iPhone Sales VP Sued by Motorola for Disclosing Company Secrets

Motorola has sued one of its former executives, Michael Fenger, who is now working for Apple, on the count of disclosing the company's trade secrets, thus helping Apple sell more iPhones.

Michael Fenger left Motorola for Apple after six years as vice president for the company's mobile-device business in Europe, the Middle East and Africa, the Bloomberg report reveals. Currently occupying the Vice President for Global iPhone Sales position at Apple, Fenger had signed a two-year, non-compete agreement with Motorola prior to his transition, stating that he would not work for the competition. Apple, maker of the iPhone, undoubtedly fits the description.

"He was privy to the pricing, margins, customer initiatives, allocation of resources, product development, multiyear product, business and talent planning and strategies being used by Motorola,'' the suit alleges. These aspects are said to have provided Apple with a good sense of where, how and when to sell the iPhone, therefore getting a bit of a head start.

As you can imagine, these things take time to investigate / research. Tracking customer habits, carrying surveys on different parts of the globe (and all that stuff) require investing both time and money. The information revealed by these activities is then used to place an upcoming device exactly where it would sell best, thus enabling the manufacturing company realize (in due time) how many units need to be produced for the future (among other things).

According to the suit, Fenger had access to this kind of information prior to his departure from Motorola. Whether demand for Motorola's Z10 (for instance) can apply for the iPhone 3G just as well is at least questionable. Nevertheless, if Motorola can prove Fenger did actually help Apple's iPhone sales by using the information he gathered during his stay with the US mobile phone maker, the case undoubtedly stands.

As such, the company is seeking a court order barring Fenger from working for Apple, but also to recoup more than $1 million for Fenger's alleged violation of company stock-option agreements, the Bloomberg report reveals. Apple spokeswoman Susan Lundgren declined to comment on the matter. Apple isn't named as a defendant, whereas no money is being demanded from it in the suit. Fenger could not be reached either.