MS Offers Settlement To Google

Microsoft proposed on Tuesday settling its lawsuit with Google over the hiring of a former executive in China by asking Google to agree to limit the exec's duties until July 2006 when the noncompete agreement he signed with Microsoft expires.

Earlier on Tuesday, a Washington state judge ruled that Kai-Fu Lee could immediately begin recruiting staff for a Google development center in China rather than wait until after a January trial, but severely limited the scope of his duties until then.

"We can settle this lawsuit tomorrow if Google will agree to take today's preliminary injunction, keep every word without a single change and enter it as a permanent injunction that will last until July 18, 2006," Brad Smith, general counsel for Microsoft, said in a phone call. "We can avoid a trial, forgo paying outside lawyers and get back to work competing in the marketplace."

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