Microsoft Korea(MS) raised a client access license (CAL) issue against Korea’s biggest public enterprise called Korea Electric Power Corporatioon (KEPCO). Microsoft Korea once raised a same issue against Ministry of National Defense in 2012. Ministry of National Defense was going to take this issue to the court at the time, but everything was smoothly settled as they made a business agreement the following year to modernize national defense’s IT field.



According to the business circle, Microsoft Korea sent document that requires stabilization because it believed ‘MS SQL’ 2005 and 2008 versions violated license agreement that were applied to electric power supply intelligent information system. Stabilization that Microsoft Korea demands is that it is essential to change agreement that was based on past users to device-based.



When KEPCO purchased MS SQL 2005 and 2008 versions, it made an agreement based on standard that requires 5 copies per server and 700 servers total. Total amount of license was 3500 copies.



Electric power supply intelligent system is a system that handles electric power supply function from afar, which is KEPCO’s main work. There is a limit to how many users can access into the system since it is Korea’s main system. “Only certain people from headquarter department and workers from 41 electric power supply centers can access into electric power supply inteligent system. Even if the number is big, it doesn’t go over 500.” A person related to KEPCO talked about who can access into the system. This can be explained as that size of 3500 copies is sufficient enough.



If stabilization standard that Microsoft Korea demanded is applied, number of license increases to 85,000 copies according to CAL policy that is based on number of device. Number is increased because embedded terminals that are related to electric power supply and all equipments are regarded as devices. KEPCO opposed to this by saying that it is unfair to calculate the size of license by including devices that are not related to SQL. “All equipments are not directly connected to SQL, and there are intermediate processors that connect two equipments. There is a limit to how many types of equipment are connected to SQL.” A person related to KEPCO explained about how not all equipments are connected to SQL.

KEPCO is taking a stance that it is illogical to apply CAL policy after 7 years when it was not mentioned during the agreement for 2005 and 2008 versions. “On a separate note from Microsoft Korea stabilization demand, we were thinking about purchasing 2014 version to upgrade a system. We can apply CAL policy or any policies from Microsoft Korea when we need to upgrade, but it is unfair to apply CAL policy onto previous contracts.” A person related to KEPCO talked about how KEPCO needs Microsoft Korea, but it is unfair to apply CAL policy onto previous contracts.



If Microsoft Korea charged KEPCO for violating license, things will become even worse. Some people in the business circle is predicting that conflict between Ministry of National Defense and Korea MS is becoming reenacted. At the time, Microsoft Korea demanded extra 190 million dollars (210 billion KRW) for Ministry of National Defense’s CAL problem. It also demanded 11.7 million dollars (13 billion KRW) for enterprise agreement, and Ministry of National Defense refused both of them. Conflict settled for the time being as they agreed on working together for the future without any cash transaction.



Microsoft Korea said that it will continuously work with KEPCO about the license situation and denied the reports that it is preparing for a lawsuit. Microsoft Korea actually never filed a lawsuit against government ministry or public enterprises about license situation. A person related to Microsoft Korea said that it will work with KEPCO and planned for future progress plan. KEPCO is also preparing to make action against Microsoft Korea at its law firm. When the plan is prepared next week, it will make detailed action against Microsoft Korea.



Staff Reporter Kwon, Dongjoon | djkwon@etnews.com