Re: Crossgain Fires a Quarter of Its Employees

From: Gordon Mohr (
Date: Tue Jan 16 2001 - 10:55:10 PST

Does Washington state look more kindly upon non-compete clauses than

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" <>
To: <>
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
> >
> >January 16, 2001
> >
> >Crossgain Fires a Quarter of Its Employees,
> >As It Faces Legal Pressure From Microsoft
> >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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