Microsoft Sues Google and Dr. Kai-Fu Lee, Claims Non-Compete Breach

Strategic Insights -

In a rapidly unfolding drama, Microsoft has filed a lawsuit against Google and Dr. Kai-Fu Lee, a high-profile Microsoft executive, alleging that Lee has breached his non-compete agreement with the company. The lawsuit claims that Lee, who was hired by Google just hours after the announcement, had access to sensitive information about Microsoft's business plans and strategies in China. Microsoft also charges that Google was aware of Lee's non-compete agreement, signed in 2000, but chose to ignore it to gain a competitive advantage.

Key Takeaways:

  • Dr. Kai-Fu Lee, a Microsoft VP, has been sued by Microsoft for allegedly breaching his non-compete agreement by joining Google just six weeks after informing Microsoft that he wouldn't return from sabbatical.
  • Lee, a top researcher in speech recognition, was responsible for Microsoft's business plans and strategies in China, and had access to sensitive information about the company's plans to compete with Google.
  • Microsoft claims that Lee's actions and Google's knowledge of the non-compete agreement will cause "irreparable harm" to the company.
  • The lawsuit alleges that Google was "fully aware" of Lee's non-compete agreement, signed in August 2000, but chose to ignore it to gain a competitive advantage.
  • Microsoft is seeking monetary damages and a permanent injunction, as well as the return of all property and documents in Google's possession.
  • The company is also concerned that Lee may induce some of his team to follow him, which would also break his non-compete agreement.

Statistics:

  • 2000: The year in which Dr. Kai-Fu Lee signed his non-compete agreement with Microsoft.
  • 6 weeks: The amount of time between Lee informing Microsoft that he wouldn't return from sabbatical and his joining Google.
  • 24 hours: The timeframe within which Microsoft demands the return of all property and documents in Google's possession.

Sources:

  • [San Francisco Chronicle, Tuesday, September 19, 2005, Section A, Page 1, By Martha Mendoza, "Microsoft sues Google, executive over non-disclosure"]
  • [New York Times, Tuesday, September 19, 2005, Section C, Page 1, By Edward W. Pound, "Microsoft Sues Google and Executive Amid Defection"]