In November, Apple announced that it had hired Mark Papermaster away from IBM. Papermaster was the IBM guru on Power PC chips and was hired to take over the iPod/iPhone hardware development role, reporting directly to Steve Jobs. Prior to the announcement, IBM offered Papermaster more money to stay. When Papermaster declined, IBM sued to enjoin him from breaching his non-compete agreement, claiming that he was in possession of “significant and highly-confidential IBM trade secrets and know-how.” Papermaster countersued, claiming that there would be no breach because IBM and Apple were in totally different industries. Judge Kenneth Karas of the Southern District of New York agrees with IBM and enjoins Papermaster from working for Apple.
IBM and Apple have apparently worked out their differences. According to CNet:
IBM and Mr. Papermaster have now agreed on a resolution of the lawsuit under which Mr. Papermaster may not begin employment with Apple until April 24, 2009, six months after leaving IBM, and will remain subject thereafter to all of his contractual and other legal duties to IBM, including the obligation not to use or disclose IBM’s confidential information.
Following commencement of his employment with Apple, Mr. Papermaster will be required to certify, in July 2009 and again in October 2009, that he has complied with his legal obligations not to use or disclose IBM’s confidential or proprietary information.
The preliminary injunction will be replaced by a court order (PDF) under which the court will have continuing jurisdiction over this matter, including compliance enforcement powers, until October 24, 2009, one year after Mr. Papermaster’s departure from IBM.
Papermaster’s job will be a little easier when he starts. One of the killer features of Apple’s iPod is the “multitouch” technology, which none of its competitors had been able to replicate (save Palm, which may now be in trouble with the Pre), and now Apple has the patent on it. Presumably, this is what COO Tim Cook was talking about when he went off on a Mike Tyson-esque “I’m going to eat your babies” screed about burying his competitors.
Trivia: Apple’s previous general counsel was Don Rosenberg (who left for Qualcomm after less than a year). Rosenberg had been with IBM for 30 years and was the head of IBM litigation. In due course, he was promoted to SVP & General Counsel when Ed Lineen retired in 2005. But IBM pulled a fast one on him. They brought in Bob Weber from Jones Day as SVP of Legal & Regulatory Affairs, and inserted Weber between Rosenberg and CEO Sam Palmisano. Shortly thereafter, Rosenberg decamped for Apple.
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