IBM settles with former exec going to Apple
NEW YORK (AP) -- IBM said Tuesday it has resolved a lawsuit against its former vice president and the executive, Mark Papermaster, can go work for Apple Inc. after April 24 -- six months after leaving his post at IBM.
Armonk, N.Y.-based International Business Machines Corp. had sued Papermaster last fall, saying his quick move to the Mac and iPod maker violated confidentiality agreements. Apple announced in November it hired Papermaster to head its iPod and iPhone hardware engineering teams, replacing Tony Fadell.
But a federal district court granted IBM's request for preliminary injunctive relief and ordered that Papermaster "immediately cease employment" with Apple, IBM said.
Papermaster and IBM have now agreed to resolve the lawsuit, the company added. As part of the agreement, Papermaster won't be able to join Apple until after April 24. and will be subject to all of his "contractual and other legal duties to IBM," including the obligation not to use or disclose the company's confidential information.
After he starts with Apple, he will be required to certify twice, in July and in October, that he has followed his legal obligations and did not disclose proprietary information on IBM.
The court will continue to have jurisdiction over the matter until Oct. 24, one year after Papermaster's departure from IBM, the company said.
Cupertino, Calif.-based Apple said in a brief statement Tuesday that Papermaster will join Apple as senior vice president of devices hardware engineering, reporting to Chief Executive Steve Jobs. Of the lawsuit, Apple said the "litigation between IBM and Mark Papermaster has been resolved."
Shares of IBM climbed 6 cents to close at $91.66, while Apple's shares rose $1.09 to end at $90.73.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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