In the on-going saga between I.B.M and Mark Papermaster over his decision to work for Apple, a Ditrict Judge in New York has recently ordered that I.B.M post a 3 million dollar bond in the event that it’s later decided that the preliminary injunction initiated by I.B.M was without merit. This, however, should not be construed to favor either party, and is in fact required under the Federal Rules of Procedure which state:
A movant must provide “security in an amount that the court considers proper to pay the costs and damages sustained by any party found to have been wrongfully enjoined or restrained.” – Rule 65(c)
If I.B.M fails to prevail on the merits of the case, then Papermaster will be able to recover the full 3 million dollar bond from I.B.M to re-compensate him for costs and damages incurred in the defense of the suit.
In other IBM/Papermaster related news, Papermaster recently filed an answer to I.B.M’s complaint. While the complaint doesn’t shed any new information on the case, Papermaster notes that he has worked in Texas for the past 17 years and recently accepted a job with Apple in California, both two states that have ruled against covenants not to compete as a matter of public policy. Papermaster went on to state that New York is not the proper jurisdiction to handle the matter, and that under I.B.M’s broadly stated complaint, Papermaster would effectively be barred from working anywhere in the world due to I.B.M’s global presence.