Motorola Sues Ex-Executive; Says Disclosed Secrets to Apple
NEW YORK (Dow Jones)--Motorola has sued a former executive, claiming he disclosed trade secrets to current employer Apple.
In a filing from late Thursday, Motorola claimed Michael Fenger - who served as the senior vice president of mobile devices for the Europe, Middle East and Africa regions for the handset maker - violated his agreement to not take a position with a competitor during the two years after he left Motorola in March.
He joined Apple as the vice president of global iPhone sales shortly afterward.
Motorola argues that Fenger learned of numerous confidential company practices, which he then leaked to the benefit of Apple.
"Fenger cannot serve as senior vice president of global sales of iPhone for Apple without utilizing and disclosing Motorola's confidential information," the filing said.
Apple declined to comment.
While Apple has soared with the headline-grabbing success of its iPhone, Motorola has struggled in its wake. Motorola's own smartphone, the Q, failed to achieve the kind of success the iPhone attained.
The Schaumburg, Ill., company has dealt with management changes, slumping sales, few innovative new phones and lost market share to rivals. Samsung Electronics recently overtook it as the No. 2 global leader in the handset business, as Motorola fell further behind No. 1 player Nokia.
Motorola's problems have forced the company into plans to separate the handset unit from the networks and equipment business.
Motorola and Apple had a brief partnership in which a line of Motorola phones, called ROKR, could link up with iTunes. The handset, which was criticized as behind the times and limited in capabilities when it was first released, didn't sell well, and the relationship fizzled.
Motorola shares recently were up 1.1% to $7.46. Apple's fell 3.6% to $165.63.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 18th July 2008