Apple finally gets IBM’s Papermaster

New York, January 28: Former IBM executive Mark Papermaster is all set to lead Apple’s iPhone group following legal settlement between the two companies, revealed Apple officials on Tuesday.

He will begin his new innings with Apple on April 24 after resolving his dispute with IBM over a non-compete agreement.

Apple, the Cupertino-based consumer-electronics manufacturer, is more than happy to have gotten its man three months after court orders restricted Papermaster not to report for work at Apple following a contract dispute with former employer IBM.

After the ruling, Apple spokesman had stated, “We will comply with the court's order but are confident that Mark Papermaster will be able to ultimately join Apple when the dust settles.” Now, it seems the dust has finally settled, in favor of Apple.

Apple issued a brief statement about the issue, which stated “litigation between IBM and Mark Papermaster has been resolved” and that he “will lead Apple’s iPod and iPhone hardware engineering teams.”

“IBM and Mr. Papermaster have agreed on a resolution of the lawsuit under which Papermaster will remain subject to all of his contractual and other legal duties to IBM, including the obligation not to use or disclose IBM's confidential information,” IBM stated.

However, IBM’s former vice president of blade development will not be able to start at Apple before April 24.

Portrayed by IBM as a walking library of its trade secrets, Mark Papermaster was sued by the company to enforce non-compete agreement and was legally prohibited to work at Apple. Now that the two companies, namely Apple and IBM, have come to terms with each other, Papermaster, joining as senior vice president, needs to report directly to CEO Steve Jobs.

Papermaster had countersued IBM saying he “has no substantial relationship to New York, in that he has resided and worked in Texas for the past 17 years, and he is going to work for Apple, which is a California corporation,” and that “both states hold that such noncompetition agreements are unenforceable as a matter of public policy.”

Bruce Meyer, Papermaster’s lead attorney at Weil, Gotshal & Manges, refused to comment on this settlement. When asked to clarify who will Papermaster report to, Apple did not offer any comments.

The IBM veteran is required to certify in court, as part of the settlement, in July and in October, again that he neither disclosed any of IBM’s secrets nor treaded on any IBM IP while working at Apple.

A New York federal court will monitor Papermaster to ensure “that he has complied with his legal obligations not to use or disclose IBM's confidential or proprietary information,” IBM said.

The judge stated that IBM’s decision “shall be final and binding and not subject to review in any way,” as he (Papermaster) is under court order to tell IBM if “any information he intends to or may disclose or otherwise use in any way is IBM confidential information” and that IBM gets to decide if the techniques are derivative or not - a decision from which there's no appeal.

The agreement between Apple and Big Blue IBM ended a legal clash that erupted on Oct. 22, 2008.