Mac news from outside the reality distortion field
Type Size  -  +
November 9, 2008, 11:28 am

Apple’s Papermaster was misquoted

IBM headquartersMark Papermaster must know how Barack Obama, John McCain and, for that matter, Sarah Palin feel when they get shafted by the press.

The 25-year IBM veteran engineer is in the middle of a nasty civil case in which his former employer has sued to stop him from taking a new position in Steve Jobs’ inner circle as head of Apple’s iPod and iPhone division.

IBM (IBM) is trying to enforce a non-compete contract Papermaster signed in 2006. Apple (AAPL) is trying to get around it. The case is being heard in U.S. District Court in the Southern District of New York.

On Friday, Papermaster filed a declaration with the court, arguing that IBM and Apple are in very different businesses. That afternoon, a reporter for Information Week plucked this quote out of the 27-page statement and ran with it:

“I do not recall a single instance of Apple being described as a competitor of IBM during my entire tenure at IBM.”  (link)

The quote echoed through the blogosphere. Grizzled tech writers, including this one, treated it with various degrees of derision and incredulity. (See here, here and here.) How could anyone who joined IBM in 1982 possibly forget that Apple and IBM spent much of the 1980s locked in mortal combat for dominance of the PC industry — an iconic competition that spawned one of the most famous ads in TV history, Ridley Scott’s “1984“?

Well, we all owe Mark Papermaster an apology.

It turns out that his quote was taken out of context. What the Information Week reporter left out of his story on Friday [it was updated on Sunday] was the part where Papermaster acknowledged that before IBM sold its PC business to Lenovo, and when Apple sold servers to schools, they did in fact compete. The full quote reads:

“Until this litigation effort by IBM, aside from the divested IBM personal computer business and a single sale several years ago of Apple’s Xserve product to a university, I do not recall a single instance of Apple being described as a competitor of IBM during my entire tenure at IBM.” [PDF]

Papermaster’s statement goes on to describe — under penalty of perjury — the reluctance with which he received Apple’s overtures, the deference he showed his superiors at IBM, his caution to avoid even the appearance of impropriety (he left everything in his office except textbooks and memorabilia), and the respect IBM showed him for his integrity (rather than escorting him out of the building immediately — standard practice in Silicon Valley — they let him work in his office for nearly two weeks after giving notice).

Whatever Steve Jobs’ motives for hiring this guy — be it to run the iPod division or, as IBM fears, the chipmaking operations at P.A. Semi — Papermaster seems to be playing it straight.

On Friday, the court granted IBM preliminary relief and ordered Papermaster to immediately stop working for Apple. His lawyers have until Tuesday to register their objections. A hearing is scheduled for Nov. 18.

See The Papermaster chronicles for a timeline of events.

Typical Information Week trash; I have no doubt the reporter plucked that quote out intentionally. When will other reporters really hold them accountable?

Posted By mark, boston, MA : November 10, 2008 8:08 pm

What I find insulting is when a company, after about to lose an employee, tries to “buy” them back in with either a bonus or a raise. This to me is disgusting because if a company really values an employee they would have taken care of them in the first place. That’s how I treated my employee’s and I never had a problem. Hopefully Apple does this with Ive & et al….

Posted By Tuck Bodi, Denver, CO : November 10, 2008 10:32 am

You guys are missing the point. IBM is sending a message to those with less than 30 years which IBM has no hooks(ie defined pension plan). These people are leaving in droves for better opportunities..

Papermaster had 25 years with IBM. He is on the cash blance plan with IBM and recieved stock options. It is the stock grants agreement which has the non-compete. Not the business condusct guidlines.

Posted By Bill, Armonk, NY : November 10, 2008 10:14 am

Funny how the media works. This article cites an inaccuracy in that Mark Papermaster was quoted out of context, but states further down in the article:

“…rather than escorting him out of the building immediately — standard practice in Silicon Valley — they let him work in his office for nearly two weeks after giving notice.”

And yet, Mark Papermaster worked in Austin.

ex ped: so?

Posted By anonymous : November 10, 2008 8:13 am

ATTN: WEB EDITOR @ FORTUNE:

when will the webmaster at fortune be spanked for his bone-headed omission of a PRINT command for this site?

when this page is saved, as-is, then the reader’s local version of the document is bogged down with all the ancillary mark-up … in this case, it is not just junky adverts, but rather dozens (hundreds?) of keywords in “TAGS” navbar.

while non-editorial content may be useful on-line, the deluge of a ‘Tag Cloud’ pollutes the reader’s off-line (local) search-space with so many extraneous references that Spotlight chokes instead of producing results that are Useful AND Quick! (of course the anemic LSA engine which drives Spotlight has not been substantially improved by apple in the decade since it was first inaugurated as V-TWIN, so it is hard for Spotlight to discriminate amongst the different parts of a an over-burdened document in order to give more/less weight to a search-term depending on its editorial role in the document).

anyways, please start using CSS3/xhtml so that it is easy for the reader to obtain a view which scales (both physically for different display geometries as well as different storage models): i want to be able to save an article so that i can preserve just the body - at least until such time as apple starts to get serious about improving knowledge representation (hello DAML!) in its serach engine (heck, i would even settle for some bayesian filters -osx’s MAIL.APP uses them! - to make better guesses about my intentions by being more selective in which parts of the over-burdened web page are relevant to my query).

my weary desktop search engine thanks you.

ex ped: Thanks for the suggestion. Onpassing to the tech staff.

Posted By zahadum, katmandu, nepal : November 9, 2008 9:51 pm

keith, maybe you don’t understand the definition of divested. IBM sold off that business. Those products, those employees, that business is now in the hands of lenovo. It does not exist in the present day IBM. The same IBM that has brought this lawsuit.

This is a very valid argument for claiming that these two companies are not in competition with each other.

Posted By John, Boston, ma : November 9, 2008 9:01 pm

If you look at a list of this “reporter’s” column in InfoWeek, you’ll see that a good many of them read like tech industry gossip columns.

No surprises.

Posted By Shava Nerad, Somerville, MA : November 9, 2008 8:51 pm

The court did not grant an injunction. It issued a temporary restraining order, which is designed simply to permit enough time to arrive at the correct decision and to prevent the status quo from getting too far down the line. It was decidely not an injunction.

Posted By Ira in LA (CA) : November 9, 2008 7:43 pm

California law does not govern, because the agreement was not between Papermaster and Apple. The noncompete was between Papermaster and IBM, which I’m guessing is based in New York, since the court hearing the case is the US District Court in New York.

Posted By TAH, Denver, Colo : November 9, 2008 6:51 pm

IBM seems to apply this selectively. CA competes with IBM, run by a former IBM exec. Symantec competes and is run by a former IBM exec. Silverlake Partners probably owns several business that compete on one level or another with IBM and several IBM execs are their now.

Posted By Mark , White Plains NY : November 9, 2008 5:32 pm

Yes i agree that the aside is one giant asides, and i agree it would negate his comment if IBM was still in the PC business. Remember the suit is to enforce a non-compete clause and IBM does not currently compete in the PC business. So the fact that IBM used to compete is not relevant.

Posted By kevin smith, los angeles, ca : November 9, 2008 3:08 pm

Another example of B.S. reporting, and the news media wonders why nobody trusts them. Where is the integrity in reporting?

Posted By Joe Mac Cincinnati, OH : November 9, 2008 2:37 pm

Since Apple, and this man’s employment, are located in California, doesn’t the California Supreme Court decision in Edwards vs. Arthur Andersen, S147190, regarding the non-enforcability of non-compete clauses apply?

Posted By David, San Diego, CA : November 9, 2008 2:28 pm

Non-competes are usually invalid in California. The law is all on Papermaster’s side, as far as I know. I don’t think IBM could win this case, anyway, especially since Apple is in California.

Posted By Anonymous : November 9, 2008 2:18 pm

Enough is enough. Competition is an economic term. 2 firms compete when on the same market customers can chose between products of those two firms to fulfill the same need (called “substitutes”). Let’s get all the judges out of our back. The incompetence of the Courts is what is obvious in this case. IBM IS NOT a competitor of Apple today. Wake up, IBM: you’re gone. You don’t belong on this market anymore. What the future holds, the future holds. You cannot trial a guy on supposed intents. Everybody who agrees should boycott IBM products on other markets. It’s our freedom of work that is at stake.

Posted By John Abbercrombie, San Francisco, CA : November 9, 2008 2:12 pm

Thanks S. Robins for giving us the name of the reporter Paul McDougall.
One of the great things about technology is that we can more easily track and validate the information we receive. I will definitely think about that when I see the name Paul McDougall next to an article. “Paul McDougall” ≠ “The whole truth and nothing but the truth”

Posted By Kevin Edens, Sausalito, CA : November 9, 2008 2:11 pm

“…aside from the divested IBM personal computer business…”
I’m sorry, but that is one gargantuan “aside” and totally negates Papermasters’ claim of never hearing about competition between Apple and IBM.
What a crock!!

Posted By Keith Carter, San Francisco, CA : November 9, 2008 1:48 pm

So instead of actually opening the PDF yourself and seeing if the quote was accurate and in context you just piled on? Is it really too much to expect a professional journalist to think ‘gee, that’s surprising… let me look at the document it comes from’?

Posted By rick, seattle, wa : November 9, 2008 1:45 pm

The arrogance and ignorance in the computer reporting world is astounding. Paul McDougall, along with many other computer industry reporters are not reporters. They are opportunists who do not know even the fundamentals of journalism. The fundamentals of journalism are no longer necessary because all ‘reporting’ is simply a desperate attempt to generate content to post around their ad space. There is very little interest in in-depth reporting because fluff and ads on a page sell just as well as in-depth and ads on a page.

It’s a town full of losers…

Posted By Fred, Boise, Idaho : November 9, 2008 1:44 pm

Agreed. It’s time reporters take some responsibility for their “Truthiness”

Posted By AT, San Francisco, CA : November 9, 2008 1:41 pm

Its definitely very odd for IBM to try to enforce this non-compete in the way they have with Apple. If IBM can exclude him from working in IT, his chosen profession, how is he going to feed his family?

Posted By Jeff, Mountain View, CA : November 9, 2008 1:23 pm

Why do you let a guy that screwed up, maybe on purpose, hide?

The name of the InfoWeek reporter is Paul McDougall. Paul McDougall lifted a half quote out of the context of a court filing and published it to the eventual embarrassment of many others.

Posted By S. Robins, Washington, DC : November 9, 2008 1:09 pm
CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.
Philip Elmer-DeWittSilicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
Subscribe to Apple 2.0: RSS feed | email newsletter
* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer
Powered by WordPress.com.