Nov 11, 2008 • 1 min read

IBM get injunction to stop appointment of new iPod chief

IBM has obtained a temporary injunction blocking executive Mark Papermaster from joining Apple, citing a non-compete clause in his contract.

The move of IBM executive Mark Papermaster to Apple has been blocked by his former employer on the grounds it breaches a non-compete clause in his employment contract. IBM have taken legal action to stop Papermaster joining Apple, where he is expected to take over from the departing Tony Fadell, the Apple man credited with masterminding the iPod and iPhone.

Papermaster argues that the non-compete clause is not relevant because IBM do not manufacture or market consumer electronic products like the iPod or iPhone. But a US judge has issued an initial injunction on behalf of IBM to stop the move pending further discussions.

The injunction puts both Papermaster and Apple in a temporary state of limbo, the latter lacking a leader for its crucial Devices Hardware Engineering unit. It's now thought Apple want Papermaster because of his knowledge on the never dull topic of "chip-level efficiency", which could help reinvigorate both the iPhone and iPod for future releases.

It's not clear how long IBM could stop Papermaster from joining their rivals.

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