12.29.11

Cablegate: Microsoft Attacks Free/Open Source Software in Indonesian Government With ‘Piracy’ Claims and a Secret 80% Discount, Breaks 1999 Monopolies Law

Posted in Asia, Free/Libre Software, Microsoft at 6:34 am by Dr. Roy Schestowitz

Summary: The abusive monopolist is caught trying to (and perhaps succeeding in) sabotage, using “piracy” for propaganda and blackmail

WHEN writing about Microsoft we typically write about a company of sociopaths who do not care about the law, do not respect the right of choice to exist, and work behind the scenes to engineer loopholes, bribe people, intimidate opposition, and sometimes overthrow or overtake positions of power. According to the following Cablegate cable, the Business Competition Supervisory Commission (KPPU) “said that many computers in the GOI were using open-source software…”

The Microsoft MOU would “hand Microsoft a monopoly,” KPPU argued. The cable also says that Microsoft used the “piracy” propaganda to fight against Free/open source software, quite frankly as usual. Here is another piece of propaganda about ‘savings’: “MS offered an 80% discount to put legitimate software on all GOI computers, estimate at 510,000 units. Total cost would be approximately $45 million, a savings to the GOI of $260 million.”

What a joke. For a country in a poor economic state this is still a high cost and Microsoft is just trying to establish more of a monopoly while expelling Free/open source software (While making a profit, too). For background also see:

• Cablegate: Bill Gates Uses AIDS to Bring Microsoft Windows to Indonesia at Expense of Linux-based OLPC (Updated)
• OpenDocument Format in Indonesia and OOXML in Court
• Indonesia is Moving to OpenDocument Format (ODF)
• Will Microsoft Sign an MOU with Indonesia?
• Cablegate: With Microsoft Front Group Taking on Indonesia, a Call for Open Source Software Adoption

Here is the full cable which also says that “the Ministry of Information and Communications Technology did not put in a request for funds for the MOU in the 2007 budget, and in March 2007, the Business Competition Supervisory Commission (KPPU) urged the GOI to annul the deal in an advisory, stating it violated the 1999 Monopolies Law.”

VZCZCXRO6802
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #1388/01 1360856
ZNR UUUUU ZZH
R 160856Z MAY 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 4748
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHKO/AMEMBASSY TOKYO 0519
RUEHBY/AMEMBASSY CANBERRA 0752
RUEHBJ/AMEMBASSY BEIJING 4086

UNCLAS SECTION 01 OF 05 JAKARTA 001388 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EB/TPP/MTA, EB/TPP/IPE AND EAP/MTS 
TREASURY FOR IA-CIORCIARI 
SINGAPORE FOR BAKER 
USDOC FOR BERLINGETTE/4430 
DEPT PASS USTR DKATZ, WEISEL, BAE 
 
E.O. 12958: N/A 
TAGS: ETRD [Foreign Trade], KIPR [Intellectual Property Rights], EINV [Foreign Investments], 
ECON [Economic Conditions], EMIN [Minerals and Metals], 
KCOR [Corruption and Anti-Corruption], ID [Indonesia] 
SUBJECT: USTR FINDS IPR PROGRESS, CHALLENGES IN INDONESIA 
 
REF: A) Jakarta 1212 - New Investment Law; 
 
     B) Jakarta 1326 - East Java-China Trade 
 
¶1. (SBU) Summary.  Visiting USTR officials Barbara Weisel and David 
Katz reviewed efforts related to intellectual property rights (IPR) 
protection and enforcement in Indonesia during their May 3-4 visit 
to Jakarta.  Members of the National IPR Task Force noted that 
difficult and ongoing challenges remained to improve policy 
coordination by the Task Force, and U.S. business leaders reported 
that prosecutions and convictions of IPR pirates remains low, and 
dialog with private industry, especially on pharmaceuticals is weak. 
 The Chairman of the Investment Coordinating Board (BKPM) Muhammed 
Lutfi, in response to concerns that foreign investors will need a 
letter of recommendation from BKPM to obtain a work visa (and thus a 
"backdoor" approval) under the new investment law, said that the 
BKPM will set up an immigration office in its headquarters to 
facilitate.  A garment industry buyer said competition and 
transshipments from China are hurting Indonesia's textiles and 
garments sector, while a mining industry representative said that 
mining is "flat on its back" in Indonesia, despite high 
prospectivity, due to the unfriendly business climate.  In meetings 
with ASEAN, Katz emphasized cooperation between the U.S. Food and 
Drug Administration and ASEAN on pharmaceuticals issues.  USTR is 
also encouraging ASEAN members to attend a Sanitary and 
Phytosanitary workshop in Vietnam in July to learn more about 
irradiation of tropical fruits to improve access to the U.S. market. 
 End Summary. 
 
IPR: Progress and Challenges 
---------------------------- 
 
¶2. (SBU) During a May 3-4 visit to Jakarta, visiting Assistant U.S. 
Trade Representative (AUSTR) Barbara Weisel and USTR Director for 
Southeast Asia and Pacific Affairs David Katz met with the American 
business community, the National IPR Task Force, IPR advisors, ASEAN 
officials, a member of Parliament's Commission VI, and a prominent 
member of the Indonesian Chamber of Commerce.  At a May 3 AmCham 
lunch, business representatives gave an update on several issues, 
with emphasis on the continuing challenges of intellectual property 
rights (IPR) enforcement in Indonesia.  The head of the AmCham IPR 
Committee noted several problems in the IPR area: 
 
-- The National IPR Task Force still does not have a reliable 
budget.  It also does not have a forum for dialog and consultation 
with the private sector. 
 
-- Customs Law 10/95 was finally amended in November 2006 and allows 
for Customs to take action without having to get court permission in 
advance.  It still requires implementing regulations, however. 
(Note: Embassy learned from Customs Human Resources Department Head 
and former IPR Division Head Okto Irianto, that Minister Mulyani 
will review the draft regulations for further inter-ministry 
discussion.) 
 
-- Legal reform overall still lacks transparency, enforcement and 
decisions need to be made public.  Judges need more training in IPR. 
 More deterrence is needed for IPR piracy. 
 
National IPR Task Force: Still New 
---------------------------------- 
 
¶3. (SBU) In a meeting with the National IPR Task Force (TF) on May 
4, USTR Weisel congratulated Indonesia on remaining on the Watch 
List, and noted that the formation of the IPR TF was big news. 
Ansori Sunungan, the Director for Copyrights and Industrial Design, 
said that the IPR TF has the goal of coordinating among relevant 
agencies, show the seriousness of the GOI, and perform public 
outreach and education to support IPR development in Indonesia. 
Cooperation among law enforcement agencies remains a huge problem. 
There is a view here that "piracy creates jobs," Ansori admitted. 
"The high U.S. price for genuine DVDs is also challenging for the 
market here," he argued.  For Global IP Day on April 26, Indonesia 
held a series of seminars and events, including an "integrity 
awards" ceremony at which Vice President Kalla was the keynote 
speaker.  Kalla praised creativity and innovation in his speech, and 
spoke of the importance of legal protections. 
 
¶4. (SBU) The National IPR TF plans to meet at least once a month, 
and report every six months directly to President Yudhoyono.  The 
IPR TF has five priorities through 2009, to be carried out by 
 
JAKARTA 00001388  002 OF 005 
 
 
special working groups: 
 
-- Law enforcement issues (Regulation 2004/29); 
 
-- Review and analyze applicable regulations; 
 
-- Outreach and public relations; 
 
-- Human resources and capacity building; 
 
-- International Cooperation. 
 
¶5. (SBU) The IPR TF also plans to set up a Secretariat.  AUSTR 
Barbara Weisel asked about the TF's budget.  Ansori responded that 
the budget is authorized under Presidential Decree No 4/2006 Article 
11 "All costs associated with IPR Task Force activities is levied on 
the Ministry of Justice and Human Rights budget."  The IPR TF has 
submitted its budget request to the Ministry of Finance, but has not 
yet received its own dedicated funding.  The IPR TF is also looking 
at other budget sources as well.  There will be a Ministerial level 
meeting with the IPR TF at least once a year, and three Ministers 
are very actively engaged: Coordinating Minister for the Economy 
Boediono, Trade Minister Pangestu, and the Minister of Law and Human 
Rights. Ministry of Trade's Ambassador Halida Miljani urged U.S. 
assistance in improving data collection on IPR violations, better 
case management and training of judges in IPR matters.  Halida said 
her goal is for all police, prosecutors and judges to have the same 
level of knowledge on IPR. 
 
Food and Pharmaceuticals IPR Issues 
----------------------------------- 
 
¶6. (SBU) Pharmaceuticals companies continue to face challenges and 
complain there is "no level playing field" as domestic companies do 
not have to comply with World Health Organization codes and 
standards, while foreign companies do.  One AmCham member claimed 
there is a nasty pattern of regulatory discrimination against 
foreign investors.  Other representatives expressed their concern 
that the GOI requirement that all branded pharmaceuticals include 
the generic name of the medicine on the label at 80% of the size of 
the brand name, and in the same font and color as the brand name, 
could have a major impact.  Expert panels on nutrition do not 
reflect the greater body of science.  The views of the experts are 
often not shared, and industry is not permitted to respond or put 
forth a position.  It is not clear how "experts" are selected for 
the panel: they seem intended to simply create an artificial trade 
barrier.  One drug company representative said there is "no 
transparency" on pricing and labeling issues for pharmaceuticals. 
"Not only are the GOI's doors closed, they are locked," she noted. 
 
 
Halal: Lack of Standards and Certifiers 
--------------------------------------- 
 
¶7. (SBU) There is no standard or guidance for halal certification 
and labeling in Indonesia, and a lack of certifiers, which affects 
both the food and drug sectors.  The Ministries are not 
communicating well with each other. USTR Weisel noted that this is a 
global problem, with no agreement between religious groups and no 
international halal standard.  Industry currently pays a nominal fee 
for certifiers, but may eventually have to pay a much higher fee per 
unit.  ASEAN may need to discuss having at least a regional halal 
standard.  Currently, there is no consistency across borders. 
Weisel noted the importance that the religious standards of halal 
are met, but suggested that it would be useful to explore ways to 
agree on a regional or international standard of halal to avoid 
creating another non-tariff trade barrier. 
 
Optical Discs: More Enforcement Needed 
-------------------------------------- 
 
¶8. (SBU) One of the Embassy's IPR advisors noted that there are 29 
registered Optical Disc (OD) factories in Indonesia with a potential 
capacity to produce at least 500 million ODs.  Industry estimates 
the annual legal requirement domestically at only around 15 million 
ODs.  Despite Customs efforts and a licensing requirement for 
imports of optical-grade polycarbonate, large quantities continue to 
be smuggled in each year to support illegal manufacture.  When OD 
factories were registered and required to engrave Source 
Identification Codes (SID) on production line molds, however, many 
 
JAKARTA 00001388  003 OF 005 
 
 
factories have resorted to obscuring the engraved SID codes using 
heat resistant resins and they continue to produce illegal ODs. 
Factory inspectors are having difficulties.  They have been kept 
waiting outside for 30 minutes or more while factories "clean up." 
When they finally enter, machines are warm but managers deny they 
are active. 
 
¶9. (SBU) The Ministry of Industry representative said the Ministry 
lacks sufficient law enforcement support.  It has the power of 
inspection but not the power to enter the factories, which only the 
police can do.  The head of the AmCham IPR committee noted that 
President Yudhoyono has received the National IPR Task Force report, 
but has not yet made any public comment on the report or a statement 
on the need for improved IPR enforcement.  In a subsequent meeting 
on May 5, the Embassy's two IPR advisors and a regional investigator 
for the recording industry association (IFPI) said the lack of 
continuity and documentation of raids is an ongoing problem.  There 
is no timeline on what raids will occur where, and no follow-up 
through prosecution by the courts.  The actions taken thus far by 
the GOI have received - deservedly - a lot of recognition and 
credit.  But we need to measure results by the actual reduction in 
the availability of pirated material. 
 
¶10. (SBU) AUSTR Weisel noted with regret that Ratu Plaza, a center 
for pirated OD vendors, was back up and running after two weeks of 
closure, with a pirated copy of the just-released movie "Spiderman 
3" available for $0.45.  The IPR advisors said that change to the 
high-profile malls must be done incrementally, to gradually change 
out pirates with vendors of genuine goods.  Gambling, narcotics and 
OD piracy had been three major sources of funding for the police. 
Now only OD piracy remains.  The IFPI investigator believes that OD 
pirates have invested $400-500 million in pirated OD production in 
Indonesia. 
 
End-User Piracy and Microsoft MOU 
--------------------------------- 
 
¶11. (SBU) Microsoft representatives lamented that Indonesia has the 
third worst software piracy in the world after Zimbabwe and Vietnam. 
 The Memorandum of Understanding signed in November 2006 had as a 
goal for the Government of Indonesia (GOI) to take steps to replace 
the estimated 87% pirated software on GOI computers by March 31, 
2007.  MS offered an 80% discount to put legitimate software on all 
GOI computers, estimate at 510,000 units.  Total cost would be 
approximately $45 million, a savings to the GOI of $260 million. 
 
¶12. (SBU) However, the Ministry of Information and Communications 
Technology did not put in a request for funds for the MOU in the 
2007 budget, and in March 2007, the Business Competition Supervisory 
Commission (KPPU) urged the GOI to annul the deal in an advisory, 
stating it violated the 1999 Monopolies Law.  Although not as strong 
as a formal KPPU ruling, the advisory has shaken the GOI.    The 
KPPU said that many computers in the GOI were using open-source 
software, and that the MOU would "hand Microsoft a monopoly."  The 
KPPU said the GOI and MS could face sanctions if it pursued the MOU. 
 
 
¶13. (SBU) Former MICT Minister Sofyan Djalil has subsequently said 
MICT would have to review the estimate of 510,000 computers and 
asked if the National Bureau of Statistics (BPS) could do it. 
Microsoft has countered that if the estimate of 510,000 computers 
was too high, it would adjust its price accordingly at the 
discounted rate.  (Comment: The stalled MOU reflects a lack of 
ownership in the GOI for solving pirated software use in the 
government.  It is unclear which Ministry has the lead.  The GOI 
does not currently appear to have any alternative strategy to the 
MOU.) 
 
Textiles and Garments: 
China Challenge 
---------------------- 
 
¶14. (SBU) A representative of the garment industry noted that there 
is not one brand or manufacturer her that does not understand the 
challenge of China.  Indonesia has a window of opportunity to be 
number two, but has to deal with the transshipment problem first 
(reftel B).  The industry representative reported that growth in 
Indonesia-based production of just one international brand was 40% 
last year. 
 
 
JAKARTA 00001388  004 OF 005 
 
 
Mining: "Flat on Its Back" 
-------------------------- 
 
¶15. (SBU) A representative of a major mining company noted that the 
mining industry is "flat on its back" in Indonesia.  The Director 
General for Mines recently stated at an international conference 
that foreign investors may need to partner with a state-owned 
company that will have 51% ownership.  The GOI is considering 
requiring mining firms to process their ore domestically.  Under 
current law, they have the option to export ore or process it 
domestically.  In some cases, illegal miners outnumber legal ones. 
Indonesia is in the top ten for geologic prospectivity but near the 
bottom as an attractive place to invest, according to a widely 
respected industry survey.  Data from Chile that poverty has been 
alleviated by 40% in areas surrounding mines falls on deaf ears 
here.  Significant elements of the legislative and executive 
branches of the GOI seem to prefer to deal with Chinese, Korean and 
politically well-connected domestic investors such as Bakrie.  They 
are not interested in U.S. investment right now.  Mining and other 
extractive industries are very concerned about Article 33 of the new 
investment law, which criminalizes tax disputes (reftel).  This 
article was not in the GOI's original draft, but inserted by 
Parliament. 
 
Investment Issues: Negative List Pending 
---------------------------------------- 
 
¶16. (SBU) In a meeting with the Chairman of the Investment 
Coordinating Board (BKPM) Muhammad Lutfi, Lutfi said the new 
investment law is not necessarily better than what we had in 1967. 
Much of Indonesia's current problems with the business climate are 
not related to laws or regulations, but implementation at the local 
level.  "The problem is at the bottom of the pyramid," Lutfi noted. 
"We can't control the harassing behavior of the Echelon IV and V 
officials."  Lutfi said that the new negative list would be very 
progressive, but would not give a timeline for its completion.  He 
criticized Trade Minister Pangestu for asking line ministries for a 
wish list for the negative list, stating this would only open it up 
for expansion.  (Note: There is no love lost between Lutfi and Trade 
Minister Pangestu.)  On the controversy surrounding the need for a 
letter of recommendation for foreign investors to receive employment 
visas (reftel A), Lutfi said that there will be an immigration 
office in the BKPM itself.  Only foreigners who "misbehave" will 
have any difficulty.  Regarding one-stop shops, eventually they will 
be in every province that needs one. 
 
¶17. (SBU) In a meeting with Parliamentary Commission VI (Trade, 
Industry, Cooperatives and State-Owned Enterprisses) Chairman Didik 
J. Rachbini, he noted that the new investment law will bring three 
levels of openness: completely open, open with conditions, and 
closed.  The composition of the negative list is now in the hands of 
the GOI.  Some national groups have criticized the new investment 
law is too liberal.  The issue of natural resources is still under 
discussion for implementing regulations.  If a sector is located in 
one province only, it will be the decision of the provincial 
government.  If an investment crosses two or more sectors, the 
central government will be responsible.  However, all FDI will be 
managed by the central government.  The BKPM will eventually open 
provincial offices. 
 
¶18. (SBU) The DPR looked at the investment laws of several other 
countries while crafting the law.  Rachbini opined that the labor 
law amendments were very sensitive, and he was not optimistic about 
any near-term progress, though he said there could be some progress 
on labor in Special Economic Zones (SEZs) He said that nine or ten 
provinces are competing for SEZs.  USTR Weisel asked about local 
awareness of these investment issues.  Rachbini said there is not 
much awareness about the investment debates in the capital.  When he 
travels home, he noted, "There are three things people worry about, 
the price of rice, the price of corn and the price of sugar." 
 
ASEAN Issues: Pharmaceuticals and SPS 
------------------------------------- 
 
¶19. (SBU) In meetings with ASEAN officials, USTR David Katz focused 
on the next steps to follow up the initial contact between U.S. Food 
and Drug Administration (FDA) and ASEAN on pharmaceuticals issues. 
The FDA suggested working through the Global Cooperation Group (GCG) 
of the International Conference on Harmonization (ICH).  FDA experts 
will participate in a GCG meeting in Japan in the fall and could 
 
JAKARTA 00001388  005 OF 005 
 
 
potentially meet with ASEAN afterwards.  Katz noted that it is rare 
for the FDA to engage with international experts outside the ICH 
framework, so ASEAN should take advantage of this opportunity.  Ms. 
Giang Le Chau, the ASEAN Secretariat's Senior Officer of Standards 
and Conformance, appreciated the need to follow up but cautioned 
about some ASEAN sensitivity with the ICH, which is supported by 
multinational corporations.  She says that even if the initial 
pretext for the FDA to come to the region is the ICH, discussions 
with ASEAN should be portrayed as "government-to-government, 
regulator-to-regulator" talks.  She thought it would be useful to 
develop a list of project for which ASEAN needs technical assistance 
and provide that to the FDA. 
 
¶20. (SBU) Katz was not certain that such a list of assistance needs 
would be a useful way to proceed, thinking that policy discussion 
with the FDA, at least initially, would be useful to lay the 
groundwork for more technical talks.  Katz suggested that if the FDA 
and ASEAN were to engage in further discussions, this might improve 
the prospects for further collaboration in the future.  The initial 
key is to get the FDA out to ASEAN.  The ASEAN delegation had a 
successful visit to the FDA Center for Drug Analysis and Research 
(CDER) Forum in Washington in April.  USTR and the ASEAN 
Secretariat, along with members of the ASEAN Consultative Committee 
 
SIPDIS 
for Standards and Quality (ACCSQ) Pharmaceutical Products Working 
Group (PPWG), will need to develop next steps for work under the 
TIFA on the ASEAN Common Technical Dossier for pharmaceuticals 
registration and approvals procedures.  Katz also made a pitch for 
multinational corporations to be included in the dialogue sessions 
with the ASEAN Working Group on Pharmaceutical Products.  Giang 
noted there have been problems in the past resulting in restrictions 
that only permitted ASEAN nationals to attend.  However, she thought 
the Chairman of the group was showing signs of softening on this 
tough position. 
 
¶21. (SBU) On Sanitary and Phytosanitary (SPS) issues, APHIS is 
proceeding with the workshop in Ho Chi Minh City, Vietnam in July on 
the irradiation of fruits and has sent invitations to all ASEAN 
Member Countries except one.  Mr. Somsak Pippopinyo, Head of Natural 
Resources Unit, said that the ASEAN Secretariat was willing to be 
helpful to inform member countries of the event, but was not certain 
of its role.  They expressed a willingness to inform the ASEAN 
Experts on SPS Issues of the seminar, when it meets June 18-19 in 
Kuala Lumpur, and asked whether APHIS would like to make a 
presentation at the workshop.  Katz said APHIS liked the idea of 
working at the regional level to be efficient at explaining the 
requirements for access to the US market for fresh fruits.  However, 
he doubted if APHIS had a budget to support an extra trip.  He 
promised the Secretariat to provide the list of acceptances for the 
seminar. 
 
¶22. (U) USTR contributed to and cleared on this message. 
 
HEFFERN

Microsoft is abusing its illegally-obtained monopoly, yet not many authorities seem to pay attention and react. This shows a systemic error in regulation. █

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Cablegate: With Microsoft Front Group Taking on Indonesia, a Call for Open Source Software Adoption

Posted in Asia, Cablegate at 6:09 am by Dr. Roy Schestowitz

Summary: Cables shed light on how Hollywood and a Microsoft front group pressured Indonesian authorities, which had also proposed moving to Free/open source software

We previously covered cables from Indonesia, just shortly after we wrote about ODF there and years after we wrote about a Microsoft MOU. According to the following Cablegate cable, Microsoft’s front group, the BSA, complained about “lack resources to move and properly store cumbersome and sensitive optical disk production machinery seized during raids.” It is in the same cable that we found (in ¶8): “Tanduk provided Katz with an impressive, newly-published handbook titled “Optical Disk Regulation Implementation Guide.” The hard-cover, Indonesian language publication caps a highly successful series of USAID-funded training workshops for the OD factory monitoring team. It includes relevant GOI laws and regulations, color photographs, and detailed technical and procedural guidance for the team. The technical advisor who ran the USAID project, a former Business Software Alliance (BSA) and Motion Picture Association (MPA) local representative, has recently agreed to continue his ODR work with the MOI for another year as a Department of Justice ICITAP senior technical advisor.

Just above that it says: “The heads of several agencies — Trade, Research and Technology, Economic Planning (Bapenas) and the DG for IPR — also pledged to replace pirated software in their agencies computers with open source or legal products.”

As we already know with Cablegate aside, Microsoft used the usual tricks to impede the adoption of FOSS in Indonesia (more on that later). In any event, here is the cable in question:

VZCZCXRO2803
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #8114/01 1790836
ZNR UUUUU ZZH
P 280836Z JUN 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 6462
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 05 JAKARTA 008114 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
FOR EAP/MTS; EB/IPE/EAP 
COMMERCE FOR GOLIKE/4430 
COMMERCE PLEASE PASS USPTO FOR JOELLEN URBAN 
DEPT PASS TO USTR DKATZ, JGROVES, RBAE, VESPINEL 
 
E.O. 12598: N/A 
TAGS: KIPR [Intellectual Property Rights], ETRD [Foreign Trade], 
WTO [World Tourism Organization], ECON [Economic Conditions], ID [Indonesia] 
SUBJECT: IPR Update - GOI Making Steady Progress 
 
¶1. (SBU) Summary: At the first meeting of the Indonesian 
Government's (GOI) newly-established National Intellectual 
Property Rights (IPR) Task Force on June 7 Indonesia 
National Police (INP) Chief General Sutanto and Attorney 
General Abdul Rachman Saleh pledged to improve IPR 
enforcement and Minister of Trade Mari Pangestu outlined the 
importance of IPR to the country's economic development. 
The Task Force's senior working level committee is drafting 
short and medium term plans of action, as well as 
coordinating efforts to collect better IPR enforcement data. 
The Ministry of Industry (MOI) optical disk (OD) factory 
monitoring team has registered 26 factories,  provided them 
with source identification (SID) codes, and established a 
schedule of unannounced factory visits.  It is also in the 
process of registering the remaining three factories that 
have been identified by the intellectual property (IP) 
industry.  In response to GOI demands, local OD producers 
have voluntarily surrendered over 180 OD stampers without 
SID codes.  Local OD producers and distributors have agreed 
with the GOI that, after this year, any optical disk sold 
without SID code can be considered a pirated copy.  Local IP 
industry representatives report that police cooperation has 
improved. For the first time, police are conducting vendor 
and factory raids on their own initiative.  Jakarta district 
and national police have promised to continue raids, 
particularly against Jakarta's most notorious malls. Police 
and prosecutor collaboration remains weak and there is a 
large discrepancy between the number of cases police turn 
over to the Attorney General's *~cQnzvh-0`eia and Pacific 
Affairs Director Disited Jakarta June 20-22 to discuss Indonesia's 
current Special 301 OCR with key GOI officials and IP 
industry representatives.  GOI officials expressed general 
disappointment with Indonesia's retention on the Special 301 
Priority Watch List in May.  They welcomed, though, the U.S. 
Government's (USG) decision to conduct a second consecutive 
OCR.  Katz informed them that the timing of the OCR would 
depend on GOI efforts and that it could take place as early 
as the end of August or September.  He also stressed to GOI 
officials and IP industry representatives the importance of 
providing regular enforcement data and other information in 
support of the OCR. 
 
National IPR Task Force Holds First Meetings 
-------------------------------------------- 
 
¶3. (SBU) Ministry of Justice Director General of IPR Abdul 
Bari Azed informed Katz on June 20 that the GOI's newly- 
established National IPR Task Force held its first monthly 
senior working level meeting in May and quarterly 
ministerial-level meeting on June 7.  Bari reported that on 
June 7 Indonesian National Police Chief Sutanto and Attorney 
General Abdul Rachman Saleh along with other key cabinet 
officials pledged to improve IPR enforcement. (Note: Katz 
confirmed Bari's account in subsequent meetings with the 
MOI, MOT and police. End note.)  Minister of Trade (MOT) 
Mari Pangestu, vice chair of the Task Force, explained the 
importance of IPR protection and enforcement to Indonesia's 
investment climate and economic development.  The heads of 
several agencies -- Trade, Research and Technology, Economic 
Planning (Bapenas) and the DG for IPR -- also pledged to 
replace pirated software in their agencies computers with 
open source or legal products. 
 
¶4. (SBU) According to Bari, General Sutanto promised INP 
support for MOI OD factory monitoring team inspections and 
continued police raids on pirate OD vendors and factories, 
with emphasis on Ratu Plaza and Mangga Dua Mall, two of 
Jakarta's most notorious pirate OD markets.  Sutanto pointed 
out the challenges inherent in conducting aggressive raids 
against Harko-Glodok, Jakarta's primary pirate OD 
distribution center, noting that it risked social disorder. 
(Note: Harko-Glodok is located in an ethnic Chinese majority 
area of Jakarta and is thought to have links to organized 
crime.  A police raid on the area several years ago led to 
riots, a fire, and several deaths, with police paying 
compensation for some of the damage. End note.) 
 
¶5. (SBU) Bari, who serves as chairman of the Task Force's 
 
JAKARTA 00008114  002 OF 005 
 
 
senior working level committee, said his group would meet 
again in July to agree on text of short and medium term 
plans of action.  Priorities will include OD Regulation 
(ODR) implementation and collecting better data and 
information on GOI IPR enforcement efforts, particularly 
from Indonesia's major urban centers (greater Jakarta, 
Surabaya, Medan, Bandung, Makasar and Denpasar).  Bari noted 
that members of the senior working level committee met 
recently with officials at the Supreme Court to request data 
on civil and criminal IPR cases.  According to Bari, the 
committee is also establishing sub-committees to focus on 
specific issues.  One subcommittee, led by Ministry of Trade 
Senior Advisor Halida Miljani, would liaise with IP industry 
representatives and associations, and another with donors 
and the diplomatic community.  (Note: Miljani on May 30 
briefed American Chamber of Commerce IPR Committee members 
on the National Task Force. End note.) 
 
OD Factory Monitoring Team Sets Schedule 
--------------------------------- 
 
¶6.  (SBU) MOI Directorate General for Chemical, Agriculture 
and Forestry Based Industry Director Tony Tanduk on June 21 
told Katz that the MOI has registered 26 OD factories  and 
distributed SID codes to each of them.  It is also in the 
process of registering the remaining three OD factories 
identified by the IP industry.  The MOI has allocated Rp 300 
million (approximately USD 30,000) per year to the OD 
factory monitoring team. The team, which now includes 
members of the INP, has set a schedule of six unannounced 
factory visits per month.  The first three inspections 
occurred on June 13.  While all three factories had SID 
codes engraved in their moulds and stampers, none were 
producing ODs.  Tanduk remarked, somewhat sheepishly, that 
managers at all three factories claimed that they were 
waiting to ensure the accuracy of copyright documentation. 
 
¶7.  (SBU) Under an agreement with the MOI, owners of 
stampers without SIDs have agreed to turn them in to MOI by 
June 15.  Tanduk showed Katz one surrendered stamper and 
said he has collected 186 to date; he expects to receive 
another 100 in the coming weeks.  The MOI plans to destroy 
the stampers at an IPR public destruction ceremony with the 
police sometime in July.  The agreement also stipulates 
that, after December 31, 2006, the GOI will consider all ODs 
sold without SID codes as illegal pirated copies.  Some 
owners of stampers and factories have delayed using SID 
codes, as it requires them to send stampers and molds to 
Singapore or Hong Kong for engraving.  Katz suggested that 
Tanduk send a letter to all registered factories warning 
them that all their molds and stampers must include engraved 
SIDs codes.  Tanduk agreed. 
 
¶8.  (SBU) Tanduk provided Katz with an impressive, newly- 
published handbook titled "Optical Disk Regulation 
Implementation Guide."  The hard-cover, Indonesian language 
publication caps a highly successful series of USAID-funded 
training workshops for the OD factory monitoring team.  It 
includes relevant GOI laws and regulations, color 
photographs, and detailed technical and procedural guidance 
for the team.  The technical advisor who ran the USAID 
project, a former Business Software Alliance (BSA) and 
Motion Picture Association (MPA) local representative, has 
recently agreed to continue his ODR work with the MOI for 
another year as a Department of Justice ICITAP senior 
technical advisor. 
 
Police Continue Raids 
--------------------- 
 
¶9. (SBU) Jakarta Metropolitan Police (Metropolda) Special 
Crimes Lieutenant Colonel Police Agus Adriyanto and Chief of 
Investigation Umar Surya Fana on June 23 provided Katz with 
a spreadsheet detailing 267 IPR raids on pirate OD vendors 
that police conducted throughout the greater Jakarta 
metropolitan area since the beginning of this year. 
According to the report, police seized roughly 1.2 million 
pirated ODs, and at least temporarily detained 433. 
According to a local MPA representative, these figures do 
not include a raid on Ratu Plaza late on June 23, during 
which Metropolda police seized roughly 100,000 pirated ODs 
and arrested several people.  The 267 raids also do not 
include West Jakarta Police's seizure on June 1 of 140 DVD 
burners and 55,000 pirated ODs and the arrest of two 
persons.  Metropolda also seized 55 burners and 360,000 
pirated ODs and arrested two persons in a separate raid on 
 
JAKARTA 00008114  003 OF 005 
 
 
April 27.  Based on leads from this raid, police raided a 
small distribution warehouse where they seized 30,000 
pirated ODs and arrested another two individuals. 
 
¶10. (SBU) Umar explained that police had investigated and 
referred all 267 cases to the AGO.  He also showed Katz a 
wall chart indicating that 16 individuals remained in 
Metropolda's temporary detention facilities on IPR-related 
charges.  Umar could not say how many of the 433 individuals 
arrested in 2006 were transferred to AGO holding facilities 
along with their case files.  He complained that once police 
sent cases to the AGO, it was very difficult to obtain 
information on their outcomes from the AGO or courts.  Katz 
suggested that joint workshops with the police, AGO and 
courts on IPR evidence collection, investigations and 
prosecutions might facilitate greater cooperation between 
these groups.  Both Agus and Umar welcomed the idea. 
 
¶11.  (SBU) Katz congratulated Agus and Umar on their 
successes and noted that reports of their actions had been 
received in Washington.  He encouraged them to continue 
their efforts, and suggested particular attention be paid to 
Jakarta's most notorious malls.  Umar said his unit would 
remain focused on Ratu Plaza, Mangga Dua and Harko-Glodok, 
but added that raids on Harko-Glodok posed risks.  On June 
22 some Jakarta police ran into physical resistance when 
they attempted to conduct a limited raid on Harko-Glodok's 
street vendors, located some distance away from its main 
wholesale distribution center. 
 
¶12.  (SBU) Umar, a son-in-law of Indonesia Anti-Corruption 
Chairman Taufikurrahman Ruki, said that support for 
Metropolda's efforts came directly to him from General 
Sutanto.   He provided Katz with a tour of Metropolda's 
halls and warehouse filled with growing sacks of seized 
pirated ODs and DVD burners.  Sometime in July, the police 
plan to hold a public destruction ceremony with support from 
the Motion Pictures Association (MPA).  An investigator for 
a local law firm, who works part-time for MPA and supports 
Metropolda's raids, has recently accepted a second DOJ 
ICITAP one-year senior technical advisor position to support 
INP IPR enforcement efforts. 
 
¶13. (SBU) In a separate meeting on June 23, INP Headquarters 
Special Economic Crimes Colonel Police Rycko Amelza Danniel 
told Katz that INP Police Chief General Sutanto has ordered 
his unit to work with North Jakarta police units to develop 
a plan for shutting down Harko-Glodok.  Rycko added that his 
unit would also begin collecting data from police raids, 
seizures and arrests from major urban centers across 
Indonesia. 
 
AGO Remains Weak But Interested 
------------------------------- 
 
¶14. (SBU) Although he did not provide detailed information, 
AGO Acting Deputy Attorney General for Special Crimes Abdul 
Hakim Ritonga on June 23 informed Katz that the Jakarta AGO 
had prosecuted roughly a dozen IPR cases over the past year. 
He admitted that until recently IPR has not been a high 
priority.  He suggested the AGO could raise the profile of 
IPR by including it under the purview of the AGO's newly 
created Transnational Crimes Task Force.  Katz remarked that 
detailed data on IPR prosecutions and convictions throughout 
Indonesia would be very useful for the Special 301 decision- 
making process.  Ritonga said that he could gather such 
information, provided the U.S. Embassy formally requested 
it. 
 
¶15.  (SBU) Katz showed the Ritonga Metropolda's data on 
raids, arrests and investigations since the beginning of 
this year, and asked if the AGO could tell us what happened 
with each case.  Ritonga said it was possible, but warned 
that, while police have recently referred many IPR-related 
case files to the AGO, their cases were often poorly 
investigated, lacked sufficient evidence, or were intended 
to simply to boost police arrest numbers and impress 
superiors.  Ritonga said he would support joint workshops 
with the police, AGO and courts on IPR evidence collection, 
investigations and prosecutions. 
 
Draft Customs Law Includes Ex Officio Powers 
-------------------------------------------- 
 
¶16. (SBU) Ministry of Finance Directorate General of Customs 
IPR Unit Chief Okto Iranto on June 22 told Katz that the 
 
JAKARTA 00008114  004 OF 005 
 
 
GOI's new draft customs law contained the same ex officio 
powers contained in the existing 1995 customs law.  The new 
customs law, however, is intended to resolve court 
jurisdiction issues that held up the issuance of 
implementing regulations for the ex officio power. Okto said 
that Indonesia Customs is eager to obtain the new authority, 
as it will enable customs officers to detain temporarily 
suspected shipments of pirate or counterfeit goods.  He 
added that Customs has consulted closely with local IP 
industry representatives on the status of ex officio powers 
in the draft law, including the  American Chamber of 
Commerce IPR Committee on May 2.  The issue was also 
discussed throughout a May 16-18 USPTO-Indonesia Customs 
workshop in Jakarta that included presentations and 
participation by senior Customs officials and IP industry 
representatives.  Okto said that the GOI has set a deadline 
by the end of this year to enact the new Customs law and 
accompanying implementing regulations. 
 
Other GOI Efforts 
----------------- 
 
¶17. (SBU) During their June 21 meeting, Bari informed Katz 
of several other ongoing IPR related efforts within his 
office.  The Directorate of IPR is cooperating with the 
Japan International Cooperation Agency (JICA) in conducting 
15 IPR public awareness seminars throughout Indonesia this 
year for officials, academics, students and the press.  DG 
IPR also collaborated with the European Commission-ASEAN IPR 
Co-operation Program] in holding a May 22-23 workshop in 
Jakarta on civil and criminal court proceedings.  Lastly, DG 
IPR Abdul Bari Azed on June 6 gave opening remarks at the 
opening of a BSA representative office in Jakarta. 
 
Amcham Members See Improved Enforcement and Cooperation 
--------------------------------------------- ---------- 
 
¶18. (SBU) At a June 22 meeting with Katz, Amcham IPR 
Committee members were in agreement that police were 
improving IPR enforcement and cooperation.  An MPA 
representative said that, for the first time, police were 
conducting raids on their own initiative and were no longer 
requiring formal complaints to act.  She attributed this to 
General Sutanto's December 2005 instruction to district 
police chiefs ordering them to step up IPR enforcement 
activities, particularly against pirated ODs.  The MPA 
representative noted that Jakarta police raids on Ratu Plaza 
and Mangga Dua Mall, however, stopped after Indonesia was 
retained on the Priority Watch List in May, but that police 
continued raids at other locations across the city. 
 
¶19. (SBU) A representative of a major U.S. cigarette 
manufacturer said that he has received very good cooperation 
from police and customs over the last year in seizing large 
shipments of counterfeit cigarettes.  In these cases, 
customs is able to make seizures without ex officio powers 
because the counterfeit cigarettes have counterfeit excise 
stickers that violate Indonesia's tax laws.  He added that 
his company was considering a plan to provide equipment and 
training to some police units.  He noted that one unit he 
works closely with in the Riau Islands has 70 officers but 
severely lacks other resources: it has only two vehicles, 
one telephone line, no internet, and a yearly operating 
budget of USD 12,000. 
 
¶20. (SBU) A Business Software Alliance (BSA) representative 
added that police also lack resources to move and properly 
store cumbersome and sensitive optical disk production 
machinery seized during raids.  Police are scared that if 
the machinery is damaged while under their custody, the 
courts may rule that they pay compensation to the owners. 
Consequently, police customarily seal OD machinery with 
police tape at factories, and it is often just a matter of 
days before pirates break the seals move the machinery or 
simply begin operating again. 
 
Comment 
------- 
 
¶21.  (SBU)  The GOI continues to make steady progress on 
IPR, and high level backing from the Police Chief and 
Attorney General bodes well.  Closer cooperation between the 
MOI, police and AGO will be important for ensuring effective 
factory monitoring and greater prosecutions of pirates.  Our 
new senior technical advisors at the MOI and police, and a 
new Embassy resident legal advisor with considerable IPR 
 
JAKARTA 00008114  005 OF 005 
 
 
experience, should provide valuable new tools for assisting 
the GOI with these challenges. 
 
¶22. (U) USTR Director David Katz has cleared this cable. 
SILVER

A separate cable says that “[o]ne of the ICT National Team’s stated objectives is to work towards legalizing all government software, regardless of whether it is open source or licensed.” Here is the full cable:

UNCLAS SECTION 01 OF 03 JAKARTA 000475 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
FOR EAP/MTS; EB/TPP/IPE JBOGER 
COMMERCE FOR 4430/BERLINGUETTE AND PETERS 
COMMERCE PASS USPTO FOR URBAN AND FOWLER 
DEPT PASS USTR FOR DKATZ, JGROVES, RBAE, CCOLLEY 
 
E.O. 12598: N/A 
TAGS: ECON [Economic Conditions], ETRD [Foreign Trade], KIPR [Intellectual Property Rights], ID [Indonesia] 
SUBJECT: INDONESIA IPR - ANNUAL SPECIAL 301 SUBMISSION 
 
Ref: a) State 07944; b) Jakarta 00011 
 
¶1. (SBU) Summary:  Since Indonesia's upgrade to the Special 301 
Watch List in November 2006, the Government of Indonesia (GOI) has 
continued to make steady progress towards improving its enforcement 
and protection of intellectual property rights (IPR).  A National 
Intellectual Property (IP) Task Force now holds regular interagency 
coordination meetings, and President Yudhoyono (SBY) signed a decree 
in November 2006 committing the GOI to legalize all its computer 
software.  Parliament passed a new Customs Law on November 15 that, 
when fully implemented, will provide ex officio powers for Customs 
Officials to seize suspected infringing products.  Jakarta 
Metropolitan Police continue to elicit praise from local and 
regional International Intellectual Property Association (IIPA) 
representatives for raids on notorious malls, vendors, distributors 
and factories.  The Ministry of Industry's Optical Disk Factory 
Monitoring Team (ODFMT) inspected registered factories in November 
2006 and February 2007 and issued initial warning letters to some 12 
optical disk (OD) factories.  The Ministry of Industry (MOI) plans 
to assign full-time staff to the ODFMT, conduct more regular 
inspections (including inspections after hours), and begin 
sanctioning non-compliant factories.  A recent Supreme Court ruling 
in favor of the company Intel in a trademark infringement case case 
bodes well for future cases. 
 
¶2.  (SBU) Summary, continued. Despite these steps, the GOI needs to 
further improve the operations of the ODFMT and involve the police 
more closely in the ODFMT's operations.  It also needs to step up 
prosecutions and deterrent convictions of IPR violators and combat 
book piracy and pharmaceutical counterfeiting.  But the GOI is 
steadily taking ownership over the IPR issue, and our interactions 
with Indonesia on the issue have grown less confrontational and more 
collaborative.  To further encourage this important U.S. policy 
success, we recommend that Indonesia remain on the Watch List for 
the entire 2007 Special 301 regular cycle.  End Summary. 
 
¶3.  (SBU) In response to Ref A, we reviewed this year's Special 301 
submissions from the GOI, IIPA, Intel, PhRMA, and the Phillip Morris 
Company.  In general, we agree with their data, characterizations, 
and assessments of the state of IPR protection and enforcement in 
Indonesia.  Piracy and counterfeiting rates remain high and, 
although improving, enforcement remains weak.  At the same time, GOI 
engagement and political will continue to improve and are gaining 
their own momentum. 
 
National IP Task Force Remains Active 
------------------------------------- 
 
¶4. (SBU) According to GOI contacts, The National IP Task Force 
continues hold regularly scheduled quarterly working level meetings, 
as well less frequent senior and Ministerial-level meetings.  At the 
working level, the Task Force has developed a national IP strategy 
and strengthened data collection and interagency coordination. 
However, the lack of a formal budget continues to hamper the Task 
Force, and it must rely on limited funding from the Ministry of 
Justice Directorate General for IPR.  Nevertheless, the Task Force's 
regular interagency meetings, particularly those of senior and 
ministerial level officials, are encouraging greater GOI focus on 
IPR.  Following the first Task Force meeting last year, for example, 
the Minister of Justice and National Police Chief collaborated in 
developing a clever, animated TV spot emphasizing the costs of 
piracy on Indonesia's culture and creative arts. 
 
SBY Leads Efforts to Legalize GOI Software 
------------------------------------------ 
 
¶5.  (SBU) There are other recent examples of growing GOI initiative 
and high-level political will to improve IPR protection.  On 
November 13, SBY signed a decree establishing an Information 
Communication Technology National Team.  The team consists of 
academics, business leaders and GOI officials and aims to create an 
IT regulatory regime that can contribute to economic growth, job 
creation and poverty alleviation.  One of the ICT National Team's 
stated objectives is to work towards legalizing all government 
software, regardless of whether it is open source or licensed. 
Further, the Team will also pursue approaches to cracking down on 
the use of pirate software in internet cafes, universities and the 
private businesses.  The ICT team will report directly to President 
SBY and work out of an office at the Ministry of Communication and 
Information Technology. 
 
¶6.  (SBU) Two months after SBY signed the decree, Minister of 
Communication and Information Sofyan Djalil signed an MOU with PT. 
Microsoft Indonesia, under which the software maker will help GOI 
ministries legalize and upgrade their MS Windows products at a 
significantly discounted price.  Although there has been some public 
 
JAKARTA 00000475  002 OF 003 
 
 
criticism of the MOU, including by State Minister for Research and 
Technology Kusmayanto Kadiman, SBY has stood behind the agreement. 
PT Microsoft Indonesia President Director Tony Chen recently told us 
he was "astonished" by the GOI's growing commitment to legalize its 
software and recommended we encourage the GOI by maintaining 
Indonesia on the Special 301 Watch List. 
 
Customs Law Enacted with Ex Officio Powers 
------------------------------------------ 
 
¶7.  (SBU) Parliament passed a new Customs Law on November 15, 2006, 
that, when fully implemented, will provide ex officio powers for 
Indonesian Customs officials to seize suspected infringing products 
without a court order.  The new law retains ex officio powers that 
existed in the old law, but also clears up court jurisdictional 
issues that had blocked their implementation.  Indonesia Customs 
expects to promulgate the new law's implementing regulations, 
including those pertaining to ex officio powers, by the end of 
2007. 
 
Jakarta Police Sustaining Enforcement 
------------------------------------- 
 
¶8. (SBU) As noted in the GOI's submission, and confirmed by local 
IIPA representatives, the Jakarta Metropolitan Police have sustained 
enforcement actions against malls, vendors, distributors and 
factories of pirated optical discs.  Ratu Plaza, Indonesia's most 
notorious modern market for pirated ODs, has been the subject of 
repeated raids, and one Motion Pictures Association (MPA) regional 
representative told us recently that some of Ratu's vendors have 
given up or moved to other, less-centrally located malls.  That same 
MPA representative described the Jakarta Police's continuing police 
cooperation as "brilliant" and he too recommended Indonesia remain 
on the Watch List.  Our EEB-funded senior IPR technical advisor has 
been instrumental in training and encouraging the Jakarta Police to 
step up their IPR enforcement.  Looking forward, the advisor will 
work to encourage greater police collaboration with the ODFMT and 
prosecutors, as well as greater police enforcement actions beyond 
the boundaries of metropolitan Jakarta. 
 
Monitoring Team Yielding Some Results 
------------------------------------- 
 
¶9. (SBU) As noted in ref b, the ODFMT, with training and planning 
support from our second EEB-funded advisor, conducted monitoring 
visits to all registered optical disc factories in November 2006. 
The MOI subsequently sent 12 warning letters to factories observed 
to have irregularities.  However, the letters highlighted only minor 
infractions, and there has been little ODFMT follow-up.  Although 
the visits revealed weaknesses in the ODFMT's capacity and security 
procedures, they also gleaned useful baseline data on the capacity 
and activities of registered optical disc factories.  More 
importantly, the visits allowed the ODFMT to collect forensic 
exemplars from a majority of the known production machines in 
Indonesia's registered factories.  The International Federtion of 
the Phonographic" Industry (IFPI) continus to analyze tthese 
exemplars in its forensic laboratory in London, and already they are 
yielding important information. 
 
¶10.  (SBU) The ODFMT still requires considerable institution and 
capacity building to be fully effective.  The ODFMT does not have 
full-time monitors, and relies largely on MOI and Police officials 
temporarily seconded from other positions.  t needs direct support 
from the police, particulrly if it is tt c"n*duct visits at night 
and to wlll guarded factories.  The ODFMT also needs to impe ment a 
more credible system of warning and sanctioning factories in 
violation of laws and regulations. 
 
¶11.  (SBU) MOI Director General for Downstream Chemical Industries 
Benny Wahyudi told us on February 20 that the ODFMT visited seven 
factories on February 17, and inspected the five that were open and 
operating.  He promised to provide us with the results of those 
visits as soon as they were compiled.  Wahyudi agreed that the 
Monitoring Team needs at least one full-time staff member.  He 
noted, though, that this person might have to be a contractor, as 
the MOI did not have a specific budget and position set aside to 
staff the ODFMT.  Wahyudi also agreed that the MOI would need to 
work closer with the police and develop a more effective system of 
warning and sanctions.  He suggested that the Embassy senior advisor 
for the ODFMT would be instrumental in helping the MOI address these 
challenges. 
 
Glimmer of Hope in Intel Case 
----------------------------- 
 
¶12. (SBU) The Supreme Court's February 1 ruling in favor of Intel in 
 
JAKARTA 00000475  003 OF 003 
 
 
the Intel Jeans case is also a favorable development.  In the case, 
the court cancelled the trademark of a local brand of jeans, Intel 
Jeans, and ruled that Intel is entitled to trademark protection as a 
well known brand.  The ruling bodes well for the Supreme Court's 
upcoming decision in the appeal of Intel's Panggung case (the 
Indonesian firm PT Panggung produces a number of electronics 
products under the registered trademark "Intel").  While the 
Commercial Court's previous rulings against Intel in the Panggung 
case have been setbacks, Intel's legal counsel recently described 
the case as an aberration in the Commercial Court's otherwise 
respectable record in handling civil IPR cases, particularly those 
involving trademarks. 
 
Significant Concerns Remain 
--------------------------- 
 
¶13. (SBU) Despite the clear momentum on IPR issues, there are 
remaining concerns.  Indonesia's record on IPR prosecutions remains 
poor.  Frequent prosecutor rotations, lack of transparency, and 
corruption make this a daunting task; and high level political will 
and support will be critical to making headway on IPR convictions 
and prosecutions.  Pharmaceutical counterfeiting and book piracy 
also remain largely unchecked.  GOI officials tell us frequently 
that they consider pharmaceutical counterfeiting to be a serious 
health concern for the country, as well as a potential rallying 
point for greater public support for IPR protection and enforcement. 
 Key GOI officials have endorsed a University of Indonesia study 
revealing alarming pharmaceutical counterfeiting rates and its high 
cost to the Indonesian economy.  The GOI, however, has yet to 
effectively engage the pharmaceutical industry on these issues. 
Book piracy remains rampant in universities and local bookshops. 
Indonesia has yet to develop an association or other means through 
which publishers and authors can collect and distribute book 
royalties.  The GOI would very likely welcome U.S. technical 
assistance in this area. 
 
Watch List is the Best Option 
----------------------------- 
 
¶14. (SBU) Over the past two years, the combination of a 
reform-minded government in Indonesia and five regular or 
out-of-cycle Special 301 reviews has done much to change our 
interactions with the GOI on IPR issues.  GOI leaders are pursuing 
initiatives to promote IPR that were a only short time ago beyond 
our expectations.  At the same time, our relationships with working 
level contacts have become much more collaborative, particularly 
following Indonesia's removal from the Priority Watch List last 
November.  Four months later, although much work remains, the GOI is 
moving forward on IPR issues largely under its own steam.  With the 
GOI taking increasing ownership of the issue and steadily improving 
its IPR enforcement and protection, we believe a third consecutive 
OCR would be counterproductive.  Accordingly, Embassy Jakarta 
recommends strongly that Washington agencies retain Indonesia on the 
Special 301 Watch List for the 2007 regular Special 301 cycle, with 
no OCR. 
 
HEFFERN

We will cover some more Indonesia cables in a separate post. █

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Cablegate: State Governments in India Prefer Open Source Code

Posted in Asia, Cablegate, Free/Libre Software, GNU/Linux, IBM at 5:48 am by Dr. Roy Schestowitz

Summary: A diplomatic cable about IBM, Linux and Free/open source software

The following Cablegate cable talks about IBM and Linux. It also states that “[t]he use of an open source code Linux is another area of focus for IBM India. The company formed an IBM Linux Competency Center and Linux Solution Center in Bangalore to establish product standards, further Linux R&D as well as to localize products for an increasingly global customer base with local content requirements. State governments in India are big customers as they prefer open source code that enables development of local language fonts.”

Here is the Cablegate cable in full:

VZCZCXRO6031
RR RUEHBI RUEHCI
DE RUEHCG #2571/01 3260727
ZNR UUUUU ZZH
R 220727Z NOV 06
FM AMCONSUL CHENNAI
TO RUEHC/SECSTATE WASHDC 0443
INFO RUEHNE/AMEMBASSY NEW DELHI 2087
RUEHBI/AMCONSUL MUMBAI 4907
RUEHCI/AMCONSUL CALCUTTA 0647
Hide header
UNCLAS SECTION 01 OF 03 CHENNAI 002571 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON [Economic Conditions], EINV [Foreign Investments], 
EINT [Economic and Commercial Internet], IN [India; Andaman Islands; 
Lakshadweep Islands; Nicobar Islands] 
SUBJECT: IBM INVESTS BIG IN INDIA: HUMAN RESOURCES 
ARE KEY 
 
REF: CHENNAI 1187 
 
¶1. (U) Summary:  Riding the crest of a $6 billion 
investment, IBM India plans to expand its Bangalore 
research and development (R&D) operations and in 
doing so will unleash a new human capital thrust in 
already talent-hungry south India.  The company 
anticipates its Indian workforce will triple in the 
next five years.  An expanding market in India for 
U.S. manufactured mainframes and network software 
services presents an opportunity the company does not 
plan to miss. Increasing demand for remote management 
of global client networks is another revenue stream 
for IBM India. Simultaneous investments in open 
source software protocol and capacity building 
spearhead the companyQs effort to market e-governance 
solutions in the Indian market.  To meet its expanded 
human resource requirements, IBM plans to initiate 
in-house staff training programs, marking a notable 
shift from its past strategy of hiring employees away 
from competitors.  Indian software companies, already 
experiencing a human capital crunch, are now 
struggling to quickly respond and prevent attrition, 
fearful of losing skilled employees to their 
competitors.  End summary. 
 
----------------- 
All bets on India 
----------------- 
 
¶2. (U) On June 6 Sam Palmisano, IBMQs Chairman, 
announced investment plans in India of $6 billion 
over a five year period (reftel).  The company 
remains reluctant to disclose the details of its 
investment strategy, but during a recent meeting in 
Bangalore with visiting New Delhi DCM Pyatt, Inder 
Thukral, Director Strategy and Business Development 
at IBM India told post that emphasis will be on 
research and development of telecommunication and 
netware solutions for IBM operations worldwide.  The 
desire to leverage even further IndiaQs large highly- 
skilled labor force led to this investment move, 
Shankar Annasamy, Managing Director IBM India told 
us.  The company expects to triple its workforce from 
the current 47,000 employees at 25 locations in the 
next five years. 
 
----------------------------------------- 
India: IBMQs research and development hub 
----------------------------------------- 
 
¶3. (U) IBM India, with $2 billion in current 
investments, is the proverbial Q800-pound gorillaQ of 
IT research and development in the country.  The 
companyQs India-based teams account for over 30% of 
IBMQs global R&D on network and communications 
solutions.  With its latest investment, the company 
has rapidly diversified to meet its R&D needs:  The 
IBM Innovation Center in Bangalore provides an 
institutional platform for software service suppliers 
and is a critical testing ground for new products in 
both the Indian and global market. IBMQs India 
Software Lab, with facilities in Bangalore and Pune, 
also develops and supports IBM software products for 
worldwide operations.  In addition, the high- 
performance On Demand Lab develops specialized 
software to automate and virtualize the complex 
information technology infrastructure of clients 
located in the south Asian region.  To further 
hardware development, the Engineering and Technology 
Services Center designs advanced chips, cards and 
systems to meet customer requirements across Asia. 
 
------------------------------------------ 
India: A big market for US made mainframes 
------------------------------------------ 
 
¶4. (U) IBMQs U.S. manufactured main frames have 
captured the booming Indian main frame market.  The 
company holds an 80 percent share of IndiaQs 
estimated $250 million market for main frames.  The 
market is currently growing at 55 percent, with much 
of the growth coming from mid-sized Indian 
businesses.  Main frames offered to the Indian market 
are pre-positioned at the companyQs Bangalore-based 
Innovation Center to enable potential customers to 
experience the computing power and capabilities of 
the machines.  IBMQs service oriented architecture 
that facilitates communication between different 
business segments located in various locations has 
 
CHENNAI 00002571  002 OF 003 
 
 
found favor in India and helped IBM secure a $100 
million deal with Bharti-Airtel, one of IndiaQs 
largest mobile phone service providers. 
 
------------------------------------------- 
Open source products spearhead E-governance 
------------------------------------------- 
 
¶5. (U) The use of an open source code Linux is 
another area of focus for IBM India.  The company 
formed an IBM Linux Competency Center and Linux 
Solution Center in Bangalore to establish product 
standards, further Linux R&D as well as to localize 
products for an increasingly global customer base 
with local content requirements.  State governments 
in India are big customers as they prefer open source 
code that enables development of local language 
fonts. 
 
-------------------------------- 
IBMQs BPOs transform outsourcing 
-------------------------------- 
 
¶6. (U) Leveraging IndiaQs large talent pool of 
network managers, IBM India services clients around 
the world via satellite and fiber optic networks from 
its global operations hub in Bangalore.  IBM Daksh, a 
back office unit which the company acquired in 2004, 
accounts for nearly 50% of the companyQs staff in 
India and is expected to contribute over half of the 
company revenues in the next five years.  Similar to 
other BPO operations such as local giants Infosys and 
Wipro, Daksh provides services for clients involved 
in retail, technology, banking, mortgage, energy and 
life insurance.  The range of services includes 
application processing, account maintenance, data 
conversion services, logistics management, claims 
processing, email support and financial services. 
According to IBM executives, this line of business 
registered some of the fastest growth rates for IBM 
in recent history. 
 
---------------------------------------- 
In-house training to meet in-house needs 
---------------------------------------- 
 
¶7. (U) IBMQs recent investment spike comes at a time 
when a fiercely competitive hiring climate is forcing 
top leadership to rethink its human resource 
strategy. In the past the company notoriously 
QpoachedQ experienced individuals from local firms. 
Looking for new HR capacity building vehicles, 
company executives are emphasizing university 
recruitment to attract and train new waves of fresh 
engineering graduates, or Qfreshers.Q  Yet this may 
be a tall order in a time when A-list tech firms are 
vying for talent, and freshers with experience under 
their belt are job-hopping for bigger and better 
packages.  Nonetheless, IBM executives are betting on 
a combination of higher salaries and their global 
brand equity to ensure a steady talent pool. 
 
¶8. (U) Strategic partnerships with elite Indian 
technology institutions are also enabling IBM India 
to further leverage local human capital expertise. 
IBMQs Center for Advanced Studies, for example, 
maintains a close relationship with prestigious 
institutions such as the Indian Institute of 
Technology (IIT) Chennai that leads directly into 
software R&D.  The company has a similar program with 
the Indian Institute of Science in Bangalore and 
plans to expand its partnerships with other high- 
caliber institutions across India. 
 
--------------------------------------------- -------- 
Expansion plans leave Indian software companies 
scared 
--------------------------------------------- -------- 
___ 
 
¶9. (U) Comment:  IBMQs investment announcement sent a 
minor wave of anxiety through the Indian software 
industry, which is already struggling to control 
costs.  InfosysQ Human Resource Director told us his 
company is trying to preempt potential attrition by 
offering a 30% salary hike.  Mindtree Consulting, a 
medium sized software development company, plans to 
tap bright talent as early as the secondary school 
level.  The company hopes to partner with U.S.-based 
universities to offer recruits a degree in 
 
CHENNAI 00002571  003 OF 003 
 
 
engineering at the end of a five year stint. 
Whatever strategy adopted, representatives of both 
Infosys and Mindtree told us that IBMQs investment 
plans will dramatically alter IndiaQs software 
business landscape and long-term human capital 
strategy. End comment. 
 
¶10. (U) This message was coordinated with Embassy New 
Delhi. 
 
HOPPER

In later cable we are going to see some more evidence of warming up to FOSS. █

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Links 29/12/2011: Linux Gains Respect From Enterprises, Approval of Army

Posted in News Roundup at 5:06 am by Dr. Roy Schestowitz

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12.28.11

IRC Proceedings: December 28th, 2011

Posted in IRC Logs at 8:36 pm by Dr. Roy Schestowitz

Enter the IRC channels now

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Cablegate: Brazil Advocates, Praises “the Usefulness of Free, Open Source Software”

Posted in America, Cablegate at 7:45 pm by Dr. Roy Schestowitz

Summary: Some interesting words from Brazil (source: CSTD Paris panel meeting on WSIS)

According to the following Cablegate cable, Brazil’s representative “emphasized that free and open source software helps to reduce costs, particularly in e-government.”

Also, “Brazil noted that the elements for a roadmap for digital inclusion included [...] the usefulness of free, open source software.”

null
Lucia A Keegan  11/17/2006 11:17:27 AM  From  DB/Inbox:  Lucia A Keegan

Cable 
Text:                                                                      
                                                                           
      
UNCLAS    SENSITIVE     PARIS 07358

SIPDIS
cxparis:
    ACTION: SCI
    INFO:   DCM POL LABO ENGO ECSO AGR UNESCO AMBO SCIO AMB
            ECON ESCI

DISSEMINATION: SCIX
CHARGE: PROG

APPROVED: ESTH RDRY/ECON SDWYE
DRAFTED: ECON: HSULLIVAN; EST
CLEARED: CLEAR: USOECD: JMALLORY

VZCZCFRI245
RR RUEHC RUCNDT RUEHGV RUEHZN
DE RUEHFR #7358/01 3171627
ZNR UUUUU ZZH
R 131627Z NOV 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 3066
RUCNDT/USUN NEW YORK
RUEHGV/USMISSION GENEVA 2524
RUEHZN/EST COLLECTIVE 

UNCLAS SECTION 01 OF 05 PARIS 007358 
 
SIPDIS 
 
STATE FOR IO/EDA, OES, EB/CIP, EUR/WE 
 
SENSITIVE BUT UNCLASSIFIED 
 
E.O. 12958:  N/A 
TAGS: ECPS [Communications and Postal Systems], TINT [Internet Technology], KWWW [World Wide Web Site], PREL [External Political Relations], FR [France; Corsica] 
SUBJECT: CSTD PARIS PANEL MEETING ON WSIS OUTCOME PRODUCES GUIDANCE 
DOCUMENT 
 
NOT FOR INTERNET DISTRIBUTION. 
 
¶1.  (U) Summary: The November 6-8, 2006 Paris Panel Meeting of the 
UN Commission on Science and Technology for Development (CSTD) Panel 
Meeting on WSIS outcome "Promoting the building of people-centered, 
development-oriented, and inclusive information society, with a view 
to enhancing digital opportunities for all people" did not raise 
significant 'red flags' for the U.S., with the exception of Brazil's 
occasional assertions that the Committee should address "internet 
governance."  On the margins of the meeting, U.S. officers who 
attended as observers reminded Commission leadership and staff that 
internet governance issues were not appropriate subjects for the 
Panel Meeting, and Commission leadership agreed.  Some participants 
(e.g., Brazil, Germany) were clearly taking directions from their 
capitals while others (e.g., Ethiopia) appeared little aware at the 
beginning of the meeting why the Commission was focusing on the 
Information Society.  In general, however, delegates came 
well-informed and engaged in the discussions.  Commission leadership 
appreciated the presence of U.S. officers as observers.  The Panel 
produced a document -- still subject to minor language editing 
changes -- in response to ECOSOC's resolution 2006/46, which had 
requested the Commission's review of this WSIS outcome.  The 
document is produced in full at para. 15, below.  End Summary. 
 
----------------------------------------- 
Information Society - People-centered and Inclusive 
----------------------------------------- 
 
¶2. (U)  The UNCTAD-provided Secretariat began the three-day meeting 
by explaining the purposes for the Commission's Panel Meeting and 
defining the concept of a people-centered, development-oriented and 
inclusive information society as a framework for development.  The 
Secretariat provided a chart showing the differences of internet 
 
SIPDIS 
penetration in various continents and also on the varying rates of 
growth.  The Secretariat noted that in Africa, although internet 
penetration in 2005 was only 3.6 percent, over the decade 1995-2005, 
internet use grew by 600%.  The Secretariat noted that governments 
should focus on a people-centered, development-oriented, inclusive 
Information Society, consistent with WSIS decisions.  Inclusive 
means that all stakeholders should participate, with benefits and 
opportunities available to all.  The purpose of the Information 
Society is to improve the quality of life for consumers, the 
Secretariat continued.  Various stakeholders have different roles. 
 
SIPDIS 
The government should develop national e-strategies, create an 
investment-friendly environment, deregulate, privatize, and 
liberalize the telecommunications sector.  The private sector will 
develop and finance the internet and its infrastructure.  Civil 
society will focus on local issues, while international 
organizations will help implement the WSIS. 
 
¶3. (U)  According to the Secretariat, the main obstacles to 
narrowing the digital divide are: 
 
- The high cost of telecommunications for the poor in developing 
countries; 
 
- Lack of human resources to develop the information infrastructure 
exacerbated by a brain drain of qualified personnel; 
 
- Lack of local content, which limits its usefulness to poor, rural 
populations. 
 
¶4. (SBU) In the ensuing discussion session, Charles Geiger, WSIS 
Executive Director from 2003 to 2005, commented substantively that 
governments should not try to control the direction of technology or 
internet growth since the technology was moving faster than 
governments could grasp developments.  For example, he suggested, 
the growth in mobile telephony occurred organically, not as a result 
of WSIS outcomes.  However, governments should use information 
communication technology (ICT) in the health sector, to promote 
transparent government (e-government), and improve distance 
learning.  These measures would promote social development, 
according to Geiger. 
 
¶5. (U) The Greek delegate said that he was surprised that in some of 
the examples of countries discussed that mobile telephony 
penetration surpassed that of fixed line.  Geiger replied that, in 
many areas of the developing world, mobile penetration is greater 
because of the lack of protection, as in the wireline world.  He 
noted that in India, one might have to wait seven years for a 
wireline telephone, but consumers could get mobile phones in 24 
hours.  Additionally, the decrease in mobile phone rates have made 
them more affordable than fixed line telephones in many areas. 
 
--------------------------------------------- ---- 
Brazil Opposes a Focus on Investment; CSTD Demurs 
--------------------------------------------- ---- 
 
¶6. (SBU) The Brazil representative thought that CSTD should focus on 
decentralization.  If governments tried to plan too much, they would 
not succeed because technology evolves faster than governments can 
plan.  Second, the Commission should downplay the role of foreign 
investment since the primary development should be at the community 
level.  Brazil, he commented, had 90 percent television penetration, 
while the internet had only reached 13 percent.  To wait for this 
percentage to slowly increase would be slower than the switch to 
digital TV, which would allow for interaction between the two 
systems.  He also emphasized that free and open source software 
helps to reduce costs, particularly in e-government.  No one else 
took up these points, except that Sudan expressed interest in the 
technology permitting greater interactivity with television systems. 
 Geiger emphasized that UNCTAD was not the WTO (implying that Brazil 
should not bring its GATS telecom mode 3 agenda into this forum.) 
 
------------------------------ 
CSTD Reviews WSIS Action Items 
------------------------------ 
 
¶7. (U) In a subsequent intervention, Geiger ran through the eleven 
action items from the Geneva WSIS Summit, reviewing which 
organizations were responsible for follow-up on each action item. 
He noted that the UN Group on Information Society (UNGIS) was 
created on July 14, 2006 to coordinate implementation of WSIS.  Its 
effectiveness would be proportionate to the extent that responsible 
UN agencies (primarily the ITU, UNDP, and UNESCO) provided it input, 
he suggested.  On April 17, 2006, the Global Alliance for 
Information and Communication Technology formed to provide private 
sector and civil society input into the CSTD's work.  Likewise, 
according to Geiger, the UNDP and the World Bank ought to be engaged 
with the CSTD's work so that its recommendations could be filtered 
into organizations that had financing capabilities. 
 
¶8. (SBU) Brazil responded by noting that the CSTD's role is to 
review and assess implementation of WSIS, not implementation itself. 
 However, to do so effectively, the CSTD needed to have better 
feedback on what the various UN agencies were doing to implement the 
WSIS outcomes.  Furthermore, the eleven action items from the Geneva 
conference should not be the sole scope of coverage since limiting 
its work to those would ignore the outcomes from the second WSIS 
Summit in Tunis.  Geiger agreed.  He noted that Brazil's position on 
internet governance "has always been very strong," but questioned 
the extent that the CSTD could effectively work on all WSIS issues. 
 
 
¶9. (SBU) The Romanian delegate suggested that CSTD create five 
parallel groups that would focus on implementation of the various 
recommendations.  Turkey noted that the recommendations were not 
mutually exclusive. 
 
------------------------------------- 
Summary of Individual Country Reports 
------------------------------------- 
 
¶10. (SBU) Commission members gave a number of reports regarding the 
state of the information society in their respective countries.  The 
German representative presented on a study that the GOG performed 
for the German Parliament on internet usage in Sub-Saharan African 
educational institutions.  It concluded, inter alia, that the 
internet could not solve many of the problems that African 
educational institutions faced such as large class sizes, poor 
salaries for teachers, and lack of funding.  However, it could, for 
example, spur joint programs between various institutions to share 
ideas about curriculum development. 
 
¶11. (U) The Lesotho representative gave a brief presentation about 
efforts it is undertaking to provide an environment conducive to 
building an information society involving, for example, new 
telecommunications laws.  Lesotho said that it would need 
multilateral assistance to achieve its goals.  Sudan presented its 
experiences, noting that internet only exists in big cities and 
towns, while 75 percent of the population lives in rural areas. 
Sudan uses solar energy to power its ICT in rural areas.  It has 
placed emphasis on connecting its universities and polytechnic 
institutions.  Sudan plans to establish a science park managed by 
specialized professionals to stimulate and manage the flow of 
knowledge and technology among universities, R&D institutions, 
companies and markets.  It also aims to facilitate the creation and 
growth of innovation-based companies through incubation, spin-off 
processes, and provision of other value-added services.  Sudan did a 
feasibility study on whether its science park could attract foreign 
and private sector investment.  The science park will cost USD 500 
million.  Phase One would cost USD 150 million, which a large Arab 
Gulf country has already provided.  This sum will finance, inter 
alia, communications and fiber optics requirements. 
 
¶12. (SBU) The Brazilian representative said that 97.2 percent of 
households have electricity, but, in the Amazon region, the 
percentage of households with electricity is much lower.  The 
percentage of the population with access to the internet is also not 
evenly distributed, but in no area is it over 30 percent except for 
Brazilia.  Brazil therefore has planned to introduce digital TV with 
the possibility of interactivity.  Through a remote control system, 
Brazilians can access TV on demand.  This is an opportunity for 
digital inclusion since internet reaches so few people and will take 
a long time to grow organically.  Brazil noted that the elements for 
a roadmap for digital inclusion included: noting countries' 
experience; promoting democratic governance based on transparency, 
accountability, and participation; infrastructure according to 
community interest; commitment to local development; the promotion 
of e-government; and the usefulness of free, open source software. 
The role for ECOSOC and CSTD should be to coordinate public policy 
issues at the international level and internet governance, according 
to the Brazilian representative. 
 
¶13. (U) The Moroccan representative discussed various initiatives 
the government was taking to promote connectivity in its educational 
system. She also mentioned the Casablanca Technopark, which boasts 
140 ICT companies with 750 permanent job positions. 
 
¶14. (U) Geiger, Hamdi, the delegates from Brazil, Chile, the GAID, 
and another NGO met following closure of the second day to propose 
how the instant CSTD Panel Meeting should make recommendations for 
the benefit of the tenth session of the CSTD, to be held in May 
2007.  That group prepared a document which was accepted - subject 
to minor revisions (yet to be included in the draft) on the 
following day.  The document, read by the Chilean delegate is as 
follows: 
 
---------------------------- 
CSTD Recommendation Document 
---------------------------- 
 
¶15. (U) The text of the 'Recommendation' document produced by the 
special CSTD Panel Meeting held in Paris, November 6-8, 2006 to 
provide guidance to the CSTD's Tenth Session to be held in May 2007 
follows.  Begin text: 
 
"The World Summit on the Information Society (WSIS) adopted a vision 
of a people-centered, development-oriented, and inclusive 
information society, with the view to creating digital opportunities 
for all people.  The Tunis Agenda for the Information Society, 
adopted in 2005 by the WSIS and endorsed by General Assembly 
Resolution 60/252, requests the Council to oversee the system-wide 
follow-up of the Geneva and Tunis outcomes of the Summit, and to 
that end, requests the Council, at its substantive session of 2006, 
to review the mandate, agenda and composition of the Commission on 
Science and Technology for Development, including considering 
strengthening the Commission, taking into account the 
multi-stakeholder approach, 
 
In this regard, the ECOSOC Resolution 2006/46 requests the 
Commission to review and assess the progress made in implementing 
the outcomes of the Summit and advise the Council thereon, including 
through the elaboration of recommendations to the Council aimed at 
furthering the implementation of the Summit outcomes, and that to 
that end, the Commission shall: 
 
-- review and assess progress at the international and regional 
levels in the implementation of Action Lines, recommendations and 
commitments contained in the outcome documents of WSIS; 
 
-- share best and effective practices and lessons learned, and 
identify obstacles and constraints encountered, actions and 
initiatives to overcome them and important measures for further 
implementation of WSIS outcomes; 
 
-- promote dialogue and foster partnerships in coordination with 
other appropriate UN funds, programs and specialized agencies to 
contribute to the attainment of the WSIS objectives and 
implementation of its outcomes, to use ICT for development and the 
achievement of internationally agreed development goals, with the 
participation of governments, the private sector, civil society, and 
the UN and other international organizations according to their 
different roles and responsibilities; 
 
Bearing in mind that the comprehensive review by the GA of WSIS will 
take place in 2015, and the ECOSOC requested that in its next 
session the Commission shall develop a multiyear work program, the 
Panel takes note of the issues paper presented by the Secretariat, 
and after considering this matter requests the Secretariat to make 
consultations with relevant stakeholders and to present to the 
Commission a draft program of work that should be flexible and 
inclusive. 
 
In order for the ECOSOC, through CSTD, to carry out its mandate of 
overseeing system-wide follow up of the WSIS effectively, it will 
require that the Commission has an effective interface with all 
agencies and mechanisms that are tasked with implementation of WSIS 
outcomes and other post-WSIS activities. 
 
In this regard, the Panel proposes the following: 
 
Multi-year work program and methods of work: 
 
The Panel requests the UNCTAD Secretariat to prepare a Note for 
consideration at the Tenth Session, which contains proposals for a 
multi-year work program of the Commission and new methods of work. 
This Note should take into account the timeframe for the 
comprehensive review, as well as the clustering and sequencing of 
thematic issues from WSIS outcome documents.  The work program 
should adequately address the thematic concerns of WSIS, but also be 
flexible enough to accommodate any future need for adjustment, in 
view of the fast pace of technological development.  To gather 
inputs on the work program, the Secretariat will carry out informal, 
open-ended consultations before February 2007, with a wide range of 
stakeholders.  These consultations could be scheduled back-to-back 
with meetings of action line facilitators and moderators. 
 
The Note should also elaborate on new methods of work of the 
Commission, including through interactive dialogues during its 
annual session, with the active participation of action line 
facilitators, and other agencies and mechanisms involved with the 
implementation of WSIS outcomes.  Additionally, the Note should 
propose concrete ways to explore development-friendly and innovative 
use of electronic media, drawing upon existing online databases on 
best practices, partnership projects and initiatives, as well as 
other collaborative electronic platforms, which would allow all 
stakeholders to contribute to follow up efforts, share information, 
learning from the experience of others and explore opportunities for 
partnerships. 
 
Since WSIS implementation constitutes ongoing activities over a wide 
area, which will be fast evolving, the Commission may have a wide 
range of topics to examine every year.  The Panel suggests that the 
Commission could invite the facilitators of action lines, and other 
agencies and mechanisms involved in implementation of WSIS, as well 
as members of other stakeholder groups, to participate in its annual 
session. 
 
The Panel also proposes that the Commission at its Tenth Session in 
May 2007 requests the United Nations system entities, including the 
regional commissions, engaged in the implementation of the Geneva 
and Tunis outcomes of the World Summit for the Information Society 
to collaborate closely with the Commission on Science and Technology 
for Development by providing it with periodic reports on the 
progress made in the implementation of the main themes and Action 
Lines of the World Summit for the Information Society, with a view 
to enabling the Commission to monitor, review and appraise progress 
achieved and problems encountered in the implementation, and to 
advise the Council thereon."  End text of document. 
 
------------------------------ 
CSTD leadership and commentary 
------------------------------ 
 
¶16. (SBU) Below are the CSTD leaders, who guided the discussion 
during the meeting: 
 
Chairman - Stefan Moravek, former Slovak Ambassador to South Korea 
and Kenya.  Aware of U.S. positions and 'red lines.'  Would welcome 
a U.S. return to the Commission. 
 
Vice President - Dr. Arnoldo K. Ventura, Special Adviser to the 
Prime Minister on Science and Technology, Jamaica. 
 
Executive Director - Charles Geiger.  Knows the WSIS 'inside out' 
having participated in both the Geneva and Tunis WSIS Summits.  Also 
aware of USG sensitivities regarding internet governance, and worked 
to assure this item remained "off the agenda."  He would like to see 
the U.S. become more involved in the work of the Commission. 
 
Secretariat -- Mongi Hamdi, Secretary to the UN Commission on 
 
SIPDIS 
Science and Technology for Development, Office of the Secretary 
General for UN Conference on Trade and Development (UNCTAD)  - Spent 
nearly 20 years in the U.S., first studying at Harvard and 
University of Southern California, followed by a long spell at UN 
Headquarters in New York (14 years).  His interventions emphasized 
the importance of investment in building infrastructure; the 
importance of deregulation; and focusing the role of government and 
international organizations on issues such as the digital divide. 
On the margins of the meeting, he asked U.S. observers to relay a 
request to Washington to rejoin the Commission, noting that USG 
interests could best be served by working as an insider rather than 
an outsider. 
 
President of Prepcom WSIS Tunis Phase - Ambassador Janis Karkins. In 
a WSIS follow-up presentation, he urged members and UN bodies 
working on WSIS issues to adhere to its mandate, to avoid reopening 
discussion of issues already addressed, and to operate within the 
allocated resources. 
 
¶17.  (SBU) Comment: The CSTD principals welcomed U.S. officers who 
observed (from USOECD, Science Officer Mallory on 11/6; Embassy 
Paris, ECON/Telcoms Officer Sullivan on 11/7; and Embassy Paris ESTH 
Couns Dry on 11/8).  They expressed interest in the USG becoming 
more engaged in the Committee, and believed with the expansion from 
30 to 40 members, there would be more participants that are 
"like-minded" with the U.S. on Information Society issues.  Many 
participants were clearly taking directions from their capitals, and 
delegates came well-informed and engaged in the discussions.  That 
said, the "reform" of this Commission is "a work in progress," 
although its work clearly is important to the task of development. 
Its present focus on WSIS implementation also makes its work 
relevant to the U.S.  End Comment. 
 
STAPLETON

More Cablegate cables will be covered here tomorrow. █

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Cablegate: Apple Attacks French Copyright Law to Induce Various Restrictions (Including DRM), Marginalisation of Rights

Posted in Apple, DRM, Europe at 7:31 pm by Dr. Roy Schestowitz

Summary: Bad Apple is doing bad things in HADOPI land using blackmail (allegedly claiming it “it would pull its business out of France” unless its demands were met)

According to the following Cablegate cable, Apple uses a baclkmail tactics (threatening withdrawal) to affect — for the worse of course — copyright law in France. Quoting the relevant parts: “In press statements, Apple said that the French copyright law amounted to “state-sponsored piracy” and that it would pull its business out of France. This declaration had an unfortunate impact. It heartened claims by free-software advocates and politicians who said that the opening up of DRM would benefit makers of DRM systems by enabling them to prosecute competitors as facilitating piracy. U.S. Secretary of Commerce Carlos Gutierrez’s press comments saying that while he needed to take a look at the legislation, he supported protecting intellectual property rights were widely interpreted to be supportive of Apple, and French pro-interoperability groups reacted disapprovingly. The Odebi League, a citizen’s action group defending the rights of Internet users, told Apple to “mind its business and not meddle into the French legislative process” and pointed out that “if Apple wishes to do business in France, it has to respect the rights that the French enjoy.” Some senators said they regretted that Apple did not appeal to them directly and interpreted it as a lack of interest.”

Shame on Apple.

Here is the Cablegate in ite entirety:

UNCLAS SECTION 01 OF 03 PARIS 003153 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR E, EB, EB/IPE, EUR/WE 
DEPT PLS PASS USTR FOR JSANFORD/VESPINEL/RMEYERS 
COMMERCE FOR SJACOBS, SWILSON 
DOJ FOR CHARROP, FMARSHALL, RHESSE 
COMMERCE PLEASE PASS USPTO 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD PGOV FR
SUBJECT:  FRANCE'S DIGITAL COPYRIGHT BILL: SENATE VOTES TO SOFTEN 
INTEROPERABILITY BUT LOW PENALTIES REMAIN UNCHANGED 
 
REF. PARIS 01847 
 
¶1. This is an action request. See paragraph 13 
 
¶2. (SBU)  SUMMARY.  The French Senate approved in the early hours of 
May 11 the GOF draft law on digital copyright, in a format which 
leaves unchanged the National Assembly's decriminalized penalty 
regime, the principle (if not the requirement) of interoperability, 
and the so-called "Vivendi Universal Amendment" criminalizing 
peer-to-peer software publishing.  The draft law adopted by the 
Senate largely takes the sting out of interoperability by laying out 
general guidelines -- which no longer require Digital Rights 
Management (DRM) vendors to divulge industrial secrets to their 
competitors -- and creating a new independent authority to decide on 
the scope of interoperability and the "right to the exception for 
private copy." The newly adopted text, known as the Law on Author's 
Rights and Related Rights in the Information Society, generally 
abbreviated as DADVSI in French is a step that would bring France in 
line with the 2001 EU Digital Copyright Directive.Over the next 
month, the text will likely go to a reconciliation conference at the 
end of the month, and be signed into law before the summer. END 
SUMMARY. 
 
Senate Approval And Next Steps 
------------------------------ 
¶3.  (SBU) The DADVSI draft law was adopted by the French upper house 
on May 11, with 164 votes in favor, 128 against, and 37 abstentions. 
 All the votes in favor came from representatives of the right of 
center government UMP party.  The text will now go before a joint 
committee of both houses of the French Parliament to be reconciled, 
and for final approval under the current Government "fast-track" 
emergency procedure, which requires only one reading by both houses. 
 Upon completion of the legislative procedure, the draft bill will 
be submitted to President Jacques Chirac for signature some time 
before the summer.  France, which had tabled implementing 
legislation in November 2003, is the last country, with Spain, to 
transpose the EU Copyright Directive. 
 
Exceptions to Exclusive Copyrights: 
---------------------------------- 
¶4.  (SBU) Exceptions to exclusive copyrights, for public libraries 
and archives, will now have to fulfil the "three-step test," i.e. 
that they be confined to special cases, not conflict with a normal 
exploitation of the work, and not unreasonably prejudice the 
legitimate interests of the right holder.   Education and research 
have been added to the restrictive lists of exceptions in the 
Senate, following the threat of a campaign of civil disobedience "in 
any way they deemed useful and relevant" by over 2000 members of the 
French scientific community. 
 
¶5.  (SBU) The more traditonal exception for private copy, an 
essential feature of French "droit d'auteur," which allows French 
residents to freely make copies of works (except software) for their 
private use (and that of their family and friends) has also been 
refreshed. The number of copies allowed as part of that exception 
will now be decided by a new high regulatory authority, in charge of 
outlining the contours of the private copy exception as well as the 
new interoperability principle.  The new authority will also work 
hand-in-hand with the already existing Copyright Commission, which 
sets the rates and conditions for the "tax on private copy" meant to 
address the losses incurred by copyright holders. This tax is levied 
on blank media (audio and video cassettes, CD, DVD, as well as 
memory and hard drives in portable media players).  While most of 
this tax goes to rightholders, a quarter of it, representing some 40 
million euros a year (USD 50 million), is used to finance cultural 
events and festivals throughout France. 
 
Penalties Remain Unchanged 
-------------------------- 
¶6.  (SBU)  The system of "gradual sanctions", i.e. decriminalized 
fines, has been confirmed by the Senate as "fair and balanced" -- 
despite efforts by one Senator and former Minister of Trade and 
Industry, Gerard Longuet, to switch from what he described as 
"organized indifference" to stiffer sentences.  Culture Minister 
Donnedieu de Vabres reiterated on this occasion that the purpose of 
the bill was not to go after offenders but to ensure the protection 
of works.  As a result, non-commercial downloads are subject to the 
lowest fine in France's Penal Code (38 euros), the equivalent of a 
traffic ticket,  instead of the original three years' imprisonment 
and 300,000 euro fine proposed earlier by the GOF.  These heavy 
penalities in the first GOF draft bill created a major outburst in 
the National Assembly, eventually leading to the adoption of the 
radical "global licence."  In the words of one Socialist and 
technologically savvy member of the National Assembly, it would be 
wrong "to describe the eight million people who have downloaded 
music from the Internet as delinquents."  On May 11, the Culture 
Minister announced that an "index" of all protected works would be 
set up to enforce the three goals of the bill: respect of copyright, 
private copy and interoperability. 
 
Softening Interoperability 
-------------------------- 
¶7.  (SBU)  The Senate has proposed largely weakening the National 
Assembly's radical ideas on the DRM technology.  Two amendments in 
the National Assembly's version had stated that providers of DRM 
systems should provide the necessary technical documentation to ANY 
party needing it to ensure that interoperability, including the 
source code.  This was interpreted as a direct attack on Apple's 
iTunes platform and their iPod players. 
 
¶8. (SBU)  In press statements, Apple said that the French copyright 
law amounted to "state-sponsored piracy" and that it would pull its 
business out of France. This declaration had an unfortunate impact. 
It heartened claims by free-software advocates and politicians who 
said that the opening up of DRM would benefit makers of DRM systems 
by enabling them to prosecute competitors as facilitating piracy. 
U.S. Secretary of Commerce Carlos Gutierrez's press comments saying 
that while he needed to take a look at the legislation, he supported 
protecting intellectual property rights were widely interpreted to 
be supportive of Apple, and French pro-interoperability groups 
reacted disapprovingly.  The Odebi League, a citizen's action group 
defending the rights of Internet users, told Apple to "mind its 
business and not meddle into the French legislative process" and 
pointed out that "if Apple wishes to do business in France, it has 
to respect the rights that the French enjoy."  Some senators said 
they regretted that Apple did not appeal to them directly and 
interpreted it as a lack of interest. 
 
Creating A New Regulatory Authority 
----------------------------------- 
¶9.  (SBU)  The Senate bill proposes a new regulatory authority to 
examine the question of private copies and interoperability.   This 
new seven-member High Authority, modelled along the lines of 
France's independent regulatory bodies in the electricity and gas 
sectors (CREG), and in the telecoms and electronic commerce sector 
(ARCEP), replaces the much-decried "college of mediators" initiated 
by the National Assembly.  Its responsibilities, much like its 
guidelines, have been left as open as possible to allow for the fast 
pace of technological change.  At the same time,  prodded by 
embattled Culture Minister Donnedieu de Vabre and Villepin 
administration, the Senate Cultural Affairs Committee developed a 
text designed to meet as little opposition as possible from the 
National Assembly once in the joint committee for conciliation. 
These considerations explain the current text's willingness to pass 
the difficult decisions on to the new authority. 
 
Previous Support For Interoperability and Copying 
--------------------------------------------- ---- 
¶10. (SBU)  Public discussion of DRM and its effect on the private 
copy exception have been particularly vivid in France.  French 
consumer associations initiated and often won court cases where DRM 
restricted private copying -- a sacrosanct exception under French 
copyright law. 
Over the past three years, French consumer organizations have 
initiated a number of court cases dealing with complaints of 
consumers about CDs and DVDs that could not be copied and ripped 
because of technical protection measures in place. In dealing with 
the cases, French courts had developed the argument that the ability 
to play a CD or a DVD on different devices constituted an essential 
characteristic of a CD or DVD, and that producers of such devices 
could be held liable for misleading the consumer in case of 
incompatibilities.  This first step towards establishing the right 
to interoperability was confirmed earlier this year, when a Paris 
Court of Appeals concluded that DRMs must respect the private copy 
exception. 
 
NEXT STEPS 
---------- 
 
¶11. (SBU) Next steps include the drafting of implementing 
regulations, which would also give the GOF (and stakeholders) an 
opportunity to tweak the legislation, particularly regarding 
penalties and sentencing.  This is expected to take place over the 
summer.  The GOF will draft and implement these by decree. Other 
possibilities for modification, according to lawyers, include a 
constitutional challenge, which could come on any number of 
articles. We understand that the Commission will eventually examine 
all the EU member-states' transpositions of the directive at some 
point over the next year.  Finally, the GOF notes that the law has a 
"review clause" of 18 months, requiring the government to provide 
the Parliament with an evaluation of its efficacy. 
COMMENT AND ACTION REQUEST 
-------------------------- 
¶12.  (SBU).  France is one of the last countries to fulfil its 
obligation to transpose this 2002 EU Directive.  In making only a 
minimal effort, many Senators seemed to be acknowledging how quickly 
technology had moved since then 2002, and during the debates, French 
Parliamentarians underscored the irony of a belated implementation 
of a directive which the EU Commission is reportedly already in the 
process of re-examining.   In our conversations over the last weeks 
where we raised our serious concerns over the quality and direction 
of this controversial bill, French government officials and 
observers had sought to reassure us and other stakeholders. We were 
told (see reftels) that the Senate version would address many if not 
most of industry's concerns. Senate legislative staff was thought 
more pro-business, more technologically savvy, and less ideological. 
Industry observers, many of whom where involved in a low-profile but 
intense effort to reshape the bill with key amendments were 
optimistic as well. Working with French industry allies, they 
proposed close to 300 amendments. However, with the President and 
Prime Minister under political siege, the government and the 
majority party were in a hurry to get this complicated and 
troublesome bill off their to-do list. By placing the bill on a 
legislative fast-track, the government could be assured that the 
conciliation conference would be over quickly. This political 
pressure resulted in some improvements, such as interoperability, 
where industry analysts are somewhat relieved at the results, but a 
number of crucial elements remain unchanged, notably the lack of 
deterrent penalties. 
 
¶13. (SBU) COMMENT AND ACTION REQUEST.  The next six months will 
provide some limited opportunities to fine-tune the bill, notably in 
the drafting of implementing regulations, which the GOF can issue by 
decree.  Other options would be to raise examination of the 
legislation in light of other EU member state transpositions as well 
as WIPO and TRIPS commitments.  Post would appreciate Washington's 
cleared interagency guidance, including any legal analysis regarding 
the legislation's impact.   End Comment. 
 
Stapleton

If there was threat that Apple “would pull its business out of France,” let them. Better yet, boycott the company in France. █

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Cablegate: Indian Ambassador Criticises UNESCO for Signing a Software Agreement With Microsoft (Updated)

Posted in Cablegate, Microsoft at 7:14 pm by Dr. Roy Schestowitz

Summary: A cable from 5 years ago shows that UNESCO deals we often criticise meet opposition behinds the scenes too

WHENEVER UNESCO promises to promote Free software we quickly see Microsoft showing up and turning UNESCO into what seems like corrupt imposition of Microsoft software on children. According to the following Cablegate cable, we are not alone with these concerns and to quote ¶6, ” The Indian Ambassador criticized UNESCO for signing a software agreement with Microsoft, stating that such an agreement had resulted in UNESCO abandoning efforts to develop open-source software. (COMMENT: It is not clear whether the Indian Ambassador is motivated by anti- globalization ideals, as she might like to suggest, or national interest, though we suspect the latter. The UNESCO open-source software project “Enrich” is being developed, in large part, by Indian software engineers. END COMMENT.) ADG Khan defended this partnership by stating that developing software is vital for capacity building, and added that UNESCO continues to work on open-source software. The Tunis Agenda, he reminded the audience, calls for private sector partnerships in this area, and UNESCO plans to increase them. The DG stated that UNESCO must maintain momentum in building partnerships with the private sector in areas covered by WSIS. The agreement with Microsoft does not mean that UNESCO will stop pursuing the idea of free and open software.”

Here is the full cable:

UNCLAS SECTION 01 OF 02 PARIS 001007 
 
SIPDIS 
 
FROM USMISSION UNESCO PARIS 
 
SENSITIVE 
 
E.O. 12958:    N/A 
TAGS: KPAO [Public Affairs Office], ECPS [Communications and Postal Systems], ETRD [Foreign Trade], 
ECON [Economic Conditions], EINT [Economic and Commercial Internet], ETTC [Trade and Technology Controls], 
UNESCO [UN Educational Scientific and Cultural Organization] 
SUBJECT:  FOLLOW-UP ON THE IMPLICATIONS OF THE TUNIS AGENDA 
FOR UNESCO 
 
REF:  PARIS 431 
 
¶1.   (SBU) SUMMARY:  On February 2, 2006 the UNESCO Director 
General (DG), Koichiro Matsuura, and Assistant Director 
General (ADG) for Communication and Information, Khan, held 
an information session for UNESCO's permanent delegations to 
outline the implications for UNESCO of the World Information 
Summit on the Information Society's (WSIS) Tunis Agenda. 
UNESCO's strategy at WSIS featured four key principles: 1) 
Freedom of expression, 2) Universal access to information 
and knowledge, 3) Respect for cultural and linguistic 
diversity, 4) Quality education for all.  According to the 
DG, UNESCO's delegation to Tunis clarified which action 
lines it would work on, distanced itself from the Internet 
governance debate, did not rule out the creation of new 
normative instruments, and reiterated its commitment to 
private sector partnerships.  END SUMMARY. 
 
-------------------------------------------- 
IMPLICATIONS OF THE TUNIS AGENDA FOR UNESCO 
-------------------------------------------- 
 
¶2.  (SBU) The Tunis Agenda designates UNESCO as a 
moderator/facilitator for 7 Action Lines: 1) Access to 
information and knowledge, 2)E-learning, 3)E-science, 4) 
Cultural diversity and identity, linguistic diversity and 
local content, 5) Media, 6) Ethical dimensions of 
Information Society, 7) International and regional 
cooperation. The DG stressed that UNESCO expects to actively 
participate along with ITU and UNDP in the overall 
coordination of multi-stakeholder implementation of the WSIS 
outcomes. 
 
--------------------- 
INTERNET GOVERNANCE 
--------------------- 
 
¶3.  (SBU) UNESCO will participate in the Internet Governance 
Forum (IGF) as established by the Tunis Agenda.  Any 
preference that UNESCO had for the location of the IGF 
Secretariat was not discussed. The Brazilian Ambassador 
 
SIPDIS 
asked how "enhanced cooperation," as mentioned in the Tunis 
Agenda, would be addressed, noting that the language was 
deliberately imprecise.  The DG stated that UNESCO would 
play a role in identifying what was meant by enhanced 
cooperation, so that all parties are involved.  (COMMENT: 
He did not offer specifics.  END COMMENT.)  He also affirmed 
that UNESCO would be engaged in three aspects of Internet 
governance: 1) Openness, 2) Linguistic diversity, 3) Access 
(meaning interoperability). 
 
--------------------- 
CALL FOR INSTRUMENTS 
--------------------- 
 
¶4.  (SBU) The Japanese DCM asked if the DG saw scope for 
normative instruments in the area of Internet governance. 
The DG responded that at the moment he does not envisage any 
normative instruments in the Communication and Information 
sector, but UNESCO's important mission is to formulate 
normative instruments in key areas.  If there is further 
need for instruments in Communication and Information, he 
added, UNESCO should not shy away.  ADG Khan noted that the 
IGF could advance areas of concern with member state 
support.  The Communication and Information sector did not, 
he said, need normative instruments today, but since 
technology was changing so fast, he could not say that 
UNESCO would not consider them in the future.  (COMMENT: 
World Press Freedom Committee Representative Rony Koven's 
reaction to this comment was, "We'll worry about the future 
when we get there.  The main thing is that he sees no need 
for instruments now."  Koven is a thirty-year advocate of 
media freedom at UNESCO, an active WSIS stakeholder, and 
seasoned observer of the UNESCO scene, who will participate 
as a stakeholder in the Internet Governance Forum.  END 
COMMENT.) 
 
--------------------------- 
UNESCO'S ROLE INADEQUATE? 
--------------------------- 
 
¶5.  (SBU) Delegates from Brazil, India, and Japan questioned 
whether UNESCO had been given its "due" role in the process. 
The Indian Ambassador stated that, according to the Indian 
delegate at WSIS, UNESCO was not allowed to play the role it 
wanted to have because of "certain key delegations." 
(COMMENT:  Is this the same Indian Delegate to WSIS that the 
USG worked well with?  We wonder if the Indian Ambassador is 
articulating her own version of WSIS events here.  END 
COMMENT.)  This echoed concerns that UNESCO ambassadors, 
including the Indian Ambassador, raised with Ambassador 
Gross on January 18, 2006 (reftel).  The DG responded that 
while he shared this concern, it was useless to complain. 
UNESCO, he stated, had wanted to represent member states in 
the WSIS process and its only ambition was to fulfill its 
mandate. 
 
------------------------------------------ 
CRITICISM OF PUBLIC SECTOR PARTNERSHIPS 
------------------------------------------ 
 
¶6.  (SBU) The Indian Ambassador criticized UNESCO for 
signing a software agreement with Microsoft, stating that 
such an agreement had resulted in UNESCO abandoning efforts 
to develop open-source software.  (COMMENT:  It is not clear 
whether the Indian Ambassador is motivated by anti- 
globalization ideals, as she might like to suggest, or 
national interest, though we suspect the latter.  The UNESCO 
open-source software project "Enrich" is being developed, in 
large part, by Indian software engineers.  END COMMENT.) 
ADG Khan defended this partnership by stating that 
developing software is vital for capacity building, and 
added that UNESCO continues to work on open-source software. 
The Tunis Agenda, he reminded the audience, calls for 
private sector partnerships in this area, and UNESCO plans 
to increase them.  The DG stated that UNESCO must maintain 
momentum in building partnerships with the private sector in 
areas covered by WSIS.  The agreement with Microsoft does 
not mean that UNESCO will stop pursuing the idea of free and 
open software. 
 
¶7.  (SBU) COMMENT:  While it is disturbing that the DG 
stated that the Communication and Information sector "should 
not shy away" from new instruments, we note that some 
Communication and Information junkies at UNESCO find little 
evidence that this will happen in the next biennium.  The 
Mission will remain vigilant in its efforts to promote media 
freedom and Internet status quo at UNESCO.  END COMMENT. 
Oliver

It is reassuring to see that some politicians too let their opposition be known. The Microsoft/UNESCO PR needs to be countered. █

Update: There is also a cable that says: “UNESCO staff noted the “Preservation of Digital Heritage” program, UNESCO-sponsored open source software for digital libraries, and a 2003 declaration on Multilingualism and Cyberspace.”

The cable in full:

UNCLAS PARIS 001733 
 
SIPDIS 
 
FROM USMISSION UNESCO PARIS 
FOR IO/UNESCO 
E.O. 12958:    N/A 
 
TAGS: KPAO [Public Affairs Office], ECPS [Communications and Postal Systems], ETRD [Foreign Trade], 
ECON [Economic Conditions], EINT [Economic and Commercial Internet], ETTC [Trade and Technology Controls], 
EAID [Foreign Economic Assistance], UNESCO [UN Educational Scientific and Cultural Organization] 
SUBJECT:  UNESCO AND THE WORLD DIGITAL LIBRARY 
¶1.   (SBU) SUMMARY AND GUIDANCE REQUEST:  Deanna 
Marcum, Associate Librarian for Library Services and 
Chair of the Memory of the World Programme 
International Advisory Committee met with the UNESCO 
Communication and Information Sector and the Director 
 
General (DG) on March 8, 2006 to discuss the Library of 
Congress' (LOC) initiative to develop a plan for the 
World Digital Library (WDL).  She also discussed the 
UNESCO Memory of the World Program with the Director 
General. The DG and other senior level staff were 
enthusiastic about the WDL project, but working level 
staff, who discussed the LOC's initial planning stage 
with Marcum, were suspicious of Google motives to fund 
the WDL plan.   Marcum stated that Google had stepped 
out of the picture after making its donation. The 
UNESCO Secretariat is confused as to whether Marcum is 
the point of contact on the WDL, or another LOC 
staffer.  Marcum has told post that, in her view, her 
meetings at UNESCO Headquarters were "unofficial," and 
mentioned that another LOC staffer would be designated 
as the project manager and would come to UNESCO to 
discuss the WDL further.  Mission requests guidance on 
who is going to be the LOC's WDL point of contact and 
what its vision of the WDL is, and asks IO/UNESCO to 
remind U.S. officials request country clearance from 
the Mission rather than setting up their own meetings 
at UNESCO.  Mission notes that the UNESCO Secretariat 
does not consider meetings between U.S. officials and 
the DG to be "unofficial."  END SUMMARY AND GUIDANCE 
REQUEST. 
--------------- 
MEETING THE DG: 
--------------- 
¶2.  (SBU) Marcum met with the UNESCO Director General 
Koichiro Matsuura on March 8.  He stated his strong 
support for the WDL and noted UNESCO's desire to 
contribute to the project.  Marcum stated that the 
question was how to formulate a partnership with UNESCO 
on the WDL, noted that Google had provided 3 million 
USD in finances, and stated that Project Manager John 
van Oudenarem would be in contact with UNESCO to follow 
up.  The Communication and Information Sector's 
Director for the Information Society, Elizabeth 
Longworth, cited UNESCO's experience and familiarity 
with digitization, ability to provide a neutral 
platform, interest in building standards around 
metadata, expertise on governance and interoperability 
issues and commitment to spreading digitization. 
Matsuura instructed Longworth to continue to work with 
the LOC on an agreed-upon approach to the WDL, and 
stated that UNESCO could hold an international meeting 
to promote the WDL. 
¶3.  (SBU) Marcum brought up her recent election as 
Chair of the Memory of the World Programme 
International Advisory Committee and indicated her 
interest in encouraging U.S. institutions to put forth 
nominations for the programme.  The Director General 
responded with enthusiasm.  Ambassador Oliver noted 
that this was a good idea that ought to be discussed 
with the U.S. National Commission for UNESCO and urged 
Marcum to coordinate with them. 
---------------------------------- 
Working Level - Developing a Plan: 
---------------------------------- 
¶4.  (SBU) The UNESCO Communication and Information 
Sector convened a meeting for Marcum to meet with 
working-level representatives of the Division on the 
Information Society and UNESCO librarians and 
archivists from the Administrative Section in order to 
have a more detailed discussion on the WDL.  Marcum 
emphasized that she had come to UNESCO to listen and to 
describe the idea for a WDL and clarified that she did 
not have a proposal in hand to present to UNESCO staff. 
(COMMENT: The lack of a proposal appeared to take them 
by surprise, but they welcomed the opportunity to 
contribute to plans.  END COMMENT.)   The main issues, 
she stated, were governance, selection and 
architecture.  The LOC had identified a project manager 
for the WDL, and the goal would be to draft a report by 
October 2006, she said.  Marcum stated that the LOC 
could bring the principle of the library to the digital 
world, as an aggregation of lots of different 
information, not as a repository.  She stated that it 
was important for the WDL not to be politicized. 
¶5.  (SBU) She provided a history of the concept of a 
WDL dating beyond the American Memory and Global 
Gateway websites.  Global gateway projects, she noted, 
were bilaterally arranged with Russia, Brazil, France, 
Spain, The Netherlands and Egypt.  Each one addressed 
an area where U.S. culture intersected with these 
countries, and from this project, the LOC started to 
think about bilingual digital images of collections. 
The Librarian of Congress, James Billington, she 
emphasized, wanted to find ways to help people 
understand one another and use information exchange as 
a basis for global understanding. 
¶6.  (SBU) She stated that Billington spoke to the U.S. 
NATCOM last June to ask them to think about what steps 
to take to create a WDL.  The LOC had also reached out 
to the Digital Library Federation (mostly U.S. 
libraries, plus the British and Australian libraries) 
to look at standards, best practices, architecture, and 
metadata.  Marcum noted that many libraries around the 
world have started digital libraries already for items 
not covered by copyright.  Examples include the 
European library, the British Library/Microsoft 
partnership or the test project of the "Google 5" 
libraries.  (The University of Michigan, The New York 
City Public Library, Harvard University, Oxford, and 
Stanford University.)  A key difference here is that 
unlike the other projects, the European Library, 
spearheaded by France last year as a move "against 
googlization" and including the national libraries of 
Austria, Belgium, the Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Greece, Hungary, Italy, 
Lithuania, Luxembourg, Netherlands, Poland, Slovenia, 
Slovakia, Spain and Sweden, is government funded. 
¶7. (SBU) Marcum explained that Google was impressed 
with Billington's desire to promote mutual 
understanding through on-line access to other cultures, 
and therefore donated 3 million USD for the LOC to 
devise a plan for a WDL.  The brand name of Google, she 
acknowledged, raises questions for many.  She added 
that there is probably every reason to be concerned 
about Google's influence on open access when one looks 
at the details.  She noted that the LOC did not pursue 
mass digitalization with Google because of concerns 
about how this would mesh with the LOC housing the U.S. 
copyright office.  She explained that there was almost 
nothing in writing in terms of an agreement between the 
LOC and Google:  it had handed over the check, and that 
was the end of its involvement in the WDL plan. 
---------------- 
UNESCO CONCERNS: 
---------------- 
¶8.  (SBU) Above all, suspicion of Google and its role 
in the plan dominated UNESCO concerns at the working 
level.  Staff asked if there was an outline of how the 
LOC would use the Google funds (Comment:  UNESCO staff 
does not appear to know a lot about private 
philanthropy in the U.S and expected there would be an 
MOU-type document.  END COMMENT.)  One UNESCO staffer 
stated that he believed the Google 3 million USD 
donation was seed money for it to come in later on the 
WDL.  A French UNESCO staffer asked if Google 
involvement was even necessary. 
¶9.  (SBU) Another staffer stated that the U.S. 
initiative on the WDL was a lot like the U.S. position 
on Internet Governance while another stated that the 
U.S. should refer to the WSIS Geneva declarations 
(2003) which states that libraries should be accessed 
electronically.  UNESCO staff also noted that the LOC's 
"Global Gateway" project, cited by Marcum as an example 
of intergovernmental cooperation on digital items, had 
generated editorially driven electronic publications 
and that the WDL should not use this model. 
¶10.  (SBU) UNESCO staff strongly urged that the U.S. 
reaches out to a wide variety of international actors 
on this project.  The Communication and Information 
Sector's Director for the Information Society, 
Elizabeth Longworth noted the potential for 
politicization of the WDL, given the documented -- and 
French-led - negative European reaction.  Longworth 
suggested that the U.S. and UNESCO draw lessons from 
the Internet governance debate. (COMMENT:  Some at 
UNESCO feel the perception that other countries could 
not have a role in internet governance undermined the 
U.S. position in the lead up to WSIS II in Tunis last 
November.  END COMMENT.) She also asked who the LOC's 
stakeholders were in the project while other staff 
noted that Marcum did not mention libraries in Latin 
America, Arab States, Asia and Africa.  They mentioned 
a digital library project led by the Philippines and 
financed by Intel for 20 Asian countries link their 
public domain material. 
------------------- 
UNESCO Value Added: 
------------------- 
¶11.  (SBU) UNESCO staff made many suggestions on how 
UNESCO might contribute to the WDL, many of which were 
repeated by Longworth in Marcum's meeting with the DG. 
They noted above all that UNESCO has the power to 
convene people, help with capacity building and 
training and to provide a neutral platform.  UNESCO 
also had a library portal with some 14,000 links and 
was active in the development of small digital 
libraries, such as the El Dorado library for Latin 
America and the Caribbean (Note: Only a Bolivian 
contribution to this project exists thus far, although 
in terms of other regions, the Palestinians also asked 
UNESCO to help them build either a virtual or actual 
library.) 
¶12.  (SBU) UNESCO staff noted the "Preservation of 
Digital Heritage" program, UNESCO-sponsored open source 
software for digital libraries, and a 2003 declaration 
on Multilingualism and Cyberspace.  UNESCO's French- 
chaired Information for All Programme could be 
involved, they suggested.  They offered to hold a panel 
discussion on the WDL at the next UNESCO Open Forum, 
and suggested that the LOC work with IFLA and UNESCO on 
this.  UNESCO could also call a conference on the 
issue, they added.  One staffer suggested UNESCO could 
create standard setting instruments in the area of 
digital libraries. (COMMENT:  Mission strongly advises 
against this.  END COMMENT.) 
¶13.  (SBU) The UNESCO Archivist stated that one 
excellent source of primary documents for a WDL would 
be the United Nations.  He cited the United Nations 
Intellectual History Project (UNIHP) whose secretariat 
was established at the Ralph Bunche Institute for 
International Studies of The Graduate Center of The 
City University of New York in 1999.  There was a 
potential copyright issue with some UN publications, he 
warned.  But there was a goldmine of material in UN and 
UNESCO archives, he added.  Other staff cited UNESCO's 
e-science program and its scientific information 
commons may be able to contribute. 
-------- 
COMMENT: 
-------- 
¶14.  (SBU) COMMENT:  At a high level, UNESCO staff has 
received the WDL project with open arms.  However, at 
the working level, suspicion of Google's role in the 
project as well as a lack of understanding of how 
private philanthropy works in the United States must be 
addressed for the project to succeed.  In addition, the 
LOC will want to demonstrate to UNESCO that it has a 
wide -- and significantly international - stable of WDL 
stakeholders.  Procedurally, the Secretariat has 
advised the Mission that meetings with the Director 
General and other senior officials at UNESCO 
Headquarters are indeed official, and we ask IO/UNESCO 
to convey to all USG agencies and branches that engage 
with UNESCO that country clearance and a briefing with 
the Mission Country team is essential to their visit. 
Mission also requests clarification of who leads the 
WDL project at the LOC, and, if this person is not 
Marcum, whether his views on the entire project are the 
same as the ones she conveyed.  END COMMENT. 
 
Oliver

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