I’ve heard Terry Semel speak on the Chinese situation in person. Here are a few points that may be of interest.
1) The press neglected to state that Yahoo! was *unaware* of who was using the IP that was being investigated. As you know IP != identifiable person.
2) Nor was Yahoo! informed what the person was being investegated for. Could have been Child Porn, for all we knew. We found out when the press reported it.
3) Other american companies (net and non-net) have been required to comply with local governmental supeonas in *every* international and domestic juristiction that they operate, yet Yahoo! (in China) was singled out for derision. If Google had been there at the same time, they would have provided the same information (or so they’ve implied by their statements.) Are folks ripping them a new one?
4) The senators that grilled the american companies at the recent hearings were playing both sides against the fence. They know that american companies operating in China must comply with information laws, and have provided no governmental support for shielding any american company against unfair foriegn information disclosure laws.
This is an international policy issue, requiring the support of the U.S. Congress and the Executive if there is to be any longer-term resolution. Terry compared it to his days in the film industry: Countries like China didn’t bother to try to do anything about film piracy until the US government applied pressure. Now that there are so many american businesses there, it is time to figure out what muscle is required.
Calling for Yahoo! to “pull” out as a solution is the same as saying that Cisco should pull out, and Google, eBay, KFC, and PepsiCo etc. Should American companies set US international policy? Should we give up a growing market when our competitors don’t? Don’t you think that american shareholders might have something to say about that? Perhaps those with shares in *another* internet company are squaking the loudest?
Watch for Yahoo! to be a leader in resolving this issue, not on a case-by-case basis, but by engaging the people who can really effect change: political leaders here and abroad.
Randy
]]>