Apple’s Jobs wanted ‘no poaching’ deal with Palm, too
With federal investigators already looking into a potentially illegal “no poaching” agreement between Apple and Google comes the news that Steve Jobs tried to arrange a similar understanding with Palm recently released documents indicate. The interesting quibble here is why is this information coming out now?
Bloomberg, quoting communications apparently made available by Palm, Inc, reports that Apple tried in 2007 to ring a deal under which the companies agreed not to hire away each others’ employees, regardless of employee wishes. Moreover, Steve Jobs purportedly threatened then Palm CEO Ed Colligan that Apple had the money and patents to win any fight involving employees and intellectual property rights.
“We must do whatever we can to stop this,†said CEO Jobs, referring to the fact that former iPod chief Jon Rubenstein was hiring away Apple talent. Thereupon, given the similarities between Palm’s Pre and the ongoing iTunes/Pre syncing war between the companies, it’s obvious that Jobs’ fears were at least partially founded in reality.
However, Palm CEO Colligan wasn’t interested in Jobs’ offer or threats, saying that “Your proposal that we agree that neither company will hire the other’s employees, regardless of the individual’s desires, is not only wrong, it is likely illegal.â€
Coming to a bad end…
As you would expect, no poaching deals are illegal under a variety of federal and state antitrust and fair employment laws. However, given the strong relationship between Apple and Google, for example, whereby the companies shared board members, technology and market goals, it’s not hard to imagine that some companies find convenient perhaps easy even to agree to the practice.
Will Apple and Steve Jobs’ fortunes finally founder because of these practices? This would be such a silly end to one of the most storied second acts in history.
Also, why is his information coming out now? The obvious explanation is that there’s bad blood between the two companies, despite the fact that market data would seem to indicate iPhone and Palm Pre are attracting different users.
Thereupon, most if not all the ill will present here is political or emotional, and that’s not the way to run a railroad…
What’s your take?
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