Ex-Microsoft exec allowed to work for Google
(AFP)
Updated: 2005-09-14 10:16

SAN FRANCISCO - A judge freed a former Microsoft executive to set up a China research center for Google but set strict limits on what he could do.

Lee Kai-Fu

Ruling on a request by Microsoft to block the executive's move, the judge said Microsoft had "well-founded fear" Lee might betray it but that it could not stop him from giving Google non-technical advice on doing business in China.

"Microsoft has not sufficiently shown that it has a clear legal or equitable right to enjoin Lee, pending trial, from establishing and staffing a Google development facility in China," Gonzalez wrote in his decision.

Gonzalez indicated that he saw merit to aspects of Microsoft's claim that Lee had deceived the software titan, but decided that Lee could work for Google in China pending a trial to start in January 2006.

The judge did bar Lee from doing work related to computer searches, speech, or languages.

"Google is enjoined from employing Lee for or otherwise engaging him in any activities competitive with any product, service or project on which he worked or about which he learned confidential, proprietary or trade secrets while employed at Microsoft," the judge said in his ruling.

Gonzalez also ordered Lee not to poach Microsoft workers for Google.

Microsoft hailed the ruling as a victory and said the judge so restricted Lee that he was basically "the world's highest paid human resources administrator."

"We are gratified that the court found Lee misled Microsoft and misused confidential information," Microsoft said in a statement.

Google also saw victory in the decision, saying Lee would finally be able to get to work for them in China. The Silicon Valley-based search colossus hired Lee in mid-July with a compensation package valued at 10 million dollars.

An emergency restraining order was issued on July 28 after Microsoft argued Lee was violating confidentiality and non-competition clauses in his employee contract and could damage the company by giving Google access to its corporate secrets.

Google and Lee countered there was nothing illegal about Lee using his reputation, people skills, and general knowledge for Google in China.

The judge, however, said Microsoft established "a well-grounded fear that Lee violated or threatens to violate" aspects of the pact he had with Microsoft.

Gonzolez concluded that Lee "misled" Microsoft about returning from a sabbatical in June and remained privvy to Microsoft secrets after deciding to take the Google job.

"Lee confused the difference between discretion given him to disclose Microsoft confidential information for the benefit of Microsoft and disclosing Microsoft confidential information for his own benefit or the benefit of another," Gonzalez maintained in his ruling.

But Lee can "employ his general knowledge, personal attributes, general reputation and skills" to help Google set up a facility in China, the judge ruled.

Lee can meet with students, professors and governement officials on Google's behalf, Gonzalez said, but he can not control the center's budget or influence what projects are worked on there, the ruling said.

Gonzalez also ordered Lee not to disclose any trade secrets he gleaned from Microsoft.