IBM announces lawsuit against Apple for hiring chip designer

Michael Brown via AppleInsider on 31 October 2008 - 22:56 · 14 comments & 5164 views

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One of IBM's highly-regarded chip experts has become the centre of a lawsuit between Apple and IBM, after accepting a job offer from Apple. IBM's claim is that working for Apple is a violation of his contract with IBM which states that he is forbidden from working for a rival company if he leaves.

IBM believes that Mark Papermaster will be a valuable addition to the team working on the Xblade range of servers produced by Apple, which would go in direct competition with IBM's own offerings. Beefed-up Xblade servers would also directly benefit Apple which, with it's iTunes store and MobileMe services, is making far more of an effort in recent years to increase it's market share of internet-based services.

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(2 replies) #1 RDExpress on 31 Oct 2008 - 23:44

These contract clauses are completely stupid. Where else is the guy supposed to work? This is his field of work, why wouldn't he work for a rival?!

I'm a CompSci student, and I would be cautious to sign a contract that has this kind of clause in it... but in the end what else are you supposed to do?

#1.1 ThaCrip on 01 Nov 2008 - 07:23

RDExpress said,

you could not be more right! , i totally agree.

#1.2 The2 on 01 Nov 2008 - 15:13

ThaCrip said,

RDExpress said,

you could not be more right! , i totally agree.

He signed the contract! Don't know what part of that is not clear?

#2 mithrandir on 01 Nov 2008 - 00:43

Yeah but if he is privy to private techinical information whats to say won't use that knowledge at apple.

#3 NateB on 01 Nov 2008 - 01:24

These agreements are standard in the industry and trust me, people are usually heavily compensated for it.

#4 mrmckeb on 01 Nov 2008 - 03:34

And the guy did leave IBM for Apple... it wasn't like Big Blue just dumped him.

#5 chAos972 on 01 Nov 2008 - 06:09

I remember a story similar to this earlier this year. Wern't non-compete style clauses shot-down as non-binding?

#6 Skynetfuture on 01 Nov 2008 - 12:38

THIS IS MADNESS !

seriously

(1 reply) #7 bmaher on 01 Nov 2008 - 13:41

At the end of the day, if he no longer works for IBM, he can no longer be in any sort of contract with them?

#7.1 MiG- on 01 Nov 2008 - 14:14

bmaher said,

At the end of the day, if he no longer works for IBM, he can no longer be in any sort of contract with them?

Usually in the terms of the contract that means this is not the case im afraid.

#8 Persephone on 01 Nov 2008 - 18:29

I don't see how this can be fairly held up in court. A keep-your-mouth-shut clause is fair enough but dictating that you can work for IBM and only IBM, or go and flip burgers is wrong. I don't see how anyone can support one firm monopolising someone's career like this.

If a Chinese factory owner prevented ex employees from working in other factories people would be up in arms, contract or no contract.

(1 reply) #9 C++ on 02 Nov 2008 - 17:55

Maybe you people should do a little research before posting completely uninformed comments (as well as articles)? IBM is not telling this guy to flip burgers. His agreement has a ONE YEAR non-competitive clause, which he did in fact violate, and just a few short months after Apple acquired P.A. Semi (direct competitor to IBM). IBM has every right to stand their ground here.

http://blogs.zdnet.com/BTL/images/papermaster2.pdf

#9.1 tareqsiraj on 02 Nov 2008 - 23:15

C++ said,

I was kinda wondering that too from the comments ... usually the clause states that you can't work for a competitor (and sometimes direct client) in one year time after you separate your path from the company. A contract which owns your soul for eternity will most likely to be publicly criticized and will create a very bad image for a company.

#10 C_Guy on 04 Nov 2008 - 15:32

So if it is the ex-employee who sought employment with Apple should IBM not be suing HIM for violating this contract? IBM didn't have an agreement with Apple that their ex-employees would not be hired.

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IBM announces lawsuit against Apple for hiring chip designer

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