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Microsoft Businesses Google Government The Courts The Internet News

Legal Arguments Can Hurt Tech Job Mobility 255

camelcai writes "Microsoft's suit against Kai-Fu Lee and Google is based off of the thought that in some circumstances people can't avoid sharing or relying on trade secrets from their former employer when moving to a competitor. In MS's filing it says: 'Lee's conduct threatens to disclose or Lee inevitably will disclose Microsoft's trade secrets to Google and/or others for his and/or Google's financial gain in the course of working to improve Google search products that compete with Microsoft, and in the course of establishing and building Google's presence in China to compete with Microsoft's efforts in China.' According to CNET, thanks to this increasingly popular legal argument, defectors might face a lawsuit even if they did not sign agreements not to compete or not to disclose confidential information."
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Legal Arguments Can Hurt Tech Job Mobility

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  • I beg your pardon? (Score:2, Interesting)

    by Bananenrepublik ( 49759 ) on Sunday August 28, 2005 @04:46PM (#13422324)
    'Lee's conduct threatens to disclose or Lee inevitably will disclose Microsoft's trade secrets to Google and/or others for his and/or Google's financial gain in the course of working to improve Google search products that compete with Microsoft, and in the course of establishing and building Google's presence in China to compete with Microsoft's efforts in China.'

    Can someone translate this please?
  • Simple solution. (Score:5, Interesting)

    by khasim ( 1285 ) <brandioch.conner@gmail.com> on Sunday August 28, 2005 @04:55PM (#13422372)
    The old employer pays the person as much as the new employer was offering for a year (or however long the non-compete contract is) and puts up money equal to 10x that in case the new company doesn't want the employee after the year is up and he has to find a new job.

    Anything less is indentured servitude (a form of slavery).

    If the companies want to play that game, then they should be financially responsible.

  • This reminds me of that novel Jennifer Government, where in the dystopian anarcho-capitalist future, companies can sue former employees for losses in productivity which might result from an employee leaving their job.

    Here, we have a company suing over potential losses in intellectual property which might result an employee leaving their job.

    You tell me which is more surreal.

    The future, is.... now?
  • by Timesprout ( 579035 ) on Sunday August 28, 2005 @04:59PM (#13422392)
    Intresting that MS decide that inevitable disclosure is a problem when their employees leave given that it wasnt an issue when they poached/bribed a lot of the guys from Borland in the .NET ramp up.
  • by scattol ( 577179 ) on Sunday August 28, 2005 @05:00PM (#13422397)
    Maybe it should be law that if a company wants to bind you to a long non-disclosure, it should also be forced to agree to a golden-parachute clause as long as the non-disclosure?

    Say you work in search engine technology for Microsoft, how are you going to earn a nice living elsewhere? Afterall your skill is searches and that's what people are willing to pay for. Well if your employer wants to prevent you from earning a decent living, it should pay for it!

    I am sure that there is a flaw in that argument, and I understand Microsoft's position in the matter but in these circumstances doesn't it make the employee a virtual slave of the employer if he can't use his skills elswhere?
  • by ShatteredDream ( 636520 ) on Sunday August 28, 2005 @05:02PM (#13422411) Homepage
    The Chinese government is the worst major government on Earth today. It's still a totalitarian government and an aggressive, would-be empire. It's amazing to me at times how much we are willing to do to build up their economy, only to have them eventually become a dominant military and trade empire in Asia, and possibly one day Europe as well.

    When I think of how China treats the Tibetans and Uhigurs, I just can't believe that we let companies like Microsoft and Google trade with them. The scary part about this competition to build up their services in China is that regardless of which company wins, the Chinese government wins because its private and state-owned corporations get a much larger economy to profit from. That in turn goes into building up the military, which btw they are now making steady progress toward having a blue water navy in the pacific.
  • I was a juror... (Score:5, Interesting)

    by ninejaguar ( 517729 ) on Sunday August 28, 2005 @05:07PM (#13422437)
    ...in a lawsuit in California where a company sued its former president for taking two key employees with him and starting a competing company. I don't believe any of them signed an agreement not to compete or disclose trade secrets; at least I don't think the two employees did (they were being sued too). Maybe the ex-president did. It didn't matter. You can't stop people from working in California, no matter what they have in their heads. I'm not sure about the rest of the United States.

    I'm of the opinion that what is in your head is yours, and makes you what you are. As no one can own you, in part or in whole, they can't own what's in your head. They can only share in it. Your life experiences are your own, and no one elses.

    Trade secrets must be acknowledged as temporary artifices at best. As the pirates say, two men can keep a secret, if one of them is dead.

    = 9J =

  • by Anonymous Coward on Sunday August 28, 2005 @05:15PM (#13422470)
    I was sued for exactly that reason (knowledge of information, like customer names, what they bought, pricing, etc). When it came time for my lawyers to present my side of the case, the judge said to them: "You don't really want to waste the court's time with this, do you?" and threw the case out. I thought that was pretty cool, since I didn't have the $5 million I was being sued for and needed the job.

    Employees at will can quit or be fired at any time, and there are a lot of precedents (esp in CA tech industy cases) that say that what's in your head is yours, unless you signed it away via non-disclosure agreements or employment contracts.

    However, you can't take physical stuff with you (like code listings or customer lists) and you can't conspire with cow-orkers to leave en masse. (I did the latter but the employer's lawyer was too incompetent to prove it - they never thought to ask). And patent laws, copyrights and trade secret laws still apply.

  • Re:Simple solution. (Score:5, Interesting)

    by eric76 ( 679787 ) on Sunday August 28, 2005 @05:17PM (#13422480)
    That sounds like a great approach.

    About 15 years ago, I knew one engineer at the Johnson Space Center area who accepted early retirement from IBM division there and accepted a job with another NASA contractor on a project that was not in competition with IBM. The terms of his early retirement agreement specified that he could not work for another company in competition with IBM.

    IBM nixed that about two weeks after his retirement and before he started at the other job. Their reasoning was that they might want to bid on that contract later and he would then be violating the terms of his agreement.

    A lawsuit with IBM to enforce his rights would have ended his retirement plan with IBM as well.

    It really left him in a bind for quite a while.

    A solution like yours would have helped him enormously.
  • by Socket790 ( 890231 ) on Sunday August 28, 2005 @05:20PM (#13422490)
    Am I the only one reminded of the bad guy from snow crash who wanted to control the information in his programmers brains?

    (I can't remember the names right now)
  • Free market labor (Score:4, Interesting)

    by Telastyn ( 206146 ) on Sunday August 28, 2005 @05:28PM (#13422530)
    Lee's conduct threatens to disclose or Lee inevitably will disclose Microsoft's trade secrets to Google and/or others for his and/or Google's financial gain in the course of working to improve Google search products that compete with Microsoft, and in the course of establishing and building Google's presence in China to compete with Microsoft's efforts in China.

    "Well then maybe you should've made him not want to leave."

    I find it amusing that companies are allowed to fuck employees in the race for cheaper labor, but valuable employees [alledgedly] aren't allowed to fuck employers in the race for higher wages.
  • by BewireNomali ( 618969 ) on Sunday August 28, 2005 @05:29PM (#13422539)
    It's like the US is damned both ways. In doing trade with them, we essentially enable and enbolden our replacement as a superpower. We ignore them, and our economy becomes an also ran as other economies enjoy the windfall of dealing with the sheer mass of their economy.

    One can argue about a correlation between the health of an economy and the size of their urban centers, especially as far as consumer spending goes. China's urban centers alone stand at 300 million and counting. It's a fucking awesome mass of people just entering the first world economy. The Chinese are known to be excellent at saving cash; I read something about car companies salivating to get into the market because an overwhelming percentage of cars are purchased with cash (their banking system sucks, another chink in the armor).

    I agree with all of the human rights concerns, etc., but they embody a critical mass that cannot be ignored.

    someone posted something about them being unable to feed themselves. They can't power themselves either. I can imagine the war *cough* middle east destabilization efforts *cough* is a preemptive attempt to prevent consolidation and collusion efforts in the middle east with the chinese.

    All in all, they can't be ignored. We're fucked both ways. I'm learning mandarin.

    Oh, and to get on the topic: how is it possible that this Lee guy not ever disclose trade secrets. It's impossible. Not only that, but he's a well educated Chinese man who well serves as a frontman for a company attempting to woo the Chinese government into allowing them egress. There is so much more at stake with this lawsuit. If google establishes a significant foothold in that market, microsoft might be done. Wow. Like, they could really be done. A suite of server side applications for free, serving two billion people (their current penetration plus the chinese market) - OS agnostic. Then an OS like Linux can thrive - Google can even champion its own distribution - for free of course - that integrates all of its server side apps directly on a clean GUI - right on the desktop. It not only puts Microsoft in a quandary - but it wipes out a significant segment of the industry in one fell swoop. It's the commoditization of software - and a monopoly on information and the potential for relationships. Shit.

    Guess that money spent on PHDs was well spent.

    Sorry for the ramble.
  • Re:The new serfdom (Score:5, Interesting)

    by h4rm0ny ( 722443 ) on Sunday August 28, 2005 @05:30PM (#13422547) Journal

    You don't just have to look to the future for this - you can look to the past also. What we see existing in potential here are similar to the medieval guilds. European guilds in the middle ages were very protective of their areas of expertise and raised Hell for outsiders who dared to compete (assuming they got access to the knowledge and skills they needed in the first place).

    The modern view of the guilds tends to be very critical - they stopped people earning a living unless they were members?"

    However, it's very similar to the situation that this would logically lead to - locked into a profession; and Heaven help you if you loose your place in the organization because with this sort of legal precedent, the threat of being sacked from a corporation becomes even more powerful.


    For those who are interested in the guilds in history, it might be worth noting the following:

    • They began as business alliances that through their increasing wealth eventually brought into law their privelleged right to a monopoly on certain areas. Sounds familiar?
    • They used their influence in Europe to choose local leaders, dissolve town councils that interfered with them, etc. Sound familiar?
    • They were frequently criticised for interfering with free trade and innovation. Sound familiar?
    • One of their best known critics was the arch-prince of Capitalism, Adam Smith. Well, Adam Smith is dead, but I believe he would have found modern corporate practices like this to be just as anti-capitalistic as the guilds.

  • by Nom du Keyboard ( 633989 ) on Sunday August 28, 2005 @05:44PM (#13422619)
    forgetting to empty recycle bin and wiping disk before returning company computer?

    Does Google really want to hire someone this stupid?

    Alternatively, this sounds like a red herring on Microsoft's part. If they want to know what mail Dr. Lee received, just get it out of their Exchange servers. They probably don't want to admit that they already do this.

  • by Nom du Keyboard ( 633989 ) on Sunday August 28, 2005 @05:49PM (#13422651)
    I think it's becoming time to put the shoe on the other foot. Employees need to have their employers sign a no-sue agreement in the event they change jobs ensuring that said employer has no control over an employees employment prospects once they leave the company. IANAL, however it would be nice to see a lawyer create and put up such a sample agreement.

    When will this work? The next time the job market becomes tight in tech.

  • Comment removed (Score:3, Interesting)

    by account_deleted ( 4530225 ) on Sunday August 28, 2005 @06:01PM (#13422703)
    Comment removed based on user account deletion
  • by Nom du Keyboard ( 633989 ) on Sunday August 28, 2005 @06:02PM (#13422710)
    'Lee's conduct threatens to disclose or Lee inevitably will disclose Microsoft's trade secrets to Google and/or others for his and/or Google's financial gain in the course of working to improve Google search products that compete with Microsoft, and in the course of establishing and building Google's presence in China to compete with Microsoft's efforts in China.'

    He hasn't done it yet.
    He may never do it.
    But because he could possibly do it sometime in the unknowable future he's screwed now for life for working for any company other than the one he just left.

    It's called: Trying to prove a negative.

  • by HangingChad ( 677530 ) on Sunday August 28, 2005 @07:07PM (#13423047) Homepage
    This is what happens when you stop making things and rely on brain share products to make a living.

    We've outsourced most of our manufacturing other countries, so now companies are going collectively insane trying to protect their brain share products whether it's music, movies, software or patentable ideas. This is just extending that protectionist mind set to the employees who think up the ideas.

    It's insane. And I'm afraid we're going to wake up in the middle of an economic Pearl Harbor depending on sales of products with no substance.

  • by Guppy06 ( 410832 ) on Sunday August 28, 2005 @08:04PM (#13423347)
    "Microsoft held up their end of the bargain, he has to hold up his."
    (A)ll acts, laws, resolutions, orders, regulations, or usages of any Territory or State (...) made to establish (...) the
    voluntary or involuntary service or labor of any persons as peons, in liquidation of any debt or obligation, or otherwise, are declared null and void. (source [slashdot.org], emphasis mine)

    Whoever knowingly provides or obtains the labor or services of a person (...) by means of the abuse or threatened abuse of law or the legal process, shall be fined under this title or imprisoned not more than 20 years, or both. (source [cornell.edu])
    According to the Anti-Peonage Act of 1867, whether or not the laborer (ostensibly) signed the contract voluntarily doesn't matter. The only real difference between these non-compete contracts and indentured servitude was that indentured servants were contractually guaranteed subsistance living for the term of service.

  • by Anonymous Coward on Sunday August 28, 2005 @08:55PM (#13423558)
    Tech professions are going to be hit hard in the near future. The economic laws of capitalism will inevitably make our wages lower. It has always been like that with every profession left at the whim of the market.

    The medical profession still maintains high wages in the US because of a perverse form of collective action: the medical guilds that prevent a bigger number of doctors to study at the universities (and the high cost of education too).

    In the end, we are workers who sell their force of labor for a sallary. Dont come with the "innovation" argument because it's phony. We may dress like managers, not like the janitors; we may be called "middle class", we may work in offices instead of production lines; but the reality is that our place in the greater scheme of things is closer to the janitor and the workers than it is to the managers and big capitalists.

    Historically, even with aaaall their flaws, unions and struggles (NOT elections!) have been the only way that workers have been able to defend their interests against the interests of the bosses.

    But we techies believe that we are above that, we believe that we can solve everything individually. I have never in my life seen a group of developers demanding anything in the streets. This is just the beggining, they are already attacking us and we have our pants down.

    Posting comments to a site is not an assembly. If you dont go out to the streets, anything that you do does not exist politically. That is if you are not one of the bosses or owners of the circus.

    Our bosses are going to fuck us big (they have already started) and we have no way to defend ourselves.

    Here, in front of the keyboard, we dont stand a chance; and that's exactly where we will stay as a group.

  • Idiots (Score:4, Interesting)

    by cdrguru ( 88047 ) on Sunday August 28, 2005 @11:22PM (#13424270) Homepage
    Mr. Lee must be the hottest thing in the world - literally, as valuable as Jesus to the Pope. Because if Google knew in advance there was even the merest possibility of a lawsuit, why would they persue such a person?

    This happens all the time - you interview someplace and they, usually way out of site of the interviewee, find out about possible non-compete complications. If there are any, and I do mean any at all, there is no offer. Period.

    Why would it work any other way? Is someone at Google just trying to spend thousands if not tens of thousands of dollars in legal fees to prove a point? Companies don't do this sort of thing unless there is a real reason behind it.

    And no matter how good Lee is, he isn't worth this. There is another agenda here - and that is what the real story should be.

The only possible interpretation of any research whatever in the `social sciences' is: some do, some don't. -- Ernest Rutherford

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