MotionandAffidavitDeclaration PDF
MotionandAffidavitDeclaration PDF
MotionandAffidavitDeclaration PDF
7
SUPERIOR COURT OF THE STATE OF WASHINGTON
8 IN AND FOR KING COUNTY
9 )
AMAZON.COM, INC., )
10
) No. 20-2-08977-0 SEA
11 Plaintiff, )
) AMAZON’S MOTION FOR
12 v. ) TEMPORARY RESTRAINING
) ORDER
13 BRIAN HALL, )
)
14
Defendant. )
15
I. SUMMARY & RELIEF REQUESTED
16 This is a noncompete case. Until recently, Brian Hall was the Vice President of Product
17 Marketing for Amazon’s cloud computing business, Amazon Web Services (“AWS”). Hall’s
18 job was to help AWS determine what, when, why, how, where, and to whom it should launch
19 its future cloud products.1 As a result, Hall helped develop and knows the entire confidential
20 Amazon cloud product roadmap for 2020-21. Virtually every day, Hall worked with Amazon’s
21 most senior cloud executives to create and execute those plans. He was entrusted with an
22 unusually broad view into Amazon’s cloud product plans; its priorities; and its competitive
23 strategy.
24 After being passed over for a promotion, Hall resigned and accepted the exact same
25 position – Vice President of Product Marketing, Cloud – at Google’s competitive cloud
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27 1
Amazon uses the term “product” to refer to its cloud products, services, and feature enhancements.
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1 business, despite a noncompete agreement. Hall’s Google employment began on May 4, 2020,
2 although he did not begin substantive duties until last week. Amazon consented to Hall
3 working for Google in a limited and non-competitive role (i.e., consulting on Google’s
4 marketing organizational structure) until the scheduled July 31, 2020 hearing on Amazon’s
5 forthcoming motion for a preliminary injunction. Google now insists on expanding Hall’s
6 work, effective this morning, to include work on messaging Google’s cloud products at Cloud
9 marketing messages about its competing cloud products. Yet, he and Google have refused
10 Amazon’s requests to modify his role at Google to avoid inevitably using or disclosing
11 Amazon’s confidential information, and instead gave Amazon one business day’s notice that
12 Hall would begin working on Cloud Next. Hall’s proposed position at Google—including the
13 Cloud Next work he will begin this morning—threatens immediate and irreparable harm to
14 Amazon. Amazon seeks the Court’s immediate assistance in maintaining the status quo
19 (“Thornton Decl.”) ¶¶ 3-4. It offers a wide variety of products including providing customers
20 with computing power, data storage, databases, analytics, developer and management tools,
21 machine learning services, and security services. Id. at ¶ 4. Customer needs for cloud products
22 vary and cloud businesses constantly innovate new products to address customer needs. Some
23 products require massive investments and take years to develop, launch, and refine with
24 additional features. Declaration of Matt Wood (“Wood Decl.”) ¶¶ 13, 17. Amazon and Google
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1 B. Hall Agreed Not to Compete With Amazon or Misuse Amazon’s
Proprietary Information.
2
Hall joined Amazon on June 18, 2018. Declaration of Paz Patel (“Patel Decl.”) ¶ 3 &
3
Ex. A. As a condition of his employment, Hall executed a Confidentiality, Noncompetition and
4
Invention Assignment Agreement (“Noncompetition Agreement”), which provides that:
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Hall would be given access to valuable confidential information concerning
6 Amazon’s business. ¶ 3.1;
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Hall will not use or disclose Amazon’s confidential information after his
8 employment. ¶¶ 3.2-3.4;
9 For 18 months after leaving Amazon, Hall will not “directly or indirectly” “engage
in or support the development, manufacture, marketing, or sale of any product or
10 service that competes or is intended to compete with any product or service sold,
offered, or otherwise provided by Amazon (or intended to be sold, offered, or
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otherwise provided by Amazon in the future) that Employee worked on or
12 supported, or about which Employee obtained or received Confidential
Information.” ¶ 4.1;
13
Hall acknowledged that the noncompetition covenant may “significantly limit
14 Employee’s future flexibility in many ways,” and will “bar Employee, for 18
months after the Separation Date, from accepting certain competitive opportunities.”
15
¶ 4.4;
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Hall further acknowledged “the geographic areas applicable to certain restrictions”
17 are “extremely broad and in many cases worldwide.” Hall agreed that the
restrictions “are reasonable in scope, area, and duration, and will not result in any
18 undue hardship for Employee.” ¶ 4.4; and
19
Injunctive relief is appropriate to enforce the agreement and prevent irreparable
20 harm. ¶ 7.4.
2 understanding of Amazon’s current and future cloud products. Thornton Decl. ¶¶ 11, 17-19.
4 starts its development process with a draft press release addressing customer needs, the
5 competitive landscape, and pricing, among others. Id. at ¶¶ 17-19. The press release is created
7 development this collaborative process continues, and Amazon determines customer needs; the
8 products it will develop to meet those needs; the investment in each product; the messaging to
9 customers about each product; product pricing; and the timing and go-to-market plan for
10 launching each product. Id. Hall was responsible for the marketing team’s deep involvement
12 As leader of cloud product marketing, Hall had broad exposure to and involvement in
13 Amazon’s cloud business plans. Id. at ¶ 31. He routinely met with AWS’s most senior
14 executives to develop Amazon’s plans and strategies. Id. at ¶ 24 & Ex. G. He supervised
15 marketing teams that paired with Amazon cloud product teams—including teams focused on
16 customer research, competitive analysis, enterprise strategy, machine learning services, gaming
17 technology, open source technologies, startups, and industry focused marketing teams. Id. at ¶
18 10. Hall helped develop and knows the entire confidential Amazon cloud product roadmap for
19 2020-21 including the nature of the products; the customers to whom the products are or will be
21 Amazon’s investment in the products; pricing; and proposed launch dates. Wood Decl. ¶¶ 8,
22 23.
23 In addition, Hall directed Amazon’s marketing plans for Amazon’s 2020-21 roadmap,
24 including go-to-market plans and brand strategy. Thornton Decl. ¶¶ 8-10, 19 & Ex. D. Hall
26 targets, and revenue, including the identities of Amazon’s most important customers and
27 partners and Amazon’s cloud business expansion plans and target customers. Id. at ¶ 23.
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1 In short, Hall knows—and participated in formulating—the roadmap and competitive
2 strategies for Amazon’s cloud computing products through 2021, and he was instrumental in
3 selling that vision to Amazon’s actual and prospective customers. See generally Thornton
8 inevitably require him to compete against Amazon in these exact same arenas.
9 On June 5, 2020, Google informed Amazon that Hall would begin substantive work
10 related to the Google Cloud Next conference on June 8, 2020. Bugaighis Decl. ¶ 8 & Ex. A.
11 Google Cloud Next, Google’s premiere cloud product marketing event, begins on July 14,
12 2020, and lasts nine weeks. Thornton Decl. ¶ 27. It is a key event for Google to market its
13 cloud products against Amazon, and more than 10,000 customers and industry analysts are
14 expected to attend. Id. Google stated Hall’s role will be “writing communications, slides and
15 scripts for the Google Cloud Next ’20 conference” that “focus[] on communications about
17 Hall knows proprietary and confidential details of AWS’s business that could be used
18 by Hall and Google to compete unfairly against AWS. See generally Thornton Decl.; Wood
19 Decl. Hall’s deep and broad knowledge of AWS’s yet-to-be launched products and associated
20 marketing plans will enable Google to gain an unfair competitive advantage. Thornton Decl. ¶¶
21 27-34; Wood Decl. ¶¶ 21-23 The highly confidential and propriety information Hall possesses
22 about AWS’s products and marketing plans would provide Google with a detailed roadmap that
23 Google could use to anticipate and undercut AWS’s product launches through 2021. Id.
24 Hall can inform Google of the products AWS intends to launch, their relative strengths
25 and weaknesses, how AWS will position its products in the marketplace, to whom AWS’s
26 products will be marketed, and associated pricing. Id. Google could use that information to
27 preemptively develop and market competing products. Id. Google could also use that
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1 information to undercut AWS’s existing marketing plans through preemptive marketplace
2 messaging (e.g., “Amazon is going to say X, so Google should say Y.”) or by repositioning
3 existing Google products by, for example, altering Google’s pricing structures. Id.
4 The risks Hall poses to Amazon’s protectable interests are acute with regard to Google
5 Cloud Next. Google has attempted to minimize the competitive nature of Hall’s work on Cloud
7 comments.” But that work is inherently competitive. First, Hall will be involved in product
8 messaging for Google’s premiere event for launching cloud products that compete with
9 Amazon. In fact, Google’s counsel has stated Hall’s role will be “[e]stablish[ing] a clear
10 narrative for how each [Google] product area is leading in the market” against Google’s
11 competitors, including Amazon. Bugaighis Decl. ¶ 11 & Ex. C at 4. Second, Hall cannot
12 divorce his confidential and proprietary knowledge of AWS cloud offerings from work for
13 Google requiring him to improve Google’s cloud product messaging and target current and
15 de-emphasized concerning Amazon current and future products. Third, Hall performed this
16 same work for Amazon months earlier. Fourth, Hall knows what Amazon will be prepared for
17 and how to differentiate Google’s messaging to customers at Cloud Next. Id. at ¶ 9 & Ex. B.
20 this lawsuit was filed, with Google repeatedly assuring Amazon that a TRO would not be
24 4:21p.m., Google abruptly changed direction and informed Amazon that Hall would begin
25 substantive duties at Google on Monday, June 8, working on Google Cloud Next over
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1 Amazon’s counsel originally confirmed it would file this TRO motion on June 8, asking
2 for a hearing as soon as it could be held and asked Google and Hall to delay Hall’s start until
3 this Court resolves this Motion. Google replied on Saturday, June 6 that Hall will begin
4 working on Cloud Next at 9 a.m. on Tuesday, June 9, to allow the Court time to consider this
5 Motion. Id. at ¶ 10. On June 8, Amazon’s counsel confirmed it was finalizing its papers and
6 would file this Motion early on the morning of June 9 before Hall was scheduled to work. Id.
7 at ¶ 16.
10 barring Hall from performing cloud marketing work for Google until the July 31, 2020
11 preliminary injunction hearing or, in the alternative, enter a temporary restraining order limiting
19 equitable right, (2) a well-grounded fear of immediate invasion of that right, and (3) actual and
20 substantial injury as a result.” Resident Action Council v. Seattle Hous. Auth., 177 Wn.2d 417,
21 445–46 (2013), as amended on denial of reh’g (Jan. 10, 2014). All are present here.
23 actions have already breached these obligations and, absent relief, are likely to continue. If not
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1 A. The Noncompetition Agreement is Enforceable and Amazon Has a Clear
Legal and Equitable Right to Relief.
2
Washington courts consider three factors in assessing the enforceability of a covenant
3
not to compete: (1) whether the restrictions are reasonably necessary to protect the employer’s
4
business or goodwill; (2) the reasonableness of the restraint; and (3) the degree of harm to the
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public from the loss of the employee’s services.2 Perry v. Moran, 109 Wn.2d 691, 698 (1987),
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modified on reconsideration, 111 Wn.2d 885 (1989). Reasonable agreements are enforceable
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by way of injunctions, especially where, as here, the noncompetition agreement “concedes that
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in the event of breach of the post-employment competition provision, [the former employer]
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shall be entitled to injunctive relief, because [breach] would cause irreparable injury.” Estee
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Lauder Cos. Inc. v. Batra, 430 F. Supp. 2d 158, 174 (S.D.N.Y. 2006).
11
1. The Noncompetition Agreement’s Limited Restrictions Are
12 Necessary to Protect Amazon’s Interests.
13 The noncompetition covenant to which Hall agreed is necessary to protect Amazon’s
14 legitimate interest in its confidential information. Hall knows the what, when, why, how, and
15 where of Amazon’s current and future cloud products. Hall also knows the what, when, why,
16 how, and where Amazon will market those products to compete with Google. A restriction that
17 prevents Hall from working in the same role for one of Amazon’s principal competitors
19 restriction is specifically reasonable as applied to Google Cloud Next because of the acute harm
20 Hall will cause Amazon if permitted to craft Google’s competitive cloud product messaging
21 mere months after performing the same work for Amazon. Bugaighis Decl. ¶ 9 & Ex. B; Wood
22 Decl. ¶¶ 21-22.
24 Amazon by allowing Google and Hall to use that information to their advantage in developing
25 and improving their competitive offerings. Thornton Decl. ¶ 28. Similarly, Google and Hall
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2
Hall’s Noncompetition Agreement satisfies Washington’s Noncompetition Covenants statute because Hall was
27 paid a seven-figure salary and the term does not exceed 18 months. RCW 49.62.020.
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1 could use that information to undercut Amazon’s product offerings before they are even
2 launched. Id.
3 Numerous courts have granted injunctive relief specifically to protect the legitimate
4 interests Amazon asserts here. For example, the Ninth Circuit held in Nike, Inc. v. McCarthy:
2 noncompete agreement.”); La Calhene, Inc. v. Spolyar, 938 F. Supp. 523, 530-531 (W.D. Wis.
3 1996) (“Defendant’s position with plaintiff gave him such intimate knowledge of plaintiff’s
4 research, product development, finances, marketing strategies and pricing information that it is
5 all but inevitable that he will utilize that knowledge during his work with Walker Stainless or
7 Fastening Sys., Inc. v. Rogge, 786 F. Supp. 1486, 1494 (N.D. Iowa 1991) (“Rogge was the
8 director of marketing and as such possesses detailed knowledge of new product development,
9 new market development, and DFS’s marketing strategy. [T]he only rational way to enforce the
11 being employed by Sanko Fastem.”); Organo Gold Int'l, Inc. v. Ventura, 2016 WL 1756636, at
12 *6 (W.D. Wash. May 3, 2016) (“The non-compete clause . . . makes sense, as ‘[a]mong
13 Organo’s most valuable assets is . . . the network of Distributors and customers that market and
14 sell Organo's products and services – as well as the contact information and the customer data
15 within the sales organization.’ That interest is squarely recognized under Washington law.”).
17 referring to language from the case of Amazon.com, Inc. v. Moyer describing the noncompete
18 restriction as overbroad in that particular case. 417 F. Supp. 3d 1388, 1398 (W.D. Wash.
19 2019). However, the court in Moyer entered a preliminary injunction enforcing the
20 noncompete agreement against a former AWS sales executive. Id. at 1405. Moreover, as
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1 out of a competitive position. See Bugaighis Decl. Ex. D ¶¶ 15-16.3 Two years later, in
3 restraining order, holding Amazon had a clear contractual right to enforce its Noncompetition
4 Agreement to prevent Farrell from accepting a directly competitive position. Id. Ex. E.
6 under RCW 49.62.020(2), and in this case tracks closely with Hall’s knowledge of Amazon’s
7 cloud product roadmap and marketing plans through 2021. Washington courts routinely
8 uphold such covenants. See, e.g., Moran, 109 Wn.2d at 693-97. During the 18-month
9 noncompete period, Hall is not prohibited from working or earning a living. He is prohibited
10 from working (for a limited time) in one business line of an Amazon direct competitor. He has
11 in fact been hired by Google, not its cloud business (a fact Google uses to attempt to distinguish
12 Hall’s role from that at AWS), and could, for example, work at Google marketing non-cloud
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The Court held that noncompete provision could not hold Szabadi out of work for Google entirely, but properly
restricted Szabadi from working at Google in a substantially similar position. Id. Amazon has offered to allow
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Hall to consult on Google’s marketing organizational structure but Google’s insistence on expanding that work to
Cloud Next—preparing speeches for customers regarding Google’s cloud products—indicates that Google and
26 Hall do not understand the scope of Amazon’s legitimate protectable interest and cannot be trusted to comply with
limited job duties. As such, Hall should be restrained from any Google cloud marketing work or any other work
27 which would use or disclose Amazon’s confidential information.
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1 B. Amazon has a Well-Grounded Fear of Invasion of Its Rights.
2 Amazon has a well-grounded fear that Hall will breach his obligations under the
3 Agreement. Hall has taken the same product marketing position at Google that he held at
4 Amazon. Indeed, Google produced a document indicating this was precisely why Google
5 supported his hiring. Bugaighis Decl.¶ 14 & Ex. F at 2. In that role, Hall will be marketing
6 Google cloud products against competing Amazon cloud products. In fact, Hall is starting
7 today in a role crafting Google’s cloud product messaging for Google Cloud Next ’20,
8 Google’s biggest cloud marketing event of the year and a key event for Google to market its
9 cloud products against Amazon’s cloud products. Bugaighis Decl.¶ 10. This is precisely the
13 product-marketing role for Google. In Szabadi, the court held “[t]he doctrine of ‘inevitable
14 disclosure’ is available in the State of Washington.” Bugaighis Decl. Ex. D ¶ 18. Under the
16 sufficient to enjoin a former employee from working for a competitor by demonstrating the
17 employee’s new employment “will inevitably lead him to rely on the [previous employer’s]
18 trade secrets.” PepsiCo, Inc. v. Redmond, 54 F.3d 1262, 1269 (7th Cir. 1995).
19 Irreparable harm is also clear where, as here, Hall’s knowledge would allow Google to
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1 Brunswick Corp. v. Jones 784 F.2d 271, 275 (7th Cir. 1986). If Hall is allowed to breach his
2 Agreement, he can influence Google’s cloud business and undermine Amazon’s intensive
5 about to violate that agreement in a manner that will unfairly advantage a rival business.
12
Davis Wright Tremaine LLP
13 Attorneys for Plaintiff Amazon.com, Inc.
14 By s/ Robert Maguire
Brad Fisher, WSBA #19895
15 Robert Maguire, WSBA #29909
Zana Bugaighis, WSBA #43614
16 920 Fifth Ave, Suite 3300
Seattle, WA 98104-1610
17 Telephone: 206-622-3150
Facsimile: 206-757-7700
18 E-mail: [email protected]
E-mail: [email protected]
19 E-mail: [email protected]
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1 The Honorable Sean O’Donnell
2
11
AMAZON.COM, INC.,
12
Plaintiff, No. 20-2-08977-0 SEA
13
v. TEMPORARY RESTRAINING
14 ORDER
15 BRIAN HALL,
[PROPOSED]
16 Defendant.
17
18 This matter came before the Court on Plaintiff Amazon.com, Inc.’s (“Amazon”) Motion
19 for Temporary Restraining Order (the “Motion”). The Court considered the pleadings
20 submitted by the parties, including:
21 1. Amazon’s Motion For Temporary Restraining Order;
22 2. Declaration of Rachel Thornton and the exhibits attached thereto;
23 3. Declaration of Paz Patel and the exhibits attached thereto;
24 4. Declaration of Matt Woods and the exhibits attached thereto;
25 5. Declaration of Zana Bugaighis and the exhibits attached thereto; and
26 6. Defendant’s Opposition to Amazon’s Motion for Temporary Restraining Order,
27 if any; and
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1 7. ________________________________________________________________
2 8. ________________________________________________________________
3 The Court having heard argument of counsel and in all things being fully advised, now,
5 1. The Court has jurisdiction over the subject matter of this action and jurisdiction
7 2. Amazon was informed by Google on Friday, June 5, 2020, that Hall—who had
8 been voluntarily sitting out of competitive cloud product marketing work at Google to that
10 assignment.
11 3. On Friday, June 5, 2020, Amazon gave counsel for Google and Hall notice by
12 email that it would be seeking a temporary restraining order in the Ex Parte Department of the
15 that Hall would not commence his cloud product marketing assignment until June 9, 2020, at
16 9:00 a.m.
17 5. On Monday, June 8, 2020, Amazon served copies of its Motion for Temporary
18 Restraining Order, Motion to Seal, and all supporting declarations on counsel for Hall in
21 7. Amazon has a clear legal and equitable right to protect its legitimate business
22 interests.
23 8. Amazon has a reasonable and well-grounded belief that Hall intends to violate
25 9. Amazon has demonstrated that it may suffer actual and substantial injury to its
26 interests if Hall is allowed to work for Google in any cloud marketing capacity or any other
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1 capacity that would involve his inevitable use or disclosure of Amazon confidential
2 information.
3 10. There are no equitable or other reasons why Amazon is not entitled to a
4 restraining order pending the scheduled July 31, 2020 hearing upon Amazon’s forthcoming
9 effect until the scheduled July 31, 2020 hearing upon Amazon’s forthcoming motion for a
10 preliminary injunction.
11 B. Hall is hereby temporarily enjoined from engaging in any activities that directly
12 or indirectly support any aspect of Google’s cloud product marketing operations, cloud
13 products or services, or any other capacity that would involve his inevitable use or disclosure of
15 C. This temporary restraining order shall bind Hall, his agents and attorneys, and
16 those acting in concert with them, who receive actual notice of this restraining order by
19 shall have three business days to post security in the amount of ____________, an amount
20 deemed proper to compensate Hall in the event he is determined to have been wrongfully
21 enjoined.
22 E. This temporary restraining order shall continue until the date and time of the
23 July 31, 2020 hearing on why a preliminary injunction should not be entered, set for
25
26 //
27 //
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1 IT IS SO ORDERED.
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Superior Court Commissioner
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