Source: Tom's Guide US | Keywords: RIM, Sues, Motorola | Themes: Smartphones
Canadian smartphone manufacturer Research In Motion is said to be suing rival mobile phone company Motorola for unfair competition. RIM says Motorola is not allowing former employees to work for the Blackberry maker and that an agreement between the two preventing ex-employees from one company work for the other expired last year.
Noncompete agreements are pretty common in the tech industry. What usually happens is you get hired by one company and you sign contract saying you won’t work for a competitor for a certain amount of time following your departure from said company. According to the Register, both RIM and Motorola agreed in February not to solicit each other’s staff, or offer work to staff who had been recently employed by the other company.
However, RIM remains adamant that the agreement expired in August 2008 and is eager to pick up some of the staff Motorola has cut loose. RIM is reportedly accusing Motorola of preventing employees from joining the Canadian company, even though the workers were being let go.
While we’re all in favor of playing by the book, we’re not sure who to side with on this one. If the deal ended in August then it looks like Motorola is just being greedy, sacking staff but refusing to let them work for another company in a time when jobs are pretty hard to come by. However, it seems strange that the companies would sign an agreement preventing the other from pilfering staff that was scheduled to end in the summer. That said it could have been a short term deal while Motorola worked on Android and RIM was gearing up to launch its first touchscreen handset, the Blackberry Storm.
We’ll keep you posted on any developments.
-
Previous News Article
Sony Denies Need for Further... -
Next News Article
HDTV From LG With Built-in...
So what would prevent employees that are outside of this contract seeking out RIM HR? I am a tad confused as I am sure RIM is as well.
Non-compete is the most ridiculous legal agreement, and is only used to enslave employees. What is the employee supposed to do if they don't like their current employer, but are contractually forbidden (either on their own part, or the part of the company) to work for a competitor? Many jobs are so specialized that you are stuck in an industry. Anyone spending 10-years designing cell-phones is pretty much locked to the cell-phone/PDA industry, unless they want to start-over with reduced pay in another field. Especially in today's economy where most companies are down-sizing, an individual should have the right to work whereever they can actually find it.
I left my former full-time job cause I couldn't stand the business decisions being made. Luckily I had no such non-compete agreement, and accepted a job with a direct comptetitor before my last paycheck even came.
Some states don't uphold non-compete agreements. I've had two employers make me sign then, after quiting I went to work in similar fields and they tried, both failed. You can't prevent someone from making a living at what they do. Working in networking for ISP's is what I do, can't prevent me from going to another ISP cause you're upset about me leaving.
There are bits that can be upheld like stealing clients or trade secrets of course. But in general, they are worthless.
If you've been fired or quit _prior_ to seeking employment with a competing company, then the non-compete agreement you signed isn't worth the 5 cents of paper its printed on. You are no longer employed by them, therefore, no longer under contract in any way. To me, the trick here is that if you are employed or laid-off employees are being paid severance ..
In Canada, it's much the same as michaelahess said .. most jurisdictions won't uphold employee-signed non compete agreemts... The agreements between two companies however are a lot more likely to be upheld by the courts which is probably with RIM is suing.