Judge Rules In Microsoft-Google Personnel Dispute

by Glen Shapiro, LawAndTax-News.com, New York

16 September 2005

Ruling this week in the King County Superior Court in a dispute between Microsoft and Google over the latter firm's hiring one of the software giant's former key personnel, Judge Steven Gonzalez gave permission for Kai-Fu Lee to commence his duties with Google in a limited way.

In a lawsuit filed earlier this year, Microsoft claimed that Google's hiring of Dr Lee was in violation of the non-competition agreement that the executive signed when he was hired by the software giant.

Microsoft's deputy general counsel argued at the time that the appointment was illegal under the terms of the agreement signed by Lee, explaining that: "He has access to sensitive information, to trade secrets about our search technology and business plans and our China business strategies. He has accepted a position in direct competition with Microsoft in those areas."

However, Google countersued, responding that: "In truth, Kai-Fu Lee's work for Microsoft had only the most tangential connection to search and no connection whatsoever to Google's work in this space."

Although Judge Gonzalez ruled that the noncompete agreement was valid, he argued that sending Dr Lee to China to commence the hiring of personnel for Google's new facility in China would not violate this.

However, Lee is, for the moment, prohibited from working on products, services or projects similar to those that he worked on whilst employed by Microsoft.

Microsoft's lawsuit against Google over the hiring of Dr Lee is set to go to trial in January.

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