Microsoft v. Google – Kai-Fu Lee’s Non-Compete Agreement

Unless you've been on vacation all summer, the brawl between
Google and Microsoft should be old news. New developments,
however, have occurred with publication of the non-compete
agreement signed by Kai-Fu Lee.

Google v. Microsoft

Earlier this year, Kai-Fu Lee quit Microsoft to go work for
Google. In doing so, Lee allegedly violated a non-compete
agreement he had signed with Microsoft. Predictably, Microsoft
sued Lee to prevent the move and the brawl began. Microsoft
landed the first punch by getting a temporary restraining order
preventing Lee from working for Google until the case is
resolved.

Non-Compete Language

As matters have moved forward, the language in the non-compete
agreement has become public knowledge. Generally, Lee agreed not
to work for a major competitor of Microsoft if he left the
company 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 activities
competitive with products, services or projects...of Microsoft...I
worked on or ...learned confidential or proprietary information or
trade secrets while employed."

2. All litigation arising from the non-compete agreement would
occur in the State of Washington.

Mr. Lee and Google have a serious problem. California courts
rarely enforce non-compete agreements, while Washington courts
do. Since Microsoft sued first and Lee specifically agreed to
Washington jurisdiction, this case should remain in Washington.
Google is trying to move jurisdiction to California, but
Microsoft beat it to the punch. Google's attorneys simply blew
it.

Prediction

Predictions in legal disputes are iffy at best, but Mr. Lee and
Google have really fallen on their face in this one. Why they
didn't sue Microsoft in California court before Microsoft could
react is mind boggling. The deck is now stacked heavily in favor
of Microsoft and you can expect an outright victory for
Microsoft or a settlement on terms set by the company.

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