO Steve Ballmer paid a brief visit to
Algeria in a trip touted as an opportunity for Microsoft to help the
GOA expand Algeria's information and communications technology (ICT)
sector and enhance its education system. Ballmer said he was
inspired by the GOA's commitment to technology development and by
the potential for market growth in Algeria. ICT insiders suggested
that the CEO visited Algeria in an effort to enhance Microsoft's
government relations, and to signal that its recently reorganized
business unit is serious about this market. Meanwhile, firms are
optimistic about the ICT sector in Algeria, but are skeptical about
whether Microsoft can effectively expand its software marketing
here, or expect to make any progress combating piracy. END
SUMMARY.
¶2. (U) In a whirlwind visit on October 3, Ballmer met with President
Bouteflika and several ministers to discuss the development of the
technology sector in Algeria, the use of IT start-up companies as a
means to energize the Algerian economy, and access to computers in
Algeria's schools. Ballmer later told a group of Microsoft partner
firms that the greatest growth potential for the ICT industry lies
in emerging markets like Algeria, where ICT structures can be
expanded to tap into significant populations hungry for access to
Web-based entertainment and educational services. (Note: 7.3
percent of the Algerian population has access to the Internet,
compared to a 0.2 percent penetration rate in 2000, according to
recent data compiled by the International Telecommunication Union.
End note.) Ballmer said that he came to Algeria to evaluate his
local team's recommendations for expansion, which he will consider
in early 2008. He told the industry group that he was "inspired by
the president's thoughtfulness toward the future," and that he saw
potential growth across all economic sectors.
BUT STILL, WHY COME TO ALGERIA?
-------------------------------
¶3. (SBU) Microsoft recently split its regional marketing division
and created the Microsoft Algeria business unit. Because of the
terrorist activity in Algeria in the 1990s, Microsoft established
its North African headquarters in Morocco, which local IT
representatives and former Microsoft employees say the GOA never
forgave. Ballmer's visit to Algeria appeared timed to show
corporate support for the new Algerian unit's government relations
efforts, and an attempt to relieve past tensions between the GOA and
Microsoft.
HOPE SPRINGS ETERNAL, BUT SO DO CLONES AND PIRATES
--------------------------------------------- -----
¶4. (SBU) Industry representatives told Econoff that they were
optimistic about the near-term future of the ICT sector in Algeria.
Abdelaziz Ben Aissa, the general manager of a certified Microsoft
business solutions firm, said that the GOA seems focused on ICT
issues and opportunities are expanding. Ben Aissa's firm provides
support services for Northrop Grumman information systems. He works
extensively with the Algerian federal police, with whom he expects
more contracts to support expanding communications and information
systems. Djamal Hadjout, the information services director of an
Algerian wholesaler representing a number of leading American
computer periphery brands, said business is generally growing and
that retailers are finding new customers among both Algerian
corporate and individual consumers. He noted that American products
continue to be associated with quality and prestige but are
considered expensive.
¶5. (U) IT representatives were at the same time skeptical that
Microsoft will be able to raise significantly its stake in the
Algerian consumer software market or to combat piracy effectively
because of the relatively high price of its products and the
continued weakening of Algerians' buying power. They said that most
personal computers sold to households are clones assembled in
Algeria, and that most people buy pirated copies of operating
systems like Windows and other software applications for as little
as two dollars. Further, according to recent news reports,
electronics represents the second-largest category of goods smuggled
into Algeria (after cigarettes), and overall customs seizures of
contraband rose significantly throughout 2007. Given Algeria's
rising cost of living and high unemployment rate, the ICT
representatives saw little hope that Microsoft will be able to
counter these IPR challenges anytime soon. Ballmer was asked about
this dilemma, but gave only a general response about his company's
ALGIERS 00001581 002 OF 002
commitment to finding innovative solutions to specific markets and
his confidence that the GOA will move in a positive direction
regarding ICT use and development in Algeria.
¶6. (SBU) COMMENT: Ballmer's visit, along with the recent creation of
Microsoft Algeria, likely went a long way to meeting Microsoft's
government relations goals. Some in the business world interpreted
President Bouteflika's overt hospitality to a corporate leader as a
sign that the GOA is serious about its stated intent to build out
Algeria's ICT sector, improve the country's education system through
access to technology, and see that every Algerian family has a
computer at home. Nonetheless, the challenges of contraband
hardware and pirated software remain significant as the high cost of
living continues to influence not only consumer decisions regarding
brand preference and when to buy, but also the choice between
licensed, cloned or pirated goods.
FORD
This is the perspective of US diplomats. They ignore all the critics of these affairs, as one might expect (sometimes, as we have shown before using other cables, critics are comped to “conspiracy theorists”). █
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09.09.11
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.
VZCZCXYZ0002
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DE RUEHTU #1286/01 2640644
ZNR UUUUU ZZH
P 210644Z SEP 07
FM AMEMBASSY TUNIS
TO RUCPDOC/USDOC WASHDC PRIORITY
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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09.08.11
Posted in Africa, Microsoft at 4:46 am by Dr. Roy Schestowitz
Summary: Algeria is being pressured by US diplomats at the behest of Microsoft Corporation
MICROSOFT AND its own bully, the BSA, are taking on large nations behind the scenes, using bogus data and weak claims (that usage is a lost sale) to portray itself as a victim and then pressure governments to: 1) pay Microsoft for shoddy software they do not need and 2) indoctrinate the population and government employees so that they become dependent on Microsoft in the long run.
The following Cablegate cable shows Microsoft’s modus operadi:
VZCZCXRO1615
PP RUEHTRO
DE RUEHAS #0190 0501757
ZNR UUUUU ZZH
P 191757Z FEB 08
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC PRIORITY 5286
INFO RUEHFR/AMEMBASSY PARIS 2555
RUEHEG/AMEMBASSY CAIRO 0997
RUEHMD/AMEMBASSY MADRID 8809
RUEHRB/AMEMBASSY RABAT 2173
RUEHTU/AMEMBASSY TUNIS 7025
RUEHTRO/AMEMBASSY TRIPOLI
RUEHNK/AMEMBASSY NOUAKCHOTT 6228
RUEHNM/AMEMBASSY NIAMEY 1474
RUEHBP/AMEMBASSY BAMAKO 0423
RUEHCL/AMCONSUL CASABLANCA 3261
RHMFISS/HQ USEUCOM VAIHINGEN GE
UNCLAS ALGIERS 000190
SIPDIS
SIPDIS
STATE PASS TO USTR - PBURKHEAD
COMMERCE FOR NMASON
E.O. 12958: N/A
TAGS: ECON, BEXP, KIPR, ETRD, AG
SUBJECT: MICROSOFT'S IPR WOES
REF: 07 ALGIERS 1581
THIS CABLE CONTAINS COMPANY PROPRIETARY INFORMATION NOT TO BE
SHARED OUTSIDE USG.
1. (SBU) SUMMARY: During a February 19 meeting, Microsoft
Algeria Director General Samir Said outlined Microsoft's
priorities for Algeria and underscored the negative impact
weak intellectual property rights (IPR) protection is having
on Microsoft's financial bottom line and growth potential.
Said estimated that Microsoft is losings tens of millions of
dollars each year to software piracy in Algeria and argued
that the Algerian government has not demonstrated the
political will to enforce IPR. Said stated that, in addition
to antipiracy efforts, Microsoft's main priorites are to
continue working with the Algerian government (its largest
customer in Algeria), to recruit qualified employees, and to
revive partnerships with Algerian ICT companies. END SUMMARY.
2. (SBU) Microsoft Algeria DG Samir Said lamented that the
Algerian government is not taking stronger action to prevent
software piracy and argued that the situation had worsened
during 2007. According to a Business Software Alliance
Survey, the rate of software piracy increased slightly from
2006 to 2007, from 84 percent to 85 percent. Said stated that
"losses are huge" and asserted that Microsoft is losings tens
of millions of dollars each year. Said estimated that a 10
percent reduction in software piracy -- from the current
estimate of 85 percent to 75 percent -- would yield an
additional 25 million USD in annual profits.
3. (SBU) Said emphasized that Algeria is an important market
for Microsoft and that there is clear potential here if the
Algerian government provides greater support for IPR
protection. While he noted that there is a trend towards
purchasing licensed software in government ministries,
licenses have only been purchased as part of new system
purchases and many ministries continue to use unlicensed
software on previously purchased computers. Said stated that
he is not seeing any will to enforce IPR protection in terms
of software licensing. He told us that none of the estimated
50 to 60 thousand home personal computers sold as part of the
Algerian government's "Ousratic" initiative to expand home
PC-ownership were sold with Microsoft-licensed software.
Although Microsoft informed the Minister of Communications
Technology of this breach, Said said that the government has
not taken any action to enforce compliance. During the
October visit of Microsoft CEO Steve Ballmer (reftel), the
Algerian government promised to address enforcement, but Said
stated he had seen no change since then. He added that he
often hears the argument that Microsoft must give a "good
price," but in the end licensed software will always be more
expensive than the pirated version.
4. (SBU) Said stated that, in addition to antipiracy efforts,
Microsoft Algeria's main priorities are to continue working
with the Algerian government, recruit qualified employees,
and revive partnerships with Algerian ICT companies. Between
ministries and state-owned enterprises, the government
remains Microsoft's largest customer in Algeria and Microsoft
will continue to work with it despite IPR concerns. Said
echoed an oft-heard complaint in saying that he is unable to
find qualified employees among recent graduates. Although
there are nearly 2500 graduates with degrees in ICT,
according to Said, there are few who have the skills required
to be competitive in the job market. Microsoft Algeria is
also interested in partnering with Algerian ICT companies to
help promote local software development; however, Said noted
that this goal is dependent upon improved IPR protection.
5. (SBU) COMMENT: Serious antipiracy efforts in Algeria are
critical not only for Microsoft but for Algeria's economy
writ large. Although the Algerian government has stated its
intent to develop the local ICT sector, rising rates of
software piracy will do little to encourage the necessary
investment or technology transfer. The Embassy's Special 301
Review (septel) will address the Algerian government's
overall IPR protection efforts.
FORD
That last part is very typical and it is seen in many cables. Microsoft is trying to say that if the government pays Microsoft a lot of money, then opportunities will open up for the nation. That’s a just load of propaganda, injected by public officials at the behest of Microsoft. █
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09.04.11
Posted in Africa, Free/Libre Software, Microsoft at 6:33 pm by Dr. Roy Schestowitz
Summary: Gory details (given the revolution that came later) leak out through Wikileaks, which helps show how Microsoft does politics to impose user-hostile software on entire nations, defying their policies in the process
Found via the post “Microsoft et Ben Ali : Wikileaks confirme les soupçons d’une aide pour la surveillance des citoyens Tunisiens” was this very interesting diplomatic cable which sheds light on collaboration between two thugs, Steve Ballmer and Ben Ali. It not only shows Microsoft driving over Free software policies but it also shows Microsoft assisting the government’s attack on the population, which later overthrew Ben Ali. Those who insist that software is not political can bury their heads in the sand or alternatively read the following Cablegate cable. We emphasise some bits of interest in it:
VZCZCXRO7019
PP RUEHTRO
DE RUEHTU #2424/01 2651044
ZNY CCCCC ZZH
P 221044Z SEP 06
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 1903
INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 0796
RUEHAS/AMEMBASSY ALGIERS PRIORITY 7294
RUEHLO/AMEMBASSY LONDON PRIORITY 1182
RUEHNK/AMEMBASSY NOUAKCHOTT PRIORITY 0784
RUEHFR/AMEMBASSY PARIS PRIORITY 1635
RUEHRB/AMEMBASSY RABAT PRIORITY 8221
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0395
RUEHCL/AMCONSUL CASABLANCA PRIORITY 3995
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 TUNIS 002424
SIPDIS
SIPDIS
STATE FOR NEA/MAG (HARRIS) AND EB/CIP
STATE PASS USTR (BELL), USPTO (ADLIN AND ADAMS), USAID
(MCCLOUD)
USDOC FOR ITA/MAC/ONE (ROTH), ADVOCACY CTR (JAMES), AND
CLDP (TEJTEL)
CASABLANCA FOR FCS (ORTIZ)
LONDON AND PARIS FOR NEA WATCHER
E.O. 12958: DECL: 09/22/2016
TAGS: ECON TINT KIPR ECPS TS
SUBJECT: MICROSOFT INKS AGREEMENT WITH GOT
¶1. (SBU) Summary: During the Microsoft Government Leaders
Forum in South Africa July 11-12, the GOT and the Microsoft
Corporation signed a partnership agreement that provides for
Microsoft investment in training, research, and development,
but also commits the GOT to using licensed Microsoft
software. According to Microsoft Tunisia Director General
Salwa Smaoui, the agreement is a win-win for both Microsoft
and the GOT. The negotiation process and the brokered deal
itself are illustrative of GOT priorities and the cost of
doing business in Tunisia. End Summary.
¶2. (SBU) The agreement between Microsoft and the GOT was
signed in July during the Microsoft Government Leaders Forum
in South Africa. Although signed in July, information about
the agreement has not been forthcoming from either the GOT or
Microsoft and, despite repeated requests, Microsoft has yet
to provide post with a copy of the final agreement. In a
September meeting with EconOffs, Microsoft Tunisia Director
General Salwa Smaoui provided an overview of the main points.
The final agreement outlines cooperation on GOT
e-governance, cyber security, intellectual property rights,
and capacity development for Tunisian information technology
programs. Microsoft will establish a Microsoft Innovation
Center in Tunisia for developing local software production
capacity by providing training and consulting services to
software developers. Expanding the Tunisian IT sector has
become a priority for the GOT as a way to absorb the growing
number of unemployed university graduates. According to
Smaoui, the GOT invests approximately one percent of GDP in
research and development in the IT sector. Microsoft has
also agreed to provide training to handicapped Tunisians to
enable them to seek employment in the IT sector by
telecommuting. (Note: President Ben Ali's wife Leila Ben Ali
runs a charity for handicapped Tunisians. End Note.)
¶3. (U) As part of the agreement, Microsoft will help the GOT
to upgrade and modernize its computers and networking
capabilities. In turn, the GOT agreed to purchase twelve
thousand licenses to update government computers with
official Microsoft software, rather than the pirated versions
that have been commonly used, according to one Microsoft
employee. Since 2001, the GOT adopted an open software
policy, using only free software programs. Additionally,
future GOT tenders for IT equipment will specify that the
equipment must be Microsoft compatible, which is currently
prohibited by the Tunisian open software policy.
¶4. (SBU) The agreement also touches on internet security.
Through a program on cyber criminality, Microsoft will train
government officials in the Ministries of Justice and
Interior on how to use computers and the internet to fight
crime. As part of this program, Microsoft will provide the
GOT with original source codes for its programs. When asked
by EconOff whether Microsoft had any concerns about releasing
its source codes, Smaoui replied that the source codes would
only be available to a small number of officials.
Nevertheless, the agreement contains language stating the
Microsoft and the GOT will work jointly on intellectual
property rights. This agreement also provides for a separate
agreement to be signed creating a security cooperation
program that will provide more general internet security
training to the public.
¶5. (C) According to Smaoui, the agreement is the culmination
of a five-year negotiation process. Smaoui was named
Microsoft's Director General for Tunisia about one year ago
and, although currently hesitant to fully disclose the final
details, provided frequent updates to Post on the progress of
the negotiations. She reported that at times the GOT's
suspicion of Microsoft because of its "American-ness" seemed
to outweigh its technical evaluation of the proposal. She
said that she had been asked several times by GOT ministers
why, as a Tunisian, she was "working for the Americans," and
often felt suspicion bordering on hostility during the
negotiations. Smaoui also noted that the GOT wanted a
TUNIS 00002424 002 OF 002
"tailor-made" agreement, rather than a prepackaged program
that would be "imposed" on Tunisia. This attitude towards
the negotiation process required Microsoft to focus just as
carefully on the presentation as the substance.
¶6. (C) In a call on DCM a few days before the South Africa
Forum, Smaoui worried that she was going to the Forum without
a signed agreement in hand and could not confirm that the
GOT's representative would even show up. She fretted that
she might have to confess to Bill Gates that she had no
reason to be at the Forum. In the event, Khedija Ghariani,
Secretary of State for Computers, Internet, and Free
SIPDIS
Software, attended and signed the agreement on behalf of the
GOT. Despite the drawn-out negotiations, Smaoui stated that
reaching an agreement was "vital" for Microsoft. The fact
that the government relied on open source software
drastically limited business in Tunisia and prevented
Microsoft from participating in GOT tenders. Additionally,
the agreement reinforces an objective both Microsoft and the
GOT share -- establishing a knowledge society. Smaoui stated
that even though Microsoft will be investing in Tunisia, the
sum of investment will be lower than the cost of GOT
purchases.
¶7. (C) Comment: Although the agreement has been hailed as a
triumph for intellectual property rights, the negotiations
and the brokered deal itself reveal a more complicated
reality. Microsoft was able to broker the final agreement by
appealing to GOT unemployment sensitivities as well as by
adapting to the realities of doing business in Tunisia. Even
as the goal of expanding employment opportunities for
handicapped Tunisians is worthy, the program's affiliation
with Leila Ben Ali's charity is indicative of the backroom
maneuvering sometimes required to finalize a deal.
Microsoft's reticence to fully disclose the details of the
agreement further highlights the GOT emphasis on secrecy over
transparency. In theory, increasing GOT law enforcement
capability through IT training is positive, but given
heavy-handed GOT interference in the internet, Post questions
whether this will expand GOT capacity to monitor its own
citizens. Ultimately, for Microsoft the benefits outweigh
the costs. End Comment.
BALLARD
Citizens of Tunisia ought to sue Microsoft, which has “blood in its hands”. Watch how they keep this secret from the public which pays for it. When they say fight “crime” they may actually mean fight dissent, too (which from the government’s perspective is often a crime). Tunisia overthrew Ali. Now it needs to overthrow his ally, Microsoft. █
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