Motorola sues former executive for joining Apple
Posted on July 21st, 2008 | Filed under: Motorola
A former Motorola executive has been sued by the Schaumburg based mobile phone maker, Motorola Inc for exposing trade secrets to Apple Inc. The former Motorola senior vice president of mobile phones, Mike Fenger, joined Apple as head of iPhone sales division breaching the non-compete agreement. Handling its mobile-device business in Europe, Africa and the Middle East, Mike ended his six year career with Motorola in March to join Apple. He further aided Apple in hiring two other former Motorola employees.
Filing a suit in an Illinois circuit court in Cook Country late on Thursday, the lawsuit states, “He was privy to the pricing, margins, customer initiatives, allocation of resources, product development, multiyear-product, business and talent planning, and strategies being used by Motorola.”
With the latest version of the iPhone crossing record sales of about 1 million, debuting on July 11, at a base price of $199, Apple augmented its mobile phone business causing Motorola to lose its share in the market. Since the start of 2007, Motorola has faced a serious dip in their global sales with a loss of more than $1.5 billion, wherein the company is to split its mobile phone division in March. The failure of Motorola’s own smartphone, Q to attain the same kind of success that Apple’s iPhone has gained has further repressed Motorola sales.
In the compliant, the company declared that the employment of Mike Fenger by Apple has offended his written promise that prohibits him from working for a competitor for at least two years after leaving Motorola. Additionally, Motorola is seeking a court order that obstructs Fenger for working with Apple for two years effect from March 31. For alleged infringement of its stock option agreements, Motorola will also make up for a loss of more than $1 million from Fenger.
Mike Fenger was unavailable for comment. With no mention of monetary demands from Apple as defendants, Susan Lundgren, spokeswoman for Cupertino, California based Apple, refused to comment.
