A United States District court has released an order barring
former IBM executive Mark Papermaster from joining Apple. Papermaster was to
replace ‘father of iPod’ Tony Fadell, who left the company for family reasons.
Papermaster, who had been an employee of IBM for 26 years,
most recently as vice president of IBM’s blade development unit, wants to move
to Apple in Fadell’s old position as vice president of devices and hardware
engineering.
But the U.S. District Court for Southern New York would not
have it. The court ordered Papermaster to “immediately cease his employment
with Apple Inc. until further order of this court,” on Friday. The ruling was
cast for fear that Papermaster would break a non-competition agreement with his
old company and reveal IBM trade secrets to Apple.
The order, which was the result of a lawsuit filed by IBM on
October 22, is the only thing that currently stops Papermaster from joining
Apple, after IBM’s offers on October 20 of a pay raise as well as the option to
accept one year’s salary if he promised not to go to a competitor left him
unfazed. He resigned the next day, and Apple was forced to take the matter to
the court.
The company has stated that their former employee is “in
possession of significant and highly confidential IBM trade secrets and
know-how, as well as highly sensitive information regarding business strategy
and long-term opportunities.”
Apple’s competition with IBM is in the fields of servers,
personal computers and microprocessors, where Apple’s Xservers and Apple’s
recently-acquired California-based semiconductor company P.A. Semi are of note,
says IBM.
According to IBM’s reckoning, Apple will use the latter
semiconductor company as well as Papermaster’s know-how “to design
microprocessors for incorporation in a variety of electronic devices, including
handheld devices.”
"IBM will be irreparably damaged" if Papermaster
works for Apple and "inevitably" discloses trade secrets, IBM said.
Mr. Papermaster’s lawyers call IBM’s claim “absurd” and rebut
that “Apple hired Mr. Papermaster not because of any specific knowledge or
experience he gained at IBM, but for his general skill as an engineer and his
strong management skills, knowing full well that he will need to learn the iPod
and iPhone technology 'on the job,'" and that “Nothing about his new role
will implicate any trade secrets of IBM.”
His lawyers maintain that IBM focuses on large enterprise
applications meant for businesses, while Apple focuses on consumer electronics,
and they point out that IBM allowed Papermaster to work at the company for two
weeks after he announced his defection to Apple, and allowed him unrestricted
access to his files at IBM as well as to the entirety of the company’s network.
Papermaster will “suffer severe hardship if he loses his
dream job and is forced out of the rapidly changing electronics industry for a
year,” they maintain.
The next court date is set for November 18 and both sides
will reconvene then.