● 09.07.11

●● Cablegate: Kyiv Embassy Cites Bogus Numbers From the BSA

Posted in Cablegate, Europe, Microsoft at 3:57 am by Dr. Roy Schestowitz

Summary: Ukrainian people sent to prison for selling Windows where GNU/Linux grew following

IN ORDER to pressure Ukraine to act in accordance with Microsoft’s wishes, American diplomats rely on intimidation and cite the BSA. But more importantly, for those who need background about Microsoft in Ukraine, see the following:

↺ BSA

The Ukraine’s GNU/Linux Ambitions and Microsoft’s MOU ResponseMicrosoft Imprisons the Ukraine and a South African UniversityUkraine, Russia, China and Several More Countries Under Attack From Microsoft Pirates

The truth of the matter is, Microsoft needs so-called ‘piracy’ in Ukraine in order to keep GNU/Linux at bay. What what the company is doing with help from American diplomats, according to the following Cablegate cable:

>

VZCZCXRO2344

RR RUEHBI

DE RUEHKV #1205 1420621

ZNR UUUUU ZZH

R 220621Z MAY 07

FM AMEMBASSY KYIV

TO RUEHC/SECSTATE WASHDC 2380

INFO RUEAWJA/DEPT OF JUSTICE WASHDC

RUCPDOC/USDOC WASHDC

RUEHMO/AMEMBASSY MOSCOW 0160

RUEHBI/AMCONSUL MUMBAI 0039

UNCLAS KYIV 001205

SIPDIS

DEPT PLEASE PASS TO USTR FOR LMOLNAR/JGROVES

USDOC FOR 4201/DOC/ITA/MAC/BISNIS

USDOC FOR 4231/ITA/OEENIS/NISD/CLUCYCK

STATE FOR EUR/UMB AND EB/TPP/IPE

MUMBAI FOR KLEIN

SIPDIS

E.O.: 12958: N/A

TAGS: ETRD, KIPR, EINT, UP

SUBJECT: UKRAINE: MICROSOFT AND GOU GO AFTER SOFTWARE PIRATES

REF: A) KYIV 449

B) 2006 KIEV 2723

1. Summary: A local Kyiv court sentenced a convicted distributor of

pirated software on May 7 to one year and one month imprisonment.

Although the judge then suspended the prison term, the severity of

the sentence attracted significant media attention. The case is

part of an invigorated campaign by Microsoft, with the cooperation

of Ukrainian law enforcement, to crack down on software piracy.

Software piracy rates in Ukraine remain among the worst in the

world, although the GOU appears to be taking steps in the right

direction. End Summary.

Software Piracy Conviction

--------------------------

2. On May 7 a local Kyiv court found a distributor of pirated

software guilty of copyright infringement and sentenced him to one

year and one month imprisonment. The case resulted from a raid by

law enforcement officials in January at Kyiv's "Radiorynok" outdoor

market. Media reports noted that the court's sentence was stiffer

than those in previous software piracy cases, which usually resulted

only in administrative fines. The judge subsequently suspended the

prison term (conditional on the defendant not committing another

crime), however. Serhiy Lebid, head of the Ministry of Internal

Affairs' IPR Department, told Econ Assistant on May 15 that the

convicted pirate is unlikely to see the inside of a cell.

Larger Microsoft/GOU Campaign

-----------------------------

3. Ukrainian daily Kommersant reported on May 11 that this case was

only the first of many to follow in the wake of 14 raids by law

enforcement in early 2007. Vladislav Shapoval, a lawyer

representing Microsoft, told Kommersant that there were now 17 cases

involving pirated Microsoft software working their way through the

courts. In April, Microsoft stepped up pressure on suspected

violators, sending warning letters to 82 companies and organizations

suspected of using pirated software.

4. Valery Lanovenko, General Manager of Microsoft Ukraine, told

Econoff on May 12 that this case represented an important victory

for Microsoft's anti-piracy efforts. He cautioned, however, that

Microsoft was anticipating an appeal of the conviction. Lanovenko

has in the past told Econoff that a key element of Microsoft's

strategy in Ukraine is to push for a few high-profile criminal

convictions in order to encourage Ukrainians to eschew pirated

products.

Software Piracy Remains Rampant

-------------------------------

5. According to a recent study by the Business Software Alliance

(BSA), Ukraine places among the 10 countries with the highest rates

of software piracy in the world. The piracy rate stood at 84% in

2006, virtually unchanged from 85% in 2005. Ukraine also falls

among the top 20 countries in the world in terms of losses to

industry, estimated by BSA at USD 337 million for 2006.

6. As noted in ref A (Post's Special 301 submission), government

procurement/use of pirated software also remains a problem.

Microsoft canceled a software legalization agreement with the GOU in

June 2006 due to government noncompliance.

Comment: Small Step in Right Direction

--------------------------------------

7. Microsoft, long active in Ukraine through public outreach and

cooperation with the GOU (ref B), is stepping up its fight against

local pirates. Ukrainian law enforcement, especially the Ministry

of Internal Affairs' IPR Department, appears willing to help by

targeting raids at suspected distributors of pirated software. This

recent, high-profile conviction should help discourage use of

pirated software. Until someone actually goes to jail, however, the

deterrent effect could be limited.

TAYLOR

As one of our readers noted 2 days ago, when Microsoft says it cracks down on “piracy” it it cracking down on GNU/Linux. █

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