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HRM / Organizational behaviour Case Study

Case Title:

Non-compete Clause - Microsoft Sues Google Over Hire

Publication Year : 2005

Authors: Seema Prasad

Industry: Information Technology and IT Enabled Services


Case Code: HRM0028C

Teaching Note: Not Available

Structured Assignment: Not Available

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Microsoft, one of the worldwide leaders in software, services and solutions that helped people and businesses had started introducing non-compete clause in service contracts after quite a few of its employees left its services to join Google, a pioneer in web search technologies. The case in point was the first instance when Microsoft took matters to court.

This case examines the relevance of the non-compete clause in IT industry in view of the rapidly changing scenario. The case traces the proceedings of a lawsuit filed by Google and Kai-Fu-Lee for violating the non-compete agreement that Lee had signed with Microsoft.

Pedagogical Objectives:

  • To discuss the relevance of Non –compete clause in service contracts in IT industry
  • To analyse the growing IT industry and need of introducing work norms.

Keywords : Microsoft, Google, HRM Case Study, Non-compete clause, Non-compete agreement, Non-competition agreement, Non-compete covenant, Order, Employment contract, Lawsuit, Employee


  • About Microsoft
  • About Google
  • Cause for the problem
  • Non-Competition Agreements in the Digital Age
  • Features of a Non-compete clause

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