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IBM is suing one of its top executives, a server guru who is trying to take a job with Apple, where he would be working closely with CEO Steve Jobs.
Mark Papermaster, a 26-year veteran of IBM, has knowledge of "significant and highly confidential IBM trade secrets" that would "irreparably harm" the company if he is allowed to work for Apple, IBM alleges in a suit filed in United States District Court in Manhattan on Oct. 22. Papermaster also signed a noncompetition agreement in 2006 pledging not to work for competitors for one year after the conclusion of his employment with IBM.
The complaint says Papermaster was IBM's top expert for its Power microprocessors and the vice president of IBM's blade server development unit, until resigning on Oct. 21 this year. Papermaster is also a member of IBM's "elite" Integration & Values Team, a group of 300 senior managers charged with developing corporate strategy.
"Recently, Mr. Papermaster informed his superiors at IBM that he intended to accept a position at Apple," IBM's complaint states. "On information and belief, Mr. Papermaster will become a senior executive and corporate officer at Apple and will work very closely with Apple's Chief Executive Officer in providing to Apple technical and strategic advice on a variety of issues."
Apple competes against IBM in developing servers, PCs and microprocessors, IBM says, referring to Apple's Xserver line of servers and Apple's acquisition of P.A. Semi, a semiconductor that IBM also considers a competitor. (Compare server products.)
IBM says it tried to lure Papermaster back with a substantial pay raise, and offered to pay him one year's salary in exchange for Papermaster "refrain[ing] from working for an IBM competitor for one year."
Papermaster nonetheless decided to leave and work for Apple beginning in November, the complaint states.
"Mr. Papermaster, as long as he is employed by Apple, will inevitably use and/or disclose IBM trade secrets for his own benefit and for the benefit of Apple," IBM alleges.
IBM is seeking an injunction preventing Papermaster from working for Apple and asks for monetary awards "as the court deems just and proper."
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Comments (15)
signed a noncompetition agreementBy Anonymous on November 7, 2008, 11:48 amthe guy signed an agreement.. now wants to blow off a commitment.. grow up turds.. ironic name - Papermaster.. deserves his litigation.
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Last I checked, slavery was abolished back in the 1800s...By Anonymous on November 3, 2008, 1:07 pmLast I checked, slavery was abolished back in the 1800s. Unless IBM comes to the party with some dough, what is the guy's incentive? Guess Big Blue must be that...
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All's fairBy Anonymous on November 3, 2008, 1:02 pmRemember: All is fair in love and war. And the Japanese say business is war. So, too bad, Big Blue.
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More anti-competitive behavior by large corporations...By Anonymous on November 3, 2008, 7:32 amMore anti-competitive behavior by large corporations. IBM can't retain an engineer with things like money and satisfactory work... so they sue him. I hope the...
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State-to-stateBy Anonymous on November 3, 2008, 1:03 amDepending upon what state we live in, those non-compete agreements typically do not hold up to close scrutiny. Yet even when Microsoft stole Borland’s VCL technology...
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