By Richard A. Chapo
Unless you’ve been on vacation all summer, the brawl betweenGoogle and Microsoft should be old news. New developments,however, have occurred with publication of the non-competeagreement signed by Kai-Fu Lee.
Google v. Microsoft
Earlier this year, Kai-Fu Lee quit Microsoft to go work forGoogle. In doing so, Lee allegedly violated a non-competeagreement he had signed with Microsoft. Predictably, Microsoftsued Lee to prevent the move and the brawl began. Microsoftlanded the first punch by getting a temporary restraining orderpreventing Lee from working for Google until the case isresolved.
Non-Compete Language
As matters have moved forward, the language in the non-competeagreement has become public knowledge. Generally, Lee agreed notto work for a major competitor of Microsoft if he left thecompany for a period of one year. The specifics of the language,however, are grossly entertaining
In signing the non-compete agreement, Lee agreed:
1. “…not to accept employment or engage in activitiescompetitive with products, services or projects…of Microsoft…Iworked on or …learned confidential or proprietary information ortrade secrets while employed.”
2. All litigation arising from the non-compete agreement wouldoccur in the State of Washington.
Mr. Lee and Google have a serious problem. California courtsrarely enforce non-compete agreements, while Washington courtsdo. Since Microsoft sued first and Lee specifically agreed toWashington jurisdiction, this case should remain in Washington.Google is trying to move jurisdiction to California, butMicrosoft beat it to the punch. Google’s attorneys simply blewit.
Prediction
Predictions in legal disputes are iffy at best, but Mr. Lee andGoogle have really fallen on their face in this one. Why theydidn’t sue Microsoft in California court before Microsoft couldreact is mind boggling. The deck is now stacked heavily in favorof Microsoft and you can expect an outright victory forMicrosoft or a settlement on terms set by the company.
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