Google, Microsoft Settle Legal Battle

By Nate Mook | Published December 22, 2005, 8:32 PM

Ending a five month drama that seemed more a soap opera than legal battle, Microsoft and Google late Thursday announced they had reached a settlement regarding Kai-Fu Lee, the famed engineer who left Microsoft to head Google's Chinese research and development center.

The legal wrangling between the rivals began on July 18 when Microsoft announced that it would pursue legal action against Google. The Redmond company argued that Lee was breaking confidentiality and non-competition agreements he signed before working for Microsoft.

A Seattle court agreed with Microsoft on July 29, preventing the hiring of Lee, but that ruling was overturned in early September. The judge said that while he will honor Microsoft's non-compete agreement, recruiting for the China location is not a violation of that.

At the same time, Google filed its own suit in California in an effort to invalidate Lee's Microsoft contract. To Google's dismay, that case was stayed until the outcome of Microsoft's suit in the Washington state court was known. A trial was scheduled for January 9, 2006.

The drama reached a crescendo when, in court filings, a former Microsoft employee accused company CEO Steve Ballmer of threatening to "kill" the search giant and throwing a chair. Although Ballmer publicly refuted the claims, he could not stop a barrage of jokes on the matter.

Terms of the settlement were not disclosed, but both companies said they were pleased to have resolved the matter.

"The parties have entered into a private agreement that resolves all issues to their mutual satisfaction," Microsoft said in a statement. "The terms of the agreement are confidential and all parties have agreed to make no other statements to the media regarding it."

Comments

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Steve Ballmer: I will kill you google!!! *throws a chair at the computer screen displaying google.com* AHH!! I got you good you F*cker!!! BAHAHAAHAAAA

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LOL!

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I think that MS is justified in its actions towards Google with regard to Lee. Though the actual details are not known, they really don't need to be as long as the two have put it to rest.

Though we may not agree of all the decisions that are made regarding one company or the other, we are not priviledged to the enormous amount of inside information that they have regarding each particular situation. We are merely spectators and have to deal with the aftermath.

To this day, inspite of all that MS has done, I still appreciate and respect that business and the people that work for it. Hate them as you will, but they have made our lives much better/easier. I truly believe they have the customers best interest at heart most of the time. Some need to look past their hatred of a particular company and look at the much larger picture. Which the media has no regard for.(myself included)

I like Google's search engine, and after that, I have to say that is as far as they go. They are the AOL of yesterday. But as AOL has demonstrated over time - they will not last, and people begin to see them for what they really are. I dislike some of its tactics(keeping personal information).

As this field(IT)still continues to grow, it is the companies that are on the forefront that will define the practices and strategies used in getting to the top. The major companies that are doing this are IBM, MS, Google, Yahoo, etc. Each doing things that are selfish, untruthful, immoral, and illegal. The courts have been giving them a lot of room to play.

And on no small part of the courts and legal commisions, we are seeing them jumping in with their own agendas to shape the world of IT. (ie the european nations)

In all, I love the field. When a company or court(whomever) tramples on the immoral or illegal side of business, it is the voice of the customer(people) that should be heard above all, and where we should get involved and be heard. (like Sony BMG)

The Lee case was purly a legal and justified case, only being made a mockery of by the media.

IMO

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Very well said... I completely agree!

You know... there's truly something to be said for Microsoft's tactics. At least with them, you know what to expect. They're predictable, and while we may often dislike that and want something fresh... at least they give us exactly what we want, in time. A lot of critics are truly forgetful of the fact that in the late 90's people actually wanted a lot of the functionality that plagues us today, because they were too short-sided to see the risks. Now that they have, Microsoft is forced into undoing much of what we, as customers, asked for. And yes, Microsoft has had its own faults-- lots of them-- but they work on them and they at least offer solutions. How many other companies actually give us fixes before a whole new version is available?

I look at my own life and see myself in Microsoft... I'm extremely confident in myself and what I do. I do my best for others and am greatly rewarded along the way. I make mistakes from time to time, but I always admit and fix them as possible.

Of course, we all have faults... but only the irresponsible worry about another's faults more often than their own.

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I was certainly looking forward to see the result of this. Watching Google vs Microsoft is a definate pop-corn event.

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"The terms of the agreement are confidential and all parties have agreed to make no other statements to the media regarding it."

This is how it should be.

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It's unfortunate that a battle and agreement had to happen at all, but like you, I believe the details should remain private.

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Hmmm... maybe they're private because they detail the merger they've been working on.

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Freedom of Information!

No, seriously. Who really cares? Althrough I would like to know what they agreed, I don't care if they talk or not.

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I agree. I also think that as we move forward, these companies are beginning to see that they need each other. Making deals on the side to get a new angle or take a new direction to keep the company alive.

Right now we are moving in several new directions. The company that doesn't consider all avenues, can be left behind.

We are also seeing the acquisition of smaller companies; due to their innovatitive ideas or patents that benefit the industry. I sure hope that these small companies continue to broaden their base as it really helps keep the balance between the large companies. Where would we be if there wasn't a Spybot or Adaware, Zone Alarm or AVAST!, or even Linux and MAC? Would we be where we are today?

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Sssshhh! You'll spoil the surprise! *grin*

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Hmm, good point... well, we'd all be sitting here with Spyware & Virus infested Windows PC's whining about the lack of options... *grin*

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SPEAK NOT SUCH BLASPHEME!!!

You deserve a swift kick in the a$$ for even *thinking* such things,

*shudders*

Oh man... I think I'm gonna be ill.

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The future under evil Google rule:

http://mccd.udc.es/orihuela/epic/ols-master.html

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Google Grid?

Well they were close....But it's Google Base.

They'll need to edit that.

:P

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*hands PC_Tool a roll of tums*

Sorry 'bout that.

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It is actually interesting because basically we're moving towards more and more monopolies--nothing but SuperMega company A with 75-85% market and Super Company B with pretty much the rest. We may need to redefine a monopoly in the near future...

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I'd bet you anything that Microsoft ended up paying Google a settlement AND handing over Kai-Fu.
And by anything, I mean... nothing... but still, it's a possibility.

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"The terms of the agreement are confidential and all parties have agreed to make no other statements to the media regarding it."

DRAT! I wanted to know what would happen with this too.

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I was wanting to find out the outcome of the situation as well, however, with a matter such as this it's best to leave the agreement private. Besides, either way, I'm sure someone would find a way to bash the entire agreement anyway...

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NoooooOoooOO!!! They spoiled the ending! What a cliff-hanger!

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