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Ex-Microsoft Exec Barred From Google Job 544

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."
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Ex-Microsoft Exec Barred From Google Job

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  • by Anonymous Coward on Thursday July 28, 2005 @09:43PM (#13191864)
    You mean he had to abide by the contract he signed willingly when he worked for MS and made millions??! say it isn't so!!
    • by Saeed al-Sahaf ( 665390 ) on Thursday July 28, 2005 @10:16PM (#13192029) Homepage
      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...
      • by Anonymous Coward on Thursday July 28, 2005 @10:53PM (#13192198)
        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.
        • So it's decided then. The Google exec should move to Canada and work from here.
      • by vought ( 160908 ) on Thursday July 28, 2005 @11:10PM (#13192275)
        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?

        I'm thinking that if I touch or look at anything hardware or software related beffore the product ships, I'll be forced to wait before leaving, making me a lame duck for more than two weeks or worse.

        At what point do we say it's not OK to treat people as intellectual chattel? It's bad enough that many high-tech workers I know spend 60 hours a week at work as a matter of course; at some point we're not even trusted to keep our mouths shut when we go to a company that doesn't even directly compete with us?

        Note that I don't see Google as a direct competitor to Microsoft; I think they're playing a much more sly game of outflanking Microsoft by creating compelling content and ways to access that content over the web. Microsoft's specialty is writing ginormous pices of software. Google is changing the paradigm; they're only a competitor to Microsoft in that they're changing the game.
        • by Saeed al-Sahaf ( 665390 ) on Thursday July 28, 2005 @11:22PM (#13192323) Homepage
          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.

          • by vought ( 160908 ) on Friday July 29, 2005 @01:09AM (#13192658)
            Stock options used to be limited to upper management too, until businesses decided they were a lucrative recruiting tool.

            Perhaps signing a loyalty clause in exchange for favored treatment as an employee (first review sooner, higher minimum yearly raise, etc.) will become a new incentive for prospective employees.

            It may not sound plausible NOW...but then again, used to be that a company hired you, taught you, hung on to you until you retired. Both my grandfathers got gold watches, and never thought of changing careers or companies for thirty years. In twenty years, who knows? You may have to sign a loyalty clause to get your offer letter.

            I'd wager that your average engineer has more stategic know-how than most vice presidents; VPs are about presentation.
            • Both my grandfathers got gold watches, and never thought of changing careers or companies for thirty years.

              And it's entirely possible that they never thought of changing companies. Not so in the modern world. People jump jobs all the time for the "better offer"
              • by Xiaran ( 836924 ) on Friday July 29, 2005 @04:39AM (#13193188)
                Indeed. What I find frustrating about todays world is that business(especially large business) wants to have its cake and eat it also. It wants a highly mobile workforce so that when economic situations change they can shift their workforce to cheaper areas. But when this come back to bit them(ie valuable employees being given a better offer and shifting easily) its all lawsuit this and lawsuit that. If Im a valued employee, dont sue me, pay me what you think I am worth. If someone else values my skills more then Im gonna go with them. Its not personal... its just businesss.
            • by mntgomery ( 620581 ) on Friday July 29, 2005 @09:49AM (#13194839)

              You may have to sign a loyalty clause to get your offer letter.
              I'd be fine with that if I was to get a loyalty clause from the company in return. Companies often complain from a hiring standpoint about the lack of loyalty when good employees jump ship, but layoffs have become so common that few jobs feel secure anymore. If tenure doesn't mean anything (or can work against you when layoffs start), then there's not much point in sticking around at one place when better offers come along. Loyalty should go both ways.
    • I dunno in the US but in EU non-compete clauses are rarely enforced. I have been under them before and wiped my ass on them as well as remaining on good terms with the previous employer. It is simply not possible to stop someone from earning a living and that can sometimes mean betting on a different horse. However, if there is foul play and blatant abuse, then the law will step in.
  • These laws... (Score:5, Insightful)

    by ucahg ( 898110 ) on Thursday July 28, 2005 @09:44PM (#13191866)
    ...are ridiculous. I don't care if they are legal, they aren't in the spirit of freedom (in the sense of living in a free country).

    Non-disclosure? Sure, it makes sense.

    Non-compete? No, it denies the freedom of place of work.

    How can someone compete fairly knowing what they aren't legally allowed to disclose? I'm not sure, but I don't think this is the answer.
    • Re:These laws... (Score:2, Insightful)

      by Xantharus ( 860986 )
      Non-compete laws are acutally quite reasonable if you look into them. First, they must be reasonable in the eyes of a Judge. While Im sure many people will object to such a subjective standard, it is what we have judges there to do. An agreement of not being able to work for another software developer ever is clearly unreasonable and would be laughed out of the courtroom. Something that says you cant work for a competitor for a 6 month period as a fear of unfairly damageing the company due to inside i
      • Re:These laws... (Score:3, Insightful)

        by Vellmont ( 569020 )

        It doesnt say that you cannot program, or make a living, but not with a competitor.


        Riiight. So take a guy who say is an expert in search technology. He can still work at Burger King, but not what he's the most qualified to do. Totally evil.

        If the shoe was on the other foot, and a Google employee went to Microsoft and managed to get the jump on Google's X number of projects, Im sure there would be a lot of support for non-competition agreement.

        That could easily be covered by non-disclosure agreements. I
    • It's not a law... (Score:4, Insightful)

      by dereference ( 875531 ) on Thursday July 28, 2005 @09:53PM (#13191923)
      ...it's a contract. And it's a contract entered knowingly and willingly by both parties. Basically, read the fine print before you take that dream job (note FTFA that he was paid $1 million last year).

      Just take one look at any Microsoft EULA, and consider how horrible and one-sided their non-disclosure and non-compete terms must be.

      The right to contract is a valuable part of our "spirit of freedom" you mention.

      • by aussersterne ( 212916 ) on Thursday July 28, 2005 @10:35PM (#13192105) Homepage
        You cannot legally/bindingly sell yourself into slavery, because there are some natural rights that are considered to be inviolable.

        I'd suggest that cases like this begin to border on slavery. You are tied to one employer and one employer only in order to eat, and thus you are tied to his/her whims and conditions, whatever they may be, in order to survive.
        • Re:It's not a law... (Score:3, Interesting)

          by revery ( 456516 )
          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
          • You have incorrectly interpreted the constitution as an enumeration of rights. It is not. It is an enumeration of what the government is allowed and not allowed to do. This document speaks nothing of natural rights.

            -Hope
    • "How can someone compete fairly knowing what they aren't legally allowed to disclose? I'm not sure, but I don't think this is the answer."

      That's the problem, iddn't it? Suppose several years ago Microsoft offered a key Google engineers a huge pile of money to work for them. Microsoft could have shut down Google before they gained any real momentum *and* they could have walked away with some of Google's innovation. In a lot of cases, an NDA wouldn't be enough to protect the little guy.

      Basically, the point
    • He agreed to it!

      Noone held a gun to his head and made him sign that agreement. So now he shouldn't have to abide by it? I think not.

      Microsoft won this care, and they should have.
    • ...are ridiculous. I don't care if they are legal, they aren't in the spirit of freedom (in the sense of living in a free country).

      Non-disclosure? Sure, it makes sense.

      Non-compete? No, it denies the freedom of place of work.

      It's a contract. You don't like it, don't sign it. They're generally not held to be enforcable for the guys in the trenches, but when you get to the upper levels of management it becomes basically impossible to take a higher level job and _not_ disclose proprietary information. If thi

    • Re:These laws... (Score:5, Insightful)

      by MikeFM ( 12491 ) on Thursday July 28, 2005 @10:13PM (#13192011) Homepage Journal
      IMO everyone has the right to earn their living (even if already rich) and obviously that means using what you know and what you have learned from past job experience. It's one thing not to use information such as customer lists from a past employer and it's something else entirely to be told that you cannot perform the same job function. Let market pressure work since this is a capitalist country. If companies want to retain their employees then let them make their employees the ebst offer.

      All laws, contracts, etc that would bar an employee from seeking or accepting alternate emloyment should be unacceptable. Employers have no right to force such provisions and doing so shows that the contract is not between equals and therefore should not be legal.
      • Re:These laws... (Score:3, Insightful)

        by seriesrover ( 867969 )
        then he shouldn't have signed the damn contract - that was part of the deal. You can't pick and choose what bits you find are "morally right" AFTER the fact. He accepted a big salary, now he should accept the waiting period before he can join google.
        • Re:These laws... (Score:5, Insightful)

          by MikeFM ( 12491 ) on Friday July 29, 2005 @01:55AM (#13192764) Homepage Journal
          The problem with that is that for many types of jobs it's nearly impossible to find ANY job without signing this kind of crap. What's the alternative? Be unemployed? Be part of the working poor? YEAH both those are great ideas. So I guess we're expected to sign and keep our job even if it pays poorly and has bad working conditions.. because we're contracted and if we try to move up we'll be thrown out to be just another welfare case.

          I'm sure this guy didn't have that kind of choice but the same laws that apply to him apply to all of us. For the above reasons nobody should be bound by such an employment contract. A simple NDA for trade secrets should be enough.
      • Re:These laws... (Score:5, Insightful)

        by kotku ( 249450 ) on Friday July 29, 2005 @01:28AM (#13192699) Journal
        Let market pressure work since this is a capitalist country. If companies want to retain their employees then let them make their employees the ebst offer.

        It depends what the poaching company is paying for. Given that the ex MS employee was privvy to very secret internal MS strategy documents his worth to another company may be more than just his value as an employee doing a job. The poaching company may be willing to initially pay well over the odds just to get at the privvy information from the previous employer.

        Once they have that information what is stopping them dumping the new employee within a year. They now have the information they wanted, information worth many more times what they paid in salary to the now discharged employee.
      • Re:These laws... (Score:4, Insightful)

        by Asic Eng ( 193332 ) on Friday July 29, 2005 @04:00AM (#13193076)
        I agree. What's inside a person's brain should belong to that person. The idea that companies are trying to establish property rights on the contents of some person's brain are scary - this is something the law should protect us from.

        If someone wants to be the sole owner of some knowledge they can do that by doing the work involved by themselves. If someone employs another person to do the work, he should have to accept that the knowledge gained by that person belongs to that person.

    • If I signed a non-compete clause I would want to be compensenated for the time I can't work in my field of speciality.
    • Re:These laws... (Score:3, 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 origi
  • The judge pretty much had to grant the temporary order given the plain language of the employment contract. The real issues of the reasonableness of the time and place restrictions on working for competitors remain to be decided.
  • Huh? (Score:3, Interesting)

    by steelfood ( 895457 ) on Thursday July 28, 2005 @09:44PM (#13191871)
    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.
    • How would hiring him under a different name help? I believe it's illegal to change one's name to evade legal obligations such as these.
      • It worked for Prince.
        • Re:Huh? (Score:5, Interesting)

          by back_pages ( 600753 ) <back_pages@NoSpam.cox.net> on Thursday July 28, 2005 @10:43PM (#13192149) Journal
          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.

    • "How does the United States plan on enforcing this?"

      Google is a US company.

      • Re:Huh? (Score:3, Interesting)

        by steelfood ( 895457 )
        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. Whethe
  • I'm technically in violation of several non-compete agreements because I need to work for a living instead of waiting for the damn things to expire. Besides, it's not like those companies have any more work for me do after I completed my last contract with them.
    • Re:That sucks... (Score:3, Informative)

      by aussie_a ( 778472 )
      I'm normally against them but in this case I'm making an exception. The reasons are: * He earnt $1 million U.S. last year, if the non-compete agreement is reasonable (less then 1 year) he should be able to get by very well. * He was in charge of a project with Microsoft, and quit his job to go work with Google's version of the exact same project. * There would have been plenty of job opportunities he could have taken, if only to survive for the time of his non-compete agreement, but instead chose to take th
    • Re:That sucks... (Score:3, Interesting)

      by jxyama ( 821091 )
      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.

  • by antic ( 29198 ) on Thursday July 28, 2005 @09:45PM (#13191876)

    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.
    • 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
    • by Anonymous Coward
      If the non-compete clauses and similar restrictions are not worth the pay, then negotiate, put up with it, or work somewhere else.

      This is a version of "love America or leave it" bullshit. It's just an excuse to keep things status quo.

      So now you need a lawyer everytime you're offered a job?? When the market sucks it then becomes okay for corporations to take advantage of employees because they're in no place to negotiate.

      That's it. Keep lowering the bar.

    • Don't you just click OK and continue?
    • ...or ignore it. I had an employment lawyer review the last one I signed, and he confirmed that it can't be legally enforced. You should be able to track down the particular statute that applies in your state. Most states set clear limits on these agreements- time, geographic radius, etc.

      In FL, if it goes to trial and the employer loses, they have to pay all the legal fees. For a peon like me, I'd really have to piss someone off where I work to have them take that kind of risk. Tip: there are countless
  • From Microsoft? (Score:5, Insightful)

    by jarich ( 733129 ) on Thursday July 28, 2005 @09:46PM (#13191885) Homepage Journal
    This is from the company who sent limos to pick up Borland's developers???
    • Re:From Microsoft? (Score:4, Insightful)

      by NanoGator ( 522640 ) on Thursday July 28, 2005 @10:01PM (#13191967) Homepage Journal
      "This is from the company who sent limos to pick up Borland's developers???"

      'Interesting'? Gee, big surprise, Microsoft made a move to protect their own interests. If only Borland had used those evil non-compete contracts.

      Look, it's cool to hate Microsoft and all, but Kai-Fu Lee signed the stupid contract. Assuming Google's key employees signed one of those (which is blindingly likely) it's preventing MS from sending limos filled with bags of money to them.

      B.F.D.
  • by PktLoss ( 647983 ) on Thursday July 28, 2005 @09:48PM (#13191894) Homepage Journal
    I'm actually okay with non-complete clauses, provided they come with some sort of an expiary date.

    Knowledge is everything in the web world, we learn a lot from our employers, I'm okay with them telling me to avoid their line of work for a period after I finish my employment. Just because your knowledge may be with regards to Searching for example, and you are banned from working from a search centric company (ie google) doesn't mean your skills are useless. Help Postgress design a faster database for search queries. Help some company with huge amounts of data (say Vetran Affairs) index it better. There's other options.

    And it's not like the guy in question is an idiot, he knew what he was doing when he signed his contract with Microsoft.
    • Completely undermines the purpose of having a degree. Completely destroyes your built up experience.

      They would have to have highly compensated you for this agreement. Else I believe it would be viewed as a one sided contract which is illegal.
    • I have a problem with non-compete clauses because of the almost universal practice of the company demanding the noncompete clause without offering anything in return. If the employee's work is so valuable that they must sign these clauses, then the company should pay full salary for the duration of the noncompete.

      The upshot of all of this is for all prospective employees to have all employment contracts vetted by a lawyer before signing.
    • by theLOUDroom ( 556455 ) on Thursday July 28, 2005 @10:39PM (#13192133)
      Knowledge is everything in the web world, we learn a lot from our employers, I'm okay with them telling me to avoid their line of work for a period after I finish my employment. Just because your knowledge may be with regards to Searching for example, and you are banned from working from a search centric company (ie google) doesn't mean your skills are useless.

      That's what patents are for.
      If your ideas are really novel, patent them, otherwise, don't interfere with somebody's ability to put food on the table for their family because you're afraid of competing in a free market.


      Non-competes should be flat-out illegal, or at a minimum the company should be forced to pay this guy to NOT work.
      If your employees are that important to you, treat them that way.

      And it's not like the guy in question is an idiot, he knew what he was doing when he signed his contract with Microsoft.

      That's not a very good argument. People have gotta eat. They can't sit around for years until various things go into and out of style in the market place.

      Contracts like this are predatory. And non-competes are bad for the market. Tons of new and innovative companies are started by people who picked up their experience at other places and realized they could do it better. This is a GOOD thing because it forces business to compete.
      It's the whole frickin point of capitalism.
  • This one was easy to predict. Microsoft hires better lawyers than coders.
  • by Utopia ( 149375 ) on Thursday July 28, 2005 @09:48PM (#13191898)
    ...Microsoft according to court filings!!
  • A substantial liklihood of success is one of the factors looked at by a judge in granting a preliminary injunction. That is, Microsoft must have put on a colorable claim that this work would fall within the non-compete agreement. Other factors are potential for irreperable harm and lack of an adequate legal remedy (i.e. money damages won't do).
  • In the case of a spy or defector, governments will go to such lengths as to arrest and execute national traitors who may have given up sensitive information to the enemy. So important is that information.

    Companies just do this on a smaller scale. They state up front in the employment contract that you cannot work on related projects for X number of years after the termination of employment. This really isn't anything new, I don't think.

    The primary reason for this "sudden" growth industry of suing former
  • Is this new? (Score:2, Interesting)

    by dreemernj ( 859414 )
    "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
  • I just can't see how a non-compete clause in a contract can possibly be valid. Are employees supposed to be owned by their former employee even after they're not being paid? Intellectual property is one thing, but the broad powers of a non-compete clause is just criminal.

    What's really bad is the judge issued a restraining order, and the trial isn't set until January 9th! Any normal person would be crippled by not being able to work in their industry for at least 5 months.
    • If you see a non-compete clause that you do not like, you are free to make a voluntary choice to not sign it.
      • Which is completely irrelevant as to whether non-compete clauses are legal. Standard employment contracts for large corps are just filled with things that lie on very shaky legal ground, or are just completely illegal. It's all about scare tactics, not actual law.
    • by NanoGator ( 522640 ) on Thursday July 28, 2005 @10:51PM (#13192191) Homepage Journal
      "I just can't see how a non-compete clause in a contract can possibly be valid. Are employees supposed to be owned by their former employee even after they're not being paid?"

      Should it be possible for a big corp to throw lots of money at the key employees of the competition and drive them out of business?
    • Depending upon in what state or country you live, this might be worth reading:

      "Does Your Employer Own Your Thoughts"
      http://www.unixguru.com/ [unixguru.com]

      It is probably imperative that SOME if not MOST developers escrow away or safely archive their non-employer-related hacks, developments and such and make sure the future is not imperilled by an employer who intentionally, deviously, or accidentally assigns an employee to tasks or projects that are too close to the hobby or alternate/freelance/self-employment/consultatio

  • They apparently gave this guy a million dollars as a signing bonus. Do they get that back?
  • So ... (Score:5, Funny)

    by SirSlud ( 67381 ) on Thursday July 28, 2005 @10:01PM (#13191965) Homepage
    The exec can't work? No golf until the case is settled?
  • by Qrlx ( 258924 ) on Thursday July 28, 2005 @10:03PM (#13191972) Homepage Journal
    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.
  • Irony (Score:2, Interesting)

    by Kamsky ( 902230 )
    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.
  • by Anonymous Coward on Thursday July 28, 2005 @10:04PM (#13191976)
    If everyone on Slashdot just stopped buying MS products, we could really exert pressure on them and, umm...

    OK, what if we built a large wooden badger...
  • by treerex ( 743007 ) on Thursday July 28, 2005 @10:08PM (#13191999) Homepage

    This isn't an unexpected decision: as others have said the judge pretty much had to rule the way he did. And, as others noted, it is difficult to enforce. Nevertheless, I expect that Google will obey, because the consequences of getting caught not doing it can be dire. Microsoft will undoubtedly (if they haven't already) request full disclosure of all email and paper communication related to the case, both past, present, and future.

    I lived through this bullshit in the early 1990s when I was in Symantec's Developer Tools Group. We hired Gene Wang from Borland, and Philippe Kahn went non-linear, filing a lawsuit against Symantec and Gene. We couldn't delete any email, throw out any paper, or discuss the case. We sent Borland truckloads of paper for their lawyers to go through. We called it "The Wrath of Kahn." Gordon Eubanks (the Symantec CEO at the time) just gave Gene other stuff to do until the courts resolved things. It was worth the wait: Gene was awesome to work for.

  • Some background (Score:2, Interesting)

    by Anonymous Coward
    This guy set up Microsoft's China Research lab, considered by some to be one of the World's Hottest Computer Labs [technologyreview.com]. 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.
  • Utter Crap (Score:5, Insightful)

    by Jekler ( 626699 ) on Thursday July 28, 2005 @10:25PM (#13192072)
    These non-compete agreements are complete and utter crap. Whether or not it's in a contract, a contract can't deny a person his civil liberties. If a contract says you're now a slave, even if you sign it, it's not a legally binding agreement. A non-compete agreement robs someone of the ability to work for a living. The company is essentially telling someone that, perhaps the only marketable skill they have, they're not allowed to use to make a living. People have the fundamental right to work for a living, and telling someone they signed away that right in a contract is just crap.
    • Re:Utter Crap (Score:3, Insightful)

      by MobyDisk ( 75490 )
      Actually, a contract can deny a person their "civil liberties." That's the entire point of a contract: Both parties are making a trade. If no one is giving anything up, then the contract doesn't mean anything.

      A non-disclosure agreement is a common example. The contract takes away one party's freedom of speech in exchange for a job or money or some information.

      Another is a contract for work. One side must do a specific task such as wire a house to certain specifications, in exchange for money. One perso
  • by prisoner-of-enigma ( 535770 ) on Thursday July 28, 2005 @10:25PM (#13192076) Homepage
    Look, I despise non-compete clauses just as much as the next geek, but a contract is a contract is a contract. If you sign your name to a contract stating you won't do something, you shouldn't do it. If you don't intend to follow the letter and spirit of the contract, you shouldn't sign it. What is difficult to understand about this concept?

    This isn't a Big Business Versus The Little Guy argument, it's a He Violated A Signed Contract argument. I'm assuming, of course, that the no-compete language is clearly spelled out here, and if I know MS, I'm sure it's tight as a drum legally. There aren't too many legal teams better paid and better staffed than those at MS.

    Forget morality for a moment. Who cares whether no-compete is "right" or "wrong." The issue here is a contract. If we all get so worked up in a lather when the GPL is violated, we should be no less lathered up when an employee of Microsoft violates his or her contract to work for a competitor. Unless, of course, /. has a double standard when it comes to Microsoft. Nah, that couldn't be it, could it?
    • I don't think you understand what's at issue here. It doesn't matter what's written in a contract, you can't legally sign away your civil liberties. You can't sign away your freedom and enslave yourself to someone, you can't sign away your right to live (agree to be murdered). If you sign something that says a company can execute you at their discretion, it's still not legally binding. And similarly, you can't sign away your right to make a living, eat, and otherwise support your family.

      Replying to t
      • The difference is that he didn't sign away his right to make a living. He can go and make as much money as he would want to "otherwise support his family" in any other place besides a company that "competes" with Microsoft.
    • by Vellmont ( 569020 ) on Thursday July 28, 2005 @10:58PM (#13192217) Homepage

      but a contract is a contract is a contract. If you sign your name to a contract stating you won't do something, you shouldn't do it.


      Bzzzt. Sorry, but just because you put it on paper and sign it doesn't make the contract valid. There's MANY examples of things that aren't enforceable under contract law. I believe a California judge struck down a 2 year non-compete clause an employee had with his/her employer because it didn't let the employee earn a living.
    • by fermion ( 181285 ) on Thursday July 28, 2005 @11:04PM (#13192243) Homepage Journal
      If the GPL is proven to violate some law, then the GPL would be invalid in those places where that laws exist. This is why some want to create such laws in the US and elsewhere. It is that simple.

      And the enforcement of contracts are wierd, and jurisdication is even wierder. Everyone plays fast and loose with both, trying to get some advantage by manipulating the rules. It is why tort law reform tries to push cases to the Federal level, where the courts have more to do.

      And you know there are some things that contrats can't be used for. I can't contract to kill someone, and as part of the contract hold the person who pays me money harmless. Even promising not to work for a year for $1000 is questionable. Would that hold up in court? Who knows. Even if was a million dollars, the court would want to know why, and if it was a neccesary condition, or merely a desired conditioned. It is like we can't give up rights without due cause. Otherwise we would have employer violating minimum wage and other worker protections much more than they do now.

      But as The Register pointed out, this has nothing to do with an executive. This has to do with the greatest challenge to the MS monopoly since Netscape. Google is building platform indepedent tools performing tasks that MS would have us believe are impossible outside of IE. They are providing free consumer services that MS depended upon to further the desktop monopoly. Google is1 proving to the server market that MS is not neccesary, and too expensive. Few customers are paying for the latest prodcts. The only reason they sell all the OS they do is that one can't transfer an OS from an old machine.

      So really this is nothing more than an attempt to sue a competitor to death. If MS can weaken google enough over the next couple years, then Vista can be used to apply the final death blow. If iTunes maintains even 70% of the online music market, and Google maintinas 70% of the search market, and Sony/Nintendo maintains 70% of the games market, and all MS can say is look at out pretty pictures, where are they in 10 years? Do they have the research and infrastructure to become a services company like IBM? Do they actully provide any service?

  • Forgive me for being flippant, but perhaps the judge simply is pleased with the overall product quality of Google, and doesn't want to see it contaminated with someone who has intimate knowledge of Microsoft's way of doing things.

    I for one would be afraid of going to google.com and seeing a java pop-up paperclip saying "It looks like you're trying to look up free adult websites!! Would you like help?"

  • More and more behind (Score:4, Interesting)

    by Tom ( 822 ) on Friday July 29, 2005 @02:35AM (#13192882) Homepage Journal
    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.

    • 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 co
    • by justins ( 80659 )

      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.

  • by GauteL ( 29207 ) on Friday July 29, 2005 @02:41AM (#13192895)
    .. calling the guy a "slave" or worse.

    The truth is, he was a very high paid executive, with possible access to plenty of Microsoft trade secrets. Secrets that can be very bad in the "wrong" hands.

    Microsoft gave this guy a standard 1-year non-compete clause for a reason, and being an executive, he was very well compensated for it.

    A contract is about giving away something, and receiving something in return. This is why I despise normal workers being given non-compete clauses, because they normally don't gain anything other than simple employment.

    An executive gets loadsamoney in return and all executives know that they will most likely have to sign some kind of non-compete agreement. The guy would have no problem living without work for a year, and have no problem getting a job that is not directly competitive.

    Then what is the damn problem? There is nothing wrong with people signing away a few rights, as long as they feel they are well compensated and they know what they are doing.

    Most likely, he just got greedy and he thought he could get away with it.
  • by dentar ( 6540 ) on Friday July 29, 2005 @07:50AM (#13193830) Homepage Journal
    Don't.

    They're not actually meant to keep someone from competing. They're meant to keep someone from leaving a company, asking for a raise, etc. They're much dirtier than what they appear to be on the outside. I'm lucky, I only had to sit out of work for 90 days because of one. Some people have much more oppressive ones than I did.

    I will NEVER sign one again unless I'm absolutely destitute.
  • by Nom du Keyboard ( 633989 ) on Friday July 29, 2005 @11:32AM (#13195813)
    If a company requires you to not work for a competitor in your specialized field of knowledge for a given length of time after termination of your employment with them, and you're not fortunate enough to have more than one marketable skill, then your company should pay you for the amount of time they are not permitting you to work otherwise!

    This would make non-compete agreements both fair, and a lot less common. As written now, the company owns you -- without additional compensation -- for the length of the non-compete agreement!

    In fact, if at all possible, I'd be asking for a signing bonus equivalent to the amount of employment time you'll lose through their non-compete clause as part of joining any company demanding such an agreement in the first place. Get it up front.

    Too bad this is at the end of an old article now that nobody will read.

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