Steve Jobs Threatened Palm with Patent Suit Over No-Hire Policy

Steve Jobs threatened to file a patent suit against Palm if they didn't agree to not hire Apple employees, according to a Reuters report on a court filing (via AppleInsider) made public Tuesday. The court filing is a part of a class action lawsuit against Apple, Google, Pixar, Lucasfilm and others over an agreement those companies made to not actively solicit each other's employees to hire them away.

091350 jobs forbes 400 2010
The companies attempted to keep an array of documents secret, but that request was rejected in parts by Judge Lucy Koh, which is why a statement from former Palm executive Edward Colligan has become public record. Colligan said that Jobs proposed the agreement to Palm, and that Jobs suggested that if Palm didn't agree they could face lawsuits "alleging infringement of Apple's many patents." Colligan responded to Jobs with an email:

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.[...] Palm doesn't target other companies-we look for the best people we can find. l'd hope the same could be said about Apple1s practices. However, during the last year or so, as Apple geared up to compete with Palm in the phone space, Apple hired at least 2% of Palm's workforce. To put it in perspective, had Palm done the same, we'd have hired 300 folks from Apple. Instead, to my knowledge, we've hired just three.

Colligan also told Jobs that he was not intimidated by patent litigation and said that Palm had recently acquired some patents from Siemens that it could use against Apple and its iPhone patents. Jobs responded:

Just for the record, when Siemens sold their handset business to BenQ they didn't sell them their essential patents but rather just gave them a license. The patents they did sell to BenQ are not that great. We looked at them ourselves when they were for sale. I guess you guys felt differently and bought them. We are not concerned about them at all. My advice is to take a look at our patent portfolio before you make a final decision here.

Walter Isaacson's biography of Steve Jobs revealed that Jobs was angry at Palm for hiring former employees, although the threat of patent litigation in Colligan's statement is certainly a new revelation.

"Jobs was so furious that Palm was hiring some of his former employees that he complained to Bono, who was a cofounder of a private equity group, led by the former Apple CFO Fred Anderson, that had bought a controlling stake in Palm."

These aren't the only instances that Jobs became angry at the poaching of Apple employees, however. In January 2012 it was revealed, also according to a court filing, that Jobs complained to then-Google CEO Eric Schmidt about the hiring of Apple employees at Google.

Recently, current CEO Tim Cook was ordered to give a deposition in this case, so more nuggets of information are likely to be released as court filings are made public.

Popular Stories

Tim Cook Rainbow

Apple Event in October? Here's What to Expect

Monday September 29, 2025 9:31 am PDT by
Apple's annual iPhone event is in the rearview mirror, but rumors suggest the company plans to release a handful of additional products before the year ends. Will there be another Apple event this October? We discuss the possibility below. Apple in October Apple's most recent October events were in 2021 and 2023. In 2022 and 2024, Apple did not host an October event. Instead, it...
apple wallet drivers license feature iPhone 15 pro teal 1

Apple's iPhone Driver's License Feature Now Available in 11 U.S. States

Tuesday September 30, 2025 6:40 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Apple recently revealed that the feature would soon be available in North Dakota, and starting today, the feature has officially gone...
maxresdefault

New iPad Pro With M5 Chip Leaked in Unboxing Video

Tuesday September 30, 2025 8:39 am PDT by
An apparent unboxing video for an unannounced iPad Pro with the M5 chip was uploaded to YouTube today by Russian channel Wylsacom. The same YouTube account leaked the 14-inch MacBook Pro with the M4 chip before it was announced by Apple last year, so this is likely a legitimate leak. Based on the box shown in the video, this appears to be a 13-inch iPad Pro with an M5 chip, 256GB of...
fcc vision pro leak

FCC Accidentally Leaks Apple's Next Vision Pro

Tuesday September 30, 2025 3:48 pm PDT by
The United States Federal Communications Commission (FCC) has seemingly confirmed Apple's work on an updated version of the Vision Pro headset. One of several documents the FCC shared today references an Apple-designed "Head Mounted Device" with a model number of A3416. An included image confirms the device is a Vision Pro. The FCC's uploads are transmission tests, SAR test reports, and...
iOS 26

Apple Releases iOS 26.0.1 With Fixes for Wi-Fi, Cellular, and Camera Issues on iPhone 17 Models

Monday September 29, 2025 10:12 am PDT by
Apple today released iOS 26.0.1 and iPadOS 26.0.1, the first updates to the iOS 26 and iPadOS 26 operating systems that came out earlier this week. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes for the update, iOS 26.0.1 addresses a bug that could cause aberrations in...
macbook pro prime day 2025

FCC Leaks Upcoming MacBook Pro and More

Tuesday September 30, 2025 1:58 pm PDT by
The United States Federal Communications Commission has confirmed Apple's work on a new version of the MacBook Pro and several other products, leaking details on the devices ahead of launch. The FCC published documents that reference model numbers that do not correspond with existing devices. A3434, for example, references an unreleased MacBook Pro, while other numbers are likely for...
Apple MacBook Pro M4 hero

New MacBook Pro Nears Mass Production, But Four Bigger Upgrades Expected Next Year

Sunday September 28, 2025 2:08 pm PDT by
Apple's next MacBook Pro models will enter mass production soon, according to the latest information shared by Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said he continues to believe the new MacBook Pro models will be released at some point between late 2025 and the first quarter of 2026, meaning they should be available to order by March at the latest. Apple often...
space black mbp

Here's Every New Apple Product That Leaked Yesterday

Wednesday October 1, 2025 8:27 am PDT by
A handful of upcoming Apple products leaked yesterday, through a combination of YouTube videos out of Russia and U.S. Federal Communications Commission (FCC) documents that were released, despite Apple's confidentiality requests. The leaked products include an iPad Pro with an M5 chip, as well as updated MacBook Pro and Apple Vision Pro models. All of these devices had already been rumored...
iOS 26

Apple Continues to Prepare iOS 26.0.1 With Multiple Bug Fixes Expected

Sunday September 28, 2025 1:30 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. The account initially said iOS 26.0.1 would have a build number of 23A350, but they now expect the update to have a build number of 23A355. This suggests that the software update will include more bug fixes or changes than initially...
Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...

Top Rated Comments

AppleLover12345 Avatar
166 months ago
And people call Samsung scum.
Score: 68 Votes (Like | Disagree)
Battlefield Fan Avatar
166 months ago
What an angry man Steve was. I like him less and less each day. Not that Tim is doing a better job though.
Score: 39 Votes (Like | Disagree)
AppleScruff1 Avatar
166 months ago
This is so dirty, so Steve Jobs. He had a passion to be the best in every way, no matter the means.

And he really lowered himself to achieve certain things. He sure didn't like competition.
Score: 29 Votes (Like | Disagree)
AppleLover12345 Avatar
166 months ago
They are scum... you can read all about it....

http://www.kernelmag.com/features/report/3028/samsung-power-corruption-and-lies/

http://www.nytimes.com/2007/11/06/business/worldbusiness/06iht-samsung.1.8210181.html?pagewanted=all&_r=0

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aH3aDwXXnvqc

http://www.fastcompany.com/1627411/bribery-massive-corruption-samsung-says-exposé-former-s-korean-prosecutor

http://news.xinhuanet.com/english/2008-04/22/content_8029589.htm

Regardless of that, a whole lot of Silicon Valley companies (e.g.: just about all the big ones) are going to pay out on a class action lawsuit regarding these no-hire agreements. It extends way beyond Apple and Google.
*yawn*
Where did I deny that Samsung wasn't scum or that they were never involved in illegal activities? I'm saying that it's hypocritical of Apple fanboys to proclaim that Samsung was scum and not mention the scum-like activities of Apple.
And just because other companies participated doesn't make it right. The way I see it, Apple is the biggest scum of them all. They make Samsung look like Mother Teresa. All Samsung is involved with is bribery of Korean politicians to get tax cuts and even more tax cuts, which doesn't really harm anyone. Apple's activities, on the other hand...
Score: 28 Votes (Like | Disagree)
BC2009 Avatar
166 months ago
And people call Samsung scum.

They are scum... you can read all about it....

http://www.kernelmag.com/features/report/3028/samsung-power-corruption-and-lies/

http://www.nytimes.com/2007/11/06/business/worldbusiness/06iht-samsung.1.8210181.html?pagewanted=all&_r=0

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aH3aDwXXnvqc

http://www.fastcompany.com/1627411/bribery-massive-corruption-samsung-says-exposé-former-s-korean-prosecutor

http://news.xinhuanet.com/english/2008-04/22/content_8029589.htm

Regardless of that, a whole lot of Silicon Valley companies (e.g.: just about all the big ones) are going to pay out on a class action lawsuit regarding these no-hire agreements. It extends way beyond Apple and Google.
Score: 25 Votes (Like | Disagree)
swingerofbirch Avatar
166 months ago
I think he's perfectly okay to protect his company and employees, and therefore their hard work from being lost to another company.

To be honest, I'd do anything to have someone with Steve's stance on poaching leading my company...

While it's extremely far away from slavery, no poaching policies are on the same spectrum. It takes us from a free market to one where an employee is essentially owned by his company if he wants to work in his chosen field. It's extremely unethical and should be illegal if it's not.
Score: 23 Votes (Like | Disagree)