Wednesday, 5 November 2008

IBM Files Suit Against Own Exec

IBM, recently filed a lawsuit against one of the company’s executives Mark Papermaster, the legal action being aimed at preventing the exec from moving to Apple Incorporated.

In its filing, The Big Blue contends that Papermaster possesses knowledge of trade secrets which could be used by Apple. As such, the company contends that Papermaster is violating a one-year non-compete agreement by taking up a position with Apple.

Papermaster was with IBM for the past 26 years and served as a member of the company's Integration & Values Team, a select committee of 300 executives responsible for steering much of IBM's corporate strategy, since 2006. He is also the top expert in IBM's Power microprocessor architecture and "is privy to a whole host of trade secrets and confidences belonging to IBM," according to the complaint.

"In his capacity as a member of the I&VT, Mr. Papermaster has gained access to confidential information concerning the company's strategic plans, marketing plans and long term business opportunities, including the development of specific IBM products," the company said.

IBM fears that Papermaster could help Apple develop rival server and chip products, and notes that Apple earlier this year acquired P.A. Semi with an eye to expanding its presence in those markets. IBM also claims that Apple considered replacing the IBM Power chips used in some of its computers with chips made by P.A. Semi.

As such, IBM is suing to block Papermaster's move to Apple until his non-compete agreement expires.