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The issues between Apple and IBM regarding Mr. Mark
Papermaster and his past and future activities continue and the solution does
not appear to be near. This Friday, a federal court judge ruled that IBM’s
former employee must stop any project with Apple for the time being as there
are several aspects that must be carefully verified.
U.S. District Court Judge Kenneth Karas stated only that
Papermaster "will immediately cease his employment with Apple Inc. until
further order of this court," and added that more details will be provided
at another time.
The whole incident began when Papermaster decided to
leave IBM and take a new position with Apple. His former employer issued a
lawsuit claiming that his one-year exclusivity contract forbids him from
joining the competition. Mr. Papermaster maintains his firm belief that his
move does not violate the noncompeting contract, as in his opinion the two
companies do not cover the same market. "To the best of my knowledge, IBM
does not design, manufacture or market consumer electronic products,"
Papermaster explained in a court document filed last week. "Instead, IBM
focuses on high-performance business systems such as information technology infrastructure,
servers and information storage products, and operating systems software,"
while "Apple, on the other hand, is in the business of designing,
manufacturing and marketing consumer-oriented hardware and related
products," he added.
He explained that his decision to leave IBM was not
something he considered, as his 26 years with IBM represent a great deal for
him. Still, Apple’s officials offered him "a once in a lifetime
opportunity" which he had to take. He is now the senior VP for devices
hardware engineering for Apple, which puts him in charge of the development on
the iPhone and the iPod. "Mark is a seasoned leader and is going to be an
excellent addition to our senior management team," said Apple’s CEO Jobs,
in a statement released last week. The company’s official statement notes that Papermaster
was not hired because of certain specific knowledge or experience gained in his
26 years with IBM, but for his general engineer skills and also for his
extremely strong management skills.
IBM’s fears are related to Papermaster’s ability of helping
Apple develop server and chip products using the massive amounts of information
he gathered in his many years with the company. According to IBM, Papermaster
is in possession of sensitive information that represent "highly
confidential IBM trade secrets" which have the potential to
"irreparably harm" the company if he will begin to work for Apple.
As soon as the news about the resignation surfaced, IBM’s
officials offered their employee a significant salary increase in order to keep
him with the company but their efforts were useless as Papermaster submitted
his resignation on October 21 and announced that starting with the first of
November he would be joining Apple. On the very next day IBM sued its former
employee and demanded the court to stop him from joining the company and also
some financial retributions.
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