IBM blocks Papermaster's work at Apple
Mark Papermaster — the engineer who IBM is suing for breach of a non-compete agreement after he moved to Apple earlier this month — was ordered on Friday to "immediately cease his employment with Apple" until further notice by US District Court Judge Kenneth Karas.
You’ll recall that Papermaster, a 26-year IBM veteran who worked on the PowerPC architecture and most recently worked in IBM’s blade server division, was set to replace Tony Fadell at Apple, taking over Fadell’s responsibilities for the company’s iPod and iPhone hardware-engineering teams. Fadell is reducing his work at the consumer electronics company and will from here on out act as an advisor to the CEO. Apple reported last week that it had hired Papermaster and that he was on track to get rolling at the company.
But IBM blocked the move in court by suing Papermaster (not Apple) for violating a non-compete agreement he signed in 2006 that prohibits him from working at an IBM competitor for a year after leaving the Armonk, NY-based company.
According to New York State court documents, Papermaster began talking to Apple in January about a job and in his arguement against the IBM non-compete agreement claimed that there are "significant differences between IBM’s business (focused on large-scale machines for business) and Apple’s business (focused on consumer-oriented) electronics."
That’s a seemingly logical argument, except that Apple now plays in the PowerPC realm after buying PA Semi, which makes MPUs based on the architecture, last spring. Apple once bought PowerPC MPUs from IBM for its Mac computers. This blog, as did many of its commenters, made the PowerPC competitive point last week and wondered if Apple had more up its sleeve when it comes to future in-house chip work.
The White Plains, NY-based judge agreed when IBM disputed Papermaster’s claims, making specific point of the PowerPC architecture.
According to court docs, IBM said: "Mr Papermaster’s attempt to distinguish between ‘large-scale’ and ‘consumer’ electronics misses the point. In fact, electronic devices–large and small–are powered by the same type of intelligence, the microprocessor. And to build microprocessors, designers use, among other things and architecture such as IBM’s ‘Power’ architecture, concerning which Mr Papermaster was an IBM top expert."
Papermaster has until 4pm eastern tomorrow to submit his objections to the order and the judge has set a status conference for the matter on November 18.
This may seem like a lot of fuss for one engineer, even one with such a highly regarding reputation as Papermaster’s. But if the judge continues to uphold IBM’s non-compete argument, Papermaster could effectively be forced to sit out of the electronics industry for a year–and in our Moore’s Law driven world, a year is an awful lot of time to exclude from a career.
This case could become one for the records. If all electronics are "powered by the same type of intelligence, the microprocessor," as IBM argues, where could someone like Papermaster possibly be employed until his non-compete agreement becomes null and void next fall?
As of 10:30am eastern this morning, Apple had not issued a public statement as to if it would help Papermaster fight the order.
What do you think? Share your thoughts on non-compete agreements, Papermaster’s situation, and IBM’s argument in the matter below.
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