World of Apple

Apple has announced that Mark Papermaster will begin work at Apple as Senior Vice President Devices Hardware Engineering on April 24th, 2009. Papermaster was recruited to work at Apple from IBM in October last year but IBM immediately filed a lawsuit blocking Papermaster from working at Apple.

The lawsuit claimed that Papermaster had breached a contract which prevented him from leaving IBM and working for a competitor. A U.S. court issued an injunction preventing Papermaster from working until the lawsuit was resolved.

In today’s press release Apple states that the lawsuit has now been resolved.

Apple today announced that Mark Papermaster will be coming to Apple as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs, on April 24. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod and iPhone hardware engineering teams. The litigation between IBM and Mark Papermaster has been resolved.

Mark Papermaster replaces Tony Fadell who entered a new capacity at Apple in early-November.

In new court documents only revealed this week it is shown that a federal judge ordered Mark Papermaster to halt work at Apple because he could cause “irreparable harm” to former employer IBM.

Although the ruling was made by Judge Kenneth Karas on November 7 the decision was only made public earlier this week.

In the ruling Judge Karas wrote “Because Mr. Papermaster has been inculcated with some of IBM’s most sensitive and closely-guarded technical and strategic secrets, it is no great leap for the Court to find that Plaintiff has met its burden of showing a likelihood of irreparable harm.”

The judge also touched on Papermaster’s point that Apple and IBM are no longer competitors, Karas noted that although Papermaster would not be designing chips for Apple he would no doubt have to call upon is superior experience that he received from IBM.

“It is likely that Mr. Papermaster inevitably will draw upon his experience and expertise in microprocessors and the ‘Power’ architecture, which he gained from his many years at IBM, and which Apple found so impressive, to make sure that the iPod and iPhone are fitted with the best possible microprocessor technology and at a lower cost,” adding; “Indeed, any claim that he would merely use general engineering skills is belied by Apple’s focus on Mr. Papermaster’s ’spot on’ knowledge of semiconductors and microprocessor design,” he added.

Karas ruled that the case would run on a fast track, “The Court has ordered that an expedited discovery schedule be arranged and that the trial take place as soon as practicable after discovery is completed,” he said.

As previously reported by many in the Apple web, the New York Judge in the IBM v. Papermaster suit ordered IBM to post a three-million dollar bond to cover any potential damages that Papermaster may suffer if IBM fails to prove that the injunction was appropriate. Specifically, as reported by Edible Apple:

In the on-going saga between I.B.M and Mark Papermaster over his decision to work for Apple, a Ditrict Judge in New York has recently ordered that I.B.M post a 3 million dollar bond in the event that it’s later decided that the preliminary injunction initiated by I.B.M was without merit.

Late last week, IBM posted the appropriate bond. Also of interest, just like Psystar (but hopefully with actual merit, unlike Psystar), Papermaster countersued IBM right back. Papermaster alleges:

• The employment agreement signed by Papermaster precludes him from working for any direct or business enterprise competitor with IBM. Papermaster argues that Apple fails on both counts; it is not a direct competitor and it is not a business enterprise company, but rather a consumer products company.
• The agreement is overly broad as its prohibition lasts for one year which is unreasonably long in the fast-paced world of technology.
• The agreement provides that it shall be governed by the laws of New York, but Papermaster actually works in Texas and would work for Apple in California and those two states are not friendly to such agreements.
• Papermaster signed an agreement with Apple that he would not disclose any of IBM’s secrets. (Yes, I do see the irony.)

(via MacWorld and MacOSKen show 11/19/08)

A Hearing is set for February 9, 2009.

The fight between Mark Papermaster and IBM continued this week with the former IBM employee filing a counter lawsuit against IBM.

Papermaster’s lawyers filed their answer to IBM’s original lawsuit on Wednesday as well as filing counter claims. As is common in such cases the filed papers admitted only solid facts and denied everything else.

In particular Papermaster’s lawyers claim that IBM’s non-competition agreement is unreasonably broad as well as arguing that the agreement doesn’t apply in Texas – where Papermaster has lived and worked for 17 years – or California where Apple is based.

A status conference is schedueld for November 18 at 10 am in the U.S. District Court, Southern District of New York, White Plains.

Read the filings so far (PDF):

• IBM’s original complaint
• Papermaster’s answer to IBM’s suit
• Judge’s Order for Papermaster to halt work at Apple
• Papermaster’s Filings

Amid uncertainty Apple has removed an executive biography from its website for Mark Papermaster the latest executive to join Apple’s team. The Senior Vice President of Devices Hardware Engineering was hired from IBM and has been the centre of a lawsuit from the company.

Following his employment at Apple, IBM sued Papermaster under allegations that he could give out critical trade secrets belonging to IBM. In response Papermaster filed papers that read, “Until this litigation effort by IBM, aside from the divested IBM personal computer business and a single sale several years ago of Apple’s Xserve product to a university, I do not recall a single instance of Apple being described as a competitor of IBM during my entire tenure at IBM.”

Last Friday IBM was granted an injunction to prevent Papermaster from working at Apple for the near future, CNet points out that a Google Cache of the bio is still available.

Over the weekend it became clear that the drama is continuing to surround Apple’s latest senior employee. Mark Papermaster a previous employee of IBM was hired by Apple and officially joined last week, replacing iPod chief Tony Fadell.

Later last week it was revealed that IBM had filed a lawsuit against Papermaster for accepting a job at Apple. IBM claims that Papermaster is violating an employment agreement, as he could potentially divulge IBM trade secrets.

A new report which became apparent over the weekend reveals that a District Court judge has ordered Papermaster to stop working at Apple immediately. Papermaster has also filed papers arguing that Apple and IBM are no longer competitors in the industry.

Apple said they would comply with the courts ruling but “are confident that Mark Papermaster will be able to ultimately join Apple when the dust settles”.

Apple has today officially announced that Mark Papermaster will join the company as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod and iPhone hardware engineering teams. Papermaster has 25 years of product and technology experience, and was previously a vice president at IBM.

Apple also announced that Tony Fadell, Apple’s senior vice president of the iPod Division, and his wife Danielle Lambert, vice president of Human Resources, are reducing their roles within the company as they devote more time to their young family. Fadell will remain at Apple as an advisor to the CEO. Lambert will depart the company at the end of this year after a successor is in place.

“Mark is a seasoned leader and is going to be an excellent addition to our senior management team,” said Steve Jobs, Apple’s CEO. “Tony and Dani have each made important contributions to Apple over the past eight years. We’re sorry to see Dani go, and are looking forward to working with Tony in his new capacity.”

Papermaster has a Bachelors of Science in Electrical Engineering degree from the University of Texas, and Masters of Science in Electrical Engineering from the University of Vermont in 1988. He is active with the University of Texas where he is a member of the Electrical and Computer Engineering Advisory Council.

CNET is reporting that a former IBM employee by the name of Mark Papermaster has accepted a job at Apple. The article is mainly targeted at a lawsuit which IBM has started against the former employer for joining Apple. Papermaster was IBM’s Vice President of Microprocessor technology but recently left his job and will start at Apple in November.

IBM is claiming that Papermaster is violating an employment agreement by joining Apple and that the ex-employee could divulge the companies trade secrets. Papermaster is considered a “top expert in Power architecture and technology”.

It is unknown why Apple has pursued Papermaster but CNET speculates that he could be vital to Apple’s plans to develop processors for the iPod touch and iPhone.