Microsoft & Google Rumble, off to court they go!

Date:   9/6/2005 6:02:16 PM ( 19 y ago)

Microsoft, Google Rumble

Redmond and Google switch competitive venues from the Internet to a Seattle courtroom.
September 6, 2005

Microsoft and Google compete in a number of arenas, but on Tuesday the companies faced off in a courtroom to challenge a court order barring a former Microsoft employee from working for Google.



In July, Microsoft sued Dr. Kai-Fu Lee, its former employee, to prevent him from taking a job at Google. Microsoft claimed that by taking the job, Dr. Lee would be violating a non-compete agreement he signed with Microsoft back in 2000 (see Microsoft Sues Google).



Dr. Lee, 43, worked in a number of capacities at Microsoft. But the one most pertinent to the case was the job of building the Redmond software giant’s research Center in Beijing. He later worked in the MSN search unit.



Microsoft won a temporary restraining order in King County Superior Court that stopped Dr. Lee from working for Google until today’s hearing.



Microsoft said that Dr. Lee accepted the job at a competitive firm focused on the “same set of technologies and strategies for a direct competitor in egregious violation of his explicit contractual obligations.”



‘The enforcement of non-compete agreements is carefully restricted.’

-William Corrigan Jr.,

Armstrong Teasdale





In its announcement of Dr. Lee’s hiring, Google acknowledged the fact that he founded Microsoft Research China, but dated that work to the late 1990s. Google emphasized the fact that Dr. Lee is widely known for his pioneering work in the areas of speech recognition and artificial intelligence.



Google announced that Dr. Lee would lead Google’s first research and development center in China.



China Beachhead

Google’s China R&D center, which is scheduled to open in the third quarter of 2005, will give Google a beachhead in the Chinese talent pool and allow the company to take advantage of international business opportunities in one of the world’s fastest-growing economies.



“It has always been my goal to make advanced technologies accessible and useful to every user, as well as to be part of the vibrant growth and innovation in China today,” said Dr. Lee. “Joining Google uniquely enables me to pursue both of my passions, and I look forward to returning to China to begin this exciting endeavor.”



Many U.S. state courts enforce non-compete agreements to protect an employer from unfair competition by a former employee, according to William M. Corrigan Jr., an attorney with Armstrong Teasdale LLP in St. Louis. Mr. Corrigan has handled more than 100 non-compete cases on both sides of the issue. He is also a past president of the Missouri bar association.



“However, a court will not enforce such a covenant merely to protect the former employer from competition,” said Mr. Corrigan. “The enforcement of non-compete agreements is carefully restricted. They are enforceable only if a legitimate protectable interest of the employer is served.”



Shares of Microsoft were up $0.16 to $27.18, while shares of Google were down $1.43 to $287.02 in recent trading.


 

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