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IBM needs $3 millon bond for Papermaster injunction

updated 05:15 pm EST, Fri November 14, 2008

IBM 3mil for Papermaster

Court filings indicate that a New York district judge has ordered IBM to put up a $3 million bond in its non-competition agreement case against Mark Papermaster. Because the court barred him from starting his new job, IBM must provide the money to ensure that he will recover all costs and damages if the injunction is found to be unjust. Papermaster's attorneys also had a chance to respond to the claims and file several counterclaims.

The defense takes several angles, with a primary argument that the two companies are not direct competitors, IBM focusing on enterprise products and Apple producing for consumers. The filing also suggests that Papermaster will not inevitably disclose trade secrets, and that he signed documents for the job at Apple that prohibit disclosure of confidential information from previous employers.

The counterclaims try to prove that the NCA is unenforceable and overbroad, effectively preventing him from taking practically any position in the tech industry, across the globe, for a whole year. In addition, he worked in Texas for IBM and will work in California for Apple. Although IBM headquarters is in New York, the lawyers feel that the case has no jurisdiction there. Texas and California law prohibits enforcement of NCA agreements.

The recent order requires IBM to file the bond by 5:00pm Friday. Further course of action will be decided at a status conference scheduled for Tuesday.

by MacNN Staff




  1. byRyan

    Joined: Dec 1969


    Bad technology

    Why does apple want Papermaster anyways - he represents old technology.... we need like Circutboardmaster or like ElectronicInkMaster. Paper is just going to head the company back down the wrong direction. At least choose the eco-friendly HempPaperMaster!

  1. Super Glitcher

    Joined: Dec 1969


    ^^ thanks

    I'm now dumber from reading this

  1. reciprocity

    Joined: Dec 1969


    Which Friday?

    I hate to post pointless comments, but the article states that "the recent order requires IBM to file the bond by 5:00pm Friday." This article was posted to MacNN on Friday, 11/14. Does that mean they've already missed their opportunity to post the $3 million bond?

  1. Bobfozz

    Joined: Dec 1969



    IBM is also known for having one of the best R&D divisions in the world so let's not write about "old technology." They continually come up with new things and have tons of patents, just like Apple does. IBM is protecting its interests and a year goes by pretty quickly.
    Everything I've read about Papermaster indicates he is an honorable man. And Apple was honorable when they asked him to sign NDAs not disclosing trade secrets from previous employers.
    People who have never hired other people for positions should have no say in this. it's a difficult and often times a time consuming process. And companies are usually aware of possible legal violations.
    This will all be worked out.

  1. testudo

    Joined: Dec 1969



    Don't take it personally, byryan. MacNN readers are known for their lack of comprehension, esp. when it comes to humor or sarcasm.

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