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OT OT:Microsoft to Give Govt. Access to Code



RELATED SYMBOLS: (MSFT)

SEATTLE, Jan 15, 2003 (AP Online via COMTEX) -- The source code Microsoft Corp.
has long guarded as secret intellectual property is now becoming the carrot
dangled before governments to keep them from defecting to competitors' software.

Microsoft on Tuesday announced a new program to make the underlying code for its
Windows operating system available to several governments and governmental
agencies for viewing.

The software company has already signed agreements with the Russian government
and NATO to allow them to review for free the underlying programming
instructions that Microsoft has long guarded as secret intellectual property.

The decision will let governments evaluate for themselves the security of the
Windows platform, Microsoft said. It also will give them the technical data they
need to develop their own secure applications to work atop Windows.

The announcement comes as government agencies in Japan, France, Germany, China
and the United States are looking into or adopting competitors' software,
including open-source Linux-based systems. Unlike Microsoft's proprietary
software, the underlying code for open-source code software can be downloaded
free, improved and redistributed.

"It's a brilliant maneuver," said Michael Gartenberg, research director for
Jupiter Research. "It gives them a huge (public relations) win, gives them a
response back to the open-source folks and also provides the impetus that many
of the government organizations have been looking for to continue doing business
with them."

The "Government Security Program" is similar to Microsoft's "shared-source"
program, introduced in 2001, in which it makes some of its source code available
on a limited basis to clients and technology partners.

Microsoft has a list of more than 60 countries and organizations with which it
would consider signing agreements, including China, France and the United
States, said Salah Dandan, the program's worldwide manager. The Redmond,
Wash.-based company said it is confident governments will respect Microsoft's
intellectual property and isn't worried about piracy or other infringements, he
said.

"The basic business decision that we decided to make here is that Microsoft is
willing to trust governments and willing to partner closely with them," Dandan
said. "We are fully aware of the risks, but cognizant that this program will
help strengthen relationships with governments around the world."

The program covers Windows 2000, Windows XP, Windows CE and Windows Server 2003,
due for release in April.

---

On the Net:


By HELEN JUNG
AP Business Writer

Copyright 2003 Associated Press, All rights reserved

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APO Category=1700
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(CO:Microsoft Corp; TS:MSFT; IG:SOF;)
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KEYWORD: SEATTLE
SUBJECT CODE: 1700
http://www.microsoft.com

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Daniel Nieves