Google Inc. and Microsoft Corp. settled a dispute over Google's decision to hire former Microsoft Vice President Kai-Fu Lee to run a research facility in China.
The confidential settlement, announced yesterday, comes less than three weeks before a trial was scheduled to start in Seattle. Redmond, Washington-based Microsoft in July won a temporary ruling enforcing an employment contract signed by Lee that barred him from working on some technical projects at competitors.
"I suspect Microsoft believed it had a pretty good chance of getting the entire year of the non-compete enforced by the judge in Seattle,'' said Anthony Oncidi, an employment lawyer at Proskauer Rose in Los Angeles who isn't involved in the dispute. "I'm speculating that Microsoft started the negotiation by saying they wanted Lee not to work for the remaining seven months of his agreement.''

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