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The Almighty Buck Businesses Handhelds Apple Hardware

Apple Allegedly Sought Non-Poaching Deal With Palm 181

theodp writes "A Bloomberg report that Apple CEO Steve Jobs proposed a possibly illegal truce with Palm against poaching their respective employees is sure to pique the interest of the US Department of Justice, which already is investigating whether Google, Yahoo, Apple, Genentech and other tech companies conspired to keep others from stealing their top talent. '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,' former Palm CEO Ed Colligan reportedly told Jobs in August 2007." The article notes that Apple was probably reacting to Palm's hiring of Jon Rubenstein, who had been instrumental in developing the iPod and went on to spearhead the Pre for Palm (and has now become Palm's chairman and CEO). "It's the story about the importance of charismatic engineers," said veteran Silicon Valley forecaster Paul Saffo. "People don't work for Palm. They work for Jon Rubinstein. One has to wonder how Steve Jobs ever let Jon Rubinstein leave."
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Apple Allegedly Sought Non-Poaching Deal With Palm

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  • by rekoil ( 168689 ) on Friday August 21, 2009 @09:53AM (#29145729)

    One has to wonder how Steve Jobs ever let Jon Rubinstein leave."

    Simple - by forcing him to report to Steve Jobs.

  • by soundhack ( 179543 ) on Friday August 21, 2009 @09:55AM (#29145749)

    I would guess that it would be more likely "If Steve Jobs does it, it's not illegal"

  • by dsharp ( 117993 ) on Friday August 21, 2009 @09:58AM (#29145791)

    Whoosh!

  • by someone1234 ( 830754 ) on Friday August 21, 2009 @10:00AM (#29145815)

    It is only our current standing in technology that prevents some of these being employed :)

  • by HangingChad ( 677530 ) on Friday August 21, 2009 @10:12AM (#29145929) Homepage

    ...proposed a possibly illegal truce with Palm against poaching their respective employees...

    How could that not be illegal? It goes against everything our allegedly free market stands for. Top talent should command top dollar. Like athletes, developers have a finite number of peak production years. They should be able to work for the highest bidder.

  • by QuoteMstr ( 55051 ) <dan.colascione@gmail.com> on Friday August 21, 2009 @10:21AM (#29145983)

    This is why you never, ever trust an employer to do right by you. All the incentives are aligned the wrong way, and to rise high in a company, you practically have to be a slick sociopath. The same guy that asks you how your day went by the water cooler would have you chained to a desk 14 hours to day if the law would let him get away with it.

    Speaking of getting screwed - why are there specific regulations in the federal labor laws that exempt "certain computer workers" from overtime pay [flsa.com]?

  • by Anonymous Coward on Friday August 21, 2009 @10:23AM (#29146003)
    It goes against the ideal of the free market. But, in a truly unregulated market, there would be nothing stopping two companies colluding like this to their mutual benefit... or entering into any other kind of strange and possibly anti-competitive arrangement.
  • by Hognoxious ( 631665 ) on Friday August 21, 2009 @10:30AM (#29146059) Homepage Journal

    OSS could never compete with that, since there isn't that kind of money in this industry to pay for top developers. So you get the kind of brain-dead design as we see here on the /. front page. Seriously, why is there a bar with a tiny +- character there?

    It costs nothing to leave things the heck alone. Knowing when not to tinker with things is apparently much more expensive.

  • by gad_zuki! ( 70830 ) on Friday August 21, 2009 @10:35AM (#29146119)

    >the difference being that at least Gates gives to charity daily, where as Jobs does not.

    What? I dont even like Jobs, but I wouldnt say that. Do you have his tax records or something? People who make past a certain amount of money give quite a bit to charity because:

    1. They want to.
    2. Tax incentives to do so.

    You can smear Jobs, but he's given more than you ever will. He may not run a massive charity, but then again he doesnt have the money Gates has.

  • by Space cowboy ( 13680 ) * on Friday August 21, 2009 @11:16AM (#29146575) Journal
    I'm confused, how can one "murder" an animal ? I can see how you can kill it (perhaps by poaching on someone else's property), but how does one "murder" a non-human ? As far as I can tell, the dictionary defines murder as "the unlawful premeditated killing of one human being by another".

    I get that you're against killing animals. I can even understand that, but using emotionally-charged words like 'murder' when they don't apply just weakens the rest of your argument, at least to me.

    Simon.
  • by gubers33 ( 1302099 ) on Friday August 21, 2009 @11:20AM (#29146631)
    He gets millions from his stock options with Apple and the man is worth around 4.4 billion. Apple also pays for the use of his private jet which is around 800,000 dollars a year. His salary is $1 yes, but he gets the money from other sources.
  • by gad_zuki! ( 70830 ) on Friday August 21, 2009 @11:27AM (#29146719)

    While I am at it, I think its incredibly tacky to brag about ones donations. "LOOK I AM GIVING!!" is a low move. Lots of people like Jobs like to give without putting their name on something or having some pet charity. Lots of starts with pet charities do it almost soley for the publicity. Criticizing someone because he doesnt play the PR game is 100% ridiculous in my book.

    A private life should be respected and lauded not turned into a hit piece on wired and all the little geeks reflexively agreeing with it.

  • by Nom du Keyboard ( 633989 ) on Friday August 21, 2009 @11:45AM (#29146995)
    If I had worked for any of these companies and found out that I was now a pwned slave to them with no ability to move to another strong company worth working for I'd want the Feds to clean their clocks out -- and give me my share of the damages!

    How many PHBs here were rubbing their hands together with glee at review time knowing that the employee they were about to dump on had no option to move to any other comparable company no matter what they were told?
  • by eulernet ( 1132389 ) on Friday August 21, 2009 @12:12PM (#29147401)

    It doesn't seem so easy.

    "No matter how much resolve you could muster, it was still difficult to quit Apple if Steve wanted you to stay. You'd have to sit down with him for a reality distortion session, which was often effective at getting people to change their minds. One day, a few of us were talking about strategies to overcome Steve's persuasiveness."

    http://folklore.org/StoryView.py?project=Macintosh&story=Are_You_Gonna_Do_It.txt [folklore.org]

  • by Miseph ( 979059 ) on Friday August 21, 2009 @12:14PM (#29147427) Journal

    But then what would they do?

    I'm being serious. It might hurt Apple a bit, and it would hurt Palm a bit, and Microsoft a bit, and Oracle a bit, and Google a bit, but if this person declines taking a job with the colluders, then what will they do? Take work with start ups that can't actually afford to pay them the salary they demand trying to compete in already saturated markets? Engage in subsistence farming and day labor until it gets sorted out? Starve? Apple can afford to lose that person as an employee, but how long can that person afford not to be employed?

    This is a symptom of the single greatest flaw in Free Market theory, and one that NOBODY has a satisfying answer to: no true capitalist would ever willingly compete if they did not have to. Market collusion allows the minimization of costs, maximization of profit, and elimination of competition with far less risk or cost than any other method. Competition and free exchange alone creating a sustainable economy free of corruption and systemic iniquity is just a libertarian wet dream (much like that one about Ayn Rand lying naked on a pile of gold bars...).

  • by grendal2 ( 1622049 ) on Friday August 21, 2009 @12:25PM (#29147635)
    These types of agreements are very common within the public account realm. Every engagement letter I have signed with a CPA firms states you cannot hire their employees for a period of X years after work in completed. These are legal as the issue isn't between the employee and either company, but between the companies. So if Apple and Palm signed an agreement ( let's assume it wast was a valid contract and they had a valid reason to do for the moment) the employees would be able to leave Apple to go to Palm, but Apple would have legal recourse against Palm for damages etc. No in the accounting world these agreements are not typically enforced unless you fire you CPA firms since they really don't want to lose a client, but they do need to protect their talent. These agreement have also been part of every IT implementation contract I have signed and again they are rarely enforced by the software company, but I have put them in place the other direction to prevent the software company from poaching my business process experts etc. No if they made such an agreement without a valid contract and without a valid business relationship, they it very well might be illegal IMHO.
  • by mabhatter654 ( 561290 ) on Friday August 21, 2009 @12:27PM (#29147655)

    First, this is about another COMPANY soliciting employees, "on the clock" from competition, specifically knowing what projects they work on and what knowledge they have.. way different than an employee non-compete. Even non-competes are legal when properly limited in scope and duration... like telling iPhone OS devs they can't work on Pre is EXACTLY what NCs are for.

    It's bordering on unethical to employees to hire them away from working on one type of phone project so your company can work on another, competing phone... or on tying your phone to that other company's software sync product (hint, hint) Jobs can always buckle down and start suing the individual employees that leave for violation of trade secrets for vast sums of money (a la RIAA) ... but that's messy and mean (but totally legal, and ethical) better to agree not to poach between companies, and to avoid appearance of unethical behavior from employers asking for info they shouldn't have, or from employees sharing "trade secrets", neither of which is close to a "monopoly" on smartphones right now, and save on IP Lawyer bills later.

  • by easyTree ( 1042254 ) on Friday August 21, 2009 @12:41PM (#29147857)

    Is it just me or is it more fun bashing Apple than Microsoft?

  • by YesIAmAScript ( 886271 ) on Friday August 21, 2009 @12:43PM (#29147875)

    This wrap-up article appears to be a Palm piece designed to attach them more firmly to Apple in people's minds. Trying to imply Palm is so great that Apple is trying to stop them and also imply that Palm is just like Apple, in fact they have half of Apple's engineers!

    The real kicker is the last part. "These people work for Rubenstein". Yeah, maybe that's true for Mike Bell. Pete Alexander (who used to work for Mike Bell) just quit Apple (was forced out) and will be working at Palm within 3 months.

    But there are a lot of people for whom this doesn't apply. I used to work for Rubenstein and I can tell you he's so much not a people person it's ridiculous. He makes 2000-era Al Gore look personable. He would periodically get up and address the team and he would say things that clearly showed he didn't any real connection to us or even know what we were doing. For example, he once rallied us by saying the software/hardware release we just did was the best one we had ever done. The whole crowd groaned because we knew it wasn't, that it was pushed out the door and in fact we had a plans for a near-term emergency .0.1 update and a rapidly following .0.2 update.

    Maybe if you work directly for the guy day-to-day you can form an attachment to him, but to anyone lower down in the ranks, it isn't the same.

    As to why Steve Jobs "let" Rubenstein leave, I'm sure it was similar reasons as why Tony Fadell left. Because both realized they wouldn't be the next CEO of the company. Steve Jobs only action then of "letting" them leave was to not step aside and let Rubenstein or Fadell be CEO. Rubenstein got out, and lo and behold he's now the CEO of Palm.

  • by Eevee ( 535658 ) on Friday August 21, 2009 @01:12PM (#29148203)
    I don't know which sport you're talking about but in the NFL [proathletesonly.com] the guy with no pro experience makes a minimum of $310,000. The NBA [insidehoops.com] is $457,000. And Major League Baseball [bizofbaseball.com] is $400,000. Hell, the minimum for someone with any experience in the Minors is $65,000.
  • by bipbop ( 1144919 ) on Friday August 21, 2009 @01:32PM (#29148491)

    Murder is a legal term, with a legal definition. This definition, I believe, excludes animals.

    But hey, you're free to make up your own definitions instead. I assume if murder applies to pets, then manslaughter must apply as well. When will you be putting out a dictionary?

  • by gad_zuki! ( 70830 ) on Friday August 21, 2009 @01:40PM (#29148581)

    >Nor is his name on a list of gifts of $1 million or more compiled by Indiana University's Center on Philanthropy.

    Did you bother to read the entire article? Two paragraphs later:

    Of course, Jobs and his wife may be giving enormous sums of money to charity anonymously. If they are funneling cash to various causes in private, their names wouldn't show up on any lists, regardless of the size of their gifts.

    For a person as private as Jobs, who shuns any publicity about his family life, this seems credible.

    I know in the age of facebook, spyware, and blogging about your menstraul cycle, privacy has fallen out of fashion, but some people still appreciate it.

  • by ukyoCE ( 106879 ) on Friday August 21, 2009 @01:56PM (#29148775) Journal

    Common language and legal definitions are not the same. I totally agree that murder means something very specific in the courtroom.

    Fortunately, Slashdot is not a courtroom.

    I've also heard the term used lately referring to consumption of beverages and food. Good lucking finding that in the law books or an outdated dictionary.

    http://en.wiktionary.org/wiki/murder [wiktionary.org]

    http://www.urbandictionary.com/define.php?term=murder [urbandictionary.com]

    4. murder
    What annoying, whiney, and probably unemployed vegetarians call eating meat or wearing fur.

  • by mvdwege ( 243851 ) <mvdwege@mail.com> on Friday August 21, 2009 @02:09PM (#29148951) Homepage Journal

    This thread is replete with people who think it normal that businesses collude to strenghten their position in the labour market. And yet watch the howls go up if someone suggests that the employees do the same.

    Mart

  • by WaywardGeek ( 1480513 ) on Friday August 21, 2009 @03:08PM (#29149731) Journal

    I think California's laws against non-competition contracts should be adopted nation wide. It works wonders for the economy when employees can say to their boss, "Screw you, I'm starting my own business, and I'll kick your butt!"

    It is normal for businesses to try and collude to tie down their employees, and restrict competition. It's a natural result of the pursuit of money. What we need are laws restricting this in a very effective manner. California has done the best job, SFAIK.

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