05 March 2003

Gates opens Windows source code to China

Facing rampant piracy of its Windows software by the Chinese and steep competition from Linux, which is free, Microsoft has opted to strengthen its marketing hand in that enormous manufacturing market by giving the Chinese government controlled access to Microsoft Windows source code.

During a Beijing, China, reception for Microsoft chairman Bill Gates, representatives of the China government and the China Information Technology Security Certification Center (CNITSEC) formally agreed to participate in Microsoft's recently announced Government Security Program (GSP).

According to Microsoft, the GSP is a global initiative that provides national governments with controlled access to Microsoft's cherished Windows source code and other technical information they need for Windows platform security. Last month, Russia, the North Atlantic Treaty Organization, and the U.K. became the first government organizations to ink GSP agreements.

Microsoft said it is in discussions with more than 30 countries, territories, and organizations about their interest in the program.

"Microsoft's GSP provides us with the controlled access to source code and technical information in an appropriate way. It also establishes cooperation between China and Microsoft. Microsoft has taken a great step forward to let us understand its product security," said Wu ShiZhong, CNITSEC director.

Microsoft's dilemma, leading to the China pact, stems from the fact that a Chinese-language version of Windows XP costs US$245�about four times what the average Chinese laborer is paid for one month's work. Illegally pirated XP copies are readily available for under $10. Meanwhile, Linux open source software is gaining ground because it's free.

Not wishing to abandon China's huge industrial market, Microsoft earlier launched numerous joint research and other ongoing programs to train Chinese software engineers to use Windows. The government agreement was seen by Microsoft watchers as an ingenious strategy to clearly warn users that pirated Windows copies are vulnerable to security breaches.

Microsoft said the GSP is tailored to the specialized security requirements of governments. The program is a no-fee initiative that provides program participants with the ability to review Windows source code using smart card-based secure online access and subject to certain license restrictions.

Under the GSP master agreement, the government agency can also authorize the sponsored agencies to undertake research projects in the field of information security. In addition to source access, the GSP calls for Microsoft to disclose technical information about the Windows platform that will enhance governments' ability to build and deploy computing infrastructures with strong security technologies in place.

Said Gates: "As part of Microsoft's commitment to creating a trustworthy computing environment, we are pleased to have signed this agreement. As a government trusted partner, we are committed to providing the Chinese government with information that will help them deploy and maintain secure computing infrastructures. We see this agreement as a significant step forward in Microsoft's relations with the Chinese government."



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