Tuesday, November 18, 2008, 5:46 PM

IBM Obtains TRO From Federal Court Ordering Former Employee to Stop Working for Apple

By Todd
Well, the federal court in New York has decided to stop Mark Papermaster from violating the terms of his noncompete agreement but has ordered IBM to post a $3 million bond to protect Papermaster if it is later determined the injunction was wrongfully issued.

Click on the link above in the Fortune piece on this interesting case and you can review the complaint and Judge Karas's order. The order mandates an immediate termination of Papermaster's employment with Apple.

In an interesting little twist, Papermaster's attorneys are suggesting to the New York court that New York law should not apply to this matter, even though the IBM/Papermaster agreement says that New York law should apply. They are arguing, as one would credit them for attempting to do, that Texas law or California law should apply to this dispute. Papermaster is making the argument believing that California law will invalidate this noncompete covenant - and Texas law would give this agreement a rough ride too.

Papermaster worked for IBM out of Texas and planned to work for Apple in California.

We'll keep an eye on this one for you. Papermaster does not appear to be done fighting this one - he is sitting on the sidelines for now and presumably has lots of time to plan his defenses and counter-offenses.


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