Microsoft launches damage control after code leaks from Israeli source
Mainsoft has already been responsible for one small scandal, when it was reported in 2000 that the company was developing software for converting Microsoft applications to run on the Linux open code operating system - a code that Microsoft refuses to support to this day, and which is considered the natural outgrowth of the Unix closed code. Mainsoft, whose headquarters are in San Jose, New Mexico, and whose R&D center is in Israel, has been a partner of Microsoft's since 1994. Mainsoft has disclosed only that it will cooperate fully with Microsoft and the authorities in investigating the leak. Microsoft and FBI investigators are due to arrive in Israel over the next few days to continue the investigation.
"This story is causing tremendous harm to the Israeli high-tech industry," says Schwarzkopf. "If it turns out that the Israelis are responsible for the leaking of the code, and that it was done maliciously and not by accident, it will burn a great many Israelis in the industry. Israelis have a reputation around the world for cutting corners anyway, and Israelis are working very hard to change this negative image. If the investigations prove that the suspicions were correct, it will not be good for us."
http://www.haaretz.com/hasen/spages/395900.html