Mr. Papermaster’s duties will be shouldered by Bob Mansfield, the company’s senior vice president of computer engineering, Apple spokesman Steve Dowling said. He added that Mr. Mansfield already manages some aspects of Apple’s mobile device technologies, such as the touch screen and A4 processing chip.

Mr. Papermaster couldn’t be reached for comment, and Apple wouldn’t say under which conditions Mr. Papermaster left.

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Fadell, one of the chief architects of Apple’s audio strategy (there were obviously others, and top Apple execs sometimes bristle at Fadell being credited with paternity), had been working as an adviser to Apple (AAPL) CEO Steve Jobs since being replaced in November 2008 by former IBM (IBM) exec Mark Papermaster. Now his time in that diminished role has ended and Fadell is moving on.

Fadell’s plans? “My primary focus will be helping the environment by working with consumer green-tech companies,” he told the New York Times, which first reported his departure. “I’m determined to tell my kids and grandkids amazing stories beyond my iPod and iPhone ones.”

Mr. Papermaster’s employment by Apple is a violation of his agreement with IBM against working for a competitor should he leave IBM. We will vigorously pursue this case in court.”

– IBM, October 2008

IBM’s legal efforts to enforce a noncompete agreement that would have prevented 26-year company veteran Mark Papermaster from jumping ship for a high-profile job at Apple appear to have failed. In a terse statement issued this morning, Apple (AAPL) said the litigation between IBM (IBM) and Mark Papermaster has been resolved. Come April 24, Papermaster will begin leading Apple’s iPod and iPhone hardware engineering teams as SVP of Devices Hardware Engineering, reporting to CEO Steve Jobs. He will, however, have to certify in July and October that he has complied with legal obligations and not used confidential IBM information at Apple. From IBM’s own release on the matter:

IBM and Mr. Papermaster have now agreed on a resolution of the lawsuit under which Mr. Papermaster may not begin employment with Apple until April 24, 2009, six months after leaving IBM, and will remain subject thereafter to all of his contractual and other legal duties to IBM, including the obligation not to use or disclose IBM’s confidential information. Following commencement of his employment with Apple, Mr. Papermaster will be required to certify, in July 2009 and again in October 2009, that he has complied with his legal obligations not to use or disclose IBM’s confidential or proprietary information. The preliminary injunction will be replaced by a court order under which the Court will have continuing jurisdiction over this matter, including compliance enforcement powers, until October 24, 2009, one year after Mr. Papermaster’s departure from IBM.”

Mark Papermaster, the IBM veteran poached by Apple last month to become its senior vice president of Devices Hardware Engineering, has filed a countersuit against his former employer in a fast-metastasizing dispute over his noncompete contract.

In documents filed late Thursday in federal court in New York, Papermaster argues his noncompete agreement with IBM (IBM) is “unreasonably broad.”

The ‘Business Enterprise’ restriction is unreasonably broad in that it purports to restrict Mr. Papermaster from going to work for any company that engages in competition with his former business unit to any extent, even if Mr. Papermaster will not be working for the part of the company that does so. Likewise, the ‘significant competitor or major competitor’ prong purports to restrict Mr. Papermaster from going to work for one of these companies even if the work that Mr. Papermaster will be doing is completely unrelated to the work he was doing at IBM. These provisions are not necessary to protect any legitimate interests of IBM.”

So not only is Papermaster’s noncompete “unreasonably broad,” it’s utterly irrelevant to his employment with Apple (AAPL).

And beyond that, it’s just plain silly.

Noncompetition agreements are unenforceable both in Texas, where Papermaster was employed by IBM, and California, where he’ll be working for Apple–a fact also noted in his countersuit. Given that, does IBM really want to be putting up $3 million to cover any damages Papermaster might incur should the case be decided in his favor?

UPDATE:

Mark Papermaster’s memory of Apple and IBM old rivalry is quite a bit better than originally thought. Turns out the quote that inspired this post was excerpted from a longer, far less contentious statement by an Information Week reporter.

What Papermaster said in his declaration was this:

Until this litigation effort by IBM, aside from the divested IBM personal computer business and a single sale several years ago of Apple’s Xserve product to a university, I do not recall a single instance of Apple being described as a competitor of IBM during my entire tenure at IBM.”

What Information Week reported him as saying was this:

I do not recall a single instance of Apple being described as a competitor of IBM during my entire tenure at IBM.”

A juicy quote, to be sure, but without the caveat that preceded it, an inaccurate one. My apologies to Mark Papermaster.

This is pretty funny.

Mark Papermaster, the 26-year IBM (IBM) veteran being sued by his employer for taking a job at Apple (AAPL), is convinced Big Blue’s suit is entirely without merit. Why? Apple doesn’t compete with IBM and never has.

“I do not recall a single instance of Apple being described as a competitor of IBM during my entire tenure at IBM,” Papermaster said in a court filing.

Now, I know Apple’s famous “1984″ ad (see below) is a few decades old now, and memories of the company’s 1984 Annual Shareholders meeting are well faded, even at Apple. But surely someone, somewhere in Cupertino must recall CEO Steve Jobs’s comments at that meeting.

The early 1980s. 1981–Apple II has become the world’s most popular computer, and Apple has grown to a $300 million corporation, becoming the fastest-growing company in American business history. With over 50 companies vying for a share, IBM enters the personal computer market in November 1981, with the IBM PC.

IBM wants it all, and is aiming its guns at its last obstacle to industry control, Apple. Will Big Blue dominate the entire computer industry? The entire information age? Was George Orwell right?

I’d say that qualifies as an instance of Apple being described as a competitor of IBM, wouldn’t you?

Apple legal must be on a class trip or something….

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Fadell is one of Apple’s key technology executives, and the company is spinning the hell out of his departure, which frankly can’t be viewed as anything other than bad news. Fadell is not leaving Apple, so much as he is “reducing” his role, the company tells us. And he will, of course, remain a trusted adviser to Steve Jobs, which I suppose means he’s still on the Apple CEO’s Christmas card list.

Fadell, it should be noted, has on occasion been mentioned as one of Jobs’s potential successors, given his deep involvement in some of Apple’s marquee product lines. That said, he was nowhere to be seen at either of the company’s last two public events, which were clearly intended to show off the depth of Apple’s executive bench. And obviously his name is no longer on the short list for the CEO seat. Perhaps, it hasn’t been for some time, and that’s what inspired this new focus on family life.

Below is the full text of Apple’s release on the personnel changes.

Mark Papermaster Joins Apple as Senior Vice President of Devices Hardware Engineering

CUPERTINO, California—November 4, 2008—Apple today announced that Mark Papermaster is joining the Company as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod and iPhone hardware engineering teams. Papermaster has 25 years of product and technology experience, and was previously a vice president at IBM.

Apple also announced that Tony Fadell, Apple’s senior vice president of the iPod Division, and his wife Danielle Lambert, vice president of Human Resources, are reducing their roles within the company as they devote more time to their young family. Fadell will remain at Apple as an advisor to the CEO. Lambert will depart the company at the end of this year after a successor is in place.

‘Mark is a seasoned leader and is going to be an excellent addition to our senior management team,’ said Steve Jobs, Apple’s CEO. ‘Tony and Dani have each made important contributions to Apple over the past eight years. We’re sorry to see Dani go, and are looking forward to working with Tony in his new capacity.’

Papermaster has a Bachelors of Science in Electrical Engineering degree from the University of Texas, and Masters of Science in Electrical Engineering from the University of Vermont in 1988. He is active with the University of Texas where he is a member of the Electrical and Computer Engineering Advisory Council.”

Fadell is one of Apple’s key technology executives, and the company is spinning the hell out of his departure, which frankly can’t be viewed as anything other than bad news. Fadell is not leaving Apple, so much as he is “reducing” his role, the company tells us. And he will, of course, remain a trusted adviser to Steve Jobs, which I suppose means he’s still on the Apple CEO’s Christmas card list.

Fadell, it should be noted, has on occasion been mentioned as one of Jobs’s potential successors, given his deep involvement in some of Apple’s marquee product lines. That said, he was nowhere to be seen at either of the company’s last two public events, which were clearly intended to show off the depth of Apple’s executive bench. And obviously his name is no longer on the short list for the CEO seat. Perhaps, it hasn’t been for some time, and that’s what inspired this new focus on family life.

Below is the full text of Apple’s release on the personnel changes.

Mark Papermaster Joins Apple as Senior Vice President of Devices Hardware Engineering

CUPERTINO, California—November 4, 2008—Apple today announced that Mark Papermaster is joining the Company as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod and iPhone hardware engineering teams. Papermaster has 25 years of product and technology experience, and was previously a vice president at IBM.

Apple also announced that Tony Fadell, Apple’s senior vice president of the iPod Division, and his wife Danielle Lambert, vice president of Human Resources, are reducing their roles within the company as they devote more time to their young family. Fadell will remain at Apple as an advisor to the CEO. Lambert will depart the company at the end of this year after a successor is in place.

‘Mark is a seasoned leader and is going to be an excellent addition to our senior management team,’ said Steve Jobs, Apple’s CEO. ‘Tony and Dani have each made important contributions to Apple over the past eight years. We’re sorry to see Dani go, and are looking forward to working with Tony in his new capacity.’

Papermaster has a Bachelors of Science in Electrical Engineering degree from the University of Texas, and Masters of Science in Electrical Engineering from the University of Vermont in 1988. He is active with the University of Texas where he is a member of the Electrical and Computer Engineering Advisory Council.”

“Mr. Papermaster’s employment by Apple is a violation of his agreement with IBM against working for a competitor should he leave IBM,” said Fred McNeese, director of IBM’s corporate media relations group. “We will vigorously pursue this case in court.”

And for good reason. As a member of the IBM (IBM) elite Integration and Values Team, Papermaster had broad access to the company’s intellectual property, trade secrets, and more. From the complaint:

The I&VT is charged with addressing the most difficult and important issues facing IBM, such as developing corporate strategy and driving innovation and growth and I&VT team members work with the most sensitive strategic information the Company possesses.

In his capacity as a member of the I&VT, Mr. Papermaster has gained access to confidential information concerning the Company’s strategic plans, marketing plans and long-term business opportunities, including the development of specific IBM products.

… Mr. Papermaster is IBM’s top expert in ‘Power’ architecture and technology, and he is privy to a whole host of trade secrets and confidences belonging to IBM that the company uses to design, develop and manufacture its products.”

Sounds like IBM has a lot to lose in Papermaster. Certainly, it’s worrisome that someone with his processor design expertise and deep knowledge of IBM research and innovation could end up at Apple, a company that’s made quite a name for itself recognizing the potential of innovations others have left fallow.