Mark Papermaster posts

Feed

New Apple iPod chief fights IBM for right to go to work

When Mark Papermaster decided to leave IBM for Apple, it sent a strange signal to many industry pundits. Why would Apple, Inc. (NASDAQ: AAPL) be hiring a dyed-in-the-wool microchip designer to run its consumer products division? Does it need help in the hardware engineering department or is it out to create another breakthrough in consumer product design to keep the iPod and iPhone cash cows alive as those categories age?

Although we didn't get an answer to those questions, Papermaster was forced to play a bit of tug of war, at least legally. IBM Corp. (NYSE: IBM) was able to convince a judge to put an injunction on his reporting to work at Apple due to a non-compete clause with his former employer. Papermaster has now countered by saying that IBM and Apple do not compete at all in the area where he will be employed at Apple. He's right -- in fact, IBM and Apple don't compete on any level at all any longer.

So, we have to wonder what IBM's beef is here. Some clauses in his contract with IBM are so broad that apparently Papermaster should not be able to work for any tech company for a year after leaving IBM. The non-compete portion of this contract states that he can't go to work for the competition, even if there is no competition in the product space. In other words, Papermaster's countersuit will try to find this section of his contract to be invalid due to the fact that IBM's interests won't be hurt in any way by his employment at Apple. Good luck on that one. Today there will be a meeting between the two companies to hash out details, so this may become a bit thicker soon.

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 12, 2012: 01:25 PM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

DailyFinance Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

Page Loaded in 1329071111617 ms.