Microsoft is pitching itself as the new best friend of American manufacturing in a campaign aimed at convincing state and federal authorities to crack down on software piracy. The company's argument: foreign manufacturers are slashing costs by ripping off software, giving them a competitive advantage over Americans playing by the rules.
But the push is engendering opposition from some of the very companies the software giant says stricter enforcement is meant to protect -- a roster that includes Apple, Cisco, Dell, HP, Google, IBM, Motorola, and Xerox.
The nascent battle of tech titans for now centers on a bill Microsoft (MSFT) is working to steer through the California state legislature, but it has also landed in Congress and lobbyists watching the issue expect it to intensify quickly.
Microsoft contends it is simply seeking to level a playing field whose tilt has accelerated the offshoring of manufacturing jobs over the last decade. It points to a study by the Business Software Alliance showing that reducing piracy by 10% over four years would generate nearly $38 billion in new economic activity and create 25,000 new tech-industry jobs.
"Pirated IT undermines innovation and puts law abiding businesses at a disadvantage when competing with companies that choose the shortcut of stealing intellectual property," Microsoft deputy general counsel Nancy Anderson said in a statement.
Opponents counter the fix the company is pushing would require firms to certify, at immeasurable cost, every line of code in huge, far-flung supply chains. And in California, where Microsoft is backing legislation requiring state contractors to certify they've only used licensed software, home-state tech companies see more complications than benefits.
"These companies are very concerned about intellectual property in global markets," says Dorothy Rothrock, a lobbyist for the California Manufacturers and Technology Association, "but this bill increases the risks even for good actors."
It's not entirely clear why Microsoft would adopt a strategy that puts it at odds with other major software makers. Both Microsoft and Cisco, for example, aggressively police piracy violations across the globe -- and both rely on similarly disparate networks of suppliers.