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

Microsoft Insiders: If You Don't Take the Lousy Severance-Like Offer, They'll PIP You Out (Microsoft Signals to People Over 40 That They'd Better Vacate the Place)
Microsoft targets its most experienced (read: expensive) workers
"AI" 16 Times in One 'Article'. The Register MS Got Paid to Post This Spammy, Promotional Piece of Slop.
Pay closer attention to who pays and who gets paid
Links 27/04/2026: Chernobyl Disaster at 40, "Heartbreaking" Decline of Australia
Links for the day
Gemini Links 27/04/2026: Gopher Catchup, MNT Reform, and Injuries
Links for the day
Red Hat Circling Down the Slop Drain
IBM, governed by slop fanatics, is going to do a lot of damage
Slop is an Addiction, Its Users Find It Addictive
please do not tolerate people who slop
The Corrupt Lecture the Non-Corrupt - Part VII - Secrecy at the EPO (Regarding Cocaine and Nepotism) Has Undermined Trust in Management
If Europe's second-largest institution is run by the "Alicante Mafia", does this mean that other key European institutions are "Mafia"?
SLAPP Censorship - Part 59 Out of 200: Mentioning the Fact Alex Graveley Arrested and Charged for Strangulation in Texas is "Reckless" and "Malicious", According to His 'Hired Guns' in London
it was framed as "malicious"
Links 27/04/2026: Strikes, Corruption in Spain (Spanish PM Sanchez' Wife), and YouTuber Faces Jail Time
Links for the day
Gemini Links 27/04/2026: Gopher Catch-up, Year of Contentment, and Path to Freedom
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 26, 2026
IRC logs for Sunday, April 26, 2026
Journalistic Malpractice: Helping Microsoft Paint 'Voluntary' Layoffs (Before PIPs) as "Buyouts"
What does this tell us about today's media?
The Man IBMers Regard or Already See as Likely Successor of Krishna (or Next CEO of IBM) is a Slop Fanatic
How dangerously misguided
The Corrupt Lecture the Non-Corrupt - Part VI - Management of the European Patent Office (EPO) Covered Up Cocaine Use, Even Colleagues Not Informed
the self-described "fu--ing president"
SLAPP Censorship - Part 58 Out of 200: 5RB and Brett Wilson LLP Helped Garrett and Graveley Make Equivalent of GAFAM NDAs Superficially 'Enforceable' in the UK, Using Threats
laziness results in many hours and high lawyers' fees
Who Controls Fedora? IBM and GAFAM.
Don't for a moment believe that IBM understands GNU/Linux. We are quite certain nobody in IBM's Board of Directors uses it.
State of Slop About GNU/Linux
As the incentive to publish is reduced (competing with slop is no fun), the effort/money invested in stories goes down
Links 26/04/2026: Korean Inflation, GLP-1 Drugs Linked to Cognitive Impairment, Lithuania's Public Broadcaster LRT Besieged
Links for the day
Hopefully Smooth Sailing in OS Upgrade
There are some contingencies at hand
Links 25/04/2026: "Horrible Economics of AI Are Starting to Come Crashing Down", More Restrictions Placed on Social Control Media
Links for the day
Getting Aggressive Suggestive of Loss - Part IV - Shutting Down My Existence
Would anyone out there tolerate such messages sent from burner accounts?
Gemini Links 26/04/2026: Gemini Movie Database (or GeminiMDB) and Star Trek III
Links for the day
Weeks Before Linux Removed Over 100,000 Lines of Code Due to Slop 'Bug Reports' Microsoft Paid 'Linux' Foundation to Advance Slop in the Name of 'Security'
What can possible go wrong? Both for security and for stability.
Tracking Ages of People
To stay "safe" tell us your age
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, April 25, 2026
IRC logs for Saturday, April 25, 2026
"A single witness shall not rise up against a person regarding any wrongdoing or any sin that he commits; on the testimony of two or three witnesses a matter shall be confirmed." (Deuteronomy 19-21)
The spouse of Garrett repeatedly points out that Garrett can barely code or can only do so very poorly
Rust People Sabotage Stability for the Sake of a Falsely-Promised 'Security'
Set aside severe performance issues, poor handling of "edge cases", general bugs, lack of compatibility, and even crashes
SLAPP Censorship - Part 57 Out of 200: 5RB and Brett Wilson LLP Made the Garrett and Graveley Particulars of Claims a Lot Like Photocopies!
They seem very much irritated that I speak about this
Huge Strike at the European Patent Office (EPO) This Coming Friday (May 1st)
International Worker’s day
Links 25/04/2026: Nokia Wins Embargo in Kangaroo Court Where Judges Are Salaried Nokia Staff (UPC), Allison Pearson Defamation Case (UK) Succeeds, Smokey Robinson and "Puff Daddy" (US) Fail
Links for the day
Gemini Links 25/04/2026: Weekly Echoes, Gemtext Tables, and Using Offpunk
Links for the day
Corporate Media Did Not Specify What Microsoft Means by "Buyouts" (Layoffs), It May Be Hardly Different From Severance
Time will tell, but investigative journalism hardly exists anymore, so we won't hold our breath
The Corrupt Lecture the Non-Corrupt - Part V - "Diversity" and "Inclusion" at EPO Means Sleeping With Sister of "Cocaine Communication Manager" and Making Them Millionaires
Remember that top applicants or key stakeholders of the EPO are already complaining about a lack of quality
Links 25/04/2026: Fake GAFAM Valuations (Gripping the Market Based on False Accounting), "Evidence Isn't Just for Research", and "Putin Defends Mobile Internet Outages"
Links for the day
Dr. Andy Farnell on Why Calling Slop or Chaff "Hey Hi" (AI) Harm Us All, Except for "Ten or Twenty Rich Industrialists"
"words to avoid"
Internet Trolls Likely Trying to Distract From the Demise of IBM, Problems With Red Hat
there seems to be trolling online aimed at suppressing discussion
Debian Upgrade Coming Up (Soon)
Yesterday we contacted the datacentre staff about it
Getting Aggressive Suggestive of Loss - Part III - Threats From Burner Accounts Formally Treated as a Crime
Countries that cannot preserve freedom from self-censorship are countries where free press ultimately cannot prevail
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 24, 2026
IRC logs for Friday, April 24, 2026
Gemini Links 25/04/2026: 3.4k+ Capsules, Microsoft Layoffs, Call for Nuclear Disarmament, "Internet is Sad and Lonely"
Links for the day