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09.08.11

The Demise of Apple-labelled Foxconn Devices

Posted in Apple, Asia, GNU/Linux, Google, Patents at 11:31 am by Dr. Roy Schestowitz

“We’ve always been shameless about stealing great ideas.”

Steve Jobs

Steve Jobs
Original photo by Matthew Yohe, modified by Boycott Novell

Summary: The marketer/integrator called Apple (which cannot even get antennas working properly) sees its attempt to sue Android out of the market backfiring, with the possibility of ‘i’ devices imports from Asia getting blocked

THE branding company from California (designing products in the fashion sense) is having a hard time now that its producers in Asia find Linux and use that to make competition for the company with the fruity logo. Apple tried suing when iOS was ahead of Android, but it didn’t work out too well. Not only has Android cruised past iOS within less than a year, but HTC is now suing Apple (the same company which has “always been shameless about stealing great ideas”) for patent violations.

Revenge and deterrence are key here. Bloomberg has an early report (blogs aside) and Slashdot summarises as follows: “Apparently to stay viable in the IP wars, HTC secured some patents from Google (who purchased them originally from Palm Inc., Motorola Inc. and Openwave Systems Inc.) on the 1st of September. The patents were used to fire a new salvo of shots across Apple’s bow today, September 7th. HTC filed infringement claims against Apple in federal court in Delaware, suing based on four of those patents that originally were issued to Motorola. Additional complaints were filed with the US ITC based on the other patents.”

An Android fans site writes: “It’s about time we saw a manufacturer fire back at Apple’s extraneous patent lawsuits. I suppose it doesn’t surprise me that HTC fired the first shots today. That’s right, HTC has filed several patent lawsuits against the fruity corporation. In the past year, Google obtained nine patents, from Motorola, Palm, and OpenWave Systems. On September 1st, they transferred the patents to HTC for use. It didn’t take long for the Taiwanese company to use these as a weapon against Apple.”

From Bloomberg:

HTC Corp. (2498), Asia’s second-biggest smartphone maker, is using nine patents bought from Google Inc. (GOOG) last week to pursue new infringement claims against Apple Inc.

Google had taken ownership of the patents less than a year ago, with four of the patents originating from Motorola Inc., three from Openwave Systems Inc. and two from Palm Inc., according to U.S. Patent and Trademark Office records. Jim Prosser, a spokesman for Mountain View, California-based Google, wouldn’t discuss reasons for the nine transfers to HTC.

Robert Pogson calls Apple “the Second Pariah of IT” and gives a list of the reasons, preceded by:

No one likes a bully. I think that applies to monopolists and would-be monopolists in IT who do other than compete on price and performance to interfere with markets.

Apple is together with Microsoft in this. They want their duopoly back. Avoid everything from those companies in order to make development, innovation, and progress a lot faster.

Cablegate: Microsoft Uses US Government and Gates Lobbying to Pressure Saudi Arabia to Embrace US-Style Law (Updated)

Posted in Asia, Law, Microsoft at 4:31 am by Dr. Roy Schestowitz

Cablegate

Summary: Just like in Brazil and other parts of the world, Microsoft targets Saudi Arabia laws and practices, striving to change these with help from politicians

Microsoft loves to daemonise Brazil for being quite free (liberal) culturally, unlike Hollywood. With the title “MICROSOFT SEES GOB ATTACKS AGAINST IPR” (yes, attacks, on artificial ‘intellectual’ monopolies) Microsoft and its cronies in government take on the massive nation and try to pressure it to adjust its laws to better suit Microsoft’s business model. In the older cable, once again we saw Michel Levy (whom we mentioned in relation to OOXML lobbying) overstepping his authority.

Here is s similar Cablegate cable from SA. Watch the country head of Microsoft and notice how Bill Gates lobbies King Abdullah :


VZCZCXYZ0000
OO RUEHWEB

DE RUEHRH #2340/01 3291436
ZNY CCCCC ZZH
O 251436Z NOV 07
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7063
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

C O N F I D E N T I A L RIYADH 002340

SIPDIS

SENSITIVE
SIPDIS

USTR FOR JASON BUNTIN
USDOC FOR TYLER HOFFMAN

E.O. 12958: DECL: 09/17/2017
TAGS: ECON, ETRD, KIPR, PGOV, SA
SUBJECT: SAUDI ARABIA: MICROSOFT GM’S TAKE ON IPR
ENFORCEMENT

REF: STATE 107629

Classified By: Economic Counselor Robert B. Murphy
for reasons 1.4 (b) and (d).

1. (SBU) SUMMARY. Khaled al-Dhaher, General Manager of
Microsoft in Saudi Arabia, shared his perception of
intellectual property rights (IPR) enforcement in the Kingdom
during a meeting on November 20, 2007. Al-Dhaher identified
three major areas of concern: (a) the failure of the SAG to
license most of the Microsoft software it uses, (b) the
failure of the SAG to impose deterrent penalties, such as
harsh fines and even imprisonment, on IPR violators, and (c)
the lack of transparency of the workings of the Violations
Review Committee (reftel). He also expressed his opinion
that IPR enforcement problems persist in Saudi Arabia because
the working-level officials charged with enforcing IPR do not
consider IPR violations to be crimes. END SUMMARY.

——————————————— —–
Legalization, Deterrent Penalties and Transparency
——————————————— —–

2. (C) Khaled al-Dhaher, General Manager of Microsoft in
Saudi Arabia, identified three major areas of concern with
the enforcement of intellectual property rights (IPR) in the
Kingdom during a meeting with Emboffs on November 20, 2007.
The first of these areas is the failure of the SAG to license
most of the Microsoft software it uses. Al-Dhaher reports
that Bill Gates raised this issue with King Abdullah when he
visited Saudi Arabia in November 2006. The King agreed to
resolve the problem, and al-Dhaher says that the King
personally contacted the Saudi Arabian General Investment
Authority (SAGIA) to emphasize that legalization should be
accomplished. While al-Dhaher believes that SAGIA has been
Microsoft’s “champion” on this issue, the push for
legalization has enjoyed only modest success. Al-Dhaher
estimates that the SAG uses about 500,000 PCs with Microsoft
software, but has licensed only 25,000 of those computers.
The Ministry of Interior recently licensed Microsoft software
for 7,000 of its estimated 50-70,000 PCs, while the Ministry
of Culture and Information (the ministry to which the
Violations Review Committee (VRC) is attached) licensed
software for 3,000 of its PCs several months ago. Al-Dhaher
believes that legalization problems persist for bureaucratic
and budgetary reasons, and suggests that the SAG designate
funds for all ministries to use to legalize rather than
addressing the issue ministry by ministry or pooling the
ministries’ technology budgets together.

3. (SBU) Al-Dhaher believes that the imposition of
deterrent penalties would enhance the enforcement of IPR in
the Kingdom. The VRC, which reviews all copyright cases, is
authorized to impose fines up to 100,000 SAR (USD 26,666).
The Board of Grievances, the court of appeal for cases heard
by the VRC, can impose fines up to 250,000 SAR (USD 66,666)
and sentence a defendant to prison. However, the highest
fine al-Dhaher is aware of having been levied against an IPR
violator is 12,000 SAR (USD 3,200), and he is not aware of
any case that has been appealed from the VRC to the Board of
Grievances. Al-Dhaher believes that imposing significant
penalties in just one IPR case would serve as an effective
deterrent example.

4. (SBU) Al-Dhaher echoes long-reported complaints
regarding the lack of transparency of the workings of the
VRC. However, he is encouraged by the initiative and
openness shown by the new head of the VRC, Rafik al-Akeeli.
Al-Dhaher says that the VRC has heard more cases in the two
months since al-Akeeli has been in charge than it heard in
the previous year. Al-Akeeli also recently met with
Microsoft representatives for two hours. Given the general
difficulty industry has consulting with the SAG, al-Akeeli’s
willingness to meet with Microsoft was viewed very favorably
by al-Dhaher.

——————————————–
Persistence of Problems with IPR Enforcement
——————————————–

5. (C) Emboffs asked al-Dhaher reasons he believes the SAG
is not better addressing these areas of concern. Al-Dhaher
does not think that corruption is significant, and only
partly blames bureaucratic roadblocks and lack of capacity
for insufficient progress. He believes the root cause is
that many officials charged with enforcing IPR do not really
believe that IPR violations are criminal acts. Al-Dhaher
suggests that this might because IPR violations seem like
victimless offenses, or that violations are not viewed as
significant because the stakeholder is a wealthy, non-Muslim
business. He fears that this perception persists despite
industry having secured an official Saudi fatwa (religious
ruling) that IPR violations are violations of Muslim law.
GFOELLER





Copyright is relative and SA would be better off just using Free software that it can control. It would also remove the stain of guilt, which Microsoft loves to use to impose fees.

Update: Here is a followup cable.



VZCZCXRO3571
PP RUEHDE RUEHDIR RUEHROV
DE RUEHRH #1271 2320455
ZNY CCCCC ZZH
P 190455Z AUG 08
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 9017
INFO RUEHXK/ARAB ISRAELI COLLECTIVE
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
C O N F I D E N T I A L RIYADH 001271 
 
SIPDIS 
 
STATE FOR EEB/TPP/IPE AND NEA/ARP 
STATE PASS TO USTR FOR JASON BUNTIN 
USDOC FOR TYLER HOFFMAN 
 
E.O. 12958: DECL: 09/17/2017 
TAGS: ECON, ETRD, EINV, PGOV, KIPR, KTFN, SA 
SUBJECT: MICROSOFT LEADING COLLABORATION WITH SAG TO COMBAT 
IPR VIOLATIONS 
 
REF: 07 RIYADH 2437 
 
Classified By: Political/Economic Counselor Horacio Ureta 
for reasons 1.4 (b) and (d). 
 
1. (C) Summary:  Intellectual property rights (IPR) 
violations in Saudi Arabia are receiving increased attention 
from the Saudi government (SAG).  The SAG has made 
significant efforts to address IPR violations, which in the 
Kingdom occur most notably in the pharmaceutical and software 
sectors.  With regard to software infringement, the SAG is 
now collaborating directly with a Microsoft-led private 
sector group, calling itself the "Rights-Holders", on a 
six-point plan to combat IPR issues.  This plan seeks to 
ensure transparency in IPR cases, establish and enforce 
deterrent penalties, and improve coordination between SAG 
entities with IPR related equities.  Rights-Holders is 
claiming the existence of a link between IPR piracy and 
terrorism finance.  Intellectual property rights issues are 
also being covered increasingly in the Saudi news media.  End 
summary. 
 
2. (C) In a meeting August 13 EconOff met with Scott Butler 
of the Raven Anti-Piracy Alliance (RAPA), a Dubai based group 
that is linked to the Business Software Alliance (BSA), a 
group of 13 software companies in the Kingdom which includes 
Microsoft, Autodisc, Symantec, and Adobe.  RAPA also has 
powers of attorney with regional entertainment companies such 
as Rotana and Viva and liaises between these licensees and 
entertainment studios.  Butler told EconOff that earlier in 
the day he and Ayman Takrori, Partners Group Director for 
Microsoft and de facto representative of a private group of 
"Rights-Holders" (of which BSA is a part) met with Ministry 
of Culture and Information Under Secretary Abdul Rahman 
Al-Hazaa, who holds a mandate from Culture and Information 
Minister Dr. Eyad Madani to "fix the IPR issue." 
 
3. (C) Butler related that RAPA had presented al-Hazaa with a 
six point plan to address IPR issues:  1) ensure complete 
transparency in all IPR cases; 2) establish and enforce 
deterrent penalties to create real fear in the market; 3) 
eradicate street vendor piracy; 4) establish a mechanism to 
address internet piracy; 5) ensure the SAG uses software that 
was legally acquired; and 6) ensure effective coordination 
between the Ministries of Culture and Information, Interior, 
and Customs Enforcement.  According to Butler and Takrori, 
Under Secretary al-Hazaa pledged complete support from the 
SAG for all points. 
 
4. (C) The Rights-Holders's six-point plan includes fully 
populating the Violations Review Committee's online 
case-tracking database in both Arabic and English, 
imprisoning violators in lieu of simply imposing fines (Note: 
According to Butler, there is precedent legislation in the 
UAE for imprisoning IPR violators. End Note.), and providing 
training for inspectors and police on IPR and on how to 
conduct raids.  Butler also related a story of a raid 
conducted in 2006 that yielded 20 million pirated music and 
software CDs in a warehouse.  In the same warehouse weapons 
were found which led to the arrest and prosecution of several 
members of an organized crime ring.  Butler asserted that a 
clear link exists between piracy and organized crime, to 
include terrorism finance. 
 
5. (SBU) On August 17, Al-Watan, a moderate Arabic-language 
daily, published a full page story on IPR violations.  In the 
article both SAG officials and economists were quoted as 
saying that software piracy is both more lucrative and less 
risky than drug trafficking. 
 
6. (C) Comment:  The SAG has made significant progress in IPR 
enforcement but continues to cite lack of capacity to justify 
a dearth of major developments (Reftel).  Engagement at the 
ministerial level is an encouraging step and demonstrates an 
increase in political will to address the problem.  Ministry 
of Interior (MOI) interest is crucial to further progress in 
enforcement and prosecution, and would be critical to 
implement any of the directives outlined in the 
Rights-Holders six-point plan.  Previously, MOI involvement 
has been sub-optimal, but might be stimulated if  a strong 
link were to be substantiated between the supposedly 
"victimless" crime of IPR violations and and organized crime 
or even terrorism financing.  End comment. 
GFOELLER 

So, Microsoft has linked copyright infringement and terrorism. Wonderful.

09.07.11

Cablegate: Microsoft Uses US Diplomats to Pressure Oman to Intimidate Population Using Newspapers

Posted in Asia, Deception, FUD, Microsoft at 7:07 pm by Dr. Roy Schestowitz

Cablegate

Summary: A rare glimpse at a common phenomenon where Microsoft uses national papers to spread fear and the advertisers in newspapers are said to be playing a role

Microsoft and its slaves in the Government of Oman (who gave Microsoft taxpayers' money) have only led to further criminalisation of the population, which Microsoft loves calling “pirates” (an inappropriate term). Occasionally Microsoft and its bully, the BSA, organise intimidation campaigns which even cables reveal are just intended to create a scare. In the following Cablegate cable there is concern that the newspapers did not do as Microsoft and the BSA please; they didn’t spread enough fear by naming the country targeted as an "enforcement showcase":



VZCZCXYZ0006
RR RUEHWEB

DE RUEHMS #0938 2810622
ZNR UUUUU ZZH
R 080622Z OCT 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 8838
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MUSCAT 000938 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARP, EEB/TPP/MTA/IPC 
COMMERCE FOR COBERG 
COMMERCE PASS TO USPTO (PFOWLER) 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, MU 
SUBJECT: MICROSOFT SETTLES WITH OMANI SOFTWARE PIRATES 
 
 
1. (U) On October 7, Econoff discussed Microsoft's conclusion 
of an out-of-court settlement with four Omani companies 
engaged in software piracy with Jawad al-Redha, Microsoft's 
Gulf Anti-Piracy Manager and Co-Chair of the Business 
Software Alliance.  Redha noted that the settlement was the 
product of over seven months of work in negotiating with the 
violators, identified as al-Madina, al-Rafraf, al-Arabiya, 
and World IT.  Under the agreement, each company will pay 
Microsoft USD 3,000 in compensation and pledge to refrain 
from selling illegal software in the future. 
 
2. (SBU) Redha expressed optimism that the agreement will 
create momentum in enforcing IPR in Oman.  He was quick to 
point out that Oman's purported software piracy rate of 62% 
was still high for the region, but that concerted efforts 
such as this would help bring that statistic down several 
percentage points each year.  Redha said that improvements 
need to be made on the public relations front in reaching 
this goal.  As an example, he noted that the press release on 
the settlement was only published in the English-language 
daily Oman Observer, and only after the government cleared on 
text that did not include country-specific references.  Redha 
speculated that the publishers of Oman's Arabic-language 
dailies, which declined to publicize the settlement, were 
worried that they would lose advertising revenue from the 
companies cited in the text of the announcement. 
 
3. (SBU) Comment:  Microsoft's settlement comes on the heels 
of change in the Ministry of Commerce and Industry, the lead 
Omani agency in promoting intellectual property rights. 
Econoff learned on October 3 that the director of the 
Intellectual Property Department has been reassigned to a 
lower-level position in a different office of the ministry, 
and that his deputy has been transferred to an unrelated 
department as well.  Post suspects that the director's 
ineffectiveness during the implementation stage of the 
U.S.-Oman Free Trade Agreement may have precipitated the 
reshuffle.  End comment. 
FONTENEAU 

They are trying to use newspapers as a propaganda tool. Advertisers affect the content of newspapers.

Cablegate: Microsoft and Government of Oman Inseparable

Posted in Asia, Microsoft at 6:17 pm by Dr. Roy Schestowitz

Cablegate

Summary: Cable from Oman shows how Microsoft is steering the government and making the population Microsoft dependent

We recently looked at Oman and onwards, reaching Ukraine in the north and Vietnam in the south. All across the world we find evidence of government-assisted Microsoft deals which at times reveal misconduct. Many of the same tricks are used everywhere, so it is worth learning these. The following Cablegate cable is also one from Oman.

VZCZCXYZ0004
RR RUEHWEB

DE RUEHMS #0580/01 1601237
ZNR UUUUU ZZH
R 091237Z JUN 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 8362
INFO RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS MUSCAT 000580 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR NEA/ARP, EEB/CBA 
COMMERCE FOR COBERG 
 
E.O. 12958: N/A 
TAGS: ECON, BEXP, ELAB, ENRG, KSEP, AMGT, MU 
SUBJECT: NOMINATION FOR CORPORATE EXCELLENCE AWARD: 
MICROSOFT OMAN 
 
REF: STATE 47222 
 
------- 
Summary 
------- 
 
1. Embassy Muscat is pleased to nominate Microsoft Oman for 
the Secretary's 2007 Award for Corporate Excellence. 
Microsoft Oman's strong commitment to actively supporting 
government efforts to promote greater computer literacy in 
the Sultanate makes this company the right choice for the 
2007 Corporate Excellence Award.  End Summary. 
 
---------------- 
Nascent Industry 
---------------- 
 
2. Oman's information communications technology (ICT) sector 
currently is not well-developed.  According to a Booz Allen 
Hamilton study commissioned by the Department under the 
Middle East Partnership Initiative, the industry overall 
employs only 1300 people, with most positions concentrated in 
a few large corporations.  Compared to the population as a 
whole, the figure represents 0.4 IT employees per 1,000, 
which lags behind the EU-25 average of 5.5 IT employees per 
1,000.  Booz Allen Hamilton further estimated that the number 
of university students graduating from computer science 
disciplines reached only 386 in 2004. 
 
------------------------------------------ 
Background: Government Focus on Raising IT 
------------------------------------------ 
 
3. In an effort to boost public awareness of Oman's need to 
move increasingly toward a knowledge-based economy, the 
government launched its "E-Oman" campaign in 2006.  Under the 
slogan "Transforming Oman, Empowering You," Maqbool bin Ali 
Sultan, Minister of Commerce and Industry, officially 
unveiled the government's plans regarding Oman's e-government 
programs, as well as other initiatives designed to promote 
Oman's transformation to a knowledge-based economy. 
 
4. Under the direction of the recently created Information 
Technology Authority (ITA), the Omani government embarked on 
a pilot project electronically linking four ministries 
through one computer network, a plan that will eventually be 
expanded to include all ministries.  In addition, the 
government is working on developing an electronic national 
registry system, smart ID cards for citizens and residents, 
and a one-stop-shop for business registration. 
 
------------------------- 
The Microsoft Partnership 
------------------------- 
 
5. In 2006, Microsoft concluded a three-year, five million 
USD per year agreement with the Omani government for the use 
of the company's licensed products on over 22,000 terminals. 
The contract, which includes a commitment by Microsoft to 
invest two million USD per year in training programs for 
government employees and the general public, represents the 
beginning of a valued relationship between the two entities 
as they both strive to improve computer literacy in the 
Sultanate. 
 
6. As part of its plan to foster this relationship, Microsoft 
has committed to investing in Oman's IT capabilities. 
According to Microsoft country manager Abdullah al-Lootah, 
this commitment is essential to efforts to raise technology 
usage in government operations, which currently is very low. 
In terms of promoting knowledge transfer opportunities, 
Microsoft will sponsor six-month visits by government 
officials to the company's Dubai office to educate them on 
"best financial practices."  Coupling with the government's 
E-Oman initiative, Microsoft is reaching out to the Omani 
people by installing computer laboratories in 10 schools for 
public use during the evening hours. 
 
----------------------- 
Training for the Future 
----------------------- 
 
7. Microsoft demonstrated its strong, continued commitment to 
building Oman's technical capabilities in March 2007, when 
the company concluded an agreement with the ITA to launch an 
innovation and support center to be housed at Knowledge Oasis 
Muscat (KOM), the government-run technology incubator.  The 
agreement calls for a joint investment of six million USD in 
establishing the center, one million USD of which is to come 
 from Microsoft under its investment partnership accord with 
the Omani government.  The center will host resident 
Microsoft engineers, who will train between 20 to 40 Omanis 
on technology solutions to deliver services to government 
entities under the "E-Oman" initiative.  Graduates would then 
form IT steering committees within their respective 
ministries. 
 
8. This initiative is one of several Microsoft is pursuing to 
"bridge the technology skills gap" in Oman.  In addition to 
the innovation center, Microsoft will partner with Knowledge 
Oasis Muscat and other selected entities in training 300 
Omani government professionals per year.  The trainees will 
work with Microsoft engineers to develop and implement 
solutions to promote efficiency in delivering government 
services electronically.  Salim al-Ruzaiqi, Chief Executive 
Officer of the ITA, praised Microsoft's efforts in the media, 
noting, "This new center will create more quality job 
opportunities for local Omani graduates in the ICT sector." 
 
--------------- 
Assisting Women 
--------------- 
 
9. Microsoft also has been active in supporting efforts to 
raise computer literacy among women through a partnership 
with MEPI's "Women in Technology (WIT)" program.  The company 
is currently working with the Oman Women's Association in 
Muscat to train women throughout the Sultanate on IT skills. 
Under a "train the trainer" initiative, Microsoft donated its 
"Unlimited Potential" curriculum to the organization to allow 
participants to pass along skills taught by Microsoft 
trainers to women residing in the secondary cities of Oman. 
Microsoft further donated over $50,000 worth of software and 
90 refurbished computers to support the continuation of the 
initiative. 
GRAPPO 



In short, Microsoft is indoctrinating government employees so that they come to depend on Microsoft technologies, at taxpayers’ expense. For those who do not know what “Unlimited Potential” is (a euphemism to say the least), see our posts about it [1, 2, 3, 4, 5].

Cablegate: In Vietnam, BSA+IDC+Microsoft Assure Microsoft Lock-in in Exchange for Indoctrination

Posted in Asia, Deception, Microsoft at 4:28 am by Dr. Roy Schestowitz

Cablegate

Summary: An absurd exchange which on both sides of the coin works in Microsoft’s favour

THE FOLLOWING Cablegate cable is similar to the previous one in the sense that we see the annual BSA/IDC lies (we debunked these many times before) being used by politicians to lobby for Microsoft’s agenda. Even though counterfeiting is beneficial/essential to Microsoft’s business, Microsoft is being portrayed as a victim and this ‘victimhood’ tactic is then being used to cause embarrassment/guilt and have a submissive deal signed — a deal under which a lot of taxpayers’ money gets passed to Ballmer and Gates, who in ‘exchange’ for this ‘favour’ will help indoctrinate the Vietnamese population. Some deal, eh? Then consider other stories from Vietnam, such as:

Notice the lies from the BSA (these are actually IDC+BSA lies, where the former uses IDG to spread the lies through the media). It says that “The 2007 Business Software Alliance (BSA) and IDC Global Software Piracy Study ranks Vietnam as having the world’s fifth highest software piracy rate. At 88 percent, this is the highest rate in Asia.”

Lists of shame are a shameful. It’s the way sex offenders are being treated. Here is the cable in full:


VZCZCXRO2587
OO RUEHHM
DE RUEHHI #0945/01 1421035
ZNR UUUUU ZZH
O 221035Z MAY 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5427
INFO RUEHHM/AMCONSUL HO CHI MINH 3073
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
UNCLAS SECTION 01 OF 02 HANOI 000945 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS AND EB/TPP/IPE JBOGER 
STATE ALSO PASS USTR DBISBEE AND RBAE 
STATE ALSO PASS USPTO FOR JURBAN 
STATE ALSO PASS LIBRARY OF CONGRESS FOR TEPP 
USDOC FOR 4430/MAC/AP/OPB/VLC/HPPHO 
 
E.O. 12958: N/A 
TAGS: KIPR, ECON, ETRD, ECPS, VM 
SUBJECT: MICROSOFT SIGNS LANDMARK SOFTWARE LICENSE AGREEMENT WITH 
VIETNAM 
 
 
(U) SENSITIVE BUT UNCLASSIFIED, DO NOT POST ON THE INTERNET 
 
1. (SBU) Summary:  On May 21, Microsoft CEO Steve Ballmer and 
Vietnamese Prime Minister Nguyen Tan Dzung witnessed the signing of 
a multi-faceted agreement committing all GVN agencies to use 
licensed software.  For its part, Microsoft will increase its 
investment to develop Vietnam's information and communication 
technology (ICT) sector through training and capacity building 
programs.  Embassy intervened with GVN officials to make sure the 
signing took place after Microsoft met with the Ambassador and 
expressed last-minute concerns that the GVN would hold the agreement 
as a deliverable for the potential visit of President Triet later 
this summer.  The agreement is a significant demonstration of 
Vietnam's commitment to protect intellectual property rights (IPR) 
and stop rampant piracy.  Implementation of this agreement will move 
Vietnam from having the world's fifth highest, and Asia's highest, 
software piracy rate to a better ranking in the region and the 
world.  This may well constitute the most significant agreement 
Vietnam has ever signed with a U.S. business.   End Summary. 
 
2. (SBU) During his May 21 visit to Hanoi, Microsoft CEO Steve 
Ballmer joined Vietnamese Prime Minister Nguyen Tan Dzung, the 
Ambassador and other GVN officials to witness the signing of a 
multi-faceted agreement between the company and the GVN requiring 
all government agencies to purchase and use licensed software.  This 
follows through on the Memorandum of Understanding (MOU), signed in 
Washington during Deputy Prime Minister/Foreign Minister Pham Gia 
Khiem's March visit, which committed both sides to sign a 
comprehensive agreement on software licensing and collaborative ICT 
development efforts by the end of May.  Microsoft's President for 
Southeast Asia Chris Atkinson estimated that Vietnam would purchase 
licensed software for approximately 300,000 desktops through this 
deal.  In exchange, the agreement provides a foundation for 
Microsoft to assist Vietnam in developing its ICT sector through 
training, human resource development and other capacity building 
programs.  (Note: Though the figures are not public, Atkinson said 
the 300,000 licenses will cost the GVN approximately USD 20 million, 
while Microsoft's investment to develop the local ICT industry would 
be around USD 3 million.  End Note.) 
 
Last-Minute Concerns by Microsoft 
--------------------------------- 
 
3. (SBU) On May 18, Microsoft's Atkinson requested a last-minute 
meeting with the Ambassador to request his assistance in urging the 
GVN to follow through on its commitment in the March MOU to sign the 
formal agreement by the end of May.  Microsoft was concerned that 
the GVN would try to delay signing some or all of the substance of 
the agreement to preserve it as a deliverable for the potential 
visit this summer by Vietnam's President Nguyen Minh Triet. 
 
4. (SBU) Following the meeting, the Embassy contacted officials in 
the Ministry of Foreign Affairs and the Office of the Government to 
underline United States Government support for signing the agreement 
now, so that our Presidents would be able to echo the signing's 
important message and broad positive reaction during President 
Triet's potential visit.  For its part, Microsoft told the GVN it 
would "mobilize all available resources" to spotlight Vietnam's 
efforts to uphold its commitments to protect intellectual property 
rights (IPR), as well as the opportunities for increased cooperation 
between U.S. firms and Vietnam's ICT industry during the possible 
Triet visit.  Late on May 18, the GVN confirmed to Microsoft that it 
would proceed with the signing now, with the hope that the two sides 
could hold a second, "ceremonial" signing in Washington in 
conjunction with the planned Triet visit. 
 
PM Dzung and Microsoft's Ballmer Applaud This Step 
--------------------------------------------- ----- 
 
5. (SBU) At the 30 minute signing ceremony, Prime Minister Dzung 
stated that this agreement is evidence of Vietnam's commitment to 
Microsoft, to the World Trade Organization and to the U.S.-Vietnam 
Bilateral Trade Agreement (BTA).  The Prime Minister said he highly 
appreciates the cooperation with the United States in the ICT field 
- both through USG assistance and cooperation and investment from 
large U.S. enterprises - referencing specifically the anticipated 
March 2008 launch of the Vinasat satellite built by Lockheed Martin. 
 He continued by saying that Vietnam will consistently follow market 
practices, and will implement fully its international commitments, 
including those on IPR protection.  He told Microsoft's Ballmer that 
he would personally ensure Vietnam fulfills its obligations under 
this agreement.  IPR protection is important to develop Vietnam's 
"modest" USD 300 million software development industry and the ICT 
sector as a whole, which will be critical in extending Vietnam's 
 
HANOI 00000945  002 OF 002 
 
 
wave of development, the Prime Minister said. 
 
6. (SBU) PM Dzung talked about Vietnam's so-called Six Pillars of 
Comprehensive Development (outlined in the World Bank/Asian 
Development Bank/UNDP 2001 Vietnam Development Report) required to 
ensure Vietnam's "sustainable development with social equity."  He 
noted that Vietnam will need to emphasize particularly the fifth 
pillar, which he defined as education, training, science and 
technology.  This agreement provides a foundation for cooperation in 
this pillar, Dzung said, expressing his hope that Microsoft would 
continue to support Vietnam through participation in efforts such as 
the Topic 64 Program and its ongoing work with Vietnam's leading IT 
firm, FPT Corporation. 
 
7. (SBU) Ballmer responded by stating that this agreement 
demonstrates Vietnam's seriousness in protecting IPR and in creating 
an environment and a platform for Vietnam's ICT industry to grow. 
Echoing the Prime Minister's personal commitment, Ballmer agreed 
likewise personally to ensure that Microsoft upholds its promises to 
assist Vietnam's ICT sector. 
 
Improving its BSA Software Piracy Ranking 
----------------------------------------- 
 
8. (SBU) The 2007 Business Software Alliance (BSA) and IDC Global 
Software Piracy Study ranks Vietnam as having the world's fifth 
highest software piracy rate. At 88 percent, this is the highest 
rate in Asia.  Significantly, Microsoft estimates that this 
agreement alone will improve Vietnam's piracy rate by at least 10 
percentage points, which would put it ahead of many other countries 
in the region, including China, Indonesia and Thailand.  Microsoft's 
Atkinson told the Ambassador that this would be "one of the single 
biggest percentage drops in the history of tracking software piracy 
rates." 
 
Comment 
------- 
 
9. (SBU) Of all the signings with U.S. businesses in recent years, 
this agreement is likely the most significant for Vietnam in the 
long term.  Carrying through on its commitments will enable Vietnam 
to take a giant step forward in its international respectability 
with regard to protecting intellectual property rights.  It sends a 
strong signal about Vietnam's commitment to IPR protection as it 
contemplates requesting consideration as a beneficiary under the 
Generalized System of Preferences (GSP) Program and works to improve 
its status under the Special 301 review process.  The agreement will 
also lead to a new level of development in Vietnam's ICT industry, 
setting the stage for it to become a potentially significant player 
in this rapidly expanding sector. 
 
MARINE 


Why is this a matter of foreign affairs and international policy anyway? This is a private business.

Cablegate: Bill Gates Uses AIDS to Bring Microsoft Windows to Indonesia at Expense of Linux-based OLPC (Updated)

Posted in Asia, Bill Gates, GNU/Linux, Microsoft, OLPC at 3:23 am by Dr. Roy Schestowitz

Cablegate

Summary: HIV/AIDS and avian influenza a back-door Trojan for a computer deal with Microsoft deal written all over it

USING malaria to attack GNU/Linux is not uncommon. Gates loves using “health” as an excuse to lobby politicians and then have them commit to Microsoft Windows at the same time. It’s a clever trick. If someone berates Gates for suppressing GNU/Linux adoption, then his PR people will accuse the critics of leading to deaths of people.

In what initially seems like another Cablegate cable about AIDS (see these two cables), there is actually a part which says that “The Ambassador requested a meeting with Bakrie after learning of his proposed February 5 visit to the Gates Foundation through a Microsoft contact.”

Notice how the Gates Foundation and Microsoft remain inseparable. Then it says: “Bakrie hopes that Microsoft can help Indonesia expand access to computers in schools and throughout the country. [...] software for one million computers. Bakrie also hopes Microsoft will use its contacts to help persuade other information technology companies to provide hardware. The Ambassador noted that Nicholas Negroponte leads One Laptop per Child and offered to help make contact.”

Well, we all know what Microsoft did to OLPC.

Here is the cable from 2008:



VZCZCXRO7588
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0126/01 0220921
ZNR UUUUU ZZH
R 220921Z JAN 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 7703
RUEHPH/CDC ATLANTA GA
INFO RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHRC/USDA FAS WASHDC
RHEHNSC/NSC WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMUNA/CDR USPACOM HONOLULU HI//J07/CATMED/CAT//
RUEHBK/AMEMBASSY BANGKOK 8296
RUEHBY/AMEMBASSY CANBERRA 1899
RUEHFR/AMEMBASSY PARIS 1075
RUEHGV/USMISSION GENEVA 7717
UNCLAS SECTION 01 OF 02 JAKARTA 000126 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/MTS, G/AIAG AND OES 
USAID FOR ANE/CLEMENTS AND GH/CARROLL 
DEPT ALSO PASS TO HHS/WSTEIGER/ABHAT/MSTLOUIS AND HHS/NIH 
GENEVA FOR WHO/HOHMAN 
 
E.O. 12958: N/A 
TAGS: TBIO, AMED, CASC, EAGR, AMGT, PGOV, ID, 
SUBJECT: BAKRIE DESCRIBES GATES FOUNDATION AGENDA 
 
REF: Jakarta 68 
 
1.(SBU) Summary. Coordinating Minister for People's Welfare Aburizal 
Bakrie told the Ambassador on January 21 that a five-member 
delegation planned to visit the Gates Foundation in Seattle on 
February 5 to discuss health concerns and Indonesia's interest in 
expanding access to computers.  Bakrie noted that the Indonesian 
delegation would make presentations to the Foundation's Global 
Health Program on HIV/AIDS and avian influenza and may also discuss 
tuberculosis.  The Ambassador described growing concerns about 
Indonesia's handling of avian influenza, noting that the Foundation 
may be more receptive to other health collaboration.  Bakrie 
expressed interest in joining the delegation if the Foundation could 
change the date. End Summary. 
 
Proposed Visit to Gates Foundation 
---------------------------------- 
 
2. (SBU) The Ambassador requested a meeting with Bakrie after 
learning of his proposed February 5 visit to the Gates Foundation 
through a Microsoft contact.  Bakrie told the Ambassador that the 
Indonesia government had exchanged letters with Dr. Tadataka Yamada, 
President of Global Health Program, and planned to send a 
five-member delegation to visit the Foundation on February 5. 
Bakrie explained that Indonesia is seeking programmatic support from 
both Microsoft and the Gates Foundation on computer and health 
concerns. 
 
Increasing Access to Computers 
------------------------------ 
 
3. (SBU) Bakrie hopes that Microsoft can help Indonesia expand 
access to computers in schools and throughout the country. 
Indonesia currently has one computer for every 1,000 people.  With a 
goal of providing one computer for every 20 people, Indonesia will 
seek Microsoft assistance in providing software for one million 
computers.  Bakrie also hopes Microsoft will use its contacts to 
help persuade other information technology companies to provide 
hardware.  The Ambassador noted that Nicholas Negroponte leads One 
Laptop per Child and offered to help make contact. 
 
Health Challenges of AI, HIV/AIDS, and Tuberculosis 
--------------------------------------------- ------ 
 
4. (SBU) Bakrie described Indonesia's planned presentations to the 
Foundation on both avian influenza and HIV/AIDS.  The Ambassador 
noted that Indonesia and the Gates Foundation could benefit from a 
friendly but frank discussion of health issues. The Ambassador 
cautioned that the Gates Foundation may not be receptive to proposed 
collaboration on AI, noting growing international concerns about 
Indonesia's continued refusal to share samples while its avian 
influenza fatality rate is increasing and cases continue to occur in 
Tangerang, the district adjacent to the international airport. 
Bakrie noted that sample sharing would need to be worked out in 
accordance with Geneva talks and dismissed the severity of the AI 
problem, stating that tuberculosis is really the bigger crisis that 
continues to be ignored.  The Ambassador encouraged Bakrie to raise 
tuberculosis concerns with the Foundation. 
 
Delegation Members 
------------------ 
 
5. (SBU) Bakrie expressed interest in joining the GOI delegation if 
the Foundation could change the date.  Current members of the 
delegation include: 
 
-- Dr. Nafsiah Mboi, Secretary to the National AIDS Commission 
 
-- Dr. Broto Wasisto, Head of the Ministry of Health Committee on 
Drug Control 
 
-- Tantri Yuliandini, National AIDS Resource Center Coordinator 
 
-- Bayu Krisnamurthi, Executive Secretary, National Committee on 
Avian Influenza Control and Pandemic Preparedness 
 
 
JAKARTA 00000126  002 OF 002 
 
 
-- Dr. Heru Setijanto, Secretary, National Committee on Avian 
Influenza Control and Pandemic Preparedness. 
 
HUME 

Notice how Microsoft and AIDS somehow make it into the same cable. Is it about helping people or just corporations with patents (including those who sell very expensive drugs, not just Windows)?

Update: Also see the following cable from around the same time. The subject is “Bill Gates Visits Indonesia for Global Leadership Forum”.


VZCZCXRO1698
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0927 1330653
ZNR UUUUU ZZH
P 120653Z MAY 08 ZFR
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 8966
RUEHPH/CDC ATLANTA GA
INFO RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEAWJB/DOJ WASHDC
RUEHRC/USDA FAS WASHDC
RHEHNSC/NSC WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHGV/USMISSION GENEVA 7778
UNCLAS JAKARTA 000927 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EAP/MTS, G/AIAG, L/DL, EAP/EX, EB/CIP AND OES/IHA 
USAID FOR ANE/CLEMENTS AND GH/CARROLL 
DEPT ALSO PASS TO HHS/WSTEIGER/MSTLOUIS AND HHS/NIH 
GENEVA FOR WHO/HOHMAN 
USDA/FAS/OSTA BRANT, ROSENBLUM 
USDA/APHIS ANNELLI 
 
E.O. 12958: N/A 
TAGS: TBIO, EAGR, KFLU, ECPS, AMGT, PGOV, ID 
SUBJECT: Bill Gates Visits Indonesia for Global Leadership Forum 
 
//////////////////ZFR/////////////ZFR//////// /ZFR 
PLEASE ZFR THE ABOVE JAKARTA MRN 927 IMI PLEASE ZFR THE ABOVE JAKARTA 
MRN 927 AND BLANK ALL ASSOCIATED MCN'S. MESSAGE WAS CANCELLED PER 
DRAFTER. MESSAGE WAS SENT IN ERROR. WE ZOB. 
//////////ZFR////////////////ZFR//////////ZFR 
 
 
HEFFERN 


Here is another cable of interest. “Government Leaders Forum Asia” includes Bill Gates, even though he is not a government leader (or maybe he is a de facto one). Once again we see how HIV/AIDS and avian influenza are being used to help Microsoft.



VZCZCXRO1610
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0932 1330854
ZNR UUUUU ZZH
P 120854Z MAY 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 8969
RUEHPH/CDC ATLANTA GA
INFO RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEAWJB/DOJ WASHDC
RUEHRC/USDA FAS WASHDC
RHEHNSC/NSC WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHGV/USMISSION GENEVA 7779
UNCLAS JAKARTA 000932 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EAP/MTS, G/AIAG, L/DL, EAP/EX, EB/CIP AND OES/IHA 
USAID FOR ANE/CLEMENTS AND GH/CARROLL 
DEPT ALSO PASS TO HHS/WSTEIGER/MSTLOUIS AND HHS/NIH 
GENEVA FOR WHO/HOHMAN 
USDA/FAS/OSTA BRANT, ROSENBLUM 
USDA/APHIS ANNELLI 
 
E.O. 12958: N/A 
TAGS: TBIO, EAGR, KFLU, ECPS, AMGT, PGOV, ID 
SUBJECT: Bill Gates Attends Government Leaders Forum Asia 
 
1. (U) During the May 8-9 Microsoft Government Leaders Forum (GLF) 
in Jakarta, Bill Gates praised President Yudhoyono for personally 
leading Indonesia's national committee on information technology and 
for setting ambitious goals.  Gates said that while not all of 
Indonesia's goals in information technology will likely be 
achievable in current timeframes, having lofty goals in itself is a 
best practice as it serves as a driver towards achievement. 
Yudhoyono highlighted the USAID/MCC-supported E-Procurement system 
as an example of Indonesia's effort to promote electronic governance 
in order to streamline processes and improve transparency. Over 200 
government leaders and private sector participants from other Asian 
countries attended the forum that focused on education, health and 
economic development. 
 
2. (SBU) During the forum, Microsoft President Director for 
Indonesia Tony Chen told Embassy staff that hosting the GLF 
Conference in Jakarta was a boon to both Microsoft Indonesia and to 
the Indonesian government.  He thanked Embassy staff for assistance, 
emphasizing the important role Ambassador Hume played in allaying 
Microsoft leadership's security concerns. Hume's trip to Redmond, 
Washington was one of the important factors in Microsoft's decision 
to hold the forum in Jakarta. 
 
3.(SBU) On the sides of the forum, a Gates Foundation official 
queried Embassy staff on latest developments in avian influenza 
sample sharing and on recent Ministry of Health actions barring 
NAMRU-2 from receiving samples.  He noted that Indonesian media had 
mischaracterized the Gates Foundation's interest in avian influenza 
assistance to Indonesia.  The Gates Foundation was interested in 
working on new vaccine development technologies that would 
ultimately eliminate chronic global vaccine shortages years from 
now.  The Foundation was not planning on specific assistance to 
Indonesia to develop an avian influenza vaccine. 
 
4. (SBU)  On May 9, Bill Gates spoke to 2,000 assembled government 
officials and students at a Presidential Lecture organized by the 
Kadin Secretariat.  During the event, Gates recognized a student 
group from Institut Teknologi Bandung (ITB) as the national of a 
Microsoft sponsored innovation competition and also announced that 
Universitas Pelita Harapan has been named the fifth Indonesian 
university that will host a Microsoft innovation center. 
 
HEFFERN 

09.06.11

Cablegate: Microsoft Lobbies China to Attack Microsoft ‘Addicts’, Use “Minimum of Two-or-three Enforcement Showcases”

Posted in Asia, Microsoft at 6:19 pm by Dr. Roy Schestowitz

Cablegate

Summary: A look at how Microsoft is gently pressuring China to suit Microsoft rather than China

MICROSOFT along with its bully, the BSA, have been busy trying to make Chinese law a little more China-hostile, in order to increase Microsoft profits after it seeded the market. “They’ll get sort of addicted,” Bill Gates famously explained about Chinese people, “and then we’ll somehow figure out how to collect sometime in the next decade.”

Disgusting. Greed, addiction, exploitation. Cornerstones of Microsoft?

The Cablegate cable from 5 years ago shows us how Microsoft gently blackmails the Chinese, promising jobs only if they change Chinese practices to suit Microsoft:


VZCZCXRO1395
OO RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0810/01 2700601
ZNR UUUUU ZZH
O 270601Z SEP 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4043
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEHRC/USDA FAS WASHDC 0912
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 GUANGZHOU 030810 
 
SIPDIS 
 
STATE FOR EAP/CM AND DRL 
USDA FOR FAS/ITP AND FAS/FAA 
USDOC FOR 4420/ITA/MAC/MCQUEEN 
USPACOM FOR FPA 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, EINV, KIPR, CH 
SUBJECT: Microsoft Growing Rapidly in South China 
 
 
 (U) This document is sensitive but unclassified.  Please protect 
accordingly. 
 
1. (SBU) Summary: Microsoft representatives told the Consul General 
September 21 that with the company's rapid growth in Shenzhen and 
elsewhere, they expect sales in South China to surpass those in Hong 
Kong.  Company representatives complained about weak copyright 
enforcement and asked the Consulate to continue to highlight the 
need for improved IPR protection with local government leaders.  End 
summary. 
 
South China: a fast-growing key market for software 
--------------------------------------------- ------ 
 
2. (U) The two representatives - Ni Jianbo, General Manager of the 
Branch Office, and Zhong Weidong, Southern Regional Manager of 
Microsoft's branch company in Guangzhou - were bullish on the 
company's overall development and future plans, but more tentative 
about prospects for protecting Microsoft's intellectual property 
rights (IPR) in southern China. South China accounts for about 30% 
of the Microsoft's overall revenues countrywide, of which half comes 
from Shenzhen.  Some of Microsoft's businesses, such as its 
enterprise partnership group, have grown by 200 times since the 
establishment of the Shenzhen branch office in 2005.  Ni and Zhong 
believe Microsoft's sales in South China will exceed that of Hong 
Kong next year, while sales volumes in East China have already 
surpassed those of Hong Kong and are expected to exceed those of 
Taiwan next year.  The Greater China market (mainland China, Hong 
Kong, and Taiwan) is so important to Microsoft that it is one of the 
company's seven key subsidiaries in the world that reports directly 
Microsoft's headquarters in Seattle. 
 
3. (U) Microsoft's clients in Shenzhen include China's giant 
telecommunication groups of Huawei Technologies and ZTE (Zhong Xin) 
as well as local governments.  Microsoft established its branch 
office in Shenzhen to provide a quicker response to local clients, 
to save operation costs and to better compete with other software 
companies, such as Oracle, which came much earlier than Microsoft to 
Shenzhen.  Currently Microsoft has three sites in Shenzhen, dealing 
with sales, technical support, research and development and 
training. 
 
4. (U) According to Ni and Zhong, Microsoft is building close 
relationships with the local government in Shenzhen.  To demonstrate 
its long-term commitment to Shenzhen, Microsoft plans to upgrade the 
branch office into a branch company, which would then pay tax 
locally instead of to the main office in Beijing, to make more 
investments, and to merge its three scattered office sites into one 
in Shenzhen.  Following a nationwide "cooperation" model with local 
governments, Microsoft is partnering with a local company designated 
by Shenzhen Government to set up a cooperation program called "MSTC" 
(Microsoft Training Center) which helps local governments by 
providing technical support, training, and solutions to e-government 
projects; this also ensures the use of legal software.  In the 
Guangzhou consular district, Microsoft has opened one MSTC in 
Xiamen, Fujian Province, is planning to open one in Hainan next 
month, and has plans to open a center in Guangxi. 
 
Weak IPR enforcement remains a big challenge 
-------------------------------------------- 
 
5. (SBU) Ni and Zhong commented that while local governments have 
been making progress in IPR protection, copyright protection for 
software was a low priority for local officials, particularly in 
Guangzhou.  Zhong said local Copyright Bureau officials focused 
mainly on developing the local cultural industry, including 
publishing and audio and video products.  Local government agencies 
have made little effort to enforce the rights of stakeholders in the 
software industry (both domestic and foreign), despite Microsoft's 
lobbying efforts during the past several years.  According to Zhong, 
the main reason behind the relative absence of copyright enforcement 
was that software industry contributes a very small portion of local 
GDP, the majority of which relies on manufacturing.  They also 
thought that officials might be concerned about the impact of 
rigorous enforcement on the local business environment since many 
manufacturers use pirated software.  Local officials often do not 
attend copyright protection seminars or events that industry 
chambers such as the Business Software Association (BSA) or Chinese 
Software Association (CSA) organize.  Both Zhong and Ni said that 
the lack of interest in protecting software copyright puts Guangdong 
at a disadvantage when competing with Shanghai; in addition, lack of 
 
GUANGZHOU 00030810  002 OF 002 
 
 
protection will not help upgrade Guangdong upgrade knowledge-based 
industries. 
 
6. (SBU) Zhong, who had previously worked in Microsoft's branches in 
Southwest China for three years, pointed out that officials in those 
areas were more cooperative than Guangdong.  Microsoft was 
successful in getting enforcement action in Southwest China by 
adopting a "top-down" strategy to build relations with local 
provincial and municipal leaders and thus encourage them to order 
local enforcement agencies to take more action.  A similar strategy 
in South China had not been as successful, though Ni acknowledged 
this effort was new.  In Guangxi, Microsoft got a commitment from 
the local Copyright Bureau to take two enforcement cases, starting 
in October.  Zhong commented that most enforcement agencies just 
want a few "showcase" actions they can point to and then do nothing 
further.  Microsoft's goal is to have local agencies do a minimum of 
two-or-three enforcement showcases to achieve successes and hope 
this will encourage them to do more.  At the same time, the company 
also realizes that it is impossible for local government to do too 
many cases, given their limited resources. 
 
7. (SBU) Zhong asked the Consul General to urge local government 
leaders in Guangdong to be more cooperative in copyright 
cooperation, since they found "Top-down" strategy is very helpful in 
other areas where they also first encounter officials unwilling to 
cooperate. 
 
Comment 
------- 
 
8.  (SBU) Microsoft's experience in South China highlights regional 
differences in China's IPR enforcement.  Enforcement is often 
subject to local protectionism.  Local officials often believe that 
enforcement conflicts with the need to develop the economy in order 
for them to get promoted.  Until they can be persuaded that 
enforcement actually helps development the economy, we will continue 
to have problems such as those described above. 
 
GOLDBERG 


We sure hope that Goldberg understands why Microsoft’s behaviour is wrong. It knowingly turns a blind eye to counterfeiting when it suits it, later calling everyone a “pirate” and demanding payments or jail time. Microsoft makes entire nations look bad, collectively criminalising its own clients.

Wikileaks and Other Leakers Help Expose Microsoft Corruption, Cause Officials to Backtrack

Posted in Asia, Europe, Microsoft at 5:04 pm by Dr. Roy Schestowitz

Ballpoint pen leaks

Summary: Encouraging developments in Tamil Nadu, Switzerland, and other victims of Microsoft meddling with corruptible officials

TRANSPARENCY to Microsoft is like sunlight to a vampire. Over the past few days Microsoft has had to deal with countless PR blunders, mostly those caused by Cablegate (Microsoft is already well-connected to saboteurs who harmed Wikileaks). There is a lot more of that to come and we intend to play a role in Cablegate organisation. The good news is that bad policies can be reversed by shedding light on the corrupt people involved. It actually does work. It’s not negativism when one exposes misconduct. It’s not bashing, either.

Last week we had received an exclusive story from an informant who also informed Muktware of something rogue in Tamil Nadu. He also leaked to us the supporting documents. Watch what has happened as a result of all this coverage: a national and international outcry, then damage control from the officials involved. Muktware has some good news now. “Tamil Nadu Government To Put Linux On Free Laptops” says the headline and the rest is reassuring too. Quoting some context/background: “Microsoft’s Windows was selected as the default operating system for the laptops, cutting out Linux and Open Source vendors from participating in the tender.”

Another similar/related story comes from the Swiss government, which “unblocks open source court software release” according to The H (it came to realise that Free software must be embraced to avoid a fiasco). Quoting the article:

The committee that controls the Swiss Federal court has moved to allow the publication of OpenJustitia as open source. The release of the software had been blocked in July as proprietary companies claimed the release of the document management system (DMS) for courts under a GPLv3 licence would amount to the state interfering in the software market by cross-subsidisation.

An OSOR.eu report says that the control committee sent the Federal Court questions about the DMS system to establish the legal basis for the development of the software. The court responded in August saying it was not entering into competition. Because the cost of the development, which began in 2007, has already been written off and anyone wanting to modify the software would have to bear the costs of those modifications themselves, the court said that it considered there was no cross-subsidisation.

Previously, there was a corrupt tendering process in Switzerland — one that we covered in:

  1. Microsoft Sued Over Its Corruption in Switzerland, Microsoft Debt Revisited
  2. Can the United Kingdom and Hungary Still be Sued for Excluding Free Software?
  3. 3 New Counts of Antitrust Violation by Microsoft?
  4. Is Microsoft Breaking the Law in Switzerland Too?
  5. Microsoft Uses Lobbyists to Attack Holland’s Migration to Free Software and Sort of Bribes South African Teachers Who Use Windows
  6. ZDNet/eWeek Ruins Peter Judge’s Good Article by Attacking Red Hat When Microsoft Does the Crime
  7. Week of Microsoft Government Affairs: a Look Back, a Look Ahead
  8. Lawsuit Against Microsoft/Switzerland Succeeds So Far, More Countries/Companies Should Follow Suit
  9. Latest Reports on Microsoft Bulk Deals Being Blocked in Switzerland, New Zealand
  10. Swiss Government and Federal Computer Weekly: Why the Hostility Towards Free Software?
  11. Switzerland and the UK Under Fire for Perpetual Microsoft Engagements
  12. Lawsuit Over Alleged Microsoft Corruption in Switzerland Escalates to Federal Court
  13. When Microsoft-Only/Lock-in is Defined as “Technology”
  14. Microsoft’s Allegedly Illegal Swiss Contracts to Take People to Court Again
  15. Microsoft’s Allegedly Illegal US Procurement Gets Frozen After Lawsuit

The Swiss government gradually realises that even lawsuits will be filed against it if it misuses public funds by handing them over to Microsoft without even tendering. A lawsuit helped expose what was happening and it did not look good. The same goes for our early posts about Tunisia, which received a lot of attention and later resulted in a lot of coverage, including some from Salon and TechEye, which says:

Whistle-blowing site Wikileaks has is “currently under heavy attack” in the aftermath of the latest release of cables.

The infamous site recently released a new batch of documents, and Microsoft is one of the latest to find itself in hot water – as its role working with the repressive Tunisian government comes to light.

According to ZDNet UK, a cable was sent by the US embassy in September 2006 highlighting how Microsoft had been cosying up to the authoritarian regime of President Zine El-Abidine Ben Ali.

It appears that, in its desperation to stop Tunisian authorities using open source in place of its own Windows products, Microsoft set up a program on cyber criminality to cover training, as well as handing over the source code for Windows.

While Microsoft is not the only firm caught misbehaving with foreign governments, with others lending support to the Libyan regime, the support of the Tunisian authorities prior to the uprising which kicked off the Arab Spring is serious stuff.

Watch what Microsoft is doing in some other countries though. Tunisia is hardly the exception and in days/weeks to come we’ll show some similar stories, having just explained [crfe 52994 how Windows cracks will help Iran prosecute and probably execute opposition]. Proprietary software aids tyranny. They both work along similar lines. They both rely on corruption and betrayal of basic public rights.

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