09.06.11
Posted in Asia, Cablegate, Microsoft at 3:07 am by Dr. Roy Schestowitz
Summary: Cable from Oman shows the US government providing Microsoft with special opportunities to dominate other countries, children
OVERSEAS investments in war sure are controversial; but the making of monopoly abusers who run Microsoft even richer should cause controversy too. Since when are politicians whose wages and budget come from taxpayers supposed to just push the corporate agenda of private companies? It’s corruption. US taxpayers ought to complain not just because politicians play ball for Microsoft but also because there’s government subsidy on tap. And there are also victims overseas, if anyone who pays tax in the US minds this at all. We’ll come to this in a moment.
“Econoff inquired about Microsoft’s interest in participating in a USG-sponsored collaborative effort that promotes e-mathematics and e-science curricula in the elementary schools (reftel).”
–Diplomatic cableSo, the Omani government has got some negotiations going on with Microsoft, which seems to be using the propaganda term “piracy” to make nations feel guilty and thus sign a deal out of shame or simply to avoid legal trouble. “Econoff inquired about Microsoft’s interest in participating in a USG-sponsored collaborative effort that promotes e-mathematics and e-science curricula in the elementary schools (reftel). Lawati expressed interest in this concept, and took with him a description of the proposal for further consideration.”
For those who do not know, USG is the US Government, Econoff is mentioned a lot in reference to Wikileaks but just about nowhere else (we are seeing Econoff again having seen it in (many other cables] but never even in Wikipedia) and Lawati is a country manager of Microsoft. The cable says that “Lawati commented that Microsoft intends to avoid replicating previous mistakes by building a relationship that creates continued value for the government, as it has done in Egypt and Jordan.”
We have a page to show that Microsoft does in Jordan and this latest Cablegate cable says:
VZCZCXYZ0000
RR RUEHWEB
DE RUEHMS #1282 2420531
ZNR UUUUU ZZH
R 300531Z AUG 06
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 7064
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS MUSCAT 001282
SIPDIS
SENSITIVE
SIPDIS
STATE FOR NEA/ARP, EB/TPP/MTA/IPC, OES/PCI
E.O. 12958: N/A
TAGS: BEXP, ECON, KIPR, TSPL, ETRD, MU
SUBJECT: MICROSOFT, GOVERNMENT INK CONTRACT
REF: MUSCAT 1098
This message contains business proprietary information.
Please protect accordingly.
-------
SUMMARY
-------
1. (U) The Omani government recently concluded a three-year,
five million USD per year agreement with Microsoft for the
use of the company's licensed products. The contract, which
includes a commitment by Microsoft to invest two million USD
per year in training programs for government employees and
the general community, represents the Omani government's
commitment to protecting intellectual property in advance of
the FTA's implementation. End Summary.
---------------
CONTRACT SIGNED
---------------
2. (SBU) On August 22, Econoff met with Microsoft country
manager Sami al-Lawati to discuss his company's recent
partnership agreement with the Omani government. Lawati
noted that per the three-year contract, the Omani government
will pay Microsoft five million USD per year for the use of
22,500 desktop software licenses, which will enable the
government to upgrade its Windows platform and Microsoft
Office applications. In turn, Microsoft will invest two
million USD per year in training programs for government
employees and the general community.
3. (SBU) The deal represents a second chance for Microsoft to
establish a long-term relationship with the Omani government.
Microsoft initially signed a contract with the Oman in June
2000, shortly before the Sultanate's accession to the WTO.
The relationship did not develop, however, resulting in the
government's continued use of Windows 98 instead of upgrading
to Windows 2000. Lawati commented that Microsoft intends to
avoid replicating previous mistakes by building a
relationship that creates continued value for the government,
as it has done in Egypt and Jordan.
--------------------
BUILDING IT CAPACITY
--------------------
4. (SBU) As part of its plan to create value, Microsoft has
committed to investing in Oman's IT capabilities. Lawati
commented that this commitment is essential to efforts to
raise technology usage in government operations, which
currently is very low. Coupling with the government's E-Oman
initiative, Lawati noted that Microsoft will reach out to the
community by installing computer laboratories in 10 schools
for use in the evening hours. Lawati also said that
Microsoft would focus on government personnel development
through a support and innovation center. Under this
proposal, Microsoft would provide intensive training to 20-30
recent university graduates, who would then form IT steering
committees within their respective ministries. Finally,
Lawati expressed Microsoft's interest in fostering IT
communities in the universities and high schools through the
promotion of IT clubs.
5. (U) Building on these proposals, Econoff inquired about
Microsoft's interest in participating in a USG-sponsored
collaborative effort that promotes e-mathematics and
e-science curricula in the elementary schools (reftel).
Lawati expressed interest in this concept, and took with him
a description of the proposal for further consideration.
-------------------------
PIRACY DOWN, PROMOTION UP
-------------------------
6. (SBU) Lawati noted that the Omani government's approval of
the partnership agreement signified its commitment to
protecting intellectual property. While recognizing that
software piracy remains a concern in Oman, Lawati remarked
that it's now generally more difficult to purchase pirated
software in Oman. Microsoft intends to promote its new
products more actively in Oman, starting with an advance
event on September 4 for its new Vista operating system and
Office 2007, which will be available in Oman by December
2006.
GRAPPO
We also wrote about Microsoft in Oman under various older posts [1, 2, 3]. It all makes more sense now. █
Permalink
Send this to a friend
09.05.11
Posted in Asia, Bill Gates, Cablegate, Microsoft at 8:49 pm by Dr. Roy Schestowitz
Summary: How Microsoft is “enabling tyranny” in China with yet another deal that helps show mockery of the Chinese
LAST night we discovered some important facts about Microsoft helping Tunisia spy on citizens, more of less in the same way that Russian dissent was crushed with help from Microsoft. This is an appalling display of proprietary software in action. The news about Tunisia is actually based on a diplomatic leak which now receives a lot of extensive coverage. Well, our own post and the other one which we cited got many links/references to them and even the ‘press’ covered the issue after this had been revealed. See for example the article “Microsoft aided former Tunisian regime” as it says:
According to a cable sent by the US embassy in Tunis on 22 September, 2006, Microsoft was so keen to get the Tunisian government to drop its policy favouring open-source software that it agreed to set up a “program on cyber criminality” to cover training. The deal also entailed the company giving the Tunisian regime, headed by President Zine El-Abidine Ben Ali, the original source code for Microsoft software.
The cable was made public last week by Wikileaks as part of a massive and largely accidental publication of unredacted US embassy messages. In it, embassy officials told Washington there was a risk the training could be used to further oppress the Tunisian people.
“Through a program on cyber criminality, Microsoft will train government officials in the Ministries of Justice and Interior on how to use computers and the internet to fight crime. As part of this program, Microsoft will provide the GOT [Government of Tunisia] with original source codes for its program,” the cable read.
“In theory, increasing GOT law enforcement capability through IT training is positive, but given heavy-handed GOT interference in the internet, Post questions whether this will expand GOT capacity to monitor its own citizens,” it continued.
This leads us to today’s Cablegate cable, which shows how Microsoft bashes the intelligence and the education of the Chinese. China’s relationship with Bill Gates is a subject that we wrote about many times in the past, even several years ago. Watch his role in the following deal:
VZCZCXRO5403
RR RUEHCN RUEHGH
DE RUEHGZ #5379/01 1440829
ZNR UUUUU ZZH
R 240829Z MAY 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 8706
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 GUANGZHOU 015379
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON, ETRD, EINV, EDUC, TNGD, CH
SUBJECT: Microsoft Opens Technology Center in Guangzhou
(U) This document is sensitive but unclassified. Please
protect accordingly.
1. (SBU) Summary: Following on the heels of President Hu
Jintao's meeting with Bill Gates in Seattle, Microsoft
unveiled its first technology center in South China. The
center is the result of an agreement between Microsoft and
the Chinese government to set up at least 10 such centers
throughout China. The center will develop software for e-
governance, entertainment, and information systems security
as well as provide training and consulting services to local
government offices and enterprises. The facility will
eventually employ between 300 and 500 software engineers,
though staff said they will be lucky to find 100 qualified
candidates by the end of 2006. End summary.
Microsoft Makes a Deal
----------------------
2. (SBU) Timothy Chen, corporate vice president and CEO of
the Greater China region, was the ranking Microsoft
representative at the ceremony on May 15. In an aside to
Consul General, Chen said he served as the interpreter
during President Hu Jintao's April 2006 visit to Bill Gates'
Seattle home. The opening ceremony of the Guangzhou
Technology Center was reportedly postponed until Hu returned
from his visit to Seattle.
3. (U) In his remarks, Chen said Microsoft and the Chinese
government signed their first MOU in June 2002. Since then,
Microsoft has provided training support to more than 30,000
Chinese students and professionals free of charge. In
addition, Microsoft has outsourced USD 5.5 million worth of
software products to Chinese partners. Microsoft and the
Chinese government signed their second MOU on Apr. 18, 2006
during Hu's visit to Seattle. Under this agreement,
Microsoft will establish more than 10 technology centers in
key cities in China to promote the advancement of
information technology through cooperation with local
software developers.
And Now to Fill the Buildings...
--------------------------------
4. (SBU) Microsoft's Guangdong research center is the first
such center for Microsoft in South China, and others are
planned for Shenzhen and Xiamen. The center is located in
Gaotang Software Park, on the fringes of the city in the
fast-developing Tianhe District. It occupies two mid-size
buildings that are connected by an elevated pedestrian
walkway and surrounded by grassy fields -- a miniature
version of the Seattle campus. According to company
literature, the center's long-term goal is to employ between
300 and 500 software engineers. However, Microsoft
representatives said informally that they would be lucky to
find 100 qualified employees by the end of 2006 because of
the dearth of well trained, experienced professionals in the
field.
5. (U) According to company literature, the center will
provide services in software design, development, and
support in the areas of e-governance, information security,
and digital entertainment. It will also provide training
and consulting services for government agencies and
enterprises, with the aim of developing Guangzhou's software
industry.
Big Plans for Guangzhou's Software Industry
-------------------------------------------
6. (U) Guangzhou Vice Mayor Shen Bonian noted in his remarks
that Guangzhou is experiencing a shortage of high-tech
talent, but said the city's 11th Five-Year Plan calls for
more than 200,000 software technicians by 2010. He said the
Microsoft technology center will help nurture this much-
needed talent and also assist in the informatization of
Guangzhou government offices and enterprises. Guangzhou's
software industry is expected to generate more than 100
billion RMB (USD 12.5 billion) in income by 2010, with an
annual increase of 35 percent. In comparison, software
companies in Gaotang Software Park generated 10.5 billion
RMB (USD 1.3 billion) of revenue from software sales in
2005.
Comment: A Political Necessity Hobbled by Educational
Deficiencies
--------------------------------------------- --------
GUANGZHOU 00015379 002 OF 002
7. (SBU) This technology center, being the result of
negotiations between Microsoft and the Chinese government,
may serve Guangzhou's interests more than Microsoft's,
though Microsoft sees the centers as being a political
necessity for its future in China. Though software
localization and customer service are important for
Microsoft's regional operations, the employment, training,
and consulting services that this center will provide are a
boon to Guangzhou's high-tech industry. The remarks by
Microsoft staff that the center's job openings will be
difficult to fill reflect the deficit of well-trained,
experienced professionals in Guangzhou's high-tech industry.
Other contacts in the high-tech field have complained to us
that young Chinese software developers have sufficient
technical ability, but lack the talent to innovate -- owing
in part to outdated teaching methods in China's
universities.
DONG
A year ago Microsoft was accused in the US senate of “enabling tyranny” in China [1, 2]. █
Permalink
Send this to a friend
09.04.11
Posted in Asia, Deception, GNU/Linux, Microsoft, Windows at 1:59 pm by Dr. Roy Schestowitz
Summary: The scandal in Tamil Nadu is met with a weak defence from the culprits
WHAT sure seems like federal corruption in Tamil Nadu led to the forcing of Windows. All new computers will need to have Microsoft Windows paid for, even if the user chooses to run GNU/Linux. Watch the dodgy official resorting to damage control. They even use Microsoft talking points. This one says that “the freedom of the students to choose the operating system of their choice is encouraged.” Freedom of “choice” is the Microsoft spin, which misses the point that they still have to pay for Windows whether they want to or not and Windows is not freedom, it’s being subjugated to a monopoly abuser from abroad. Let them lie. They are used to it. Indians should not let this one slip aside because this is part of a pattern, as we covered in posts such as:
Windows respects “freedom of the students to choose the operating system” like someone who boards the plane has the freedom to refuse the full-body X-Ray scanners in Manchester Airport, in which case the passenger is refused access to any departing flight. It’s the mere illusion of choice. The picture below is censored by the way, but this is what every single passenger in Manchester is required to give the government in exchange for plane access these days, never mind the catastrophic effects of cancer (risking more lives and in the long term causing more deaths than all airplane terrorism combined). █
Permalink
Send this to a friend
09.02.11
Posted in Asia, Cablegate, FUD, GNU/Linux, Microsoft at 11:21 am by Dr. Roy Schestowitz
Summary: Diplomats parrots Microsoft claims and biased ‘studies’ about “shareware” like Linux and why it is bad
IN the previous post we showed more of what Microsoft was doing in Vietnam, by proxy. In the following Cablegate cable we receive confirmation of what we knew Microsoft was doing behind closed doors all around Asia, especially whenever a government made the decision to move to GNU/Linux (famously in Thailand)
We are highlighting bits of interest in the diplomatic cable (for those who are not aware, the Business Software Alliance is a Microsoft front group):
UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 000367
SIPDIS
SENSITIVE
State for EAP/BCLTV
State pass to USTR Elena Bryan
USDOC for 6500 and 4431/MAC/AP/OPB/VLC/HPPHO
E.O. 12958: N/A
TAGS: VM, KIPR, ECON, ETRD
SUBJECT: IN VIETNAM, THE GOVERNMENT IS MICROSOFT\'S FIRST TARGET
Summary
-------
1. (U) With a software piracy rate estimated at 95 percent by the
Business Software Alliance, there is no shortage of targets in
Vietnam for IPR protection efforts. Microsoft executives tell
ConGen that it will focus on getting the GVN and multi-national
corporations to use licensed software. Microsoft is worried about
the interest in Linux-based systems, fearing that because it is
more difficult to use, offices that officially switch to Linux
will soon unofficially switch back to pirated Microsoft software.
Target the Big Targets
----------------------
2. (U) At a recent meeting with Econoff and Econ FSN, Microsoft\'s
Director for Business Development Asia-Pacific Emerging Markets
Mr. Faycal Bouchlaghem and Vietnam Country Director Mr. Ngo Phuc
Cuong described the situation in Vietnam from their company\'s
perspective. Despite the prevalence of vendors selling pirated
copies of Windows and other MS software from countless shops,
Microsoft has decided to focus first on getting the GVN and second
on multinational firms operating in Vietnam to use licensed
Microsoft software. Their target is to switch the GVN over
completely to licensed product over the next five years.
Microsoft told Econoff that, like the rest of the market, the GVN
currently uses very little licensed software and that many
multinational firms that are law abiding elsewhere start using
pirated software after a few months in Vietnam.
Windows Costs Money
-------------------
3. (U) Microsoft describes two main difficulties in moving the
GVN from pirated to licensed software. First is Microsoft\'s lack
of pricing flexibility. MS claims that they are constrained from
offering deeply discounted pricing for the Vietnam or any other
market by a `Consent Decree\' agreement with U.S. Department of
Justice. They say that the decree would allow MS to develop and
sell a new Vietnamese Windows product, and if it was substantially
different from the existing versions, they could sell this special
version for any price they chose. Microsoft\'s representatives
said that this was not viable, however, since the Vietnamese
market would not offer enough of a return on the investment needed
to develop such products. They said that the company can,
however, discount software to existing customers. But these
customers will still have to pay for it.
Linux is Cheaper
--------------------
4. (U) The promise (false according to MS) of cheap or even free
Linux-based software is another issue. MS outlined several
reasons why, in their admittedly biased view, Windows was a better
choice. First, the average user is used to Windows-based point
and click software and retraining them to another system will be
difficult. Second, Linux systems require more technical expertise
on the part of the end user than do Windows systems. Finally,
there would be a massive compatibility problem -- most of the
world uses Windows, and the GVN could find themselves in a
position where it might be difficult to communicate and share data
between their Linux systems and everyone else\'s MS systems, not to
mention the relative shortage of third-party software that runs on
anything other than Windows.
Copying Thailand
----------------
5. (U) Microsoft claims that these factors will inevitably lead
to one outcome. They contend, based on their own analysis using a
post-purchase survey of commercial Linux users in Thailand, that
within a few months of a shift to Linux, almost every GVN computer
will also be running pirated Windows software. They claim using
Linux will be a hassle no one will put up with for very long. In
the Thai survey cited by MS over 70 percent of consumers that
acquired Linux operating systems were back to using illegal
Windows software within a few months.
Other Efforts
-------------
6. (U) Though the GVN and multinationals remain the focus, MS
also works with the Economic Police by offering them training on
how to detect pirated products in the retail market. Microsoft
agreed to let Econ FSNs attend the next training session. This
opportunity should allow ConGen to expand its contacts within the
Economic Police and help us better target our assistance on IPR
issues.
7. (SBU) The firm is still trying to figure out the best way to
work with local law enforcement. Like many observers Microsoft
has been critical of the GVN\'s effort to protect IPR and was
surprised in a recent meeting when the Economic Police asked MS to
\"identify targets\" for enforcement raids. Microsoft elected not
to give any names. They explained that they do not want to set a
precedent by doing the government\'s job when it does not take much
detective work to find an IPR violator. Nor do they wish to have
MS linked to police action in the minds of consumers. They do not
want Vietnamese to think police raids and fines when they think
Microsoft. Microsoft\'s country director told Econoff that a few
high-profile raids against small shopkeepers would not/not help
Microsoft\'s long term business plan in Vietnam.
8. (U) Though wary of the stick, MS has been trying to use the
carrot to change behavior. The company\'s Vietnam offices recently
began the \"Clean Shop Program.\" This program asks retailers of
software and assemblers of PCs to sign a pledge to provide
customers with only licensed software. In return, program members
are rewarded with points for every licensed copy sold. Points
can be redeemed for merchandise in a system not much different
from a frequent flyer or shopper program. Thus far, the \"Clean
Shop Program\" has had limited success. In an investigation of
program members, MS found that over 30 percent of the shops and
factories -- all of whom volunteered for the program -- were still
distributing unlicensed software.
9. (SBU) Microsoft\'s efforts to influence the local IPR situation
extend beyond enforcement and rewards programs. On March 16,
2004 the software manufacturer signed a Memorandum of
Understanding (MOU) with the Information Technology Project
Management Office (ITPMO) of the Ho Chi Minh City People\'s
Committee. This MOU, five pages in length, was drafted to ensure,
\"mutual business cooperation,\" and, \"establish a formal basis for
cooperation in the area of Information and Communication
Technology.\" Under the terms of the MOU, Microsoft will,
\"contribute to the social and economic development of Ho Chi Minh
City by developing the local IT ecosystem by building skills
through IT training for ICT companies, students, teachers and
government ICT professional employees based on common projects, so
as to help create employment opportunities in HCMC.\" Microsoft
also agrees to help develop HCMC\'s e-government projects and work
with the city government to agree on software licensing terms
under the Microsoft Volume Licensing Program. Finally, Microsoft
will set up courses to teach educators and students about ICT, as
well as seminars, \"as appropriate for the target audience,\" on the
value of IPR protection and enforcement. In return, the HCMC
People\'s Committee, through the ITPMO, agrees to \"co-operate with
Microsoft in order to ensure that the Ho Chi Minh City People\'s
Committee\'s government institutions lead by example in using only
licensed software and adopt the best practices for IPR protection
and for the enforcement of IPR protection through the relevant
Government Institutions.\" (NOTE: Full text of MOU to follow by
SEPTEL)
Comment
-------
10. (SBU) While the MOU is certainly a positive development, in
that it increases dialogue and highlights the importance foreign
companies place on IPR matters, it is an agreement without teeth.
The MOU does not give either side legal leverage, nor are the
stated goals and responsibilities binding. Life can go on as
usual. If either party finds that an obligation must go
unfulfilled for reasons beyond their \"reasonable\" control, they
are automatically relieved of the obligation as long as they
inform the other signatory in writing. The MOU is a nice vision
of the future, but it lacks an actionable plan.
11. (SBU) For now it appears that the world\'s software giant is
more worried about competition from \"shareware\" than it is about
pirates. Microsoft\'s arguments that Linux may not be a good fit
for Vietnam clearly stem from self-interest, but they have a
point. In a country where government offices are filled with
computers running pirated software, it seems unlikely that a
lasting improvement will take root if the new system is any more
difficult to use than the familiar, albeit illegal, alternative.
And it will be hard to take real enforcement actions in the South,
when the government itself is one of the biggest violators.
YAMAUCHI
Linux is actually not “shareware”, it is Free/libre software.
This cable was labelled “IN VIETNAM, THE GOVERNMENT IS MICROSOFT’S FIRST TARGET” and it is easy to see why. There is also Linux FUD there, coming from the mouths of diplomats whose wages are paid by taxpayers. Who are those people really serving, people or corporations? █
“It’s easier for our software to compete with Linux when there’s piracy than when there’s not.”
–Bill Gates
Permalink
Send this to a friend
Posted in Asia, Cablegate, Microsoft at 10:55 am by Dr. Roy Schestowitz
Summary: Microsoft co-opts diplomats that the US public pays for to lobby for changes in law overseas and “MICROSOFT CHOSE TO USE ITS SINGAPORE LEGAL OFFICE AS THE “BAD COP” IN ORDER TO KEEP MR. CUONG OUT OF THE LIMELIGHT AND PRESERVE HIS “GOOD COP” ROLE WITH LOCAL COMPANIES,” reveals a secret diplomatic cable
In a record labelled “VIETNAM’S IPR ENFORCEMENT: MICROSOFT STRIKES BACK UNCLASSIFIED”, information is revealed regarding Microsoft’s operations in Vietnam, which we recently covered in this post. Also see:
Let’s go through he cable very quickly and highlight some bits of interest:
060441Z Nov 02
2002HOCHI01123 - UNCLASSIFIED
UNCLASSIFIED PTQ0090
PAGE 01 HO CHI 01123 01 OF 02 060451Z
ACTION STR-00
INFO LOG-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00 COME-00
CTME-00 DINT-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00
EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01
TEDE-00 INR-00 ITC-01 LAB-01 LOC-01 L-00 VCE-00
AC-01 NSAE-00 NSCE-00 OES-00 OMB-01 OPIC-01 PA-00
PRS-00 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00
USIE-00 DRL-02 G-00 NFAT-00 SAS-00 /010W
------------------040D37 060550Z /38
FM AMCONSUL HO CHI MINH CITY
TO SECSTATE WASHDC 7037
INFO AMEMBASSY HANOI
AMEMBASSY BANGKOK
AMEMBASSY BEIJING
AMEMBASSY SINGAPORE
UNCLAS SECTION 01 OF 02 HO CHI MINH CITY 001123
SIPDIS
SENSITIVE
STATE PLS PASS TO USTR EBRYAN AND KALVAREZ
E.O. 12958: N/A
TAGS: VM, ECON, ETRD, KIPR, IPROP
SUBJECT: VIETNAM\'S IPR ENFORCEMENT: MICROSOFT STRIKES BACK
UNCLASSIFIED
PAGE 02 HO CHI 01123 01 OF 02 060451Z
1. (SBU) SUMMARY: INTELLECTUAL PROPERTY RIGHTS (IPR) ENFORCEMENT
AUTHORITIES IN HO CHI MINH CITY, VIETNAM RAIDED LOCAL COMPUTER
SHOPS ON OCTOBER 17, SEIZING APPROXIMATELY 7000 PIRATED DISKS.
THIS ACTION MARKS THE FIRST ILLEGAL SOFTWARE RAID IN VIETNAM.
ALTHOUGH MICROSOFT CLAIMED VICTORY, THE RAID IN FACT HAD LIMITED
SUCCESS DUE TO INADEQUATE TRAINING AND MICROSOFT\'S OWN INTERNAL
DILEMMA - WHETHER TO PUSH FOR STRONG IPR ENFORCEMENT OR GOOD
RELATIONS WITH RETAIL DISTRIBUTORS. END SUMMARY.
2. (SBU) MICROSOFT ESTABLISHED A REPRESENTATIVE OFFICE IN HANOI IN
1996 AND A BRANCH IN HCMC TWO MONTHS AGO. IT IS THE FIRST
SOFTWARE COMPANY TO TRY TO ENFORCE THE 1997 U.S-VIETNAM COPYRIGHT
AGREEMENT. WHEN MICROSOFT\'S CHIEF REPRESENTATIVE IN VIETNAM, MR.
NGO P
HUC CUONG, OPENED THE HCMC OFFICE, HE TOLD CONSUL GENERAL AND
ECONOFF THAT MICROSOFT PLANNED TO RAID ILLEGAL SOFTWARE SHOPS AND
CRACK DOWN ON VIETNAM\'S RAMPANT PIRACY RATE. MR. CUONG ESTIMATED
THIS RATE AT 94 PERCENT, DOWN FROM THE PREVIOUS YEAR\'S 97 PERCENT.
3. (SBU) PLANNING FOR THE ACTUAL RAID REACHED HIGH LEVELS OF
INTRIGUE, AND ILLUSTRATES WHY IPR ENFORCEMENT IS SO DIFFICULT IN
VIETNAM. MICROSOFT CHOSE TO USE ITS SINGAPORE LEGAL OFFICE AS THE
\"BAD COP\" IN ORDER TO KEEP MR. CUONG OUT OF THE LIMELIGHT AND
PRESERVE HIS \"GOOD COP\" ROLE WITH LOCAL COMPANIES. THE SINGAPORE
REPRESENTATIVE WORKED CLOSELY WITH AN EXPATRIATE LAW FIRM IN HCMC,
AS WELL AS MR. HUYNH TAN PHONG, THE HEAD OF THE MARKET MANAGEMENT
BOARD (MMB). (NOTE: SOURCES SAY THAT MICROSOFT\'S DECISION TO USE
ITS SINGAPORE OFFICE MAY HAVE BACKFIRED. THE SINGAPORE OFFICE,
FAMILIAR WITH THAILAND AND INDIA, FAILED TO APPRECIATE THE
DIFFICULTY OF WORKING IN A COMMUNIST COUNTRY WHERE IPR ENFORCEMENT
UNCLASSIFIED
PAGE 03 HO CHI 01123 01 OF 02 060451Z
IS A BRAND-NEW AND SUSPECT CONCEPT. MISUNDERSTANDINGS AND MUTUAL
FRUSTRATION WERE FREQUENT. CONGEN NOMINATED MR. PHONG FOR AN IPR
INTERNATIONAL VISITORS GRANT LAST SUMMER AND WILL CONTINUE TO
FOCUS ON BUILDING IPR ENFORCEMENT CAPACITY AS PART OF THE
MISSIONWIDE STRATEGY. END NOTE.)
4. (SBU) THE MMB IS THE RELEVANT IPR INSPECTION AUTHORITY ON
SOFTWARE PIRACY. MICROSOFT HELD A ONE-DAY TRAINING FOR 40 MMB
INSPECTORS ON HOW TO IDENTIFY COUNTERFEIT DISKS, WHICH ARE EASILY
DISTINGUISHABLE FROM GENUINE PRODUCTS. HOWEVER, MR. PHONG WAS
RELUCTANT TO PROCEED WITHOUT SPECIFIC AUTHORITY FROM THE HCMC
PEOPLE\'S COMMITTEE. MICROSOFT ACCORDINGLY SOUGHT AND OBTAINED
STRONG ENDORSEMENT FOR THE RAID FROM DR. NGUYEN THIEN NHAN, THE
COMMITTEE\'S FIRST VICE CHAIRMAN AND AN ACTIVE IT SUPPORTER. BUT
AT THE LAST MINUTE, MR. PHONG POSTPONED THE RAID - WITHOUT
EXPLANATION - POSSIBLY TO ASSERT HIS INDEPENDENCE.
5. (U) ON THE APPOINTED DAY, MMB INSPECTION TEAMS, WITH
REPRESENTATIVES FROM MICROSOFT AND THE EXPAT LAW FIRM IN TOW,
SIMULTANEOUSLY RAIDED SEVEN RETAIL OUTLETS AND SEIZED
APPROXIMATELY 7000 DISKS. THE STORES RANGED FROM SMALL \"MOM AND
POP\" SHOPS TO LARGE SOPHISTICATED OPERATIONS. ONE STORE WAS EVEN
SELLING PIRATED SOFTWARE ON ITS WEBSITE, WWW.PCLEHOAN.COM. MMB
TEAMS CONFISCATED THE DISKS AND WILL EVENTUALLY DESTROY THEM.
SOME OF THE SHOP OWNERS COMPLAINED, \"HOW CAN YOU DO THIS WHEN THE
GOVERNMENT ITSELF IS USING OUR (COUNTERFEIT) STUFF?\" THE MMB,
ALSO RESPONSIBLE FOR SETTING THE FINES, HAS NOT YET ANNOUNCED THE
CHARGES OR THE AMOUNTS. FINES COULD REACH VND 20-40 MILLION
(USD1300-2600) FOR THE FIRST VIOLATION AND VND 50-70 MILLION
(USD3300-4600) FOR EACH ADDITIONAL VIOLATION. EACH PIRATED DISK
COULD BE CONSIDERED A SEPARATE VIOLATION.
UNCLASSIFIED
PAGE 04 HO CHI 01123 01 OF 02 060451Z
6. (SBU) THE EXPATRIATE LAWYER WORKING WITH MICROSOFT CALLED THE
RAID A SUCCESS, BUT POINTED OUT VARIOUS WEAKNESSES IN THE
ENFORCEMENT CHAIN. FIRST, THE MMB TEAMS FOCUSED ONLY ON THE
MICROSOFT TRADEMARK VIOLATION. TEAMS SEIZED MICROSOFT SOFTWARE
AND LEFT BEHIND BLANK DISKS OR BLATANTLY PIRATED SOFTWARE OF NON-
MICROSOFT ORIGIN. SECOND, EACH MMB TEAM HAD A DIFFERENT APPROACH.
SOME TEAMS LEFT BEHIND DISKS LABELED ONLY AS \"MS WORD,\" WHILE
OTHERS SEIZED ANY MICROSOFT PRODUCT, REGARDLESS OF LABELING.
THIRD, THE TEAMS SEIZED ONLY A SMALL NUMBER OF DISKS, ALTHOUGH
MICROSOFT\'S PRE-RAID SURVEY SHOWED THAT EACH STORE STOCKED 5000-
10,000 PIRATED DISKS. THE LAW FIRM REPRESENTATIVE WHO ACCOMPANIED
MMB ON THE RAID URGED MICROSOFT TO INSTRUCT MMB TO SEIZE GREATER
QUANTITIES OF PIRATED MATERIAL, BUT THE MICROSOFT REPRESENTATIVE
BACKED DOWN IN THE FACE OF ANGRY PROTESTS FROM SHOP OWNERS.
FINALLY, THE TEAMS SEIZED A DISPROPORTIONATE AMOUNT OF DISKS FROM
SMALL OPERATORS, WHOSE SALES HAVE LITTLE IMPACT ON THE MARKET.
THE MMB SEIZED ONLY APPROXIMATELY 500 DISKS FROM EACH OF THE BIG
OPERATORS, AND LESS THAN 100 FROM THE STORE SELLING PIRATED
SOFTWARE ON THE INTERNET (AFTER SHOP MANAGERS AGAIN DISPUTED
MICROSOFT\'S RIGHT TO SEIZE NON-MICROSOFT PRODUCT). THE TEAM
SEIZED ONLY 40 DISKS FROM THE BIGGEST KNOWN COMMERCIAL DEALER.
7. (SBU) MICROSOFT ANNOUNCED ITS SATISFACTION WITH THE RAID AND
PLANS TO CONDUCT MORE IN COMING MONTHS. MR. CUONG WANTS FUTURE
RAIDS TO FOCUS ON THE REAL PROBLEMS IN VIETNAM: COMPUTER STORES
LOADING SOFTWARE DIRECTLY ONTO HARD DRIVES AND MULTIPLE COPIES
DISTRIBUTED THROUGH AN ORGANIZATION WITH ONLY ONE LICENSED DISK.
UNCLASSIFIED
UNCLASSIFIED PTQ0096
PAGE 01 HO CHI 01123 02 OF 02 060451Z
ACTION STR-00
INFO LOG-00 AGRE-00 AID-00 AMAD-00 CEA-01 CIAE-00 COME-00
CTME-00 DINT-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00
EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01
TEDE-00 INR-00 ITC-01 LAB-01 LOC-01 L-00 VCE-00
AC-01 NSAE-00 NSCE-00 OES-00 OMB-01 OPIC-01 PA-00
PRS-00 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00
USIE-00 DRL-02 G-00 NFAT-00 SAS-00 /010W
------------------040D60 060552Z /38
R 060441Z NOV 02
FM AMCONSUL HO CHI MINH CITY
TO SECSTATE WASHDC 7038
INFO AMEMBASSY HANOI
AMEMBASSY BANGKOK
AMEMBASSY BEIJING
AMEMBASSY SINGAPORE
UNCLAS SECTION 02 OF 02 HO CHI MINH CITY 001123
SIPDIS
SENSITIVE
STATE PLS PASS TO USTR EBRYAN AND KALVAREZ
THE LAW FIRM, HOWEVER, BELIEVES MMB FEELS IT HAS DONE ENOUGH FOR
MICROSOFT THIS YEAR AND WILL BE RELUCTANT TO EMBARK UPON ANOTHER
RAID SOON.
8. (SBU) COMMENT: MICROSOFT\'S ENFORCEMENT EFFORT DEMONSTRATES SOME
OF THE COMPLEXITY IN TRYING TO DEFEND IPR RIGHTS IN VIETNAM\'S
OVERWHELMINGLY COUNTERFEIT SOFTWARE MARKET. POST HAS LEARNED THAT
AS MANY AS HALF OF THE SEIZED DISKS WILL BE RETURNED TO THE SHOPS
BECAUSE THEY ARE BLANK OR CONTAIN NON-MICROSOFT SOFTWARE. WITHOUT
ADEQUATE TRAINING AND CLEAR UNDERSTANDING OF TRADEMARK AND
COPYRIGHT LAW, THESE RAIDS CAN ONLY BE HALF-MEASURES. MICROSOFT
REPRESENTATIVES EXPRESSED FRUSTRATION THAT OTHER SOFTWARE
COMPANIES ARE NOT ACTIVELY ENFORCING THEIR IPR RIGHTS IN VIETNAM.
THESE OTHER COMPANIES ARE CONTENT TO LET MICROSOFT CARRY THE WATER
-- AND ALSO INCUR THE WRATH OF POTENTIAL RETAIL DISTRIBUTORS.
WHILE THE CONFLICT BETWEEN STRONG IPR ENFORCEMENT AND GOOD RETAIL
RELATIONS REFLECTS THE ALMOST TOTAL LACK OF PURE, LEGITIMATE
DISTRIBUTORS IN VIETNAM, MICROSOFT AND OTHER COMPANIES WILL HAVE
TO ADDRESS THESE COMPETING GOALS MORE EFFECTIVELY BEFORE THEY CAN
EXPECT STRONG ENFORCEMENT OR SALES. MEANWHILE, IPR ISSUES WILL
CONTINUE TO UNDERMINE VIETNAM\'S OWN AMBITIONS TO BECOME AN IT
CENTER. YAMAUCHI
UNCLASSIFIED
So taxpayers in Vietnam pay their police/authorities in order to serve as extended Microsoft staff (who are used as a proxy like the BSA). They then attack the Vietnamese population. Why? Because the US says it needs to be done. Those who think outside the box can easily see what’s wrong with this picture. █
“They’ll get sort of addicted, and then we’ll somehow figure out how to collect sometime in the next decade.”
–Bill Gates
Permalink
Send this to a friend
Posted in Asia, Cablegate, Microsoft at 10:31 am by Dr. Roy Schestowitz
Summary: Cablegate shows Microsoft injecting funds into a company to imprison a whole nation on its behalf
TECHRIGHT has a wiki page about Microsoft in Jordan. It helps highlight the pattern of operation of Microsoft around the world. it organises itself around subsidiaries that pretend to be “local” and “create jobs”. One Cablegate cable, posted below in its raw form, shows us how US diplomats describe Microsoft’s “INVESTMENT IN JORDAN”. We are highlighting parts of interest.
DEPT PASS FOR ANE/MEA KIM FINAN
USDOC FOR 4520/ITA/MAC/ONE/PAUL THANOS
USDOC FOR 6400/ITA/TD/OEC/KFERGUSON
TREASURY FOR PIPATANAGUL
TDA FOR SIGLER
E.O. 12958: N/A
TAGS: ECPS, BEXP, EINV, JO
SUBJECT: MICROSOFT EXPANDS INVESTMENT IN JORDAN
SENSITIVE BUT UNCLASSIFIED; PLEASE HANDLE ACCORDINGLY
-------
SUMMARY
-------
1. (U) Estarta Solutions, the result of a merger between two
prominent and well-established Jordanian IT companies,
represents a significant expansion of Microsoft\'s investment
and presence in Jordan. The new company bills itself as an
international IT solutions company and consultant
specializing in e-government, e-education, banking and
finance, telecom, and logistics. The deal demonstrates the
GOJ\'s determination to boost the development of the IT
sector. End Summary
----------
BACKGROUND
----------
2. (U) On May 20, following weeks of speculation and
negotiations, and amidst a great deal of fanfare, Microsoft
Vice President for Europe, the Middle East, and Africa Emre
Birkin announced the launch of Estarta Solutions, the result
of a merger between Jordan\'s two leading IT firms, ONEWORLD
Jordan and Zeine Technological Applications. Birkin said
that reform of Jordan\'s investment framework laws and a
favorable \"IT investment ambiance\" in the country were behind
Microsoft\'s preference to launch a new project in Jordan.
The new firm, which will be based in Amman, will employ 200
people. Among its current clients are Thomson Financial,
Apple, Siemens, and the Jordanian government.
3. (U) Microsoft will take a small share in the company, as
will al-Foursan, a local venture capital fund specializing in
IT companies. In addition to its investment stake, Microsoft
has committed to channel business to Estarta (such as for
creating an Arabic version of its Excel 7.0 spreadsheet
program). According to a banker involved as an adviser in
the merger negotiations, some issues relating to the
corporate structure and management of the new company remain
to be worked out.
------------------
THE HOPE OF JORDAN
------------------
4. (U) At a dinner reception given by Estarta to celebrate
the launch and attended by the Ambassador, Minister of
Planning Bassem Awadallah, Minister of Trade, Industry and
Commerce Salah al-Bashir, and local IT professionals,
Minister of Information and Communications Technology Fawwaz
Zu\'bi opened the proceedings and said the \"young
entrepreneurs\" who forged the new company represented \"the
hope of Jordan\". He said the merged company represented a
model for \"what we would like to see in Jordan\", and
expressed his hope that other international IT companies
might now be more encouraged to invest in Jordan as a result
of the deal. The Ambassador cited Microsoft\'s participation
in the venture as \"a vote of confidence in Jordan\'s ability
to grow\".
5. (U) Earlier, at a press conference announcing the merger,
King Abdullah stressed the importance of cooperation between
the private sector and the government, particularly the
Ministry of Information and Communications Technology, in
working \"to open new horizons for IT in Jordan\". Contacts
between Microsoft and Jordan developed following a meeting
between King Abdullah and Microsoft CEO Bill Gates at the
World Economic Forum in Davos in 2000. Their relationship
drove Microsoft\'s plans for expanding its presence in Jordan.
One reason for the long gestation period was the change in
Jordan\'s Companies Law required to permit the formation of a
joint stock company (as opposed to the more common form of a
limited liability partnership), as demanded by Microsoft.
---------
SYNERGIES
---------
6. (U) We spoke with Estarta Senior Director Basil Qubain
about some of the upcoming projects the new company had in
the pipeline. He stressed that Estarta was all about
creating new approaches and synergies for its clients, not
using existing applications to solve problems. He cited
Mobius, a wireless platform that enables content providers to
send web-based content to any mobile phone, and Gaia,
Estarta\'s patent-pending pattern recognition software, as two
major projects with broad applications, ranging from
commercial to military, forged as solutions to client
problems and challenges. As an example of Estarta\'s
cooperation with Microsoft, Qubain pointed to Muse, an
automated intelligence interface that plugs into Microsoft
programs and acts as a virtual information manager and
organizer. By way of example, Qubain explained that once an
email is received by a user, Muse will list all previously
received emails linked either by subject or sender, enabling
the user to access and consolidate related information.
7. (SBU) Qubain said that the merger itself has gone quite
smoothly, as clients and personnel from Zeine and ONEWORLD
complement each other rather well. He added Estarta did face
a challenge regarding rival mobile telecom companies Fastlink
and MobileCom, as each was a client of Zeine and ONEWORLD
respectively. While theoretically it was possible to retain
both firms as clients, he said given current tensions between
the two it was impractical and unlikely. Qubain said he did
not yet know how the dilemma would be resolved.
-------
COMMENT
-------
8. (U) Coming after a dry period following the September 11
disaster, Microsoft\'s decision to invest in Jordan represents
a shot in the arm for Jordan\'s efforts to attract foreign
investment despite its volatile neighborhood. It is also a
boost for the Jordanian IT sector. Not just another IT shop,
Estarta has the goods and the drive to become, as it hopes,
the leading IT solution provider in the region with worldwide
reach. The success of Microsoft\'s investment in Estarta
could well attract more likewise innovative firms and
investors to a sector that Jordan expects to be a key to its
continued economic growth.
Gnehm
A few points to note here are the manipulation of government by Microsoft, the creation of a loophole to get around Jordanian law, and lobbying from Bill Gates, to whom this is a matter of nepotism, not technical merit. █
Permalink
Send this to a friend
Posted in Asia, GNU/Linux, Microsoft, Site News at 7:42 am by Dr. Roy Schestowitz
The Homepage of Julian Assange
Summary: A quarter of a million diplomatic cables, many of which secret or classified, are released to supply Techrights with exclusive and important stories to cover
In the years 2008 and 2009 Techrights got a lot of mainstream coverage owing to Comes vs Microsoft exhibits that we had uncovered and explained. We expect to have a lot more to reveal now that Wikileaks has fully uploaded and decrypted its stash of diplomatic cables from all across the world, spanning many decades.
As noted a few minutes ago, 60 GB of compressed diplomatic cables are now out in their complete form. We have begun studying the material and over the course of the coming year we hope to show/demonstrate government kowtowing and misconduct that affect the industry. Yesterday for example we found this:
¶1. (SBU) SUMMARY: To bridge the digital divide between the
India's high-tech urban centers and its vast rural hinterland,
Microsoft Corporation (Microsoft) is working with the GOI and
state governments to establish Internet Technology (IT)
connectivity in 100,000 villages around the country. Pilot and
developed programs from this project are already being initiated
in parts of East and North East India. Microsoft is also
working with other U.S. corporations such as Intel, Dupont,
United Telecom and Hughes Telecom to supply hardware and
software. As part of its eGovernance plan, the GOI hopes that a
wired rural India will lead to better citizen services and more
employment opportunities. Microsoft considers this effort a
good business model for bringing about rural connectivity as
well as providing critical public services in underdeveloped
parts of India. Microsoft India Vice President Tarun Malik and
Project Manager Vineet Garg emphasized that this program is
intended to be self-sustaining and commercially viable. The
company stressed that this is not part of a Corporate Social
Responsibility (CSR) program as CSR initiatives can cripple the
self-sufficiency of the recipients if not managed properly.
This effort to bring IT connectivity in East and Northeast India
appears to be well coordinated and looks to offer great
potential for improving local government services and for
enhancing rural IT connectivity. End Summary.
This raises all sorts of questions. For example, why are US politicians involved in this and why is Microsoft given all this leeway? Can’t Indians provide their own software? India has its own GNU/Linux distribution. This nicely relates to the Tamil Nadu debacle we wrote about in recent days. We are starting to see damage control now that some documents are leaked and public scrutiny is mounting. See today’s article titled “It Was Management’s Decision To Drop Linux From Tender”:
The Tamil Nadu government has dropped the provision of Linux operating system (OS) due to a management decision, said Atul Anand, managing director, Electronics Corporation Of Tamil Nadu Limited (ELCOT).
In a brief conversation with EFYTimes.com, Anand said, “It was purely a management decision to do that. However, if the users want, they can always download Linux and use it.”
Probably, the issue is not as simple as it is projected by the ELCOT. The decision has invited a lot of criticism for the government body as well. The state government has been criticised by the open source community for saying “No” to Linux for its 9.1 lakh free laptops.
As before, we encourage our readers to learn about Microsoft influence in the Indian government and also read what was based Comes vs Microsoft exhibits:
Cablegate is out and Microsoft is not going to like it. Among those who tried to derail Wikileaks was one who is close to Microsoft.
Some people have expressed their willingness to help Techrights study these issues together and we are gratified to learn that some of these people have already downloaded the whole of Cablegate (which also has many online mirrors with search facilities). Those who are eager to help us out (it’s a monumental task, but a truly rewarding one) can help turn raw material into clear articles with worldwide attention, so please join us in any of our IRC channels. This is where we coordinate most things (real-time, unlike blog comments). █
Permalink
Send this to a friend
08.31.11
Posted in Asia, GNU/Linux, Microsoft at 3:30 pm by Dr. Roy Schestowitz
Summary: Corruption in procurement processes, such as the ones we mentioned recently in relation to Europe, come into public awareness in the form of leaked documents
SEVERAL years go we covered Microsoft’s EDGI in India. We thought it was a fine demonstration of Microsoft’s corrosive and corrupt power over India — augmenting an agenda which was further lobbied for by the Gates Foundation. Together they have a lot of influence over the Indian government. For a little bit of background see:
Microsoft corruption has been quite rampant in India and over the years we have covered many more examples where Microsoft lied, misused the courts, and avoided tax (it was convicted of that too). One area where Microsoft has been less successful is Kerala and another — to a lesser degree — is Tamil Nadu. We have received documents (see final [PDF] and another version [PDF]) that show that there too Microsoft has managed to lobby and distort tenders/bidding processes, according to our sources. Swapnil Bhartiya dud a lot of the work highlighting the distortion. He also shows how and what was changed, so we need not do this again. “Tamil Nadu government is giving freebies as per their election promise,” wrote to us a local. “They are giving 900,000 laptop in first phase.
“If the minimum cost of operating system is calculated to 1000 RS, then the OS itself will cost above 90 crores.”
He continues: “In the first tender they had gone for dual boot system with Linux but suddenly few weeks back they came up with 2nd tender where they removed wireless cards, web cam and dual boot option. In
other way it was simply to benefit Microsoft
On another occasion, explained the same person: “they put a tender asking 4 dual boot quotation just day before they announce bidder, they revoked the tender and came with new tender where they put only MSFT as option [...] threatening vendors to put dual boot and increase dual boot”
To quote the analysis from Swapnil Bhartiya:
What it clearly means is:
1. The government will buy around 1 million Microsoft Windows licences.
2. Government has blocked ‘all’ competitors such as Canonical, Red Hat, SUSE and other independent vendors which develop Linux based operating systems from bidding for this huge tender.
3. Government has chosen expensive and insecure Windows, over free and open source Linux which is much more secure.
4. Government has decided to train 1 million students in Microsoft products instead of Linux and open source.
5. The Tamil Nadu government has refused to support the local economy by blocking local vendors who could offer services around Linux and went in bed with a US based company.
Why does the government even need to advertise the tender when it the end the corruption will find its way and the order will go to the favored party, blocking competitors. Will the government explain why it removed Linux and made the tender exclusive for Microsoft Windows?
We need more Anna Hazare to bring an end to the deeply rooted corruption in the Indian system.
And guess who always benefits from it? It is important to understand how Microsoft operates behind closed doors because the media hardly covers this. It’s the brave people who leak information (at their own risk) that really spread the facts. █
Permalink
Send this to a friend
« Previous Page — « Previous entries « Previous Page · Next Page » Next entries » — Next Page »
Content is available under CC-BY-SA