● 09.08.11
●● Cablegate: US Embassy Changes Saudi Laws and Practices for Microsoft, Helps Shut Down Saudi Stores
Posted in America, Microsoft at 3:53 pm by Dr. Roy Schestowitz
Summary: A demonstration of how — with help from the US government — Microsoft was able to influence affairs overseas and also raid shops that spread Microsoft products
THIS morning we showed a few cables from Saudi Arabia. Microsoft was trying to change laws and practices there, in order of course to better accommodate Microsoft’s profit model, not to help Saudi citizens. Well, this leaning on the government — helped by US officials — seems to have paid off. We’ve just found another Cablegate cable from exactly 2 years ago. It shows the role of the BSA behind the scenes too:
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DE RUEHRH #1202/01 2571429
ZNR UUUUU ZZH
P 141429Z SEP 09
FM AMEMBASSY RIYADH
TO RUEHC/SECSTATE WASHDC PRIORITY 1567
INFO RUEHZM/GCC COLLECTIVE PRIORITY
UNCLAS SECTION 01 OF 02 RIYADH 001202
SIPDIS
SENSITIVE
STATE FOR NEA/ARP (HARRIS, BERNDT) AND EEB/TPP/IPE
DEPT PLEASE PASS TO USTR (BUNTIN)
E.O. 12958: N/A
TAGS: ECON, ETRD, KIPR, SA
SUBJECT: Microsoft and Saudi leaders cite progress on IPR
Ref: Jeddah 297
1. (SBU) Summary: The Saudi Ministry of Culture continues to make
progress working through a backlog of cases of suspected copyright
violators. The Ministry reports it has closed several stores for
brief periods until they resolve copyright violations. It plans for
the first time to refer a repeat offender to the Board of
Grievances. The Ministry supports greater public relations efforts
to increase awareness of IPR issues, and it is willing to work with
industry on training and awareness campaigns. Meanwhile, local
Microsoft representatives tell us they have seen the Saudi
government show improvement in both attitude and enforcement, and
they confirmed to us that one computer store has been closed for IPR
violations. The company remains willing to work with Saudi
ministries to provide training and increase awareness, although they
still say enforcement could be stronger, including within the SAG.
End summary.
Microsoft exec: Saudi record on IPR has improved...
--------------------------------------------- -------
2. (SBU) On September 8, Fernando De Sousa, Microsoft's chief
operating officer in Saudi Arabia, paid a farewell call on Charge
Ambassador Erdman, thanking him for the Embassy's strong support on
IPR issues. The Ambassador briefed De Sousa on his recent
conversations with Minister of Commerce and Industry Abdullah Zainal
Alireza (reftel), in which the Minister reiterated Saudi Arabia's
commitment to fulfill all of its WTO commitments to protect
intellectual property. The Minister had said he welcomed the
interest of companies like Microsoft in supporting SAG enforcement
efforts, including through training. Econ Counselor also briefed
the Microsoft team on recent conversations with Assistant Deputy
Culture Minister for Internal Information Abdulrahman Al-Hazzaa, who
also welcomed cooperation with Microsoft and other companies on
training and public awareness campaigns.
3. (SBU) Hazzaa reported that the Ministry of Culture and
Information is processing the backlog of IPR enforcement cases that
had been awaiting review by the violations review committee,
finishing an average of 7 a week, and on track to finish reviewing
all old cases by the end of September (the committee was meeting in
the adjoining room while Econoffs called on Hazzaa). Hazzaa said
that this will allow the committee to focus on bringing new cases
from inspectors, which will help improve awareness of enforcement
efforts. Hazzaa reported that, as a result of the committee's
reviews, several shops have been closed with the posting of large
public notices explaining why until the owners come and settle their
fines with the Ministry. The point, according to Hazzaa, is to
impress upon store owners that they cannot sell pirated goods with
impunity. (Microsoft reps separately confirmed they are aware of
one computer store having been closed down and said that closures
may help stores selling legitimate software compete if enforcement
is seen as more pervasive.) Hazzaa also reported that increased
Ministry inspections and enforcement efforts have disrupted the
ability of black market vendors to sell a range of pirated products.
Econoffs have observed a reduction in the public sale of pirated
software and other items, like movies, over the last year.
Microsoft representatives agree that there has been some reduction
in street-level sales, although they believe stores in malls
continue to sell pirated software.
4. (SBU) Hazzaa also reported that the committee had found one
commercial entity had engaged in so many violations that the
committee has recommended, for the first time, that the case be sent
to the Board of Grievances with a recommended fine of SR 100,000.
He explained that the Minister of Culture and Information will have
to approve this referral, and he promised to push hard for this
approval, noting that this will send an important message to the
Saudi public and business owners that the Ministry is serious about
enforcing copyright laws.
... and the issue now is sustainment
------------------------------------
5. (SBU) De Sousa told the Ambassador that there has been
improvement in IPR copyright protection in the last several years,
although he said the issue now is to make this improvement
sustainable. He also stressed Microsoft's willingness to support
efforts by the Ministries of Culture and Commerce to publicize
enforcement efforts and assist public campaigns to raise awareness
of IPR issues.
6. (SBU) Despite the improvement in the overall climate, De Souza
noted that problems remain. He noted that Microsoft has discovered
a software activation key licensed to the Ministry of Interior has
been used in Pakistan and other south Asian countries to attempt to
register product upgrades. The Ambassador suggested that Microsoft
work with the Business Software Alliance and other companies to come
up with a white paper listing specific problems on which it would be
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useful to have greater cooperation with the SAG, including the
Ministry of Interior.
7. (SBU) Comment: The Embassy will continue to work with the
Ministries of Culture and Commerce and with industry representatives
to foster agreement on a public relations campaign to increase
awareness about IPR issues. We will also continue to support
industry offers to provide training to SAG inspectors, and efforts
to achieve SAG support to allow an audit of its own software to
ensure it does not exceed its existing license requirements. End
comment.
MUENCH
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