For those of you who have read science fiction
writer William Gibson's seminal "Neuromancer," 
or any of his other books, one of the trademarks
of his imagined "cyberpunk" future is heavy-
handedness on the part of large corporations to
protect its *real* "intellectual property."

In those books, the thing that corporations are
trying desperately to hold on to are not their
patents, or software source code, but *the actual
programmers* themselves. It is not uncommon in
Gibson's books for a corporation -- faced with a
resignation letter from a valuable programmer
and knowing that he plans to go to work for a
competitor -- to have him killed.

Interestingly, t'would seem that a "kinder and
gentler" version of this has been being practiced
by Google, Apple, and our own <spit> Yahoo. They
seem to have reached secret "between company" 
agreements not to try to steal away the other
companies' employees.

Which *is* "kinder and gentler" than having them
killed, of course, but it also violates anti-trust
laws. Interestingly, if the government stomps on
this "kinder and gentler" arrangement, in time 
Gibson's scenario may play itself out after all.


U.S. Inquiry Into Hiring at High-Tech Companies

By MIGUEL HELFT
Published: June 2, 2009

SAN FRANCISCO — The Justice Department has begun an 
investigation into whether the recruiting practices 
of some of the largest technology companies violated 
antitrust laws, according to two people with knowledge 
of the investigation.

The investigation targets some of Silicon Valley's 
best known companies, including Google, Yahoo, Apple 
and several others, these people said.

The exact focus of the inquiry is unclear, but the 
people familiar with it said Justice Department lawyers 
appeared to be looking into whether the companies 
involved agreed to not actively recruit employees from 
each other.

The Justice Department has issued civil investigative 
demands, or formal requests for documents and information, 
to some of the companies involved, said the people with 
knowledge of the inquiry, who agreed to speak on condition 
of anonymity because the investigation is confidential.

Google, Apple and Yahoo declined to comment. A Justice 
Department spokesman could not be reached for comment.

The inquiry, which was first reported on the Web site of 
the Washington Post late Tuesday, appeared to be in its 
early stages, said the people familiar with it.

The market for technology workers and executives in 
Silicon Valley is very competitive, with employees 
frequently leaving a company to work for a competitor. 
Some companies have even sued rivals who hired employees. 
The investigation confounded some antitrust experts. 
But they said that it would be improper for companies 
to agree not to go after each other's top talent.

Antitrust suits against companies for restraining the 
movement of skilled employees are by no means 
unprecedented.

In 2001, for example, in a federal appeals court decision 
written by Judge Sonia Sotomayor, the Supreme Court 
nominee, the court upheld a complaint by a group of oil 
geologists and petroleum engineers who sued Exxon and 
other oil companies for colluding in hiring decisions 
and thus suppressed wages.

"If there is a naked agreement by companies in an industry 
not to hire each others' employees or an agreement to fix 
wages, that would be an antitrust violation," said Herbert 
Hovenkamp, an antitrust expert at the University of Iowa 
College of Law.

The investigation is the latest aimed at Google and other 
technology companies to have surfaced in recent weeks and 
suggested that the Obama administration was taking a more 
aggressive stance toward antitrust enforcement.

Earlier this year, the Justice Department opened an 
inquiry into a settlement of a class action lawsuit 
between Google and publishers and authors. 


Reply via email to