Feeds

IBM gets damages for Plasmon poaching

Claims Steve Murphy broke holder agreement

Designing a Defense for Mobile Applications

IBM is receiving undisclosed damages after it and Plasmon CEO Steve Murphy settled a dispute about Plasmon's apparent poaching of ex-Softek employees working for IBM.

IBM bought Softek, a storage array data migration company headed by Steve Murphy, in January 2007. It arranged a holder agreement with Murphy, who left at that point, which stopped him trying to persuade certain IBM employees, understood to be ex-Softek ones employed by IBM, to work with him in other ventures.

Plasmon CEO Steve Murphy

Steve Murphy (right) was appointed as Plasmon CEO in November 2007, and then, IBM says, he "engaged in conversations with and offered employment to several [ex-Softek] IBM employees in violation of his holder agreement". Some of these employees joined Plasmon.

Consequently IBM entered into a legal dispute process with Murphy and a confidential settlement has been reached which involves the payment of undisclosed damages to IBM.

This dispute could hardly have helped Plasmon in its negotiation of marketing and support arrangements with IBM, such as Fibre Channel interfaces to its optical libraries for IBM i systems customers, and a FileNet deal. It must also have been an unwelcome distraction during Plasmon's recent struggles to obtain private equity funding which have resulted in lay-offs both sides of the Atlantic Ocean.

The company in the USA is still struggling to find a way forward with its major secured creditor and potential investors.

Everything is now, it appears, sweetness and light between IBM and Steve Murphy. David Johnson, IBM's VP for corporate development, said: "IBM is pleased that it could resolve this dispute amicably. IBM takes these matters seriously and will strictly enforce its legal rights as set forth in the holder agreements it enters into with executives of acquired companies.”

There you have it - don't sell your company to Big Blue and hire back key employees. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.