IBM's Papermaster Awaits His Apple Green Light

By Michael Todd
13:17, November 4th 2008
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IBM's Papermaster Awaits His Apple Green Light

IBM’s lawsuit against Apple goes to prove that companies should keep a firm hold on their talents and money makers. IBM’s 26-year veteran Mark Papermaster decided to leave the company in order to fill in another position at Apple Inc.

Mr. Papermaster is a well known expert in chip design and also one of the architects responsable for the development of the Power PC processor. His work over the past two decades has been extremely important for the success of the company.

IBM’s officials claim that if their ex-employee will be allowed to move to Apple, his extensive knowledge of significant and highly confidential trade secrets gathered in all these years of activity could irreparably harm the company. They claim that Mr. Papermaster signed back in 2006 a noncompetition contract, agreeing not to work for any of the company’s competitors for at least a year once he decides to leave. The company issued this statement: "Mr. Papermaster's employment by Apple is a violation of his agreement with IBM against working for a competitor should he leave IBM. We will vigorously pursue this case in court."

Another aspect connected to this matter is represented by the reports issued these past few days on Tony Fadell’s decision to leave Apple. He is the company’s senior vice president of the iPod division and the only explanation provided so far is that he is leaving on account of personal reasons. This is apparently the position that Papermaster will initially take, but at this point nothing is certain because of the accusations which are still being examined. Mr. Fadell had a huge contribution for Apple, as aside from his tasks with the iPod division, he was also part of the team that developed the iPhone. There is a chance that he will continue to assist with certain projects as an outside consultant.

So far Apple did not release any statement to confirm or infirm the news, as a spokeswoman for the company explained that Apple does not comment on rumors and speculations and once there will be something concrete to talk about, they will certainly publicly address the issue.

IBM’s fear is completely understandable, considering the massive amount of data known by its former employee. Once inside the company, nobody can expect Papermaster to keep all the information to himself and start its new collaboration from zero, without any sort of influence from his previous experience. Also, it is clear that this is one of the main reasons Apple approached him, to get an inside peek at IBM’s plans, strategies, business and progress.

Papermaster was offered a significant raise to remain with IMB and when that didn’t work, the company’s officials tried to convince him to take one year off, paid in full just as if he would still be an active employee. The second proposal was also turned down and the situation is expected to be resolved in court.



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