MacBlogz – One Stop Apple News - Bridging the Apple Community and Keeping Tabs on the Rumor Mill.

Apple and IBM Set to Clash Over Executive Poaching

After weeks of speculation, Apple has finally confirmed former IBM Vice President, Mark Papermaster, has taken over the iPod and iPhone division. Not only has this change in leadership opened a new chapter of legal warfare between Apple and IBM, but it has closed a chapter on one of Silicon Valley’s most storied careers: that of Tony Fadell.

Tony Fadell has been the senior vice president of the iPod division since he came to Apple in 2001 with his own bright take and design on a new and improved MP3 player. Once handed over to Steve Jobs, Fadell’s ideas evolved into the iPod we know today. Since the iPod induction into the technology hall of fame, Apple has sold over a quarter billion handheld music and media playing devices, sealing Fadell as “the father of the iPod and a Silicone Valley legend.” Cut to present day: Fadell, and his wife, Dani Lambert, Apple’s Human Resources VP, are leaving the company to spend more time with their young family.

The new hire has proved far more interesting. Before Apple had the chance to announce the newcomer themselves, IBM released a statement last week indicating Papermaster’s move to Apple and IBM’s decision to “vigorously pursue the matter in court, trying to enforce a non-compete clause, worried that he would share IBM secrets with his new employer.” (As if Apple needs them.)

According to Jim Goldman, non-competes are dicey in California. Naturally, it will be even tougher to IBM given Papermaster’s new responsibilities at Apple where he will be overseeing music players and phones. Additionally, with Apple “leapfrogging” IBM’s PowerPC chips for favored Intel, it would be a strangely calculated move for Apple to attempt to steal a passed over technology firms secrets.

MacBlogz previously reported: IBM issued the following statement, “Mr. Papermaster’s employment by Apple is a violation of his agreement with IBM against working for a competitor should he leave IBM. We will vigorously pursue this case in court.” According to a lawsuit document, IBM believes that Papermaster’s position at Apple would entirely be to help the company expand its position with servers, and custom chips for handheld devices.

Losing Papermaster is surely a devastating blow to IBM, who once touted him as their “Top expert in Power architecture and technology.” Roots stem back further than one may initially understand. IBM used to make PowerPC processors for Apple’s computers, before they made the move to Intel processors.

Either way, we thank Tony Fadell for bringing us what came to be known as the iPod and wish Mark Papermaster the best of luck heading up the innovative iPod and iPhone divisions. As news becomes available, MacBlogz will continue to provide accurate information regarding IBM and Apple’s tussle.