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Ex-Microsoft Exec Barred From Google Job

DaHat writes "Following up on last weeks report that Microsoft filed suit against Google for the hiring of former Microsoft executive Kai-Fu Lee, today Superior Court Judge Steven Gonzalez granted a temporary restraining order barring Lee from violating his noncompete agreement by performing the work that he was hired for by Google."

26 of 544 comments (clear)

  1. Huh? by steelfood · · Score: 2, Interesting

    How does the United States plan on enforcing this?

    I can think of three ways Google can get around this legally (legally in China does not necessarily mean legally in the US, and then sometimes, legally in China does not necessarily mean legally in China ;) ). One of those ways is as simple as hiring this person under a different name.

    --
    "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    1. Re:Huh? by steelfood · · Score: 2, Interesting

      Yes. And for that reason, the person's name cannot show up in Google's records. But there are other ways of paying people, giving them benefits, etc. And a contract is a piece of paper. It doesn't have to have a date if it's just going into someone's safe (it's not like the FBI can raid Google China's headquarters).

      Think of it this way. The goal of the employee is to get paid. The goal of the employer is to get work done. So long as these two criteria are met, that constitutes a working relationship. Whether the person is "officially" an employee is completely irrelevant to the relationship.

      Besides, how many Kai-Fu Lee's are there? Given that there are about 1400 distinct sounds (including tones), most of which are close enough that their romanization is or can be the same (xia vs. xa), resulting in a little over 200 unique, distinctly romanizeable sounds, two sounds per name (Lee is among the top 10 most common surnames), and 1.2 billion people, I'd say quite a few. In fact, since only a small subset of the few thousand characters are male-name-worthy, the chances of hiring multiple Kai-Fu Lee's are enormous. This argument alone would be able to convince a judge in the US that the Kai-Fu Lee in Google's books is not the one that left Microsoft. Skew the date and where the person was hired, and for all intents and purposes, they are two different people.

      That's the hard way to go about doing things--actually having to go to court. The easy way would be to keep his name off the books, as I said. Hiring him under a different name is one way. Google can also hire him under a contractor where payroll only knows to pay to the contractor. He can also be paid unofficially. Add a few dollars to the various petty cash accounts, while withholding the additional money for this person, and that should be enough to constitute a person's salary.

      And if Microsoft hires PI's in China, well, good luck first getting a reliable PI with a clean record, and second, if the PI takes pictures of this person entering Google's campus, well, the courts cannot force Google to ban someone from their campus, especially on foreign soil, not to mention private property (though those rights as you know them in the US aren't quite the same in China).

      Microsoft will require the Chinese government to get involved before this restraining order can be enforced, and well, if they could, they would have already.

      --
      "If a nation expects to be ignorant and free in a state of civilization, it expects what never was and never will be."
    2. Re:Huh? by back_pages · · Score: 4, Interesting
      It worked for Prince.

      No, it certainly did not.

      Prince changed his name to an unpronounceable symbol in order to sabotage the commercial viability of his contractually-obligated albums. After doing so, his label had at least a symbolic hurdle (no pun intended) to cross in order to capitalize on his pre-existing fame and name-recognition. Prince fulfilled his contractual obligations to the label.

      As soon as his contract was fulfilled, he changed his name back to Prince and continued with his career. I don't see how any of this could be applicable in the news story under discussion.

  2. Read your employment contracts by antic · · Score: 4, Interesting


    Read your employment contracts. If the non-compete clauses and similar restrictions are not worth the pay, then negotiate, put up with it, or work somewhere else. Some companies will have default first-try contracts that they may alter if you make a fuss about it.

    --
    'Thats they exact same thing a banana wrench monkey.'
    1. Re:Read your employment contracts by MrShaggy · · Score: 2, Interesting

      Disney has something similar. I had a freind that worked as a painter. She worked on animation cells and 'filled in the spaces' with solid colour after the animation was drawn.

      Her contract said specifically that anything that you create while under their contract, they get right of refusal on. If they say no, then you cant sell it.

      So, if you write some music while you were employed there, they own it.

      Tim Burton was sued (and lost) bu Disney for the same thing. He went to them with NightMare Before Christmas. They told him that they had no interest in producing the movie. He did it anyway.

      Contracts can stretch what you think is right or not. But once you sign, you are preatty much bound to them.

      --
      I have mod points and I am not afraid to use them.
  3. Is this new? by dreemernj · · Score: 2, Interesting

    "Google and Lee claim the Microsoft lawsuit is a `charade` meant to frighten other Microsoft workers from jumping to Google, according to court documents."

    Do they mean its meant to frighten other Microsoft workers with non-compete agreements?

    I don't understand the big deal. These things happen all the time. I guess its new to hear about these problems in the tech world? With radio personalities and musicians and other fields like that I hear its quite common.

    I would bet some money the dude's got another non-compete agreement waiting for him at Google...

    --
    1 (short ton / firkin) = 89.1432354 slugs / keg
  4. Non-compete will expire before case is settled by Qrlx · · Score: 3, Interesting

    It seems to me that the year (it's a year, right?) of "no worky for google" will be up before this lawsuit is settled.

    Google should just pay this guy for his time off for the next year, then he can come back fresh and ready to code. Hell he might as well spend that year in China building political capital. If he's not already doing that.

    I'm pretty ignorant about this case, I do know that in California a judge struck down a non-compete clause because the time was so long (two years) that it basically denied the former employee of the ability to earn a living.

    This could also just be a "denial of service" attack by Google. Google might not get Mr. Lee, but Microsoft doesn't get him either. (Which ,as others have pointed out, is exactly what Microsoft did to Borland, except MS got to have their cake and eat it too.)

    Personally I would probably not sign an employment contract with a rigid non-compete unless there were something in there for me... a really nice severance package, to make up for my personal loss due to the non-compete sounds about right.

  5. Irony by Kamsky · · Score: 2, Interesting

    The irony is that employees, who are paid at a discount to consultants, can't do what the very thing consultants are nototrious for: charging you top dollar for your competitor's know-how, and then selling your firm's know-how to the next highest bidder.

  6. Some background by Anonymous Coward · · Score: 2, Interesting

    This guy set up Microsoft's China Research lab, considered by some to be one of the World's Hottest Computer Labs. And he's being paid to do pretty much the same thing for Google.

    I don't think this is just a case of trying to scare off others from joining Google. He's got some serious experience in this area. If Google were to set up a competing lab of this quality, I'd be worried too.

  7. No it isn't by hackwrench · · Score: 2, Interesting

    The right to contract's value varies from person to person. You may as well say the right to be a slave is a valuable part of our "spirit of freedom". Do you believe that someone should be allowed to contract being knocked senseless or infected with AIDS for some sort of renumeration?

  8. Microsoft has a point here... by Saeed+al-Sahaf · · Score: 5, Interesting

    Interestingly, Google is (in part) trying to say in California, where they are, the law prohibits the kind of thing Microsoft is doing right now (it's a good law, by the way). But people, the contract this guy signed was not signed in California. Microsoft is based in Washington State. I tend to think Microsoft has a point here...

    --
    "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    1. Re:Microsoft has a point here... by Saeed+al-Sahaf · · Score: 4, Interesting
      Look, what if this kind of thinking gets to the point where I'll have to sign non-compete agreements and give six months' notice if I'm involved with anything significant?

      When you become a corporate vice prez, and are pulling in that kind of cash-ola, you may decide it's part of the game. I'll bet Google has Non-compete contracts, too.

      --
      "Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
    2. Re:Microsoft has a point here... by Anonymous Coward · · Score: 1, Interesting

      I'm obligated to be loyal to no one until "companies" are loyal to employees.

      "Companies" (read: upper management) piss and moan about the lack of employee loyalty, but what happens if they miss their quarterly numbers by a couple of grand, and even though the company is still profitable for the most part (just missing a quarter) and sitting on $100mil in cash, what do these tech companies do?

      Lay off, without thinking twice about loyalty to their employees. They cannot forgo their quarterly bonuses, so through creative accounting they use the layoffs to pad their numbers, just so their families don't have to miss out on the annual six-week vacation to hawaii or their third plasma-screen television.

      Even worse, they'll somtimes simply offshoring the whole development department, and then a year and a half later call back key engineers to fix the project that hacks in India royally fudged up (this actually happened to me; I told the VP exactly what to do with himself). I hear that project is in a total mess and there is a skeleton crew of only two developers on this side of the pond, and they're only there on a consulting basis, part time. They're bitching about how buggy the product has become, yet won't bring back development to America, and no previous employees will give them the time of day, let alone come back on a contract basis to clean things up.

      Loyalty to tech companies? Fvck that.

    3. Re:Microsoft has a point here... by CloakedMirror · · Score: 2, Interesting

      Sorry, but this is complete hogwash. Many a company has been willing to slash its development staff so that the guys at the top can keep their fat salaries. Do I hold that against them? No, I think that if they can convince the shareholders that they can still accomplish the business plan without the supporting staff then the shareholders get what they deserve.

      By the same token, I think that if the company I where I work does not want to lose me as an asset then they have a couple of things they need to do. First, make sure the environment is one that is likely to be one where I would want to stay. Second, make sure that my compensation is sufficient that the hassle of going someplace else isn't overshadowed by the rise in compensation.

      The long and short of it is that non-compete contracts are a form of indentured servitude. Up until recently, I have had the ability to get companies to strike them from any contract I signed. Now, everyone wants me to commit the rest of my career to them. Between that and the whole craziness of patenting everything that moves, after 25+ years in the industry I am leaving software development behind. I wish all of you that continue on nothing but good, too bad I don't think you'll actually receive it.

      --
      Evolutionary thinking will move you down the road, revolutionary thinking will put you on a new road!
  9. So are Microsoft going to continue to pay him? by Anonymous Coward · · Score: 1, Interesting

    Since their contract is apparently still in effect, the only way I can see this would be fair is if Microsoft now continues to pay (with full benefits) this guy's salary for the duration of the non-compete agreement.

    It's one thing to make sure he doesn't give away company secrets, another entirely to deny him from making a living (although he's not exactly going to be short of cash). If Microsoft don't want him working for anyone else, they should responsibly pick up his tab.

  10. M$ is NOT the place to work by SpinJaunt · · Score: 2, Interesting

    1] the story kinda proves that.
    2] a pearpc developer also found that M$ is *somewhat* restrictive when it comes to FOSS: http://sourceforge.net/mailarchive/forum.php?threa d_id=7837169&forum_id=40270

    --
    /. is good for you.
  11. Re: Matrox VS nVidia case by Anonymous Coward · · Score: 5, Interesting

    In year ~2000, there was a court case in the province of Quebec where Matrox was suing an ex-employee for going to work for nVidia, while under a non-compete agreement. Matrox lost.

    The court indicated that Canada is a free and capitalist society which upholds the idea of free movement and the ability to earn a living. Additionnally, the Quebec Civil Code (the province of Quebec uses codified law mixed with common law principles) clearly indicates that such an agreement must be limited in its scope, location and duration.

    Matrox made two mistakes. Firstly, its agreement mentionned that it would be reviewed and signed every year, which it wasn't (this little fact wasn't pleaded by the defendant so it didn't impact the decision, but the judge noted it in his judgement). And most importantly, it specified that the employee couldn't work for a list of competitors in North America (if I recall correctly). This location being too vague made the agreement unenforceable.

    Note that it wasn't fact that the two companies operate in different jurisdictions that made the agreement unenforceable, as was hinted at by internet "news" media. It's often possible to enforce a judgement from one jurisdiction in another in civic societies.

    Well, considering that the current case involving Microsoft and Google presents a number of similarities, perhaps similar civil principles will determine the outcome.

  12. Re:That sucks... by jxyama · · Score: 2, Interesting
    You do realize MS doesn't go around suing everyone in MSN Search who "defects" and goes to Google, even though pretty much everyone at MSN Search signs non-compete.

    The person in question was a high exec. It's one thing if you know a tiny bit about MSN Search technology, it's quite another if you know higher-up strategies and trade secrets.

  13. this is a constitutional question by imsmith · · Score: 2, Interesting

    If this goes all the way to SCOTUS it will be a commerce clause argument: "Do states have the right to govern the labor practices of companies who employ workers who live in the boundaries of the state, even if those companies are engaged in interstate commerse?"

    Yes, the contract was established in Washington, but the contractractual arrangement could never have been established in California, so does it still have force when the worker moves to California and seeks employment? Can a contract, that is valid in Washington be enforced in California where it is invalid? Is the contract prejudicial if applied to the employee who lives in Washington but not one who immigrates to California? Pejudicial to whom?

    And at the bottom of the issue is whether or not a corporation, in claiming personhood, and therfore inclusion in 14th amendment's right to property, can deprive a human being of their own 14th amendment rights to liberty by denying them the right to engage in securing their livelihood by future labor based upon past experiences through the use of a contractual instrument that claims ownership over the specialized and singular labor potential of the human being.

    In essence Microsoft's position is that any future labor that this person does is owned, whole or in part, by Microsoft because of this non-competition contract, and that Microsoft reserves the right to refuse license to that future labor to other corporations at will as a means of denying competition in the marketplace.

  14. Re:What's the story here? by ozzee · · Score: 4, Interesting
    If you sign a contract knowing it isn't legal you're just a dishonest SOB ...

    True story

    I was asked by an employer to sign a non-compete and when I pointed out that it was unenforceable in CA (where I was being employed) the employer response was. "Then you should have no trouble signing it since it's not somthing we would be chasing you on" ... "Besides, we would never do anything like that".

    The employer : Microsoft

    Honest to God - True story.

  15. More and more behind by Tom · · Score: 3, Interesting

    Seems the US is (again) as far behind in social issues as it is ahead in technology. Over here in Europe, non-compete clauses have been found to be unenforcable time and time again.

    --
    Assorted stuff I do sometimes: Lemuria.org
    1. Re:More and more behind by NexusTw1n · · Score: 2, Interesting

      But contracts that state 6 or 12 month periods of notice are legally enforcable.

      So in the UK, board room level staff are forced into "gardening leave" if they want to jump to a competitor.

      Having given their 12 months notice, they are immediately banned from the premises, and made to stay away from the office, on full pay , for the duration of their notice.

      That way you aren't being deprived of a living, and any trade secrets you have, will be a year out of date by the time you get to join your new company.

      --
      It has become appallingly obvious that our technology has exceeded our humanity. --Albert Einstein
    2. Re:More and more behind by justins · · Score: 2, Interesting
      Over here in Europe, non-compete clauses have been found to be unenforcable time and time again.

      Two thoughts. First, just the way you phrased that indicates that there are still lots of lawsuits involving noncompetes. So it's not exactly a solved social problem, even in Europe. Second, the judge hasn't decided anything, he's just saying the guy can't break his noncompete yet.

      Maybe the guy can convince a jury that he really didn't understand what he had signed, why he was being paid so much, and so on.
      --
      Now before I get modded down, I be to remind whoever might read this that what I am saying is FACT. - bogaboga
  16. Re: Matrox VS nVidia case by PickyH3D · · Score: 2, Interesting

    Guess it's a good thing that contract was signed in Washington state and being sued by Microsoft in Seattle, Washington. Also, the MS contract did not list specific employers and simply listed the obvious clause to prevent leaked trade secrets, which as the judge pointed out, is at the very least enforceable up until the trial and that is a great sign for MS.

  17. Re:It's not a law... by revery · · Score: 2, Interesting

    because there are some natural rights that are considered to be inviolable.

    Like what?

    Read the 13th Amendment, Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

    Prior to this document, a person could choose to be sold into slavery. After this was written, only the government could convict you into slavery. There was no recognition of a natural right. If anything, this amendment recognizes that our freedom is a gift of the government, and that beyond their will, we are not free at all.

    As an aside, it has been noted many times, that income tax is a form of slavery, as the essence of slavery is to control (by force of arms or imprisonment) the product of a man and to choose (quite arbitrarily based on American history) what fruit of his labor he may keep for himself.

  18. Re:These laws... by mixmasterjake · · Score: 2, Interesting

    These laws kinda remind me of patent laws - at one point they were geared toward protecting the little guy so that the big guys can't crush them, steal their ideas, buy away their key employees, etc. The heart of these ideas was to keep things fair.

    As usual, greedy corporations twist the laws around to suit their purposes. Lawyers are all too happy to make a buck off of anything, no matter how it screws up the system. Somehow they're able to take a law and make it work the exact opposite way it was originally intended.

    --
    TODO: come up with a clever sig