Microsoft sends a cease-and-desist letter to a shareware firm started by former employees, claiming their home-networking application violates a non-compete agreement. [CNET News.com]
Microsoft claims that Schnazzle–which allows PCs on a home network to share music, photos and other media–is similar to planned Microsoft technology and therefore violates the non-compete clause of the employment agreements Rao and Doise signed when they began working for Microsoft. The company’s standard employment contract prohibits ex-employees from using knowledge they gained at Microsoft to work on competing products for one year after they leave the software giant.