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Microsoft sues Google over China affair

Microsoft has sued Google for hiring one of its vice presidents to set up a research center in China. Google has more than 20% of the Chinese search market, and the country is a new battleground for the two firms, which each offer online and desktop search tools.

Dr Kai-Fu Lee, who played a key role in the development of Microsoft`s search tools, said he was leaving on Monday. Google said Dr Lee would "lead the Chinese operation and serve as president of the company`s growing Chinese operations."

In its lawsuit, Microsoft said it was seeking a court order forcing Dr Lee to abide by terms of confidentiality and non-compete agreements that he signed at Microsoft. His contract forbids working for direct rivals within a year, Microsoft said. Google said the claim had no merit.