August 29, 2005 4:35 PM PDT

Google asks court to void Lee's Microsoft pact

Google has asked a federal judge in California to rule that Kai-Fu Lee's contract with Microsoft is unenforceable and that the researcher should be allowed to join Google unfettered by the terms of his employment deal.

The two rivals are locked in a legal dispute over the hiring of Lee. Google announced on July 19 that it was hiring Lee to head up a new China research center. The same day, Microsoft sued Google over Lee's hiring in Washington state court. Google countersued in a California state court, saying that the case should be heard there. Microsoft last month had the California matter moved to federal court in San Jose, Calif.

Kai-Fu Lee
Source: Microsoft
Kai-Fu Lee

Google has now asked that federal court judge to--as a matter of law--rule on Google's behalf without a trial. In court papers filed Friday, Google argued that "this motion for summary judgment is made on the grounds that there is no genuine issue as to any material fact" and that the noncompete clause of Microsoft's employment contract violates California law.

In support of its case, Google argues that Lee is now a California resident, living in Palo Alto. Google said that Lee has obtained phone service in the state, registered to vote and obtained a driver's license. Lee has also "begun paying California state income taxes, including tax on a signing bonus from Google," the search giant said in court papers.

In documents accompanying Google's request, Lee said that although he planned to go to China for Google, he expected to return to California after approximately two years overseas.

Microsoft spokeswoman Stacy Drake reiterated that Microsoft believes that Washington state court is the proper place for the legal battle to take place.

"Dr. Lee and Google have a legal obligation to honor the agreement Dr. Lee made with Microsoft, and we don't believe that this latest filing will persuade anyone otherwise," Drake said in an e-mail.

A Google representative did not immediately return a call for comment. (Google representatives have instituted a policy of not talking with CNET News.com reporters until July 2006 in response to privacy issues raised by a previous story.)

In July, a Washington judge temporarily barred Lee from performing job duties at Google similar to those which he performed at Microsoft.

The two sides have each outlined a very different picture of Lee. Microsoft has portrayed Lee as a highly paid executive who played a vital role in the company's search and China strategies. Google, meanwhile, says Lee is "not a search expert" and was peripheral to Microsoft's business in China.

See more CNET content tagged:
Kai-Fu Lee, Stacy Drake, Google Inc., hiring, China

Add a Comment (Log in or register) 8 comments
Google VS Microsoft
by toaaron August 29, 2005 6:59 PM PDT
they fight on web searching,
they fight on emailing
they fight on instant-messaging

they even fight on the court!

their battlefield just can be anywhere!!!

http://aaron365.blogspot.com
Reply to this comment
Google VS Microsoft
by toaaron August 29, 2005 6:59 PM PDT
they fight on web searching,
they fight on emailing
they fight on instant-messaging

they even fight on the court!

their battlefield just can be anywhere!!!

http://aaron365.blogspot.com
Reply to this comment
"Not a search expert" - then why do they want him?
by BrandonLive August 30, 2005 11:55 AM PDT
Their attempt to move this to a California court by saying that Lee has moved there *after* his hiring by Google is pretty weak, I think. And they only reason I can see for doing that is that they know they'll lose under Washington law (where Lee lived when he signed the agreement).
Reply to this comment
"Not a search expert" - then why do they want him?
by BrandonLive August 30, 2005 11:55 AM PDT
Their attempt to move this to a California court by saying that Lee has moved there *after* his hiring by Google is pretty weak, I think. And they only reason I can see for doing that is that they know they'll lose under Washington law (where Lee lived when he signed the agreement).
Reply to this comment
Lee's Contract is too restrictive on the scope of his area
by educateme August 30, 2005 3:18 PM PDT
It is likely this will be thrown out of court once they get to the
part about how extensive Lee's contract is regarding the area
(geographically) that it covers. He was hired in WA, to work in
China, and is being lured away to work in CA, regarding China.
To prevent a man from working in a country with over 1.5 Billion
people beause the scope of his non-compete is China, is beyond
precedent. In desperation, MSFT wants to tie up Google with
some legal wrangling. This is what Gates has learned the hard
way....legal hassles will distract company focus, and chip away at
goodwill. The fact that there is a lawsuit is more about Gates
poker or "war" strategy to tie up google on the ropes for a bit, in
hopes they might stop Out-Innovating Microsoft, which is not
hard to do, even with one hand tied behind your back.

Bill Gates has experience in raiding other companies employees,
witness the Procter & Gamble-ization of all Microsoft
products.....bright colorful packaging, "New & Improved"
promises, bundled offerings, add-ons, upgrades; its apparent
where he gets his marketing ideas from.

Then look at where DOS came from, QDOS which Gates didn't
own at the time he offered it to IBM, thanks to his Momma's
connections via her sharing United Way board seats with IBM C-
Level members in talks for a PC OS. Then take a gander at the
story behind NT, at
http://www.windowsitpro.com/Article/ArticleID/
4494/4494.html
documenting NT as a hack from Digital that Gates also stole,
and reworked, bugs and all, into a product for the unknowing
corporate masses of guinea pig testers: MIS, CIO, and IT staff. I
hope Google stomps on Bill's toes in Court, and that Mr. Lee is
actually worth the trouble.
Reply to this comment View reply
Lee's Contract is too restrictive on the scope of his area
by educateme August 30, 2005 3:18 PM PDT
It is likely this will be thrown out of court once they get to the
part about how extensive Lee's contract is regarding the area
(geographically) that it covers. He was hired in WA, to work in
China, and is being lured away to work in CA, regarding China.
To prevent a man from working in a country with over 1.5 Billion
people beause the scope of his non-compete is China, is beyond
precedent. In desperation, MSFT wants to tie up Google with
some legal wrangling. This is what Gates has learned the hard
way....legal hassles will distract company focus, and chip away at
goodwill. The fact that there is a lawsuit is more about Gates
poker or "war" strategy to tie up google on the ropes for a bit, in
hopes they might stop Out-Innovating Microsoft, which is not
hard to do, even with one hand tied behind your back.

Bill Gates has experience in raiding other companies employees,
witness the Procter & Gamble-ization of all Microsoft
products.....bright colorful packaging, "New & Improved"
promises, bundled offerings, add-ons, upgrades; its apparent
where he gets his marketing ideas from.

Then look at where DOS came from, QDOS which Gates didn't
own at the time he offered it to IBM, thanks to his Momma's
connections via her sharing United Way board seats with IBM C-
Level members in talks for a PC OS. Then take a gander at the
story behind NT, at
http://www.windowsitpro.com/Article/ArticleID/
4494/4494.html
documenting NT as a hack from Digital that Gates also stole,
and reworked, bugs and all, into a product for the unknowing
corporate masses of guinea pig testers: MIS, CIO, and IT staff. I
hope Google stomps on Bill's toes in Court, and that Mr. Lee is
actually worth the trouble.
Reply to this comment View reply
Powered by Jive Software
advertisement

Latest tech news headlines

RSS Feeds

Add headlines from CNET News to your homepage or feedreader.

More feeds available in our RSS feed index.

advertisement

Inside CNET News

Scroll Left Scroll Right
  • Nanotech: The Circuits Blog

    Report: More competitive processors due from AMD

    AMD will bring out processors by early next year that appear to be much more competitive with Intel offerings.

  • Gallery

    Photos: Top 10 reviews of the week

    Here are CNET Reviews' 10 favorite items from the past week, including the TiVo HD XL, Sony Cyber-shot DSC-H50, and the Dish Network's newest digital TV converter box.

  • News - Apple

    Apple watchers spot 'iPod Nano' pix, iTunes hints

    The rumor mill has long been predicting a longer, leaner new version of the iPod Nano, and now it's conjuring up some pictures.

  • Coop's Corner

    Chris Shipley 1, Internet lynch mob 0

    Demo's impresario goes public with a tart and smartly written riposte to the shoot-from-the-lip crowd.

  • Video

    Katie Couric reflects on first Webcast

    The political conventions are over and so are CBS Evening News anchor Katie Couric's first series of Webcasts. CNET's Kara Tsuboi sat down with Couric on the final night of the Republican National Convention to discuss what she liked about Webcasting, some of her most memorable guests, and whether TV news will still be around by the next round of conventions.

  • News - Digital Media

    Ad trade group opposes Yahoo-Google search deal

    Association of National Advertisers announces it has sent a letter to the top antitrust chief for the U.S. Department of Justice, issuing its objections to the controversial Yahoo-Google search ad partnership.

  • Video

    YouTube plays party politics

    During the presidential campaigning four years ago, YouTube didn't even exist. Now it's a tool candidates must master to get their message across. CNET's Kara Tsuboi stops by the YouTube upload booths at the Democratic and Republican conventions to find out why Google's video site has such a big presence in Denver and St. Paul, Minn.

  • News - Gaming and Culture

    Are Demo and TechCrunch50 fragmenting their audiences?

    With both events scheduled to start Monday, many press, as well as venture capitalists and others are having to choose which one to attend.

  • News - Cutting Edge

    Execs predict next Google-like tech

    On eve of company's 10-year anniversary, researchers and business pundits speculate about what technologies might someday have as much impact as Google.

  • Gallery

    Images: The art of 'Spore' prototypes

    Will Wright and his Maxis team worked on dozens of prototypes to test the elements of their soon-to-be-released evolution game. Here's a sampling.

  • Webware

    DemoFall preview: 10 to watch

    If you can only watch 10 pitches from DemoFall, these would be good ones.

  • Green Tech

    Duke Energy to invest in mini solar power plants

    Can hundreds of rooftop solar panels collectively operate like a central power plant? Duke Energy launches $100 million distributed solar program to find out.