Despite a lawsuit by former employer IBM claiming that he's in violation of a noncompete agreement, Apple has named Mark Papermaster senior VP for devices hardware engineering, a position that gives the 26-year technology veteran oversight of iPhone and iPod development.

"Mark is a seasoned leader and is going to be an excellent addition to our senior management team," said Apple CEO Steve Jobs in a statement Tuesday.

Papermaster replaces iPod senior VP Tony Faddell. Apple said Faddell wants to spend more time with his family and will take a reduced role in the company.

If IBM has its way, Papermaster's employment with Apple won't last long. Papermaster was part of IBM's elite Integration & Values team until last month, and is a top expert in IBM's Power microprocessor architecture. Big Blue claims Papermaster signed a noncompete contract that forbids him from joining a rival tech vendor within a year of ceasing employment at IBM.

IBM sued Papermaster last week in U.S. District Court in Manhattan. The company is asking the court to enjoin Papermaster from working at Apple. Papermaster's position at Apple violates "his contractual obligation to refrain from working for an IBM competitor for one year" after leaving the company, IBM states in court papers.

IBM said it fears that Papermaster could help Apple develop rival server and chip products, and notes that Apple earlier this year acquired P.A. Semi with an eye to expanding its presence in those markets. IBM also claims that Apple considered replacing the IBM Power chips used in some of its computers with chips made by P.A. Semi.

"Through its acquisition of P.A. Semi and its hiring of Mr. Papermaster, Apple intends to design microprocessors for incorporation in a variety of electronic devices, including handheld devices," IBM stated.

In its court filing, IBM revealed that it offered Papermaster "a substantial increase" in his compensation package to stay with the company. "IBM offered to pay Mr. Papermaster one year's salary in exchange for Mr. Papermaster to respect his contractual obligation to refrain from working for an IBM competitor for one year," IBM said.

The efforts were to no avail. Papermaster submitted his resignation on Oct. 21 and informed IBM that he intended to start employment with Apple beginning in November. IBM sued Papermaster the following day.

Papermaster has yet to file a formal response to IBM's charges.

By: DocMemory
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