Mark Papermaster
Encyclopedia
Mark Papermaster was the Senior Vice President of Devices Hardware Engineering at Apple Inc. He replaced Tony Fadell
who was responsible for the team that created the iPod
. Papermaster worked at IBM
from 1982–2008. His last position at IBM was as vice president of IBM's blade server
division. In 2008, Papermaster's decision to move from IBM to Apple became central to a court case considering the validity and scope of an employee non-compete clause
in the technology industry. In August 2010 he stepped down from his position because of issues with Apple's internal politics and corporate culture.
in approx 1990 for the rest of his employment with the company. He started designing circuits
in the Microelectronics Division. He then moved on to work in microprocessor
technology development for 15 years, from 1991 until 2006, with five years spent working specifically on POWER
architecture for PCs
, known as PowerPC
, the same architecture Apple adopted for its line of Macintosh
computers. During his tenure in microprocessor development, Papermaster earned the knowledge and expertise to become a respected chip designer across the industry and a "top expert" in the field of POWER processing for PCs. IBM promoted him to Vice President of Microprocessor Technology Development.
Papermaster moved from microprocessors to the role of Vice President of the Blade Development Unit of IBM in October 2006, working on IBM's blade server
technology. IBM also selected him to join the Integration & Values Team (I&VT), a group consisting of approximately 300 top IBM executives who had access to "highly confidential information" not available to most of the company's employees. He served on the Technical Leadership Team as well, a group of top technical leaders in the company who focused on expanding and attracting talent to the company's workforce. Like the I&VT, the Technical Leadership Team also had access to highly confidential information.
. Papermaster was one of many candidates interviewed for the position, but Apple did not find him to be the right fit. An internal email from SVP of Mac Hardware & Engineering Bob Mansfield expressed concerns about his ability to fill the position but noted that Papermaster is "immensely smart about microprocessor design, large systems, and semiconductors."
In April 2008, Apple bought P.A. Semi
, a microchip
design company, with the intent of using the company's chips on Apple's iPods and iPhones. In the microprocessor industry, P.A. Semi and IBM were direct competitors. Five months later, after the release of new versions of the iPod and the iPhone, Apple picked up the search for a Senior VP, iPod/iPhone Division to replace Tony Fadell
. Papermaster interviewed again in October, and Apple offered him the position on October 10, 2008. Papermaster accepted, told IBM he planned to accept on October 13, 2008, and notified them of acceptance on October 20, 2008. IBM offered Papermaster a raise if he agreed to stay or one year's salary if he delayed starting at Apple for one year. Papermaster declined the offer and submitted his formal resignation the next day.
) June 21, 2006 in order to be considered for Integration & Values Team membership. The clause mandated, "...during [Mr. Papermaster's] employment with IBM and for one (1) year following the termination of [his] employment...[Mr. Papermaster] will not directly or indirectly within the 'Restricted Area' (1) 'Engage in or Associate with' (a) any 'Business or Enterprise' or (b) any significant competitor or major competitor of the company." The non-compete went on to define the terms "Restricted Area" as any geographic location where Papermaster worked in the previous 12 months; "Engage or Associate with" as becoming an employee, associate, member, etc.; and "Business or Enterprise" as an "entity" that competes with any Business Unit in which Papermaster worked in the previous two years. The agreement also stated that any violation of this agreement would cause IBM "irreparable harm," a factor the company suing an employee over a non-compete usually has the burden to prove.
against Papermaster in the United States District Court
for the Southern District of New York, alleging breach of contract
and misappropriation
of trade secrets. The parties settled after Judge Kenneth Karas
filed his opinion, agreeing that Papermaster can work for Apple but must pass two court certifications - one in July 2009 and the second in October 2009 - where he testified he had not passed on IBM trade secrets.
reported that Papermaster was leaving Apple in the wake of the iPhone 4 antenna troubles. It was later reported by The Wall Street Journal
that Papermaster's exit from Apple was rather due to "broader cultural incompability", and a loss of confidence from Apple CEO Steve Jobs
.
Tony Fadell
Anthony M. Fadell is a Lebanese American computer science engineer. He was known for being the Senior Vice President of the iPod Division at Apple Inc., having succeeded Jon Rubinstein in 2006. On November 4, 2008, Apple announced that Fadell would be stepping down as Senior Vice President but...
who was responsible for the team that created the iPod
IPod
iPod is a line of portable media players created and marketed by Apple Inc. The product line-up currently consists of the hard drive-based iPod Classic, the touchscreen iPod Touch, the compact iPod Nano, and the ultra-compact iPod Shuffle...
. Papermaster worked at IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
from 1982–2008. His last position at IBM was as vice president of IBM's blade server
Blade server
A blade server is a stripped down server computer with a modular design optimized to minimize the use of physical space and energy. Whereas a standard rack-mount server can function with a power cord and network cable, blade servers have many components removed to save space, minimize power...
division. In 2008, Papermaster's decision to move from IBM to Apple became central to a court case considering the validity and scope of an employee non-compete clause
Non-compete clause
A non-compete clause , or covenant not to compete , is a term used in contract law under which one party agrees not to pursue a similar profession or trade in competition against another party . As a contract provision, a CNC is bound by traditional contract requirements including the...
in the technology industry. In August 2010 he stepped down from his position because of issues with Apple's internal politics and corporate culture.
Career at IBM
Mark Papermaster worked at IBM for 26 years, beginning in 1982 in Vermont. He moved to TexasTexas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
in approx 1990 for the rest of his employment with the company. He started designing circuits
Integrated circuit
An integrated circuit or monolithic integrated circuit is an electronic circuit manufactured by the patterned diffusion of trace elements into the surface of a thin substrate of semiconductor material...
in the Microelectronics Division. He then moved on to work in microprocessor
Microprocessor
A microprocessor incorporates the functions of a computer's central processing unit on a single integrated circuit, or at most a few integrated circuits. It is a multipurpose, programmable device that accepts digital data as input, processes it according to instructions stored in its memory, and...
technology development for 15 years, from 1991 until 2006, with five years spent working specifically on POWER
IBM POWER
POWER is a reduced instruction set computer instruction set architecture developed by IBM. The name is an acronym for Performance Optimization With Enhanced RISC....
architecture for PCs
PCS
- Medicine :* Post-concussion syndrome, a set of symptoms that a person may experience for weeks, months, or even years after a concussion* Postcholecystectomy syndrome, the presence of abdominal symptoms after surgery to remove the gallbladder...
, known as PowerPC
PowerPC
PowerPC is a RISC architecture created by the 1991 Apple–IBM–Motorola alliance, known as AIM...
, the same architecture Apple adopted for its line of Macintosh
Macintosh
The Macintosh , or Mac, is a series of several lines of personal computers designed, developed, and marketed by Apple Inc. The first Macintosh was introduced by Apple's then-chairman Steve Jobs on January 24, 1984; it was the first commercially successful personal computer to feature a mouse and a...
computers. During his tenure in microprocessor development, Papermaster earned the knowledge and expertise to become a respected chip designer across the industry and a "top expert" in the field of POWER processing for PCs. IBM promoted him to Vice President of Microprocessor Technology Development.
Papermaster moved from microprocessors to the role of Vice President of the Blade Development Unit of IBM in October 2006, working on IBM's blade server
Blade server
A blade server is a stripped down server computer with a modular design optimized to minimize the use of physical space and energy. Whereas a standard rack-mount server can function with a power cord and network cable, blade servers have many components removed to save space, minimize power...
technology. IBM also selected him to join the Integration & Values Team (I&VT), a group consisting of approximately 300 top IBM executives who had access to "highly confidential information" not available to most of the company's employees. He served on the Technical Leadership Team as well, a group of top technical leaders in the company who focused on expanding and attracting talent to the company's workforce. Like the I&VT, the Technical Leadership Team also had access to highly confidential information.
Apple Recruitment
In October 2007, Apple started looking for a top-level executive to work under their Senior VP, iPod Division and eventually move into the Senior VP role, reporting directly to CEO Steve JobsSteve Jobs
Steven Paul Jobs was an American businessman and inventor widely recognized as a charismatic pioneer of the personal computer revolution. He was co-founder, chairman, and chief executive officer of Apple Inc...
. Papermaster was one of many candidates interviewed for the position, but Apple did not find him to be the right fit. An internal email from SVP of Mac Hardware & Engineering Bob Mansfield expressed concerns about his ability to fill the position but noted that Papermaster is "immensely smart about microprocessor design, large systems, and semiconductors."
In April 2008, Apple bought P.A. Semi
P.A. Semi
P. A. Semi was a fabless semiconductor company founded in Santa Clara, California in 2003 by Daniel W. Dobberpuhl who was the lead designer for the DEC Alpha 21064 and StrongARM processors...
, a microchip
Integrated circuit
An integrated circuit or monolithic integrated circuit is an electronic circuit manufactured by the patterned diffusion of trace elements into the surface of a thin substrate of semiconductor material...
design company, with the intent of using the company's chips on Apple's iPods and iPhones. In the microprocessor industry, P.A. Semi and IBM were direct competitors. Five months later, after the release of new versions of the iPod and the iPhone, Apple picked up the search for a Senior VP, iPod/iPhone Division to replace Tony Fadell
Tony Fadell
Anthony M. Fadell is a Lebanese American computer science engineer. He was known for being the Senior Vice President of the iPod Division at Apple Inc., having succeeded Jon Rubinstein in 2006. On November 4, 2008, Apple announced that Fadell would be stepping down as Senior Vice President but...
. Papermaster interviewed again in October, and Apple offered him the position on October 10, 2008. Papermaster accepted, told IBM he planned to accept on October 13, 2008, and notified them of acceptance on October 20, 2008. IBM offered Papermaster a raise if he agreed to stay or one year's salary if he delayed starting at Apple for one year. Papermaster declined the offer and submitted his formal resignation the next day.
Noncompetition Agreement
Due to the sensitive nature of the information to which he would gain access, IBM had Papermaster sign a Noncompetition Agreement (see non-compete clauseNon-compete clause
A non-compete clause , or covenant not to compete , is a term used in contract law under which one party agrees not to pursue a similar profession or trade in competition against another party . As a contract provision, a CNC is bound by traditional contract requirements including the...
) June 21, 2006 in order to be considered for Integration & Values Team membership. The clause mandated, "...during [Mr. Papermaster's] employment with IBM and for one (1) year following the termination of [his] employment...[Mr. Papermaster] will not directly or indirectly within the 'Restricted Area' (1) 'Engage in or Associate with' (a) any 'Business or Enterprise' or (b) any significant competitor or major competitor of the company." The non-compete went on to define the terms "Restricted Area" as any geographic location where Papermaster worked in the previous 12 months; "Engage or Associate with" as becoming an employee, associate, member, etc.; and "Business or Enterprise" as an "entity" that competes with any Business Unit in which Papermaster worked in the previous two years. The agreement also stated that any violation of this agreement would cause IBM "irreparable harm," a factor the company suing an employee over a non-compete usually has the burden to prove.
IBM v. Papermaster
On 22 October 2008 IBM filed a complaintComplaint
In legal terminology, a complaint is a formal legal document that sets out the facts and legal reasons that the filing party or parties In legal terminology, a complaint is a formal legal document that sets out the facts and legal reasons (see: cause of action) that the filing party or parties In...
against Papermaster in the United States District Court
United States district court
The United States district courts are the general trial courts of the United States federal court system. Both civil and criminal cases are filed in the district court, which is a court of law, equity, and admiralty. There is a United States bankruptcy court associated with each United States...
for the Southern District of New York, alleging breach of contract
Breach of contract
Breach of contract is a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance....
and misappropriation
Misappropriation
In law, misappropriation is the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose, particularly by a public official, a trustee of a trust, an executor or administrator of a dead person's estate or by any person with a responsibility...
of trade secrets. The parties settled after Judge Kenneth Karas
Kenneth M. Karas
Kenneth Michael Karas is a United States federal judge.Born in Colorado Springs, Colorado, Karas received a B.A. from Georgetown University in 1986 and a J.D. from Columbia University School of Law in 1991. He was a law clerk for the Hon. Reena Raggi, U.S. District Court for the Eastern District...
filed his opinion, agreeing that Papermaster can work for Apple but must pass two court certifications - one in July 2009 and the second in October 2009 - where he testified he had not passed on IBM trade secrets.
Separation from Apple
On August 7, 2010, The New York TimesThe New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
reported that Papermaster was leaving Apple in the wake of the iPhone 4 antenna troubles. It was later reported by The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
that Papermaster's exit from Apple was rather due to "broader cultural incompability", and a loss of confidence from Apple CEO Steve Jobs
Steve Jobs
Steven Paul Jobs was an American businessman and inventor widely recognized as a charismatic pioneer of the personal computer revolution. He was co-founder, chairman, and chief executive officer of Apple Inc...
.