● 09.08.11
●● 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
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 RUEHWEBDE 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 PRIORITYC 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-Dhahersuggests 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 (religiousruling) 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.
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