Former
Palm Inc. Chief Executive Officer
Ed Colligan rejected a proposal from
Apple Inc.’s
Steve Jobs to refrain from hiring each other’s employees two years ago, calling it wrong and “likely illegal,” according to their communications. Colligan, who stepped down as CEO in June, discussed the matter with Jobs in August 2007, as the mobile-phone war heated up, according to the communications. Apple had introduced the iPhone two months earlier, just as Palm hired a former Apple executive,
Jon Rubinstein, to develop new smart phones. Jobs, Apple’s CEO, told Colligan he was concerned that Rubinstein was recruiting Apple employees. “We must do whatever we can to stop this,” Jobs said in the communications.
The U.S. Justice Department is investigating possible collusion in hiring among technology companies, a person familiar with the probe said in June.
Derick Mains, a spokesman for Palm, said the company hasn’t been contacted by the Justice Department. Bloomberg News reviewed the communications between Jobs and Colligan.
The exact details of what Jobs proposed to Colligan aren’t known; Jobs didn’t mention a proposal in the communications reviewed by Bloomberg. Jobs said Apple had patents and more money than Palm if the companies ended up in a legal fight, according to the communications. Apple, maker of the Macintosh personal computer, declined to comment, said
Katie Cotton, a spokeswoman for the Cupertino, California-based
company. Jobs didn’t respond to an e-mail seeking comment.
Escalating Tension
The discussion highlights the tension between the companies as Rubinstein took over product development to help lead a turnaround at Palm, a pioneer in handheld computing. Rubinstein was head of Apple’s iPod unit before he left the company in 2006 and had worked with Jobs for more than 15 years. Palm hired him as executive chairman in 2007 and he succeeded Colligan, 48, as CEO this year.
“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...
Public Rivalry
In his August 2007 communications with Jobs, Colligan said Apple had hired at least 2 percent of Palm’s workforce as the company developed the iPhone. Apple released the iPhone in June 2007.....
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