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Tuesday, August 02, 2005

Court Prevents Google from Hiring Microsoft Search Engineer

A Federal judge stopped google from hiring an ex-Microsoft executive late last week.

A state judge temporarily blocked a former Microsoft search vice-president from heading up keyword search rival Google's new research center in China.

The court ruling marked a small victory for MSN in their escalating war with Google as Kai-Fu Lee was not allowedto move over to the Google search engine optimization company.

Microsoft sued Lee and Google, stating that the former head of its Beijing research and development center had violated his employment contract by agreeing to take a job at Google.
Microsoft and Google are directly competing in Web search and also have begun competing for talented people.

Google plans to open a new facility in China later this year to develop new technologies and attract computer science researchers. A final location has not yet been chosen.
The world's largest software maker claimed Lee was privy to propriety information regarding the company's search technologies and business strategies in China.

While at Microsoft, Lee, a former Carnegie Mellon University researcher who previously worked for Apple Computer Inc., managed groups developing speech recognition and other interactive technologies for computers.

In granting a temporary restraining order requested by Microsoft, Gonzalez forbade Lee from working on Google projects or research relating to search technologies, natural language processing or speech technologies, and business strategies that would be "competitive" with fields he studied while at Microsoft.

A trial is scheduled for January of 2006, although Google may contest the temporary restraining order in September 2005. Gonzalez also prohibited Lee from disclosing trade secrets or proprietary information learned while he was employed at Microsoft and it forbade Google from "attempting to induce" Microsoft employees to work for Google.

Brad Smith, Microsoft's general counsel, said his legal team was trying to enforce the terms of Lee's contract rather than stopping his employment at Google altogether. "In our industry, intellectual property rights need to be protected," Smith said after the ruling. Google, which had earlier called Microsoft's lawsuit "a shocking display of hubris," downplayed the importance of the ruling, calling it a "temporary measure to maintain the status quo."

"We're gratified that the judge recognized that all Google and Dr. Lee have to do is avoid having Dr. Lee do anything competitive with what he did at Microsoft," said Nicole Wong, Google's associate general counsel. "As we have said all along, we have no intention of having him do that."

Google had argued that Microsoft's lawsuit was an intimidation tactic designed to prevent employees from leaving Microsoft. The company separately has countersued Microsoft in California, asking a court to invalidate the Microsoft contract.

In a sworn declaration filed on Wednesday, Lee said that Microsoft Chairman Bill Gates told him during a meeting on July 15 that he would be sued, adding that the company needed "to stop Google." A Microsoft spokeswoman said she could not verify Gates' statement but said it would be "not surprising, given the fact that Google is a direct competitor. Dr. Lee is taking his knowledge of our search technology and China business strategies to work for them."

Thae ware between MSN and Google has only just begun.