Tech Firms Resist India on Software Code Secrets

In the last year, the Indian government surprised foreign telecommunications equipment suppliers like Huawei, Alcatel-Lucent and Cisco Systems by temporarily blocking the import of new network gear. The government said it needed to set up a procedure to detect any software embedded in the machines that could be used by foreign governments to spy on or otherwise harm India. Many orders for equipment were stalled for several months and gear from Chinese vendors has been held up for much of the year. India has loosened restrictions on equipment imports. The country is no longer blocking the imports altogether, but is now requiring equipment makers to obtain government clearance on a case-by-case basis. Or vendors can agree instead to several conditions including depositing source code — the underlying software instructions for the equipment -- with the government, as well as having the equipment tested by independent consultants.