123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Legal >> View Article

Non-compete Agreements In Action - Microsoft V. Google

Profile Picture
By Author: Richard A. Chapo
Total Articles: 32
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Non-Compete Agreements are controversial documents that restrict a person's right to work with competitors of a former employer. The effectiveness of one such non-compete agreement is on display in a recent lawsuit filed by Microsoft against Google.

Dr. Kai-Fu Lee

Dr. Kai-Fu Lee joined Microsoft in 1998 and was in charge of creating and running company operations in China. Over the last few years, Lee has been working on Microsoft's speech recognition system. The system is rumored to be the next big add on for future Windows operating systems. On top of this, Microsoft claims Lee has been responsible for the overall development of the MSN Internet search program. In short, he has intimate knowledge of company trade secrets including technology developments as well as business and marketing planning.

When Non-Compete Agreements Attack

In 2000, Microsoft moved to protect itself by requiring Lee to sign a non-compete agreement. Although not yet public, the agreement undoubtedly requires Lee to forgo employment with any direct competitor of Microsoft. Notwithstanding this agreement, ...
... Lee quit this past week upon notifying Microsoft that he was moving to Google.

No doubt infuriated, the powers that be at Microsoft sued Google and Lee in the State of Washington on Monday. Microsoft claims Lee violated the terms of his agreement and seeks an injunction prohibiting him from working at Google. Microsoft also claims that Google is liable for inducing Lee to leave Microsoft, ostensibly for the purpose of discovering Microsoft trade secrets. In turn, Google countersued Microsoft in a California court claiming the non-compete agreement constituted an illegal restraint on trade.

Non-Compete Agreement To Be Upheld?

Predicting the outcome of the dispute is going to depend significantly on a surprising issuejurisdiction. Jurisdiction simply refers to the court system, Washington or California, which has the right to hear the case.

California is a right to work state, which means courts require any non-compete agreements to be very narrow. If the Agreement is broadly worded to preclude Lee from working for direct competitors or some such language, Microsoft will have a difficult time prevailing in a California court. Washington law, on the other hand, would be more likely to uphold such wording.

Determining jurisdiction is a tricky issue. Essentially, one looks to the facts of the disputed to arrive at an opinion. An analysis of jurisdiction is beyond this article, but Google has clearly made a major mistake with Dr. Lee. In a press release announcing the hiring of Lee, Google noted he would be working in China, not California. This significantly damages any claim that California has jurisdiction over the matter. Google's attorneys are undoubtedly unhappy with the individuals in the press relations department.

Ultimately, Google and Microsoft will most likely reach a settlement agreement. Lee will be allowed to work for Google, but will be restricted from working in certain areas. Still, Lee's decision to switch positions is a blow to Microsoft.
About the Author Richard A. Chapo is with SanDiegoBusinessLawFirm.com - legal services for San Diego businesses. Read more business law articles to help your business.

Total Views: 720Word Count: 507See All articles From Author

Add Comment

Legal Articles

1. Why Professional Legal Advice Matters More Than Ever In India
Author: Find My Vakeel

2. How Strong Corporate Governance Drives Business Success In Bahrain?
Author: Newton Legal Group

3. Germany Shortage Occupation List
Author: Atul

4. Over 7,500 Applicants Invited Through Three Consecutive Express Entry Draws In May
Author: Atul

5. Canada Work Permit Or Pr ? What Is Better For Indians In 2026
Author: Atul

6. New Jersey Marital Separation Agreement
Author: Carl Glendon

7. What Does A Criminal Defense Attorney Van Nuys Do?
Author: Van Nuys Crime

8. Germany Opportunity Card Process Is Now Fully Digitalized: An Initiative To Reduce Backlog
Author: Atul

9. Medical Negligence Laws In India: Patient Rights & Legal Remedies
Author: Gaurav Sharma

10. Atlantic Immigration Program
Author: Atul

11. Spain Job Seeker Visa: Your Gateway To Work And Live In Europe
Author: Atul

12. The Importance Of Estate Planning Services For Protecting Family Wealth In The Uk
Author: Kamal Solanki

13. Best Ip Paralegal Support Services In India For Patent & Trademark Management (2026)
Author: barcodeIP Editorial Team

14. Marriage Certificate Attestation For Uae Family Visa
Author: Tekblink

15. Nova Scotia Provincial Nominee Program
Author: Atul

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: