From: http://www.msnbc.com/news/426438.asp Oracle admits it hired agency to investigate allies of Microsoft By Glenn R. Simpson and Ted Bridis THE WALL STREET JOURNAL WASHINGTON, June 28 — Software maker Oracle Corp. acknowledged it hired a detective agency to investigate allies of Microsoft Corp. and disclose internal documents to the media about Microsoft’s political activities. THE DETECTIVE FIRM, Investigative Group International Inc., used controversial tactics against technology trade associations and other groups allied with and supported by Microsoft — in one case, offering to buy their office trash — in an elaborate yearlong operation. Oracle confirmed its use of IGI in a statement late Tuesday, saying it was necessary to expose underhanded attempts by Microsoft to fight the Justice Department’s landmark antitrust case against the software giant. (Microsoft is a partner in MSNBC.) “Left undisclosed, these Microsoft front groups could have improperly influenced the outcome of one of the most important antitrust cases in U.S. history,” Oracle said in response to queries from The Wall Street Journal. The new disclosures suggest Oracle, which is on the brink of eclipsing Microsoft as the technology industry’s hottest software maker, waged an elaborate clandestine battle against its rival even as Microsoft was under siege from the federal government in its landmark antitrust case. Oracle confirmed that it hired IGI to probe the Independent Institute of Oakland, Calif., and the National Taxpayers Union of Arlington, Va. “As a result, Oracle discovered that both the Independent Institute and the National Taxpayers Union were misrepresenting themselves as independent advocacy groups, when in fact their work was funded by Microsoft for the express purpose of influencing public opinion in favor of Microsoft during its antitrust trial,” the company’s statement said. Oracle also defended IGI’s investigation of a third group, the Association for Competitive Technology, without explicitly taking credit for that probe. Jonathan Zuck, executive director of ACT, described IGI’s attempts to purchase his group’s trash for $1,200 as “a violation and personal attack,” and demanded an apology from Oracle. “Given the climate of privacy concerns today, how could Oracle’s Larry Ellison possibly think this is an acceptable business practice?” Mr. Zuck said. Mr. Ellison is Oracle’s chief executive officer. The IGI investigator who led the company’s Microsoft project, Robert M. Walters, 61 years old, resigned Friday after he was named in stories about the case. Oracle said it has no knowledge of any illegal activities by IGI, and the agency says it strictly abides by the law. Initial reports of a break-in and a theft possibly connected to the affair haven’t been substantiated. “This is further evidence that our competitors have conducted an orchestrated PR and lobbying campaign to generate government intervention into a marketplace that is working for consumers,” Microsoft spokesman Vivek Varma said. “This is a pretty sad commentary to resort to these sorts of actions. It’s a bad day for the industry.” In addition to IGI, Oracle also hired Chlopak, Leonard, Schechter & Associates, a Washington, D.C., public-relations agency, to distribute damaging information about Microsoft’s allies to media outlets, according to people familiar with Chlopak’s operations. In one instance, Chlopak was involved in distributing internal information from the firm of political consultant Ralph Reed about his lobbying for Microsoft. The revelation that Mr. Reed was working to curry favor for Microsoft with Republican presidential candidate George W. Bush, for whom he was a campaign adviser, was embarrassing to Mr. Bush and resulted in a public apology by Mr. Reed. The firm also played a role in distributing an internal strategy document from the DCI Group, another Microsoft consultant. IGI hasn’t been linked to those incidents. Beau Phillips, a spokesman for Chlopak, had no immediate comment. Microsoft, despite its legal battles, remains the biggest commercial threat to Oracle, which makes powerful database software used by many of the world’s largest corporations. Named after a Central Intelligence Agency project that was its first commercial contract, Oracle has seen its stock climb nearly 350% in the past 12 months; Oracle is now the No. 2 software maker, behind Microsoft. Oracle also was among companies that provided documents and guidance to the Justice Department during its antitrust investigation of Microsoft. Mr. Ellison, Oracle’s flamboyant chief executive, is at least as well known for his business acumen as for his personal rivalry with Microsoft Chairman Bill Gates. This year, Mr. Ellison closed in on Mr. Gates to become the second-wealthiest American, worth roughly $47 billion to Mr. Gates’s $60 billion. — Don Clark in San Francisco contributed to this article. ================================================================= Kadosh, Kadosh, Kadosh, YHVH, TZEVAOT FROM THE DESK OF: <[EMAIL PROTECTED]> *Mike Spitzer* <[EMAIL PROTECTED]> ~~~~~~~~ <[EMAIL PROTECTED]> The Best Way To Destroy Enemies Is To Change Them To Friends Shalom, A Salaam Aleikum, and to all, A Good Day. ================================================================= <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! 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