Bonum Certa Men Certa

Microsoft Attacks GNU/Linux in Asia Through the Government

Thai flag



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



Comments

Recent Techrights' Posts

Faking Productivity With Slop and Wasting Money on Faking 'Productivity': A Microsoft Story
If the quality of everything at Microsoft goes down
Wikipedia - Like Some Free Software Projects Infiltrated and Bribed - Bans Its Own Founder
Over the years we've named (not shamed) some projects and organisations that got corrupted by money and ended up banning their own founders
The “Aktion T4” at the European Patent Office (EPO) Saves Money for the President's Own Purse
Call for parents of children with special needs
SLAPP Censorship - Part 116 Out of 200: 5 Years of Multiparty Lawfare Against Techrights, Funded by Americans and Also by Third Parties (Including Microsoft Salaries)
The public and our government will be informed in full
After IBM's Shares Collapsed the CEO is Trying the "Quantum" Trick Again, Bolstered by a Demented Dictator in the White House
from what we can gather IBM's CEO is trying to get the US government to participate in the scam
 
European Patent Office (EPO) Series: London Calling...
EPO Vice-President in charge of the "Patent Granting Process" is likely to have been a pay-off for the support which the UK gave to Campinos in 2017
IBM Sends Workers 'Packing', Sometimes With the "Low Performer" Label That Imperils Their Future
To many people out there, IBM correlates with deceit
Links 24/06/2026: Four-Day Workweeks, GM Cut 1,000 Workers at Its EV Plant, 21,000+ Oracle Layoffs
Links for the day
A Step in the Right Direction (EU) in the Fight Against LLM Slop From GAFAM (US)
We've already mentioned this in Daily Links, but let's discuss this a little further
SLAPP Censorship - Part 117 Out of 200: Libel Tourism or Defamation Forum-Shopping in the United Kingdom Condemned by the European Union (EU)
Last week we reminded readers that the EU had criticised UK defamation law
Demonstration Next Week at the European Patent Office (EPO), Administrative Council Seen as Complicit
Corruption in Europe hurts all of us
IBM is Now Hinged on False Accounting and False Promises
This is the legacy of the current CEO
"PARTNER CONTENT" or 'Content Farms' That Promote Slop and Misinformation (The Register MS)
The Register MS represents a big part of the problem we all face
Turn Off the Slop, It's Wasting Energy and Destroying the Planet (the Only Planet We Have)
Right now we see lots of headlines about energy shortages and drained-up reserves
Lessons From Almost 30 Years of Site-Building Activities
We still strive to become faster and lighter
Do Not Outsource (the Seductive Mirage)
Abandoning so-called 'conventional wisdom'
Media Complicit in IBM Fraud Meant to Prop Up the Share Price Based on Lies, Fabrications
Even IBM insiders are fuming at this
In Some Countries, Windows Has Lost Its Monopoly
Windows fell to an all-time low globally this month
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 23, 2026
IRC logs for Tuesday, June 23, 2026
Gemini Links 24/06/2026: Motivation, PostScript Printer, and Why Hyperscalers and the Smolnet are Compatible
Links for the day
The Media's "Satya Says" Syndrome Distracts From Grim Reality
how insiders see Microsoft slop
Oracle's Collapse Has Nothing to do With Slop, It's About Its Debt Exploding by Almost 50% in Just 12 Months
How are people meant to trust the media?
Now... a Word From Our Sponsor
Powerade
Links 23/06/2026: Microsoft Studio Closures and Journalism Subjected to Further Cuts
Links for the day
Gemini Links 23/06/2026: Gardens, Basketball, Blocking Hyperscaler, and New Commodore Phone
Links for the day
Links 23/06/2026: Apple Price Hikes and Technical Debt in Slop
Links for the day
Greece Ought to Curb the Threat of Social Control Media
its national discourse seems to be run by an American company called Facebook
State of the GNU/Linux Desktop (and Laptop)
The time to advocate GNU/Linux is now
The 'XBox Narrative' Distracts From Destructive Cuts Across the Whole of Microsoft
Microsoft is preparing to lay off a likely record-breaking number of people [...] this isn't just an XBox problem
SLAPP Censorship - Part 115 Out of 200: Spending the Next Decade Writing About SLAPPs and Trying to Fix the System
It's the same industry that got paid by corrupt EPO officials to try to cover up the corruption
Microsoft's Stock Fell Nearly $200, But the Real Problems Are Just About to Begin
if they dump slop, what will they tell shareholders?
The Cyber Show on Starmer and Software Freedom
The Cyber Show's Andy has just explained why our departing national leader wasn't all bad
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 22, 2026
IRC logs for Monday, June 22, 2026
Gemini Links 23/06/2026: Girlrotting, Homeworlds at BGA, Slop Ruins Sites
Links for the day
A Lifetime of Whistleblowing
Ellsberg did not have an easy life, but it was a rewarding life with a rich legacy focusing on justice
European Patent Office (EPO) Series: A Man With Many Missions...
Campinos – accompanied by Gilles Requena and Patrice Pellegrino
Links 22/06/2026: Ubisoft Co-founder Dies, Americans Have Turned Against Slop
Links for the day
Links 22/06/2026: "The Sycophancy Machine" and "Port 22 Open for 54 Days"
Links for the day
When People Who Make the Most Money Are the Best "Boot Lickers" (Sucking Up to Jeffrey Epstein's Circle and the Dictator)
Sucking up to rich people may pay off
The Aim is Not Fame
Reposted from schestowitz.com
"Internally Important, Externally Irrelevant": IBM in a Nutshell
Right now its debt spins out of control and its stock spirals down the drain
SLAPP Censorship - Part 114 Out of 200: Thousands of Long Articles to Come, Properly Covering the SLAPP Industry in the UK and Its Modus Operandi
"Stowell described SLAPPs as ‘a stain on our legal system’."
Finding a Way to Get Paid to Improve LibreJS
So now we have more people resurrecting LibreJS and improving it
Microsoft Can't Even Wait Until July, Shutdowns and Layoffs Already Happening
Mashable speak of "a grim picture for the state of Xbox."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 21, 2026
IRC logs for Sunday, June 21, 2026
Gemini Links 22/06/2026: Appreciating Simple Things, Perfect Summer Evening, IRIX, Vim and so
Links for the day