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Google and Microsoft Lob More Lawsuits

crowemojo writes "According to a Business Week article Google has filed a counter-suit against Microsoft in reaction to the lawsuit that Microsoft filed when a corporate VP left to join the ranks of Google. Microsoft claims that the VP violated his non-compete agreement and Google claims that Microsoft is violating California laws giving workers the right to change jobs. Interestingly enough, the VP in question never lived in California!"

26 of 395 comments (clear)

  1. Just because he went to Google by 901701 · · Score: 5, Insightful
    Mr. Burt of Microsoft said the company had been aware of Dr. Lee's interest in returning to China but was unable to offer him a leadership position there that is senior enough to suit his desires
    So he found a job to suit his desires elsewhere. Does anyone think Microsoft would be making this big a deal if it wasn't Google that hired him?
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    1. Re:Just because he went to Google by GreyPoopon · · Score: 4, Insightful
      For those who dont know: MS crippled Borland by offering their *TOP* 40 engineers *DOUBLE* their salaries to work at MS.

      But did the Borland engineers have a non-compete clause in their contract?

      --

      GreyPoopon
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    2. Re:Just because he went to Google by Taladar · · Score: 5, Insightful

      Seriously, how can a contract clause saying "when you quit you can not work in this industry for x months" be legal? Isn't that a serious hole in basic worker rights?

    3. Re:Just because he went to Google by PortHaven · · Score: 3, Insightful

      As Microsoft is monopolistic and literally has a venture in almost every aspect of the programming field (OS, Browser, Media Player, Office Apps, Money, Games, PDA software, etc.) it is unfair to have a non-compete clause when you compete in every aspect of a given profession.

    4. Re:Just because he went to Google by Shalda · · Score: 3, Insightful

      I think with today's employment situation, particularly in IT, these clauses should all be nullified.

      I think the previous employer should be required to continue paying salary until the clause expires or is waived. If my previous employer is dictating what I can or can not do they ought to still be paying me. That, I would think, is the most balanced approach.

    5. Re:Just because he went to Google by PhYrE2k2 · · Score: 3, Insightful
      Seriously, how can a contract clause saying "when you quit you can not work in this industry for x months" be legal? Isn't that a serious hole in basic worker rights?


      Why? You say "we're willing to hire you but under this condition" (similar to NDAs and other conditions that you are given these days). You as an employee have a choice- choose whether you want to be bound by this agreement. Nobody is forcing you to accept this position- nobody is forcing you to agree to these terms.

      You can make almost any agreement you want. There are of course limitations to prevent people from taking it too far (criminal interest rates >60% per year, time limitations for legal action after a contract, etc) but it's up to the people signing to read, understand, and agree.

      Employee laws have been shifted so far from out of the _employers_ control that employers can't do ANYTHING these days, such as lay off employees with good reason without good worry and checking with lawyers. It's a joke.

      It's a choice you have ultimately. Of course, a smart employee will ensure they are compensated either with a slightly higher salary over their work there or by a parting settlement to keep the money rolling in for that few months.

      -M
      --

      when you see the word 'Linux', drink!
    6. Re:Just because he went to Google by GreyPoopon · · Score: 3, Insightful
      I got an idea, how about stepping up to the plate and declining to take any job that is going to treat you unfairly? Then there would'nt be any crazy contract clauses that ask you to sign away your life.

      Erm, no. There would still be crazy contract clauses. There would just be less tech jobs available in the US and more jobs available in India, China, etc. Sorry, but the only way to fight non-compete clauses is with legal action. If you could get the FTC to weigh in on the issue, it would help...

      --

      GreyPoopon
      --
      Why is it I can write insightful comments but can't come up with a clever signature?

    7. Re:Just because he went to Google by Guspaz · · Score: 3, Insightful

      I got an idea, how about stepping up to the plate and declining to take any job that is going to treat you unfairly?

      Because most employers have such clauses, getting a job without one is extremely difficult. With the current job prospects in the industry, people often don't have a choice.

      Given a choice between two equal jobs, one with a non-compete agreement and one without, obviously people will choose the one without. But when the one without isn't available, what are we supposed to do? Collect unemployment insurance and live off carrots until we find a job?

      I'm currently a co-op at a software development company. I signed a non-compete agreement as part of my co-op. Luckily, I objected that the 2-year period was unreasonable since it would prevent me from completing future work terms. The management agreed fully and shortened the term to the point where it won't conflict (I think it was 4 months) with future terms. I found this acceptable.

  2. Assimilated? by rfernand79 · · Score: 1, Insightful

    So, if you work for Microsoft, either you're with them for the rest of your IT professional life or you're unemployed?

  3. Legal? by ryanov · · Score: 2, Insightful

    IANAL (yet) but I feel that that's gotta be unconstitutional in some way. Basically, if you have a job at the one place and you quit, you can never work again at that job? I dunno how that could possibly be valid. You could be privy to sensitive information working as a developer almost anywhere, and chances are if search is what you know, search is what you'll look for a job doing.

    1. Re:Legal? by amliebsch · · Score: 2, Insightful
      I dunno how that could possibly be valid.

      How about because you voluntarily agreed to that restriction when you signed the contract? Don't like it? Don't sign. Why would the Constitution be involved?

      --
      If you don't know where you are going, you will wind up somewhere else.
    2. Re:Legal? by Belial6 · · Score: 3, Insightful

      Part of the problem is that often (I don't know about this case), draconian "contracts" are presented well after a person has left their last job. You show up to work the first day, and the employer hands you a packet to sign. If you don't sign, you are now unemployed. This mean that most employee "contracts" are signed under duress. While I have never heard of this being used in a lawsuit, I certainly would like to see it used, as the current situation creates an unfair barganing position for employers.

    3. Re:Legal? by Belial6 · · Score: 2, Insightful

      When a company with on staff lawyers and an entire department for HR does this, it is not an accident.

      I could believe that the "contract" saying you can't take photos of the equipment at McDonalds when you get a job as a cashier there, is "bad management". But, I have never had (or known personally anyone who has had) a single employer supply the terms of employment to an employee prior to them arriving on the first day. I'm sure that EVERY company doesn't have bad management.

      I only wish that I could agree that it was an oversight. If it was we could just ask for the paperwork at the time of the offer, and it would be a non-issue.

  4. Sound familiar by slapout · · Score: 2, Insightful

    Microsoft...Microsoft...where have I heard that name before.....Oh right....isn't that the company that hired all those Borland employees to try to damage Borland? And isn't that the company that hired that Gentoo guy?

    --
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  5. Bad for Microsoft recruiting? by deranged+unix+nut · · Score: 5, Insightful

    This seems like a bad move for Microsoft. They already seem to have a hard time finding people willing to work for them. Every Microsoftie that I have talked to recently says that their groups are short headcount or have open headcount and haven't been able to fill positions for quite a while.

    Who wants to work for a company that will sue you when you move on to a new, more exciting job?

  6. both suits ought to be tossed by prgrmr · · Score: 2, Insightful

    IANAL, but the contract in question was between Lee and Microsoft. Microsoft should sue Lee for breach of contract; however, they've obviously decided to chase the money and pursue Google. Google's counter-suit should be dropped for lack of standing as well, IMO.

  7. Limited options by Neil+Watson · · Score: 2, Insightful

    Considering how many markets Microsoft is in, Mr Lee would be awfully limited in his choice of new employers.

  8. Meow! by ehaggis · · Score: 2, Insightful

    Hiss, Scratch - Cat Fight!

    These are the distractions which keep technology from moving forward.

    Napolean made the same mistake as MS is about to make. Too many battles on too many fronts. (WWII, same thing with the Axis nations.) I am not happy about this because it detracts from the focus of innovation.

    --
    One ring to bind them - should probably have more fiber and less rings in their diet.
  9. Re:6 months is too long by MyLongNickName · · Score: 2, Insightful

    Sorry, I don't buy this one. Employers almost always have the upper hand in the negotiations. Government's job is to decide what is allowable and what is not.

    Contracts that involve illegal activites are automatically non-enforcable? Why? The government has a public interest (real term escaping me) in seeing that illegal activities do not occur.

    If the government deems non-compete to be economically detrimental, it CAN say that it is not enforcable. And many states have already said this. Most have some exceptions. However, I don't see Microsoft winning this one.

    --
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  10. Re:Not illegal contracts by A+nonymous+Coward · · Score: 2, Insightful

    And that's exactly my point - the state of Califoria does not honor the right to illegal contracts. You want to sign yourself into slavery ? That's what non-compete clauses do.

    You who tout this protection as less than desirable like to rant about not signing contracts you don't like. Well -- you have open to you that very option - move out of California. If you want to be able to sign yourself into slavery, move to some place that would allow that.

    Sauce, goose, gander.

    Go. Try Myanmar or Zimbabwe. Just don't complain when no one comes to your rescue.

  11. Re:Not illegal contracts by A+nonymous+Coward · · Score: 2, Insightful

    Yes, bedrooms need a way to escape fires. You don't like that? You think it's good that poor people should have the option of living in a firetrap slum?

    CA law says that anything over a year, the landlord has to expect normal wear and tear, so they can't charge for cleaning carpets, new paint, etc. If you park your Harley inside, or keep livestock inside, that's not normal wear and tear.

    You know why these things become law? It's to prevent slumlords. Poor people often don't have a lot of leverage. You sound like one of those fortunate people who have never had to struggle. You probably make enough that you don't worry about it. If you don't like that firetrap apt, you rent elsewhere. Heck, you probably have never even had to think about those cheap places, they never even show up on your radar. But a lot of people don't have that option. They don't have a lot of choices when landlords stack rental contracts with bogus cleaning deposits and other atrocious fees.

    One of the reasons for laws is to make standards. Life is a lot easier when you don't have to sweat details all the time, just like HTML or PPP or any other computer protocol. How would you like it if M$ actually got away with their Embrace Extend Extinguish policy most of the time? Sure would make life miserable for the small companies -- ie, poor companies -- who don't have much choice in those matters.

    That's what political laws do. They impose standards so the poor people -- people without much leverage or choice -- don't get shafted by those with lots of power.

    If you don't like it, then you have never been in that position, and I pity you your elite snobbery and lack of compassion. Life must really suck to be so cold and emotionless.

  12. Re:Not illegal contracts by krem81 · · Score: 2, Insightful
    Tell me, do these laws ever have the desired effect or are they just made to make people like you charitable?

    All these laws that are supposedly designed to alleviate the plight of the poor artificially increase the rent that hits hard those very people you're trying to protect. You might as well have added rent control to the list - a similar law that's supposed to help the poor, but in actuality is reducing the availability of apartments.

    But, if it makes you feel any better, suppose I am cold and emotionless. Does that mean you have the right to tell me how to lead my life?

  13. Well... by Infinity+Salad · · Score: 2, Insightful
    I would think Google has standing in that it hired the guy, giving it a direct interest in the litigation.

    Bigger question here, is that why does Google think a California court will toss out a contract validly made under Washington law? That is only going to happen if enforcing it there would violate Cali's public policy (i.e. the NDA/Non-comp is outrageous). (Caveat, I am not familiar with the laws Google is basing its 'restraint of trade' argument off of, so there may be someth ).

    From reading the bits of the NDA/Noncomp excerpted in the media and Microsoft's complaint, I don't really buy the 'outrageous contract' argument. (For that matter, Google's 'California' theme seems to be blatant forum-shopping)

  14. Re:Conflict of Interest by spiritraveller · · Score: 2, Insightful

    And why would Washington's laws have an effect over a company based in California and therefore operating under CA law, where these things are illegal?

    It is more like Google is trying to push California law on MS.

    The issue is that Google intentionally interfered with MS's Washington contract with a Washington employee. If it's a valid contract in Washington, Google could be liable in a Washington court or possibly even in a California court.

    But Google thinks a California court will apply California law to invalidate a Washington contract and reimburse them for their loss in the Washington courts. This looks like a desperate strategy to me.

  15. Like Gay Marriage by Kamiza+Ikioi · · Score: 2, Insightful

    But, if California law specifically prohibits this, Google may not be liable to have to follow it. This is similar that States don't have to recognize gay marriages of other states.

    How would a California business be under any obligation to a provision of a contract signed in a seperate state which is specifically forbidden in California? If it were a criminal matter, California would be refusing extradition of Google because the charge itself is a violation of California law.

    IANAL, but that's just how I see it.

    --
    I8-D
  16. Re:Not illegal contracts by Coryoth · · Score: 2, Insightful

    it's a matter of the degree of the government intrusion into my life.

    What state intrusion? They are staying out of the way rather than getting in your way with regard to contract enforcement. They are simply saying "We won't help your with these contracts" - the rest is up to you. The state is not intruding or forcing you to do anything. The state is simply saying they will do as little as possible with regard to contract enforcement, and "these contract clauses here" are the few that the state is willing to intrude on the situation for.

    Jedidiah.