The employment dispute between Apple and IBM has been resolved. Apple announced today that Mark Papermaster will join Apple on April 24 to lead the firm’s iPod and iPhone hardware engineering teams, thus replacing Tony Fadell, who recently retired.

The case involved Steve Jobs’ decision to hire Mark Papermaster, a 25-year IBM veteran. IBM opposed to this decision arguing in a 10-page complaint filed last October that Papermaster was “in the possession of significant and highly-confidential IBM trade secrets and know-how,” secrets he was now in a position to deliver to a major competitor.

A New York federal court will monitor Papermaster, who would be required to certify in July and in October "that he has complied with his legal obligations not to use or disclose IBM's confidential or proprietary information," IBM said.

However the case rested on a non-compete agreement that Papermaster signed in 2006.

Apple has said that Papermaster would join the company on April 24. Papermaster will lead Apple's iPod and iPhone hardware engineering teams. His challenge is to keep Apple ahead of rivals, such as Palm (PALM) and Research In Motion (RIMM), which are trying to mimic the iPhone with increasing success. He might also help oversee the iPod touch's transformation into a broader line of portable touch computing devices to compete with cheap "netbook" PCs from companies like Acer and Asus.

Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.