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Microsoft ends dispute with defense ministry

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By Kim Yoo-chul

Microsoft has made peace with the Ministry of National Defense after the software giant dropped an earlier demand for the ministry to pay billions of won for the use of Microsoft software.

On Thursday, the defense ministry said Microsoft is no longer asking that the ministry pay licensing fees of about 200 billion won for past usage of its software.

“We reached a consensus not to talk about the past. Rather, Microsoft and the ministry agreed to strengthen their bilateral partnership in business areas in which the two are currently involved,” a ministry spokesman said.

“We believe Microsoft’s proven experience of handling cyber security and other related technologies will significantly help us improve the national cyber security,” the ministry said in a statement. It added it has been consistent in strengthening cyber security.

Microsoft welcomed the new pact.

“This agreement will help us solidify our partnership with the defense ministry. Yes, it’s true that Microsoft won’t talk about the past. We will talk about the future,” said Baik Soo-ha, the head of communications at Microsoft Korea, by telephone.

Last year, Microsoft filed official complaints with the ministry, insisting its valuable intellectual property rights were infringed upon as some 210,000 PCs used by the military ran illegal copies of its software.

In accordance with the claim, Microsoft asked the ministry to hand over data of the total number of PCs used by the military and the list of software programs they were using.

At that time, Microsoft stressed it was taking similar steps for other government agencies in Korea, as well, citing enhanced copyright regulations under the free trade agreement between the United States and Korea.

Microsoft also claimed compensation for losses from the military’s use of unauthorized and pirated software.

The ministry refused to accept the request as the losses calculated by Microsoft were “not fair and don’t make sense.”