Google returns fire over developer suit

By Simon Aughton

Posted on 22 Jul 2005 at 14:46

Google has sued Microsoft in retaliation for the lawsuit issued against it by the software giant earlier this week.

Microsoft's original action attempts to prevent Google from poaching its employee Kai Fu-Lee to open a new R&D center in China. The lawsuit alleges that by accepting a position with a direct competitor Lee can apply insider knowledge about Microsoft's trade secrets, intellectual property and strategies. Microsoft also claims that Lee, a former Apple employee, signed a 'noncompete' agreement in 2000 preventing him from defecting.

Google's countersue lawsuit is an attempt to get this agreement over-ruled, which it believes is an illegal restraint of trade.

'Google is trying to create an environment for innovators,' said Nicole Wong, associate general counsel. 'Microsoft is focused on litigation and intimidation.'

Microsoft countered that it is confident in its case.

'Google's legal manoeuvers will ultimately be rejected by the court,' spokeswoman Stacy Drake McCredy said.

The outcome may depend on whether Google's claim that Californian law applies, as Lee is registered to vote in the state and pays taxes there. Microsoft argues that because the noncompete agreement was signed in Washington State, then its courts should decide.

The legal head-to-head is being seen as a microcosm for and symptom of the bigger battle between the two companies for the lucrative Internet search market.