Forum 6
1. In this case, the parties eventually settled, and Dr. Lee went on to run the Google China initiative. If you were running Microsoft, what would you have done differently in this situation?
In 2000. Dr. Kai-Fu Lee, a renowned computer scientist, worked at Microsoft, his employment with Microsoft beginning with an “agreement with Microsoft contain[ing] a limited covenant not to compete” (Ferrera, p. 320) for one year after leaving Microsoft. The agreement also contained a forum selection clause that if any litigation came about after his employment, it would be in Washington state. Dr. Lee was privy to “confidential or proprietary information or trade secrets” (Pagnattaro, 2007).
By 2005 while on sabbatical, “Lee approached Google about leaving Microsoft and coming to work for Google” (Ferrera, p. 320). Dr. Lee deserted Microsoft for Google. Dr. Lee had a passion for technology and wanted to return to China. Microsoft filed a lawsuit against Dr. Lee and Google in King County Superior Court in Seattle, Washington. The court granted a preliminary injunction in favour of Microsoft enjoining both Lee and Google from certain activities in relation to Google’s business in China.
If I were running Microsoft, albeit my corporation could not offer Dr. Lee a leadership position in China, I believe that we had a good chance of proving our case at trial versus settling with Dr. Lee so I would have continued with filing the lawsuit.
2. Considering that this is a common scenario, how do you recommend companies to respond in the future?
The main problem that I see in this situation and I’m sure with many non-compete agreements is that they are reactive to the situation. I would have to think of means that would make my stance more proactive. In the future, I would proactively seek to give more clarity in terms of what exactly is being protected, as well as clearly identifying a definition of the word “solicit” (which would include soliciting an employee and being
In 2000. Dr. Kai-Fu Lee, a renowned computer scientist, worked at Microsoft, his employment with Microsoft beginning with an “agreement with Microsoft contain[ing] a limited covenant not to compete” (Ferrera, p. 320) for one year after leaving Microsoft. The agreement also contained a forum selection clause that if any litigation came about after his employment, it would be in Washington state. Dr. Lee was privy to “confidential or proprietary information or trade secrets” (Pagnattaro, 2007).
By 2005 while on sabbatical, “Lee approached Google about leaving Microsoft and coming to work for Google” (Ferrera, p. 320). Dr. Lee deserted Microsoft for Google. Dr. Lee had a passion for technology and wanted to return to China. Microsoft filed a lawsuit against Dr. Lee and Google in King County Superior Court in Seattle, Washington. The court granted a preliminary injunction in favour of Microsoft enjoining both Lee and Google from certain activities in relation to Google’s business in China.
If I were running Microsoft, albeit my corporation could not offer Dr. Lee a leadership position in China, I believe that we had a good chance of proving our case at trial versus settling with Dr. Lee so I would have continued with filing the lawsuit.
2. Considering that this is a common scenario, how do you recommend companies to respond in the future?
The main problem that I see in this situation and I’m sure with many non-compete agreements is that they are reactive to the situation. I would have to think of means that would make my stance more proactive. In the future, I would proactively seek to give more clarity in terms of what exactly is being protected, as well as clearly identifying a definition of the word “solicit” (which would include soliciting an employee and being
References: Chapter 57-40.2, Use Tax. (n.d.). Retrieved March 10, 2015, from http://www.legis.nd.gov/cencode/t57c40-2.pdf?20150310095555 FindLaw | Cases and Codes. (n.d.). Retrieved March 10, 2015, from http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=386&invol=753 Ferrera, G. (2001). Chapter 10: The Employment Relationship in the Internet and Tech Sectors. In Cyberlaw: Text and cases (p. 320). Cincinnati, Ohio: West/Thomson Learning. Pagnattaro, M. (2007). "The Google Challenge": Enforcement of Noncompete and Trade Secret Agreements for Employees Working in China. American Business Law Journal, 603-637.