Posted by Bezhou Feng on 20 July 2008 - 01:53 · 20 comments & 5565 views
Cellphone maker Motorola has sued former executive Michael Fenger for allegedly violating a non-compete agreement and threatening to reveal its trade secrets by taking a job with Apple iPhone division. Fenger accepted "millions of dollars in cash, restricted stock units, and stock options" in exchange for agreeing not to join a competitor for two years after leaving Motorola, where he oversaw mobile devices in Europe, the Middle East and Africa, the lawsuit said. However, contrary to the terms of his agreement, he took the iPhone job on March 31, less than a month after leaving Motorola.

Fenger, who now serves as vice president of global iPhone sales, also hired away two high-level Motorola employees who have access to Motorola's trade secrets and customer relationships, the suit said. Unsurprisingly, an Apple spokeswoman said the company had no comment on the lawsuit, and Fenger could not be reached for comment. Motorola has demanded damages and repayment of stock options given to him in exchange for signing the non-compete agreement.

View: Full Story at Reuters



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Quote this comment Reply to this comment #1 Posted by Daokoras on 20 Jul 2008 - 02:25
"Fenger could not be reached for comment. Motorala has demanded damages and repayment of stock options given to him in exchange for signing the non-compete agreement."

motorala ?
(6 replies) Quote this comment Reply to this comment #2 Posted by Airlink on 20 Jul 2008 - 02:32
Aren't non-compete agreements anti-competitive?
Quote this comment #2.1 Posted by xtravgnt on 20 Jul 2008 - 13:02
(Airlink said @ #2)
Aren't non-compete agreements anti-competitive?

That's kind of the point, those things are terrible. You are basically stuck with that company and in some cases even being fired does not release you, this guy is "lucky' he actually got paid millions to be in one most sales people in non compete agreements get nothing out of them.
Quote this comment #2.2 Posted by Magallanes on 20 Jul 2008 - 13:56
(xtravgnt said @ #2.1)
(Airlink said @ #2)
Aren't non-compete agreements anti-competitive?

That's kind of the point, those things are terrible. You are basically stuck with that company and in some cases even being fired does not release you, this guy is "lucky' he actually got paid millions to be in one most sales people in non compete agreements get nothing out of them.


Apple contracted this guy not because he was capable but their knowledge, contact and strategic data from the former company.
Quote this comment #2.3 Posted by Laser_iCE on 20 Jul 2008 - 23:53
(Magallanes said @ #2.2)
(xtravgnt said @ #2.1)
(Airlink said @ #2)
Aren't non-compete agreements anti-competitive?

That's kind of the point, those things are terrible. You are basically stuck with that company and in some cases even being fired does not release you, this guy is "lucky' he actually got paid millions to be in one most sales people in non compete agreements get nothing out of them.


Apple contracted this guy not because he was capable but their knowledge, contact and strategic data from the former company.


Because you know this for a fact, right?
Quote this comment #2.4 Posted by kaiwai on 21 Jul 2008 - 05:43
(Laser_iCE said @ #2.3)
(Magallanes said @ #2.2)
(xtravgnt said @ #2.1)
(Airlink said @ #2)
Aren't non-compete agreements anti-competitive?

That's kind of the point, those things are terrible. You are basically stuck with that company and in some cases even being fired does not release you, this guy is "lucky' he actually got paid millions to be in one most sales people in non compete agreements get nothing out of them.


Apple contracted this guy not because he was capable but their knowledge, contact and strategic data from the former company.


Because you know this for a fact, right?


Well, the problem is that he can substantiate it, but he'll use it as part of his cadre of weapons he likes to beat Apple with. He some how has this idea that everyone is the same, no one has any monetary value based on differing skills - its all based on "knowledge, contact and strategic data". Its stupid I know, but then again, this is Magallanes.

As for Motorola, I can assure you, if Motorola was the number one mobile phone company, and making more money than you can point a stick at, they wouldn't be worried about small fry like Michael Fenger. The fact that Motorola is going down faster than a hooker on K road tells me that they're using intimidation to keep their management at their company.
Quote this comment #2.5 Posted by 39 Thieves on 21 Jul 2008 - 15:48
(kaiwai said @ #2.4)
(Laser_iCE said @ #2.3)
(Magallanes said @ #2.2)
(xtravgnt said @ #2.1)
(Airlink said @ #2)
Aren't non-compete agreements anti-competitive?

That's kind of the point, those things are terrible. You are basically stuck with that company and in some cases even being fired does not release you, this guy is "lucky' he actually got paid millions to be in one most sales people in non compete agreements get nothing out of them.


Apple contracted this guy not because he was capable but their knowledge, contact and strategic data from the former company.


Because you know this for a fact, right?


Well, the problem is that he can substantiate it, but he'll use it as part of his cadre of weapons he likes to beat Apple with. He some how has this idea that everyone is the same, no one has any monetary value based on differing skills - its all based on "knowledge, contact and strategic data". Its stupid I know, but then again, this is Magallanes.

As for Motorola, I can assure you, if Motorola was the number one mobile phone company, and making more money than you can point a stick at, they wouldn't be worried about small fry like Michael Fenger. The fact that Motorola is going down faster than a hooker on K road tells me that they're using intimidation to keep their management at their company.


Wow...in your world, 'intimidation' means "millions of dollars in cash, restricted stock units, and stock options"? I want to live in your world!
Quote this comment #2.6 Posted by +Dakkaroth on 21 Jul 2008 - 18:19
(kaiwai said @ #2.4)
As for Motorola, I can assure you, if Motorola was the number one mobile phone company, and making more money than you can point a stick at, they wouldn't be worried about small fry like Michael Fenger.


That makes absolutely no sense whatsoever.
(5 replies) Quote this comment Reply to this comment #3 Posted by kaiwai on 20 Jul 2008 - 04:41
Interesting that this only occurs when the former employer is going down the toilet and looking for scape goats for the stupidity of their management team.
Quote this comment #3.1 Posted by theyarecomingforyou on 20 Jul 2008 - 14:04
No, this occurs to stop employees jumping ship and taking valuable information / strategies with them. The whole reason they are paid as highly as they are is on the understanding they won't immediately share that information with competitors. This guy broke those rules and that is completely unacceptable.
Quote this comment #3.2 Posted by kaiwai on 20 Jul 2008 - 17:41
(theyarecomingforyou said @ #3.1)
No, this occurs to stop employees jumping ship and taking valuable information / strategies with them. The whole reason they are paid as highly as they are is on the understanding they won't immediately share that information with competitors. This guy broke those rules and that is completely unacceptable.


Where is the evidence that he shared any information?
Quote this comment #3.3 Posted by Joel on 20 Jul 2008 - 22:27
(kaiwai said @ #3.2)
(theyarecomingforyou said @ #3.1)
No, this occurs to stop employees jumping ship and taking valuable information / strategies with them. The whole reason they are paid as highly as they are is on the understanding they won't immediately share that information with competitors. This guy broke those rules and that is completely unacceptable.


Where is the evidence that he shared any information?

They don't need evidence he did anything except take a job with a direct competitor, something he signed a contract not to do.
Quote this comment #3.4 Posted by kaiwai on 21 Jul 2008 - 05:37
(Joel said @ #3.3)
(kaiwai said @ #3.2)
(theyarecomingforyou said @ #3.1)
No, this occurs to stop employees jumping ship and taking valuable information / strategies with them. The whole reason they are paid as highly as they are is on the understanding they won't immediately share that information with competitors. This guy broke those rules and that is completely unacceptable.


Where is the evidence that he shared any information?

They don't need evidence he did anything except take a job with a direct competitor, something he signed a contract not to do.


I find that laughable considering that you can define competitor in what ever way you want. Pizza Hut has a non-competitor agreement with management - but who constitutes a competitor? another pizza place? what about McDonalds - are they a competitor? what about Greasy Joe's sole proprietor - is he a competitor?
Quote this comment #3.5 Posted by empty on 21 Jul 2008 - 07:38
(kaiwai said @ #3.4)
(Joel said @ #3.3)
(kaiwai said @ #3.2)
(theyarecomingforyou said @ #3.1)
No, this occurs to stop employees jumping ship and taking valuable information / strategies with them. The whole reason they are paid as highly as they are is on the understanding they won't immediately share that information with competitors. This guy broke those rules and that is completely unacceptable.


Where is the evidence that he shared any information?

They don't need evidence he did anything except take a job with a direct competitor, something he signed a contract not to do.


I find that laughable considering that you can define competitor in what ever way you want. Pizza Hut has a non-competitor agreement with management - but who constitutes a competitor? another pizza place? what about McDonalds - are they a competitor? what about Greasy Joe's sole proprietor - is he a competitor?


I feel you are missing the point. The amount of trade secrets a manager for Pizza hut (bare in mind there are thousands of them across the globe and that each manager has very little corporate knowledge beyond their own franchise) has is absolutely miniscule compared to the amount of knowledge a motorola executive will have. Also, consider how much Apple are currently raking in from their phone - if he did divulge any trade secrets it has more than likely earnt apple a few more $$$s than any rogue Pizza hut manager could earn for mcdonalds.
(3 replies) Quote this comment Reply to this comment #4 Posted by Albert on 21 Jul 2008 - 06:12
this is so sad and pathetic.

what a sad, sad state motorola's mobile division has end in. bad enough to have a former ceo that do nothing for the company except to screw them for a fat severence package, now we have a desperate motorola going after their former small flies for petty issue ...

someone should put them out of their misery.

oh. i forgot. nobody wants to buy them.
Quote this comment #4.1 Posted by empty on 21 Jul 2008 - 07:39
(Albert said @ #4)
this is so sad and pathetic.

what a sad, sad state motorola's mobile division has end in. bad enough to have a former ceo that do nothing for the company except to screw them for a fat severence package, now we have a desperate motorola going after their former small flies for petty issue ...

someone should put them out of their misery.

oh. i forgot. nobody wants to buy them.


Eh... it clearly states in the article that he accepted MILLIONS of dollars. Perhaps for you a million dollars is a petty issue, but for me and obviously for motorola, its an amount that requires chasing up...
Quote this comment #4.2 Posted by kaiwai on 21 Jul 2008 - 09:19
(empty said @ #4.1)
(Albert said @ #4)
this is so sad and pathetic.

what a sad, sad state motorola's mobile division has end in. bad enough to have a former ceo that do nothing for the company except to screw them for a fat severence package, now we have a desperate motorola going after their former small flies for petty issue ...

someone should put them out of their misery.

oh. i forgot. nobody wants to buy them.


Eh... it clearly states in the article that he accepted MILLIONS of dollars. Perhaps for you a million dollars is a petty issue, but for me and obviously for motorola, its an amount that requires chasing up...


And I clearly stated that Motorola is going down the tubes, and had Motorola been on a winning streak, it would have been ignored. It is about a pathetic company with pathetic management who are ****ing and moaning over their own incompetency.
Quote this comment #4.3 Posted by +Dakkaroth on 21 Jul 2008 - 18:28
(kaiwai said @ #4.2)
And I clearly stated that Motorola is going down the tubes, and had Motorola been on a winning streak, it would have been ignored. It is about a pathetic company with pathetic management who are ****ing and moaning over their own incompetency.


Your logic fails. If Motorola were #1, that'd give them even MORE reason to keep their secrets from the competitors. Thus, it would NOT be ignored any more than an executive jumping ship from Microsoft, as Microsoft works very hard to keep their position.
(1 reply) Quote this comment Reply to this comment #5 Posted by g0wg on 21 Jul 2008 - 10:17
Some people really need a clue ...

How can some of you say that it is okay to leave company X and join a competing company Y within such a short time frame? He knows all the strategies and product plans for motorola for the next 3 to 5 years and that is already too much information which apple can easily tap. Whether he has released that info or not is irrelevant since he already knows such information and can easily reveal it any time he wants.

And no, if I was Motorola and I was earning loads of cash, I still wouldn't leave this alone.
Quote this comment #5.1 Posted by portauthority on 21 Jul 2008 - 17:15
Neowin is full of communist FOSS monkeys ... what did you expect?
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