Google Fires Back at Microsoft

By Ed Oswald | Published July 22, 2005, 11:56 AM

Google fired back at Microsoft on Thursday in court over the hiring of former Microsoft exec Kai-Fu Lee, asking a California judge to invalidate a non-compete clause in Lee's contract as "overreaching and unlawful." Lee was to head Google's new R&D center in China.

Previously he had been a vice president of Microsoft's Interactive Services division. Microsoft claims that by accepting the position, Lee will be breaking confidentiality and non-competition agreements he signed when accepting his position at Microsoft.

Apparently, Microsoft fears that Lee has knowledge of Microsoft's intentions in China that could assist Google in its plans to expand into the country.

Google is attempting to get the clause struck from Lee's contract as it is illegal in California to add non-compete clauses into employee agreements. However it is unclear whether or not the state would have any authority as Microsoft is based in Washington. Lee also worked out of the Redmond campus.

"Microsoft is focused on litigation and intimidation," Nicole Wong, associate general counsel for Google said. She also called Microsoft's actions "clearly an illegal restraint of trade."

However Microsoft remained confident that they would prevail, saying they expected the court to dismiss Google's suit. The company pointed to the fact that Lee never had California residency while he worked for the Redmond-based software maker.

Comments

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Google = Next Microsoft in 5 years (without the evil empire though)

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if google ever makes an OS then ms will piss itself and sue for some strange reason, like ms has copyrights on the "OS" and google cant make one, but Apple, Linux, etc are all okay because they're not any competition for ms.

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Hi,

Honestly you (Googlers) ain't doing good for youself. Why? It is time to take the Redmond Guys on their terms, Browser. You seriuosly need a Browser and stop playing nice guys.

Take it from me.

- Muslim

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Maybe now China will buy Microsoft and that stupid name Longhorn oops Vista will be changed to LongMarch or Mao for short

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This is the 21st Century, if a company cant handle some competition from ex employees, then well...let it hire BIG BROTHER

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I hope google wins this one because if Microsoft gets its way and then evenetually becomes the most used search engine then it will probably expand into the microsoft ads aspect and have ads on millions of websites and we wont get to see googles new innovations. If you remember the thing about them hiring the guy at mozilla and the thing about them buying up tons of fibre optic cable. I think they are going to become an isp eventually and that would be awesome.

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Congrats to MS and Google, for ruining Kai-Fu Lee of getting a job in the same field. Who wants to hire someone when they know MS will slap a lawsuit on you right away.

I'm sure Lee's brother didn't sign the clause. Maybe he is just as smart....maybe with some help...lol. Honestly I don't care.

Just in, Google Vista...?

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Lee is the one who signed the contract. Non compete clauses are very common. MS and Google didn't run Lee, Lee ruined himself.

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Oh Lee knew what he agreed to when he signed the MS non compete agreement. I would say Lee is the greedy one, And you are correct Lee ruined himself.

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You guys obviously don't have jobs that pay more than $30K or you have "ruined your lives" as well.

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for the record. I have been in the industry before there was a Microsoft. I have seen many ideas come and go. The worst of these IMO is the "non-competitive agreement. Most of these (which just about everyone in the industry but my own company uses these days) are clearly very ignorant and self important in themselves. When an employee is hired, he or she is hired for their ability and knowledge. Sure, they may learn a thing or two new to expand their portfolio, but NOONE in the field his hired without some prior knowledge.
That said, an employer hires an employee because the employee has something to contribute to the company. They have the knowledge (prior to hire) to do the job which they are hired to do. The hire of this Lee character by Google from Microsoft is a long overdue breath of fresh air in my book. It brings to the surface the illiteracy of the "non-competitive agreement" as a whole. For those who have never seen one or signed one, it can be a rather long and intimidating document that basically - simplified, says [a] that, while in the employ of the company, the new employee agrees to not engauge in activities that are in direct competition with the employer and [b] that, should the employee decide to leave the company, that for a period oc ## years (usually 1-5 years), that the employee agrees not to work in the same field as the one he or she was in while under the employ of the company.

Where I have issue with the non-competive agreement is in the wording that pretty much states that once you start working for us, in the field you trained to work in BEFORE working for us, you can not and WILL not work in that field except while working in it for us, and after leaving our employ, you can not work in that field for so many years afterwards. IMO this is simply stupid bordering on childlike insecurity.

I have no such agreement with my employees for the simple fact that I feel that if they think they can get a better job elsewhere then who am I to ruin someone's life and future by holding them back? I have never had an employee leave me for another company, however, I have had employees working in my company and in another company doing the same job. Hey, times are tough, things are expensive and people need to put food on the table. I and my company have a good working relationship with my local cometitors and more often than not this relationship has led to some healthy competition and growth in our local market.

I realize I and my company are not some huge mega global company but the principles should remain. if you want growth and innovation, you NEED competition. if you want production you NEED happy employees. Happy employtees are ones who enjoy their job, enjoy working for the company they are in.
suppression and tyranny produce little except for resentment. Unhappy employees call off more, show up late and leave early, they dont produce at 110% efficience. they drag their butts to work, lazily do their job and are happy to leave the job to be anywhere but the job.

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Sorry, I'm going to have to disagree with you on this one. I understand how things are in your company, but this Lee dude has probably learned some internal stuff from Microsoft that could be used against Microsoft by working for a competing company. That's what a non-compete clause is for. Apparently he knows stuff about Microsoft's plans for China that he can use for Google to either advance Google or go against Microsoft. It makes complete sense and it sounds like a good move to me. By the time the 1-5 year ban on working elsewhere is over, the information that Lee has will be no longer useful against Microsoft.

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LMFAO fewt. :D

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and so will Lee's life, without the ability to work in the field he trained in PRIOR to working for microsoft. Companies that worry so much about this whole issue need to worry more about keeping their empolyees happy so they DONT jump ship. and the non-compete agreement doesnt specify info learned while working for ms, it specifies IN THAT field which is where I have the issue at. so disagree all you want all the way to the poorhouse.

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hopefully google generates much more ad revenue and buys microsoft.

looking forward to google xp pro!

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yeah, ok ... MS profit ~2.7 billion, Google profit ~50 million.

you let me know when google renames itself to fox and buys a few television stations.

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wow... you get the reward for the dumbest thing posted...ever.

...EVER.

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As stupid as these lawsuits seem, Microsoft is going to win this one--Google hired the former employee and those "competition contracts" ARE valid (at least here in Texas) as I have read many cases involving them.

Oh--and google, you're full of CRAP. The last thing Microsoft needs is to intimidate you, you think they're scared google will generate more revenue than Microsoft Windows? Are you that stupid? If you are so great why do you NEED a former MS employee to help you? Are you scared of msn search? I wouldn't be...it's far behind google. I'm upset so I'll shutup now...

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This guy here is my utter hero, very well said

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agreed.

every word of it.

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I completely agree with you on that one. Come on he signed it, He knew what he signed. And as far as Google being afraid of MS come on Google is a nicer search engine. Sorry MS, hope that dont ruin my beta testing status. But they will never be as big as MS. As long as there are x86 or even I64 based computers MS will always be bigger. If you actually break down there Sales versus Profit, in there stocks. MS dont make that much of a profit off of everything. MS does it to make computeing Easier, Nicer and better ran. Ok Im done going off LOL.

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Indeed. You are SO right.

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