Feeds

IBM gets damages for Plasmon poaching

Claims Steve Murphy broke holder agreement

The Essential Guide to IT Transformation

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 Essential Guide to IT Transformation

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
VMware builds product executables on 50 Mac Minis
And goes to the Genius Bar for support
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Multipath TCP speeds up the internet so much that security breaks
Black Hat research says proposed protocol will bork network probes, flummox firewalls
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
Forrester says Australia, not China, is next boom market for cloud
It's cloudy but fine down under, analyst says
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.