Ex-Microsoft Exec Can Start at Google

In a case exposing behind-the-scenes animosity between two high-tech titans, a Washington state judge said Tuesday that a former Microsoft Corp. executive could begin working at Google Inc. in a limited capacity.

Kai-Fu Lee remains barred from doing work on products, services or projects he worked on at Microsoft, including computer search technology, pending a trial set for January. King County Superior Court Judge Steven Gonzalez said a noncompete agreement Lee signed with Microsoft was valid.

But Gonzalez said recruiting and staffing a Google center in China would not violate that agreement. Although Lee cannot set budget or compensation levels or define research, Gonzalez said, he can hire people.

“It allows me to do my job,” Lee said. “I’m going to walk into Google and start work.”

Tom Burt, Microsoft’s deputy general counsel, said his company too was pleased because Gonzalez’s order limited what tasks Lee could perform.

The trial in January is expected to more fully determine the rights that Lee and the companies have under the noncompete agreement. By that time, the restriction will be in effect for only another six months.

Lee, who oversaw development of Microsoft’s MSN Internet search technology, left in July to lead Google’s expansion into China.

Microsoft sued Lee and Google, contending that Lee’s job at Google would violate the terms of a noncompete agreement that prohibits him from doing similar work for a rival for one year. Microsoft also accused Lee of using insider information to get his job at Mountain View, Calif.-based Google.

Google has responded with its own lawsuit against Microsoft in U.S. District Court in San Jose.

The case has illuminated the bitterness between the two companies. Testimony suggested that Microsoft executives responded with profanities when they learned of employees defecting to Google.