Microsoft Sues Google

The rivalry between the world’s leading technology companies intensified today when Microsoft announced that it is suing Google for poaching one of its leading executives.
Microsoft is furious about the defection of Dr Kai-Fu Lee, one of its technology experts and founder of its Asian research division, who has left to head Google’s first research and development centre in China.
Microsoft claims the move violates confidentiality and non-competition agreements Dr Lee signed when he joined the company in 1998. The software company is seeking a court ruling that would require Dr Lee to honour his contract, which it says includes a clause forbidding him to work for a rival within a year of leaving.
"As a senior executive, Dr Lee has direct knowledge of Microsoft’s trade secrets concerning search technologies and China business strategies," Microsoft said.
Microsoft claims Dr Lee’s position at its search rival focuses on "the same set of technologies and strategies for a direct competitor in egregious violation of his explicit contractual obligations.
"Creating intellectual property is the essence of what we do at Microsoft, and we have a responsibility to our employees and our shareholders to protect our intellectual property," the company added.
But Google said it would defend itself "vigorously" against Microsoft’s action and vowed to "fully support" Dr Lee in the matter.
"We have reviewed Microsoft’s claims and they are completely without merit," Google said.
The legal action comes as Microsoft and Google compete on an increasing number of fronts. Microsoft is looking to wrest control from Google of the lucrative paid search market while Google is fighting back by trying to poach users from Microsoft’s hotmail service with its own 1GB webmail account.
Both companies have also released desktop search products and have similar mapping and directory services. The dispute over Dr Lee also forms part of a wider battle for market share in the rapidly expanding Chinese search business.

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