Re: Crossgain Fires a Quarter of Its Employees

From: Matt Jensen (mattj@newsblip.com)
Date: Tue Jan 16 2001 - 11:24:45 PST


Now, I don't know much about this, but the little I thought I knew was:

1) These were key people from Microsoft's XML -> .NET initiatives.

2) Crossgain is building their own XML -> .NETish solution.

So, if these statements are accurate, Microsoft would have a very good
reason to enforce a non-compete, and it can be applied narrowly (doesn't
keep these people from working for non-XML->.NETish companies).

So, *assuming* non-competes in general are acceptable (I know, I know),
what part of this case am I not understanding? Or was it okay for
Microsoft to hire those compiler experts from Borland all those years ago,
etc.? (I seem to recall there were noncompetes there, too.)

-Matt Jensen
 NewsBlip.com
 Seattle

On Tue, 16 Jan 2001, Gordon Mohr wrote:

> Does Washington state look more kindly upon non-compete clauses than
> California?
>
> Seems like there must be more to this story, to explain Crossgain's
> capitulation. Something along the lines of (though I don't know any
> of these to be true):
>
> (1) Washington state's more pro-employer laws in this matter.
> (2) MSFT's especially clever employment/confidentiality contracts.
> (3) Some other pull, in another matter, MSFT has over the company
> or its backers. (Is MSFT bailing out one of their other
> investments? Or does MSFT have 'smoking gun' evidence that
> MSFT documents were taken to the company?)
> (4) Other problems at the company, which made them willing to take
> such a revectoring hit.
>
> - Gordon
>
> ----- Original Message -----
> From: "Rohit Khare" <Rohit@KnowNow.com>
> To: <FoRK@xent.com>
> Sent: Tuesday, January 16, 2001 1:17 AM
> Subject: Fwd: Crossgain Fires a Quarter of Its Employees
>
>
> > This is really sad and pathetic on MSFT's part, and an embarrassment
> > for all concerned, including Benchmark. This is practically
> > Justice-worthy, but probably not in a Bush administration... My best
> > wishes to all who were involved, and that they may compete again --
> > with all of us! -- on a level playing field... Rohit
> >
> >
> > > http://interactive.wsj.com/articles/SB979612543677285500.htm
> > >January 16, 2001
> > >
> > >Crossgain Fires a Quarter of Its Employees,
> > >As It Faces Legal Pressure From Microsoft
> > >By REBECCA BUCKMAN
> > >Staff Reporter of THE WALL STREET JOURNAL
> > >
> > >
> > >Crossgain Corp., a high-profile Web start-up facing pressure from
> > >Microsoft Corp., abruptly fired about a quarter of its employees in an
> > >attempt to cool tensions with the giant software company, people
> > >familiar with the matter said.
>
>



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