Posted on 07/21/2005 10:07:34 PM PDT by HAL9000
SAN FRANCISCO (AP) -- Google Inc. countersued Microsoft Corp. Thursday in a legal battle over a prized research engineer that illustrates the escalating tensions between the technology titans.The tussle began earlier this week after Google -- the maker of the Internet's most widely used search engine -- raided Microsoft's management ranks by hiring Kai Fu-Lee to open a new research and development office in China.
Redmond, Wash.-based Microsoft, the world's largest software maker, promptly sued Google and Lee in Washington state court, alleging a noncompete agreement that the engineer signed in 2000 prevented him from defecting.
Google retaliated with its own complaint in California seeking to override Microsoft's noncompete provision so it can retain Lee. In its suit, Mountain View-based Google contends the clause violates California laws giving workers the right to change jobs.
Microsoft's restriction is "clearly an illegal restraint of trade," Nicole Wong, Google's associate general counsel, said in an interview Thursday night. "Google is trying to create an environment for innovators. Microsoft is focused on litigation and intimidation."
Microsoft spokeswoman Stacy Drake McCredy described Google's complaint as a desperate act. "Microsoft is confident in our case and that Google's legal maneuvers will ultimately be rejected by the court," she said.
Google's hiring of Lee triggered a conflict because he had been working on Microsoft's efforts to improve its own search products as a vice president in the software company's interactive services division. He also had been helping Microsoft devise its China strategy.
In its complaint, Google argues California laws should apply because its headquarters -- and most of its nearly 4,200 workers -- are in the state. What's more, Google said Lee already is registered to vote in California, pays taxes in the state and plans to buy a Silicon Valley home.
But Google's initial announcement of Lee's hiring made it sound as if the engineer will be based in China, overseeing the company's new research office there.
"I look forward to returning to China to begin this exciting endeavor," Lee said in a Tuesday statement.
Lee signed his noncompete agreement in Washington, where he worked for Microsoft. Before joining Microsoft, Lee worked at two Silicon Valley companies, Silicon Graphics Inc. and Apple Computer Inc.
"Google is attempting to manufacture California residency for Dr. Lee in a poorly disguised effort to evade Washington law and renege on the agreement Dr. Lee made to Microsoft," Drake McCredy said.
As Google has grown more powerful since its inception in 1998, Microsoft has become increasingly determined to muscle its way into the lucrative search engine market with its own technology. The company unveiled its first internally developed search engine last year on its MSN.com site.
Until this week, Google had been publicly downplaying its rivalry with Microsoft, maintaining that the increased competition in the search engine industry would be good for everyone by fueling more innovation.
Non compete clauses usually have an expiration date. Not mentioned in this article. If it didn't have an expiration date, then, he's screwed, he shouldn't have signed it in that case.
New R&D facility in China. Who'd a thunk it?
somewhere in my past, I came to learn that (legally) contracts must be finite to be enforceable.....they cannot be open-ended or forever.
Maybe I misunderstood, though.
Microsoft would have a hard time claiming Washington law applies, if he resides in California.
I don't know anybody who's signed one who wasn't compensated for doing so; he received something in return for the noncompete.
And I'm thinking he "forgot" to tell Google about it, or they forgot to ask, and now they're scrambling to cover their butts.
Google is a left-wing corporation anyway. Screw 'em.
... or if he claims California as his residence for tax and voting purposes, even if he is based overseas. It is his choice, not Microsoft's, to decide his state of residence.
Yep, more or less.
I always raise this issue with any idiot who dares to defend Socialist Security, the "social contract" or innumerable other examples of government bullsqueeze . . . . . "show me my signature, then show me the term and termination clauses, or STFU."
Microsoft isn't stupid enough to write a non-compete only valid within Washington state; this is standard boilerplate in the big-company world.
I've heard that too, but try fighting microsoft on that. I'll bet they put in a 20 year clause or something just as unreasonable.
This thread could be combined with the thread about the Chinease trojon horse virus they use to steal information. U.S. News and World Report had a cover article about the growing China a few weeks ago. Microsoft and another company (intel?) haven't opened up shop there yet due to all the software piracy.
Other companies get pirated too (cellphones, insurance coverages are word-for-word, etc.) However, these other firms figure even if 10 times as many chinese buy a knock off, 1/10th of 1.5 billion people is still a large market. (obviously not all the Chinese are buying cellphones. However, the article said that soon (5-10 years?) - the buying class of China will equal the entire U.S. population.)
I believe California law applies, and Microsoft is out of luck.
Oh, my local paper (Seattle Times) said this guy was going to Taiwan. (The "other" China).
It's been a while since I signed one. The term was for 6 months.
Your explanation sound good though.
But Bill Gates is already complaining that he can't hire enough people, and this lawsuit will hurt Microsoft's efforts to recruit the best scientists and software engineers. Even the guys in China don't want to work for Gates now, so he's stuck with the current batch of mediocre Windows employees.
Suppose you or I were a candidate to work at Microsoft. What possible reason would there be to work there? (Looking to find just one reason.) :)
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