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Apple Recruits IBM Chip Designer, IBM Files Lawsuit

FF_productions said:
I have reason to believe, with all the cash reserved, they are gonna take a serious step forward in low-power processors. What's this mean for us? iPhones/iPods with much more power and potential and much better battery performance.

Will this carry to the Mac? Nah, unless these chips can smoke out Intel's offering and deliver good performance per watt, Intels not going anywhere.

Apple is really obsessed with iPhone and these small products one can carry in your pocket, they are striving to put more power in your pocket then ever before.
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If technology stocks really will plummet as analysts have been warning about for years, Apple will be in a prime position to make some acquisitions. Yes, their price will go down as well, but that doesn't stop them spending cash.

NVidia (NVDA)'s market cap is $4.84Bn (according to Google Finance), and they have loads of experience in chipset design and mobile and desktop graphics. Silicon Image is only worth $342Mn. Broadcom has a market cap of about $9Bn. With $25Bn, Apple could buy all of those companies in a hostile takeover (assuming regulatory approval), and have $10.7Bn in cash still sitting around. It's more complicated than that, because they'd need to integrate teams with their own product teams, but that's more a time cost than monetary cost.

With those 3 and PA Semi, Apple would be able to completely change their product profile to allow slimmer, more powerful products that are harder to compete against. NVidia and SI can make fantastic mobile GPUs with chipsets on a chip, and have the Broadcom communications chip on the same package. With a chip like that, Apple could probably shrink the iPhone's PCB by between 1/4 and 1/3, and lower power consumption considerably. If PA Semi created the ARM processor, there's no reason Apple couldn't put the whole phone on one packaged IC.

Of course, I'm just making this all up (except the market cap figures, they're real). Just to show you how much $25Bn can buy.
 
JohnNotBeatle said:
Operating under the assumption that the questions about this were serious…

"Soup to Nuts": Beginning to end, or the entirety of something. Comes from the first course of a meal (soup) to the last (nuts), implying the entire lifecycle of a product or service is provided from a single source. Another expression used is often "cradle-to-grave."
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He he, thanks. :) Yup, I was serious.
 
dissdnt said:
Judge will throw it out, Non-Competes are total bs. You can't prevent someone from pursuing their livelihood.
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For non-competes you are right, but there should be some NDAs involved also.

Not sure how they can really police that though without following the employee around at the new job and recording everything they say and do.
 
steebu said:
Hmm could Apple argue that IBM is not a direct competitor?

Since the IBM/Lenovo deal, doesn't that mean the two companies no longer have products that directly compete against each other?

Since Papermaster is a chip designer and Apple isn't in the chip business, how could Apple and IBM be competitors?
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I would argue that IBM is no one's competitor. My experience with their products (notebooks) is less than stellar and I am surprised they are still in existence.
 
pilotError said:
In his case, he actually would have had a good chance if what you describe truly did happen. I work in the financial sector and the only time I see those type of non-competes happen is if the guy owned the company.
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I guess it depends on the state. I had a friend who got offered a job in Pennsylvania. He had to sign a non-compete agreement that would prohibit him from working in the financial industry or any company within fifty miles of the company offices for a number of years. They had an office in NYC as well, so if he took the job, the agreement says he cannot work in this field for a long time to come and he would have to move unless the company waives the agreement. Such agreements I've been told are not legal in CA, which makes a lot of sense. If times are tough and you have to take such a job, you get tied to that company for life unless you make a big career move, which is usually very difficult. Of course, that company can still fire you, so they do not have to be loyal to you, so it is an inherently "unfair" arrangement.
 
I want to see Mark Papermaster vs. Dwight K. Schrute vs. a computer in a 24 hour paper sale marathon. Then we'll see who the REAL papermaster is!
 
Apple, IBM and Motorola worked together on PPC development, so with the exception of the last several years, their probably wouldn't be all that many trade secrets to divluge.
 
steebu said:
Hmm could Apple argue that IBM is not a direct competitor?

Since the IBM/Lenovo deal, doesn't that mean the two companies no longer have products that directly compete against each other?

Since Papermaster is a chip designer and Apple isn't in the chip business, how could Apple and IBM be competitors?
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IBM sold off its desktop and thinkpad business to Lenovo, but it still retains a server wing, which could arguably be in competition with the XServe.
 
I just wanted to thank matticus008 for providing balanced, unemotional, and intelligent information to this thread. Once again, your big (legal) brain shines!
 
TheNorthWaves said:
if IBM thought he was that important, maybe they should have paid him appropriately.
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Having worked for IBM for more than 5 years, I can tell you that in most cases, money is not the deciding factor when people leave.
The money was great. I left because of their policies.
And yes, I signed both an NDA and an NCA and while the NCA is pretty flimsy, the NDA is rock solid.
There are things I cannot talk about for at least another year, and I left almost 3 years ago.

I highly suspect that IBM has some legs in this one or they wouldn't have bothered with the legal costs.
 
this should not be a problem as this employee is not working at both places at the same time. you cant restrict a former employee. you have no say. sore luck for you IBM.
 
Non-competes are B.S. .....

As a general rule, the things have been largely un-enforceable, if the employee being charged with the violation really wants to press the issue.

An employer can ask you to sign almost anything, but that doesn't mean it's legally binding in a court of law.

As far as I'm concerned, if a company is THAT concerned about an employee going elsewhere with his/her knowledge of their products, then they need to make sure he/she is paid well enough and happy enough working for them so he/she doesn't leave in the first place!

Trying to prevent a FORMER employer from working elsewhere smacks of "restraint of trade" to me.


jessica. said:
That's what you get when you sign and violate a non-compete.
****wads.
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Nothing to worry

dohardthings said:
the constitution does not provide protection to civil cases only to federal and state ones in my best understanding (i need to study it)
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Constitution provided nothing on abortion, yet when SC ruled - it became an interpretation that is equivalent of a law. There is plenty freedoms granted to us, this is why IBM will never allow SC to rule on it and just settle out of court. Typical defensive move from IBM, but a dead-end. A harmless woo-doo stick - it only scares folks with no spare money to hire a lawyer initially.

At the end of the day, if the guy is employed by Apple we can just say "kiss good-buy NCA!". I can not wait to see the outcome...
 
So IBM would not provide a PowerPC part good for laptops or mobile ...
They (IBM) have just to adjust to the new situation: from asking money from Apple to develop parts they thought had no market, to 'releasing' the people that can make those parts.
 
Maybe Apple wants to make customized Intel chips with some PPC aspects to them. Then they could make the Mac OS run only on their custom chips and thereby prevent illegal cloning.
 
Good article

pilotError said:
There was a good article on Appleinsider that goes on to say that he was part of IBM's inner circle so to speak. It goes a long way to explaining why they are defending this so hard.

http://www.appleinsider.com/article...top_chip_designer_ibm_responds_with_suit.html
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Folks, just think about for a second of a name: "Non-Compete Agreement". Do you really expecting any curt to even consider it. Just look what happend to Samsung and other RAM suppliers even without any formal non compete agreement among them. This is what happens to anyone who accept not to compete in order to keep their monopoly and control market. NCA is a direct offense on competition. All of them must compete by the law. Trade secrets is another story and is a criminal act if you caught, but they need to prove it first. Also, I think if he would elect or they would agree to continue paying salary for a non-compete period - it would make some sense and a fair contract, but this is not the case. No payroll, everything loose it power as you no longer an employee. He just have to be careful not to disclose trade secrets, forever, until they are not a secret anymore.
 
Marx55 said:
Apple does not lean from history and previous errors! Remember the PowerPC vs Intel fiasco! A new fiasco is in the horizon for Apple. Apple cannot compete with chip makers like Intel, AMD or Via amongst others. Simply cannot compete. All this is a waste of time and resources. Thus, the Macs are not updated properly and the dream Apple tablet takes for ever to develop. A shame, Apple. Do not take me wrong, I just want the best for Apple and Apple customers like myself!
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Perhaps Apple has their sites set on something different. I can't see them wanting to develop chips they turn sell to other hardware manufacturers. But I can see them wanting to develop proprietary chips for their burgeoning handheld line - helping separate their offerings from their competitors. Hello advantage.

As far as non-compete contracts: totally legit & enforceable.
It sounds like when Papermaker accepted his IBM position, he (like myself) signed a contract stating he couldn't work for a competitor for a set amount of time after leaving IBM. In my case, I can't work for any of my current employer's competitors for 12 months.
Apple will "simply" settle out of court with IBM for a relatively small chunk of change (in the grand scheme of things). Funny what having billions in cash, affords. ;)
 
mdntcallr said:
Super Cool, sounds like just the right person to lead Apple with right chip technology.

Sad IBM won't let this person work without a rumble. you can't stop people from earning a living!
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Sounds like IBM agrees he is the right person. That's why he was an executive at the firm. There are typical 2 year delay terms on employment contracts and I do believe in CA in particular one year can be enforced.

I suspect there will be a gentleman's agreement between Apple and IBM not to do certain things for a year, after which anything goes.

The emphasis on consumer devices initially ought to allay any IBM fears. The loss of intellectual capital does have real value beyond merely the employee compensation. That's why some employees make bank. They make 8x bank for their employers.

Rocketman
 
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