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July 18, 2008 4:17 PM PDT

Motorola sues iPhone sales executive over trade secrets

by Tom Krazit

Motorola is suing a former executive now employed by Apple's iPhone sales division, charging him with the theft of trade secrets.

Bloomberg found the suit, which was filed by Motorola on Thursday in Illinois state court. Michael Fenger is the defendant, and according to the complaint he is now vice president for global iPhone sales after joining Apple in March.

Prior to joining Apple, Fenger was an executive for Motorola in that amorphous MBA-created part of the world known as EMEA (Europe, Middle East, and Africa). As such, he was in a position to know almost everything about Motorola's business practices and strategies, and Motorola thinks he is now using that information to harm the company and help Apple, according to Bloomberg.

Apple's rise in the mobile world has come at the same time as Motorola's fall, but it's hard to imagine the two are linked. Motorola's problems are largely of its own making: I'm pretty sure Apple didn't play a role in Motorola's decision to flood the market with cheap handsets and its inability to come up with a successor to the Razr.

Motorola wants $1 million back from stock options awards granted to Fenger and it wants to bar him from working at Apple for two years, retroactive to March, Bloomberg said.

Bloomberg said attempts to reach Fenger for comment were unsuccessful.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by Galaxy5 July 18, 2008 11:39 PM PDT
Shorter MOT: "Waaaaaaahhhhhhhh!"
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by johnnydfred July 19, 2008 6:33 AM PDT
Under Shameless Comments: Motorola's only remaining trade secret? Wait for it...How they've stayed afloat for so long after the Razr. Ba-dum-bum.
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by michaelo1966 July 19, 2008 8:16 AM PDT
This frivolous lawsuit wisely illustrates why CA wisely won't enforce non-competes. If this guy was so smart -- and he probably was, or Apple wouldn't have hired him -- he probably languished un-listened to at Motorola until he finally left. Now they don't want him working for anybody else but because CA won't uphold non-competes they have to try fabricating a trade secret claim. Hey Motorola: if the "secrets" were that important why didn't you use them to retain and build market share? This is a good illustration of just how pathetic Motorola is.
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by SeizeCTRL July 19, 2008 10:30 AM PDT
Anyone who thinks this guy won't use what he knows from Motorola over at Apple is just lying to themselves.

You really cannot expect someone to go from one job to another and not use previous knowledge at the new locale.

Now whether or not that information was harmful to Motorola while at the same time beneficial to Apple will remain to be seen.

The one thing I actually like about Motorola is the Motorola Phone Tools software that allows you to connect to your phone and do all sorts of things. Why other phone manufacturers have yet to follow that baffles me. It's pure genius to have a built-in ringtone maker, contact backup, text message back up and so on. The software should be free with every mid to high end phone.
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by inverse137 July 21, 2008 10:48 AM PDT
SeizeCTRL, nobody else has "yet to follow" is because the Phone Tools software is merely a patch.

Phones running Windows Mobile will sync all data over the cellular network.

You are looking at a consumer grade patch vs. an enterprise level software solution.
by drfrost July 21, 2008 12:24 PM PDT
"Anyone who thinks this guy won't use what he knows from Motorola over at Apple is just lying to themselves." - SeizeCTRL

Everyone assumes others to be as virtuous as themselves. I've been in the situation where I could have used confidential knowledge in a new job to help our performance. I didn't do it. Did I use things I'd learned at the previous job? Of course, but nothing confidential, nothing inappropriate. So, IMO, this is not "inevitable."

I find it more likely that Motorola is just using deep pockets to go harass a competitor in every way that can be made to appear "legitimate."
by genus11 July 21, 2008 5:05 AM PDT
Motorola needs to look for acquisition. The best one is Taiwan's HTC. Not sure how easy to do that in Taiwan, but it's doable.
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by inverse137 July 21, 2008 10:45 AM PDT
Baseless...

They can't deny him a livelihood. If they didn't want him to work for the competition after he left Motorola they should have paid him to stay home and play Quake or something.

And I'm not exaclty certain I would say he left for the "competition." Can you really compare the Razor to the iPhone?
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by Galaxy5 July 21, 2008 3:33 PM PDT
MOT phone tools might be nice, but I prefer the iTunes approach - easy enough for beginners, and flexible enough for experts.
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