Palm Rejected Apple Overtures to Stop Hiring Executives

The USA's Justice Department is reported to be investigating practices within the US tech industry to avoid poaching senior employees from each others companies. The move came to light following a report by Bloomberg News that there have been discussions on the topic between Palm and Apple.

Former Palm CEO Ed Colligan is reported to have rejected a proposal from Apple's Steve Jobs to refrain from hiring each other's employees in 2007, calling it wrong and "likely illegal," according to emails seen by the business newswire.

Although the exact details of the communications are not known, Apple did seem to warn Palm that if it came to a battle, that Apple had deeper pockets and more patents - probably referring to a tendency for some firms to turn a blind-eye to patent infringements while they themselves infringe other patents.

"Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal," Colligan said to Jobs, 54, according to the communications. Colligan said he thought about Jobs's proposal and considered offering hiring concessions, before deciding against it, according to the exchanges.

Apple and Palm declined to comment on the story.

Earlier this year, Jon Rubinstein, the former Apple executive behind the iPod was named as Palm's chief executive, replacing Ed Colligan who is stepping down after 16 years with the company.

On the web: Bloomberg News

Posted to the site on 20th August 2009