A Texas judge threw out the state's Non-Disclosure Agreement (NDA) suit against Microsoft Corporation on Monday. Microsoft requires that companies to sign an NDA that requires them to inform Microsoft before giving any information to investigators. Microsoft argued that NDAs are a standard practice in the technology business.
"We are pleased that the court recognized the important role nondisclosure agreements play in protecting Microsoft's intellectual property--our most valuable asset," said Tom Burt, associate general counsel for Microsoft. "These agreements do nothing to prevent the government from doing its job. Microsoft has cooperated with the state's investigation, and we will continue to cooperate with the attorney general's office as its investigation continues."
Monday's decision follows a similar decision by U.S. District Court Judge Thomas Penfield Jackson, who rejected similar arguments made by the U.S. Department of Justice (DOJ).
"There is no evidence of record that the NDAs are meant for any purpose other than to require that Microsoft be given notice and an opportunity to object before any confidential information is disclosed that might be of value to a commercial adversary," Judge Jackson wrote