Posted on 09/06/2005 8:10:31 PM PDT by maui_hawaii
Former Microsoft executive Kai-Fu Lee has accused the software giant of incompetence in its plans to gain a business footing in China, and testified that an expletive-filled tirade from chairman Bill Gates was a low point before he defected to rival Google.
In testimony during a hearing on Microsoft's lawsuit against Lee and Google, Lee said on Tuesday he wrote a memo to another Microsoft executive saying he was "deeply disappointed at our incompetence in China - that we have wasted so many years in China with little to show for it."
Lee went on to say in the email that he was embarrassed by Microsoft's business practices and that people in the government joked about Microsoft's internal politics. But he didn't provide any details in his testimony on Tuesday about what exactly frustrated the Chinese government.
He testified that one of the lowest moments of his career with Microsoft was a conversation in which Gates yelled at him and said the company had been "f-----" by the Chinese people and its government. Lee did not clarify the context of Gates' comments.
Lee also complained that Microsoft had more than 20 business groups operating virtually autonomously in China, with little cohesion.
Among other problems, Lee said, was a commitment Microsoft chief executive Steve Ballmer made in 2002 to outsource $US100 million ($A130 million) in jobs to China. Within the last year, after it had become clear that they weren't fulfilling this promise, Lee said he was put in charge of outsourcing jobs to China.
Microsoft spokeswoman Stacy Drake said she could not immediately comment on the testimony.
Lee, who worked at Microsoft from 2000, joined Google in July to lead the company's expansion into China.
Redmond-based Microsoft has sued Google and Lee, who is known for his work on computer recognition of language, a key problem in search technology. Microsoft contends that Lee's duties would violate the terms of an agreement he signed as part of his Microsoft employment contract. Microsoft also accused Lee of using insider information to get his job at Google.
Google denies the allegations and has counter-sued Microsoft.
Microsoft attorneys sought Tuesday's hearing before King County Superior Court Judge Steven Gonzalez to restrict what work Lee could do for Google until the lawsuit goes to trial in January.
Microsoft said Lee used insider information to get himself at job at Google in violation of an agreement.
In approaching Google about a job, Lee sent an email stating, "I am currently the corporate vice-president at Microsoft working on areas very related to Google," said Microsoft lawyer Jeff Johnson.
"He was saying, 'Look what I did at Microsoft and look what I can do for you,'" Johnson said Monday at a hearing before King County superior sourt judge Steven Gonzalez.
Lee, who had worked at Microsoft from 2000, joined Google in July to lead the company's expansion into China.
Attorneys for Google said in court on Tuesday that much of what Lee knew about the Chinese market came from his previous work experience at Apple Computer and other companies, and that Microsoft was exaggerating the extent of his work for Microsoft on China.
Microsoft has sued Google and Lee, who is known for his work on computer recognition of language, a key problem in search technology. The Redmond company contends that Lee's duties would violate the terms of an agreement he signed as part of his Microsoft employment contract.
Google denies the allegations and has counter-sued Microsoft.
At Tuesday's hearing, Microsoft lawyers sought to restrict what work Lee could do for Google until the larger case goes to trial in January.
Johnson alleged that Lee - while still on Microsoft's payroll - went so far as to send Google a paper he had written for Microsoft about the Chinese market and that he also made recommendations to Google about other people the company might want to employ.
John Keker, a lawyer for Google, argued that recruiting was not a violation of the agreement because it specified only that Lee could not take part in activities that were competitive with products, services or projects he worked on at Microsoft.
The case has illuminated the behind-the-scenes bitterness between the two rivals. Court documents released last week said Microsoft chief executive Steve Ballmer, in an obscenity-laced tirade over another employee having been hired away by the search company, threw a chair and vowed to "kill" Google .
Ballmer called the characterisation of his response a "gross exaggeration."
Are there any decent computer companies?
There was hope in the 80s - Texas Instruments, Atari...
I like Google because there are no ads. With MSN, the search field is surrounded by a hundred asinine headlines about celebrity haircuts, fag-of-the-moment, and other tripe articles that only liberals can appreciate.
Yeah, but do you want to be like one of their customers? :P
1. Entice American company with the prospect of China's potentially vast consumer and business markets.
2. Make joint technology sharing agreement with American company.
3. Extract useful technical and business information from American company.
4. Dump the American company and proceed to develop and market the technology.
I suppose American companies have only themselves to blame for falling for this over and over again.
I used to be really concerned about this, but after years of seeing the patent/copyright system used to stifle innovation instead of encouraging it, corporate monopolists like Microsoft have only themselves to blame for 'piracy' by China. The entertainment business now spends more time screwing over its customers with IP suits than producing content that people will actually buy. Even the news on tech companies like Microsoft, once fountains of innovation, now centers on legal battles.
May China smash the patent system and flood the world with new ideas! Let business profit flow to those who move the fastest, not those who wall off their ideas from the world.
Wasn't Bill just extolling the virtues of Chinese business practices, how they keep their production and labor costs to a minimum? (slavery)
Apple and Lenovo. They've been making the best value-for-price products for years. Now, Lenovo gets to start selling under its own name.
"They're smart. They have this mericratic way of picking people for these government posts where you rotate into the university and really think about state allocation of resources and the welfare of the country and then you rotate back into some bureaucratic position."
"This generation of leaders is so smart, so capable, from the top down, particularly from the top down."
"It is a brand-new form of capitalism, and as a consumer its the best thing that ever happened."
"Scale economies that are just phenomenal."
"Well I could say that every time I go to China I am amazed by the level of energy and activity there. And you know its like super charged capitalism where they're creating new jobs and they are being very efficient. And you know that's daunting. It's a challenge to the rest of the world that we got this great opportunity that they're going to build good products, but we all have to become more efficient to work at that level as well."
"As their people are more college educated and creating inexpensive products. That's just a great thing for our consumers. It does mean that the companies here need to think about selling to China. About how they work with partners there. And measuring their efficiency against the best in the world which in my business will be the leaders in China."
Our company has us sign a similar contract.
No court has enforced it yet.
Its going to be interesting how this plays out.
Are you sure that's not from the script of "The Manchurian Candidate"? ;-)
You mean, do I wish to be like Rush Limbaugh? Heck yes!
Poor Bill Gates. All of hard work selling out America to the ChiComs, all of his treason, down the drain with nothing to show for it.
And US companies in China are wearing Milk Bone underpants.
Maybe they will just do each other in.
And you also wouldn't have to worry about 90% of software out there running on your machine, either. Like the stuff that runs my business, for instance.
I feel his pain, really. What has the world come to when you can't trust mass murdering tyrants?
they all suck
That's right. MSN is geared to the lowest common denominator.
Surely you jest. Using Apple and "best value" in the same sentence is a nice laugh. Example: Any accessory for an iPod is $30, no matter how simple or trivial it is.
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