werner@ut-ngp.UUCP (Werner Uhrig) (01/22/86)
[ from the Austin American Statesman, Sunday, January 19, 1986 ]
SETTLEMENT GIVES APPLE THE RIGHT TO INSPECT WORK OF JOB'S NEW FIRM
(by Andrew Pollack - New York Times Service)
SAN FRANCISCO - Apple Computer Inc., and its former chairman, Steven Jobs,
have reached a settlement in a lawsuit filed when Jobs formed his own company
with other Apple employees.
While both sides hailed the agreement as favorable, it does place some
restrictions on Jobs and his new company, Next Inc. For example, it gives
Apple the right to inspect Next products before they are marketed to determine
if they contain what Apple views to be trade secrets.
Next officials said the restrictions would not interfere with company plans.
"The key thing is the lawsuit was dismissed and this is just great," Jobs said
Friday.
Apple sued Jobs in September when Jobs, after a bitter falling out with
Apple's president, John Sculley, left Apple and, with five Apple employees,
started his own company. In its suit, filed in a state Superior Court in Santa
Clara County, Calif., Apple charged Jobs with breach of fiduciary responsibility and masterminding a "nefarious" scheme to steal Apple's trade
secrets.
Under terms of the settlement, Next has agreed to stick to certain minimum
specifications in any computer it markets for the next two years. The
specifications basically require that the Next computer be more powerful than
the Apple products and not use the same operating system and software,
according to Next officials.
Moreover, Next has agreed not to market any computers at all until July 1,
1987, according to a summary of the settlement prepared by Apple's law firm,
Brown & Bain.
Next also agreed to provide Apple with prototypes of its products for
Apple's inspection. If Apple believes its proprietary information or
technology is being used, it can appeal to an arbitrator.
Jobs also agreed not to hire any more Apple employees for six months or to
solicit any for a year. Next now has about 10 former Apple employees. Apple
also dismissed all proceedings against Richard Page, a former Apple engineer
and now a Next employee.
Jobs said the restrictions merely require Next to do what it said it would
do in the first place. the restriction on not marketing a computer before July
1987, he said, was not important because Next is not planning to introduce its
first product until the fall of that year.
Next is working on powerful computers for use in university education. Jobs
said they would be far more powerful than Apple systems.
The two companies had talked about a settlement even before the suit was
filed.
But attitudes have become more conciliatory recently. Sculley said Thursday
that "I'd like to see the time come when Steve Jobs is as welcome at Apple as
Steve Wozniak is." Wozniak, who co-founded Apple with Jobs and left in
February, is now a consultant and has been purchasing Apple stock.