Google and Microsoft settled out of court on litigation that has kept a former Microsoft executive from heading Google's China unit.

Kai-fu Lee had been slated to head the Internet search engine's research group in China, but Microsoft filed a lawsuit against the company, stating that the move went against Lee's contract with the software giant regarding keeping proprietary information. Google then counter-sued against Microsoft.

"Microsoft, Dr. Lee, and Google have reached an agreement that settles their pending litigation," the two companies said in a joint statement late Thursday.

Details of the agreement, including financial settlement, were not disclosed.

Copyright 2005 by United Press International