[HN Gopher] Apple lawsuit tests if an employee can plan rival st...
       ___________________________________________________________________
        
       Apple lawsuit tests if an employee can plan rival startup while on
       payroll
        
       Author : pseudolus
       Score  : 111 points
       Date   : 2020-01-21 11:42 UTC (2 days ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | alasdair_ wrote:
       | Isn't this a traditional thing to do at Apple? After all, Steve
       | Jobs condoned it :)
       | 
       | "After several months of being sidelined, Jobs resigned from
       | Apple on September 13, 1985. He told the board he was leaving to
       | set up a new computer company, and that he would be taking
       | several Apple employees from the SuperMicro division with him."
       | 
       | https://en.wikipedia.org/wiki/NeXT
        
         | cia-killer wrote:
         | He wasn't being paid by Apple while he was working on NeXT
         | though (at least I don't believe). I think the issue arises
         | when the person is working for Apple then starts to work on
         | their own company, not sure though
        
           | sneak wrote:
           | I believe GP alleges not that he was paid by apple at next,
           | but that there was planning for next and recruiting happening
           | before the moment of resignation, whilst still employed at
           | apple, because he announced his plans and successful
           | recruiting efforts to apple at the moment of resignation.
           | 
           | Seems to me to be pretty similar to this case, although, as
           | noted down thread, it will likely hinge on the very specific
           | details of this instance.
        
           | alasdair_ wrote:
           | >He wasn't being paid by Apple while he was working on NeXT
           | though (at least I don't believe).
           | 
           | He resigned on the same day he told them about NeXT, which
           | had already had a good amount of work put into its planning
           | (including poaching several apple engineers). I think it's
           | reasonable to assume that before he resigned, he was being
           | paid.
        
       | toktok555 wrote:
       | Lucky Californians. Here I am with a non-compete clause that
       | prevents me from working in my industry for 12 months...
        
         | ricefield wrote:
         | Life's not so bad here - welcome to come anytime
        
         | outworlder wrote:
         | How are you supposed to survive if you can't work in your field
         | for a full year? And then if you are required to work in
         | another field, you are going to get punished by the interview
         | process when you try to come back.
        
           | paulgb wrote:
           | In finance, where non-comptetes are regularly enforced, the
           | answers are typically 1) garden leave [1] and 2) generally
           | not, it's a built-in expectation.
           | 
           | [1] https://en.m.wikipedia.org/wiki/Garden_leave
        
             | outworlder wrote:
             | Ok, that doesn't sound so bad now, kind of a 12 month PTO,
             | which is unheard of anywhere else. What am I missing?
        
               | ska wrote:
               | It's not unheard of elsewhere, but it certainly isn't
               | common for engineers and line level managers. 12 mo is
               | longer than average probably, but for an exec role or a
               | key position it's not uncommon to get a severance term
               | that includes pay for non-compete months.
        
               | paulgb wrote:
               | One big thing that makes it not as good as it sounds is
               | that it's just your salary. In the industry, that can
               | easily be less than half of your total compensation with
               | bonus. Not that that's anything to sneeze at, but it
               | certainly adds to the opportunity cost of switching
               | roles.
        
               | [deleted]
        
               | [deleted]
        
           | jawilson2 wrote:
           | They pay you for those 12 months. At least that's how it
           | works in trading here in Chicago.
        
             | kelnos wrote:
             | They pay you salary, but IIUC not bonus, which, depending
             | on your role, could be more than half of your usual
             | compensation. That's a big price to pay over 12 months just
             | to change employers.
        
           | ta999999171 wrote:
           | If you're making >80k USD a year, regardless of region, and
           | you don't put away money for the unlucky years that you
           | aren't making that much, you deserve to starve.
           | 
           | Leave beneath your means - ALWAYS.
        
             | dang wrote:
             | Would you please stop posting unsubstantive and/or
             | flamebait comments to HN? You've been doing a lot, and it's
             | not what this site is for.
             | 
             | If you wouldn't mind reviewing
             | https://news.ycombinator.com/newsguidelines.html and
             | sticking to the rules when posting here, we'd be grateful.
        
           | epanchin wrote:
           | Garden leave is paid, you're also still essentially employed
           | so no gap on the CV.
           | 
           | You get a new job before leaving, they'll wait.
        
             | stanferder wrote:
             | On a bit of a tangent, are CV/resume gaps still frowned
             | upon in 2020? It's kind of ludicrous that one unbroken
             | stretch of continuous work seems to be some kind of ideal.
        
               | McDev wrote:
               | From my experience it just creates another question for
               | the interviewer, i.e. "What were you doing during this
               | period?".
               | 
               | Similar to how banks view gaps in employment as
               | additional risk when applying for a mortgage for example
               | (at least in the UK).
        
         | brailsafe wrote:
         | In my first frontend dev job for a startup, the contract was
         | absolutely ludicrous. I believe it was something like I can't
         | work in a related industry (tech) or with any clients of the
         | company or the specific domain of the tech I was working on etc
         | etc. For a year.
         | 
         | Had a lawyer look it over who said it was highly unlikely to be
         | enforcable, then I got the company to basically remove the
         | parts that didn't fly.
        
         | icedchai wrote:
         | What industry are you in?
        
       | coolsank wrote:
       | The irony here is amazing. Woz built the Apple I while being
       | employed by HP and now Apple making sure that doesn't happen
       | again.
        
         | alasdair_ wrote:
         | And Steve Jobs founded NeXT while on the clock at Apple. He
         | even took a bunch of Apple engineers with him!
        
         | whalesalad wrote:
         | Not really a fair comparison. While Woz was at HP, he wasn't
         | the executive/leader of their personal computing division.
         | 
         | I don't see how anyone can fault Apple here when the person
         | doing this was leading their entire chip division.
         | 
         | Scenario: I own car washes and hire someone to run and manage
         | one of my locations. I pay them well and put them at the helm
         | of the entire location. This person is able to completely learn
         | the ins and outs of my business and in the meantime is slowly
         | working on poaching other members of my staff and getting
         | things lined up to open a competitive car wash.
         | 
         | Who's side are you on?
        
           | Supermancho wrote:
           | Not sure why the position is relevant, nor do I think Jobs's
           | precedent was relevant. You have skill and talent and you are
           | paid to do a series of tasks. You can capitalize those
           | talents in many ways to make money, working for a company is
           | an option.
           | 
           | If you don't treat your employees well enough, they might
           | leave and might even compete with you. Welcome to the
           | capitalist system.
        
         | kensai wrote:
         | "You are working it wrong!" :p
        
         | ghostcluster wrote:
         | He also tried desperately to get HP to make it an official HP
         | product. HP wasn't interested.
         | 
         | https://www.bizjournals.com/atlanta/blog/atlantech/2013/01/w...
        
           | cryptica wrote:
           | Still, it was generous of HP not to sue him afterwards. It
           | sounds like he was using company resources to build it, they
           | would have had a strong case. Even if they were not
           | interested in commercializing at the time.
           | 
           | I think in today's world, he would definitely be sued.
        
             | lostlogin wrote:
             | Companies can can do claim that ideas from employees are a
             | company resource, even when worker is paid hourly and off
             | the clock and the idea was on the employees own time.
        
         | hellofunk wrote:
         | I don't think you know the whole story. He gave HP the option
         | to own all his work on the Apple I, and he was aware the entire
         | time of the conflict of interest with his employer, and vocal
         | about it.
        
           | radicsge wrote:
           | being aware and vocal would change anything? Not in legal
           | world.
        
       | m0zg wrote:
       | How is it even a "rival"? Apple does not make server-grade CPUs.
       | Nuvia does not compete with them at all. I hope to dear god Apple
       | fails at this.
        
         | rconti wrote:
         | Mac Pro Rack:
         | 
         | https://www.apple.com/shop/buy-mac/mac-pro/rack
        
           | ricefield wrote:
           | Wow, TIL. Does this even make sense financially for anyone?
        
             | zweep wrote:
             | Sure, if you're a creative professional or Mac developer
             | you are probably making at a minimum 20x the cost of this
             | box. If you're in an office a rack mount helps save a lot
             | of desk space, which more than pays for itself. Also lets
             | you get away from the sound.
        
             | rconti wrote:
             | Looks like it starts at only $500 more than the desktop
             | version but I didn't bother comparing specs. I have a
             | friend with a 192GB new Mac Pro he's using for video
             | production and he's currently testing it and finds it
             | outperforms his HP Z8, he's very happy so far.
        
           | jjeaff wrote:
           | Rackmount doesn't mean server. My understanding is that the
           | main reason they are offering that option is that many
           | recording professionals want to be able to rack the macpro
           | with all their other equipment which can then be placed
           | outside the recording booth or put on wheels to move around
           | with all the other equipment.
        
             | ceejayoz wrote:
             | What about a rackmounted Mac Pro _doesn 't_ qualify as a
             | server?
        
               | ta999999171 wrote:
               | ...the architecture of chip inside?
               | 
               | And if I had to bet, the lack of ECC RAM.
               | 
               | But mostly the fact that they're not selling it as a
               | server.
               | 
               | This argument feels...meh.
        
               | sithadmin wrote:
               | 2019 Mac Pros require ECC RAM (not that this qualifies
               | anything as a 'server').
        
               | robotresearcher wrote:
               | They are from 12 to 28 core Intel Xeon Ws with up to
               | 1.5TB of ECC RAM. Also has two 10GB Ethernet ports.
        
               | ceejayoz wrote:
               | Every RAM option on that configurator is ECC RAM, and
               | every processor option is a Xeon.
        
               | jandrewrogers wrote:
               | It is designed to be a user workstation. In some
               | industries, such as pro audio, you often literally have a
               | standard rack built into your desk where you can install
               | your desktop. In these environments, it is not uncommon
               | for your desktop computer to be rack mounted.
               | 
               | Since this is one of Apple's markets, it makes sense that
               | they would cater to it. Dell also sells some desktops
               | with rack mounting options for the same reason.
        
             | rconti wrote:
             | Correct, though my first search for "Mac Pro Server"
             | actually turned up their server software that you can buy
             | on the app store for, I swear it said $1999, and the image
             | was of a laptop.
        
               | dcohenp wrote:
               | I bet you're thinking of _macOS Server_ [1], which costs
               | $19.99 (twenty dollars).
               | 
               | [1] https://www.apple.com/macos/server/
        
         | ricefield wrote:
         | Nuvia makes _chips_ for servers, not the servers themselves.
         | Given that Apple also makes chips, it seems like a pretty fair
         | argument
        
           | m0zg wrote:
           | >> Apple also makes chips
           | 
           | But not _for servers_. It's like saying Qualcomm is a rival
           | of Intel when it comes to CPUs. The two do not overlap at
           | all.
        
             | akhilcacharya wrote:
             | ...but...they do? Qualcomm Centriq directly competes with
             | Xeons (or is intended to) and they build wireless solutions
             | for devices and until recently directly competed on
             | smartphone modems!
        
               | m0zg wrote:
               | Such a powerful rival, I wasn't even aware of the
               | competing product. OK, pick another one of three dozen
               | ARM manufacturers as an example.
        
             | ricefield wrote:
             | 1) I think Apple could easily argue it was planning on
             | leveraging it's chip design and manufacturing expertise
             | into other areas. That's pretty reasonable. I could be seem
             | them exploring licensing some of their IP to other
             | manufacturers for example - ARM servers are gaining
             | traction and Apple is a leader in the ARM space
             | 
             | 2) Seems like the whole "rival" piece is not material to
             | the lawsuit itself and is just a bit of editorializing on
             | Reuters' part. The lawsuit probably centers on duty of
             | loyalty and breach of contract
        
             | kayson wrote:
             | I agree that Nuvia doesn't compete with Apple but Qualcomm
             | is actually a rival of Intel now because of their 8cx
             | platform that's going into ultrabooks.
        
       | gigatexal wrote:
       | I get the impression he's trying to extort Apple into buying this
       | new company -- which, if true, is not cool man
        
         | sneak wrote:
         | That's not what extort means.
        
       | zweep wrote:
       | I feel that the law needs to have more customization due to power
       | imbalances than it does today. Google cloning a startup's product
       | should be less legal than a startup cloning Google's. A low-level
       | employee should have few restrictions on planning a startup while
       | employed, but a senior exec making millions has more power to
       | stay unemployed for some time, a greater insight into his
       | employer's business, etc, and perhaps should have more
       | restrictions on the same. But business law doesn't usually have
       | any such calibration for situation, the way that criminal law
       | does where they take into account who you are and what situation
       | you are in to determine a punishment.
        
         | riyadparvez wrote:
         | > Google cloning a startup's product should be less legal than
         | a startup cloning Google's.
         | 
         | Genuine question. The article is about Apple. Why did you use
         | Google as an example instead of Apple? Is there anything
         | specific to Google that warrants using Google as an example
         | instead of Apple, which is the company in question?
        
         | [deleted]
        
         | hyperpape wrote:
         | Your idea about Google probably is hard to put into law, but in
         | the same way that the law requires unemployment benefits for
         | workers below a certain wage, it could (and I'd argue should)
         | ban noncompetes for workers below a certain salary.
         | 
         | Not a lawyer, but I do not think that would raise
         | constitutional or fairness issues.
        
         | brobdingnagians wrote:
         | I see what you mean, but that would kind of change "equal
         | before the law". Laws should apply equally to everyone.
         | Otherwise, you would have the same kind of twisted lobbying as
         | we have now, but it would be on an uneven field, and the people
         | with money would eventually turn the situation to _their_
         | advantage. At least if everyone's equal before the law, you can
         | appeal to everyone in trying to repeal or change laws.
        
           | Kinrany wrote:
           | This seems similar to tax brackets and anti-monopoly laws:
           | the bigger the company, the more responsibilities it has.
        
           | aplummer wrote:
           | Classes of people can be treated differently and be equal
           | before the law.
           | 
           | Any person who is a police officer has X different rules for
           | example.
        
           | SkyBelow wrote:
           | >Laws should apply equally to everyone.
           | 
           | Two things stand out. First is the quote:
           | 
           | >The law, in its majestic equality, forbids the rich as well
           | as the poor to sleep under bridges, to beg in the streets,
           | and to steal bread.
           | 
           | Second, the law including power imbalances as a reason to
           | treat people different is already considered equality under
           | the law. Consider we already have laws that treat certain
           | groups of people different because of power imbalances. For
           | example consider minors entering into contracts and how the
           | law enforces such contracts.
           | 
           | The law also taxes people differently. Not just for income,
           | but also family status. There are differences in how the law
           | handles certain matters between two people when they are a
           | spouse compared to when they are not (such as property
           | transfers and social security).
           | 
           | The law also discriminates plenty based on age. For example,
           | some people are allowed to withdraw funds from their tax
           | deferred accounts while others are not, all because of
           | differences in age (or in rarer cases other special
           | circumstances).
           | 
           | If all of these are considered equal because the way the
           | rules apply mean that you qualify when you are of the
           | appropriate age/married/meet the specified life
           | circumstances, then the purposed notion would also be equal
           | as the law would equally apply to all when they are on the
           | specific side of the power imbalance.
           | 
           | To set the standard the law must be equal to everyone would
           | require re-evaluating much of the existing law and would
           | fundamentally change quite a few facets of society.
        
           | kelnos wrote:
           | That's the difference between equality and equity. I'd argue
           | that people push too much for the former when the latter is
           | sometimes more appropriate. I'd say this is one of those
           | times.
           | 
           | Since we're talking about the idea of different treatment
           | under the law for rich vs. poor (well, "comfortable", in this
           | case), tax law in the US is a fine example: the more income
           | you make, the higher your marginal earnings are taxed.
        
             | jlarocco wrote:
             | > Since we're talking about the idea of different treatment
             | under the law for rich vs. poor (well, "comfortable", in
             | this case), tax law in the US is a fine example: the more
             | income you make, the higher your marginal earnings are
             | taxed.
             | 
             | That's technically true, but misleading.
             | 
             | The long term capital gains tax, which is what most high
             | income earners end up paying, maxes out at 20%, which is
             | lower than most of the regular income tax brackets. It's
             | the reason some CEOs opt for a $1 salary.
        
               | pb7 wrote:
               | Capital gains tax generally only applies to assets that
               | have been previously taxed as income. Equity grants
               | whether to CEOs or normal employees alike are taxed as
               | income at vesting time with subsequent gains taxed as
               | capital gains. Capital gains taxes apply to both the rich
               | and the poor, with the latter paying a whopping 0%.
        
               | mamon wrote:
               | >> Capital gains tax generally only applies to assets
               | that have been previously taxed as income
               | 
               | No, it does not apply to previously taxed assets at all,
               | only to an additional income you made from those assets.
               | Equity grant is taxed when you excercise your stock
               | options based on their current value. If the stock price
               | goes up later, capital gains tax is only applied to the
               | amount you gained, not the whole sum.
        
             | senderista wrote:
             | The problem with "equity" is that it can mean anything you
             | want. The most blatantly unequal outcomes can always be
             | rationalized as satisfying some higher justice.
        
               | zweep wrote:
               | The exact same can be said about "equality." Any sensible
               | system is a blend of the two.
        
           | [deleted]
        
       | jammygit wrote:
       | So much for being open minded about ever working for Apple. This
       | is extremely hostile to individual freedom
        
         | ricefield wrote:
         | Doesn't seem hostile or unreasonable. He was a senior director
         | that potentially stole IP and also committed a breach of
         | contract by poaching employees.
         | 
         | I'd say if he _did_ do those things, that seems like something
         | that would merit serious legal action.
        
           | echelon wrote:
           | > poaching employees
           | 
           | Getting his _trusted friends and colleagues_ to work with
           | him?
        
             | biztos wrote:
             | Yeah I thought that was pretty common. About 7 years ago I
             | watched a VP walk out to do a startup and he took several
             | key guys with him as his starting dev team, and within a
             | year hired off one more dev and a manager. In California.
             | 
             | Of course, I don't know what was in whose contracts. Maybe
             | that's something you negotiate for?
        
           | [deleted]
        
           | isjaboid wrote:
           | The article states that Apple is not pursuing theft of IP or
           | trade secrets.
           | 
           | Poaching employees though... definitely hairy.
        
           | [deleted]
        
           | nrp wrote:
           | It doesn't seem Apple is even claiming he stole IP. Apple's
           | complaints seem to be [0]:
           | 
           | 1. "Breach of Contract" in starting a competing business
           | while employed there, which was apparently prohibited in his
           | employment contract.
           | 
           | 2. "Breach of Duty of Loyalty", again for starting a
           | competing business while employed there.
           | 
           | There are no claims around theft of trade secrets or
           | violation of copyrights or patents. This seems like an
           | overreach by Apple, but Williams also seemed to be playing
           | with fire by being fairly cavalier in breaching his contract
           | with an employer known to be litigious. It will be very
           | interesting to see where the courts land on this.
           | 
           | [0] https://regmedia.co.uk/2019/12/10/apple_v_gerard_williams
           | .pd...
        
             | ricefield wrote:
             | Ah my bad, I think I misread this paragraph:
             | 
             | > Apple sued Williams in August, alleging that he breached
             | an intellectual property agreement and a duty of loyalty to
             | the company by planning his new startup while on company
             | time at Apple, spending hours on the phone with colleagues
             | who eventually joined the venture.
        
             | donarb wrote:
             | He also had access to employee's personnel files, which
             | included salaries and stock vesting dates. This gave him
             | info on who to recruit and the best time for that employee
             | to leave. That's a bit different than asking a co-worker if
             | they'd like to quit and join a startup.
        
       | just_myles wrote:
       | I'm really interested in the findings. How can Apple prove any of
       | these claims?
        
         | brokenmachine wrote:
         | I wonder if they would use his iphone data (assuming he has
         | one)?
        
           | mattnewton wrote:
           | They would never snoop on a personal device - the risk of
           | loss of user trust and pr has to be immesurably greater than
           | any potential benefit. Maybe he used devices owned by Apple
           | to work on his company.
        
       | pastor_elm wrote:
       | >allowing the case to proceed but barring Apple from seeking
       | punitive damages.
       | 
       | > Apple is not suing Nuvia itself or any of Williams' co-founders
       | and it did not allege any intellectual property or trade secret
       | theft.
       | 
       | What exactly would Apple get here then if ruled in their favor?
       | Petty revenge? A message they can send to current employees? Comp
       | for hours he spent on the phone?
        
         | summerlight wrote:
         | > A message they can send to current employees?
         | 
         | This probably is the main reason. Apple has been constantly
         | losing its best talents on chip design. I believe they're very
         | concerned about his leaving which may accelerate this trend.
        
         | LatteLazy wrote:
         | His share of the new company I thought? Plus, like you say, a
         | warning to existing employees.
        
           | onion2k wrote:
           | His share of the new company is likely to be worthless if his
           | input would have made the company a success (assuming he
           | wouldn't carry on working on it, and it would be really weird
           | if he did.)
           | 
           | So this is really _only_ about sending a message to other
           | employees.
        
         | henryfjordan wrote:
         | They'd probably be claiming ownership of the new company based
         | on the fact that they own their employee's work product.
         | 
         | In reality they will get far enough into the case to determine
         | whether or not they (likely) own any of the business and then
         | settle for a tidy sum or some stock or something like that.
         | 
         | Sending a message is a nice perk.
        
       | pg_is_a_butt wrote:
       | Didn't woz start apple while on payroll somewhere else?
        
       | Rafuino wrote:
       | I don't get how Nuvia competes with Apple though. Apple isn't in
       | the server chip business... they just are in the mobile chip
       | business. That is, unless Apple is admitting they're designing
       | their own Arm-based CPUs for their data centers?
        
       | baryphonic wrote:
       | If what Apple alleges is true, the ex-employee was particularly
       | brazen about his competitive activity on company time and using
       | company property. IANAL, but if you're planning a startup while
       | employed somewhere else, have a wall of separation between the
       | two. Don't use _any_ resource that has any sort of relationship
       | to the employer other than through you. That includes property,
       | equipment, time, employees and infrastructure. You are not only
       | better protecting yourself legally, but also showing respect to
       | your employer by not misusing /countermanding their resources.
        
         | mattnewton wrote:
         | IANAL, but what does not using company time mean for salaried
         | employees? I'm never "on the clock" vs "off the clock" in my
         | current role, I just have target dates to hit.
        
           | baryphonic wrote:
           | It's a good question. I don't know, and if you're curious,
           | ask an employment lawyer.
           | 
           | I'm even further removed from company time: not only am I
           | salaried non-exempt, but I mostly work remotely.
           | 
           | My own rule (without taking into account any legal advice I
           | don't need, since I'm not working on my own startup) is to be
           | very strict about the resources that belong to the company,
           | and not mix them with anything I do for fun or
           | personal/professional growth.
        
             | thaumasiotes wrote:
             | If you're non-exempt, then you're explicitly tracking
             | "company time" vs "not company time".
             | 
             | Did you mean you are exempt?
        
           | jedimastert wrote:
           | Also IANAL, but I would say no company resources. No company
           | information, equipment, facilities, and nothing you didn't
           | buy with your own money
        
           | ogre_codes wrote:
           | It would be easy enough to firewall your activities based on
           | location. If you are in the office at your place of work, do
           | the work you are paid to do, if you are planning on doing
           | activities that relate to job hunting/ creating a new
           | business, do it after you leave or while at lunch.
           | 
           | If the guy's last couple month's productivity goes through
           | the floor and he has dozens of hour+ long phone calls to his
           | lawyer's office, he might be in trouble.
        
             | thaumasiotes wrote:
             | > It would be easy enough to firewall your activities based
             | on location.
             | 
             | ...if you work from home?
        
               | Hamuko wrote:
               | Switch from your work computer to your own computer. If
               | you don't have on the clock vs. off the clock, then I
               | think you could make the argument that you were doing
               | work stuff and then moved to your own computer to do your
               | own stuff.
        
               | lostlogin wrote:
               | At work computer versus at own. Or even VPN on, versus
               | off VPN, though that's harder if you don't use one.
        
             | bcrosby95 wrote:
             | Makes things trickier if you work remotely. Probably a good
             | reason for having a personal computer and a work computer.
        
               | mattnewton wrote:
               | Oh, absolutely they should be firewalled by device if you
               | are a salaried employee, especially since most employees
               | work on computers that are the property of their company.
               | But can't my employer assert that they bought all my time
               | when I signed up to be an exempt employee? The
               | moonlighting laws in CA seem to give them leway to so if
               | they are in a related area to my project, which for
               | AmaGoopleSoft is potentially everything that can be done
               | with software these days.
        
           | rafiki6 wrote:
           | This is only true if your employment contract doesn't specify
           | a certain number of hours a week, or if there's no standard.
           | A simple test to see what the standard for a day is is the
           | hours a company considers a vacation day. As much as your
           | employer may like to think they own you, the reality is quite
           | different, even for salaried employees who don't get paid
           | overtime. There is a reasonableness test that can be applied.
        
           | refurb wrote:
           | Doing outside work while on company property during normal
           | working hours is probably a pretty good rule.
        
           | lilyball wrote:
           | Are you working out of your employer's office? While you're
           | in the office that's generally considered "company time", or
           | at least company resources.
           | 
           | If you're working from home and don't have normal "work
           | hours" then it's not so well-defined.
        
             | alasdair_ wrote:
             | >Are you working out of your employer's office? While
             | you're in the office that's generally considered "company
             | time", or at least company resources.
             | 
             | It gets trickier if you are, say, eating lunch or are there
             | after common working hours.
        
         | planetzero wrote:
         | This is why contracting is much better when building your
         | company on the side. I have nothing in my contract that states
         | anything about the ownership of my code (that's not company
         | property) or about my time.
        
       | sigzero wrote:
       | "Apple sued Williams in August, alleging that he breached an
       | intellectual property agreement and a duty of loyalty to the
       | company by planning his new startup while on company time at
       | Apple, spending hours on the phone with colleagues who eventually
       | joined the venture."
       | 
       | If that's the case, then "no" that shouldn't be allowed.
        
         | inetsee wrote:
         | I agree with you in general that Williams overstepped
         | reasonable bounds on what he could do in planning his new
         | venture. But the one phrase that jumped out at me was the "duty
         | of loyalty to the company". I am reminded of all the articles
         | I've read that describe companies that exhibited no loyalty
         | whatsoever to their employees. I'm also reminded of the
         | articles describing the working conditions of the people who
         | are actually manufacturing Apple's iPhones. I know that these
         | aren't actual Apple employees, but Apple has to know about the
         | working conditions, and it seems to me that Apple just doesn't
         | care.
        
         | kemiller2002 wrote:
         | I'm not saying you're wrong as that was my initial reaction
         | too. I am curious though, how does being a salaried employee
         | factor into this? I mean, is there really a designation of what
         | is company time? Is it because, he's in the office, even if
         | he's using his own phone? You could say that he isn't
         | technically on the clock, since they aren't paying him a wage
         | for that specific slice of time. I'm genuinely curious. Is
         | there case law that factors into this?
        
         | alasdair_ wrote:
         | >duty of loyalty to the company
         | 
         | It's interesting that this loyalty is only one-way. If someone
         | is employed at Apple and Apple takes time to lay someone off
         | while they are employed and not clearly deserving of being
         | fired, there is no implicit claim of loyalty.
        
         | alpha_squared wrote:
         | The article does go on to say:
         | 
         | > The case will likely hinge the specific facts of Williams'
         | planning for Nuvia, Palefsky said. Given that work at modern
         | tech jobs rarely sticks to traditional business hours, it may
         | be difficult to untangle whether calls were made during company
         | time or personal time.
         | 
         | That's actually a pretty fair thing. Apple may define, for
         | example, its "company time" as any time the office is open and
         | accessible to employees -- which is a pretty wide window.
        
           | outworlder wrote:
           | You can bet that's how they are going to try to define this.
        
           | jessriedel wrote:
           | But like most tech companies they give their employees a lot
           | of freedom to adjust their hours. If the employee is free to
           | take an hour during the normal workday to pick up groceries,
           | it stands to reason they can use it to recruit their friends
           | for a venture.
        
             | kristianc wrote:
             | I'm not sure that does follow - Apple allows the employee
             | to take an hour to pick up groceries as it makes the
             | employee less distracted, more focused, and a more valuable
             | asset to Apple. Not sure that applies to planning a
             | competitive startup on company time.
        
             | kelnos wrote:
             | Yes, that's what I was thinking too. If it's normal and
             | commonplace for someone to step out for an hour to run an
             | errand, how is that any more "company time" than ducking
             | into a conference room, or (safer) heading to the garage
             | and sitting in your car to make some recruiting phone
             | calls?
        
           | m0zg wrote:
           | Extraordinary claims, though, require extraordinary proof.
           | And the onus is on Apple to prove what they allege. Somehow I
           | don't think the judge will agree with your rather lax
           | definition of "company time". I'd define it more reasonably
           | as "time during which company resources were used or company
           | work was claimed to be done", i.e. you're in the office, or
           | using company hardware at home, or specifically claim to be
           | working from home, stuff like that.
        
             | alpha_squared wrote:
             | Even _that_ can be dicey, though. I can imagine being at a
             | meeting with coworkers and concluding with, "hey, I'd like
             | to talk to you about something later," to one of them.
             | Later could've been outside the office -- it's unknown.
             | That sounds like company time, but feels a little wrong. I
             | think this case is going to be very heavily dependent on
             | technicalities.
        
             | akiselev wrote:
             | IANAL but this is a civil suit so the standard is going to
             | be a "preponderance of the evidence." Both Apple and
             | Williams could have solid, equally valid arguments for
             | their side and one small detail could tip the scales to
             | either direction. Beyond demonstrating the basic facts of
             | the case, Apple doesn't have to prove that Williams was
             | 100% doing it on his own time, just muddy the waters enough
             | for some other detail like using a company device or
             | recruiting coworkers to put them over the top.
             | 
             | That doesn't preclude the jury deciding in Apple's favor
             | but then awarding them something symbolic like $1.
        
           | threeseed wrote:
           | I've worked at Apple and other larger tech companies.
           | 
           | They largely work traditional 9-5 hours and whilst people
           | will work longer hours around key deliverable dates it's
           | entirely optional.
        
       | newnewpdro wrote:
       | > duty of loyalty to the company
       | 
       | Oh please my sides, they hurt, I can only laugh so hard.
        
         | ricefield wrote:
         | Not sure why you're laughing, this is an actual legal term:
         | https://www.nolo.com/legal-encyclopedia/fiduciary-responsibi...
        
           | outworlder wrote:
           | That's for directors and stockholders, not random employees.
        
             | ricefield wrote:
             | > Apple filed the lawsuit in Santa Clara County Superior
             | Court against Gerard Williams III, who left the company
             | last year after more than nine years as chief architect for
             | the custom processors that power iPhones and iPads to start
             | Nuvia Inc, which is designing chips for servers.
        
               | outworlder wrote:
               | Chief architect. AKA engineer.
        
               | ricefield wrote:
               | His LinkedIn literally says, "Senior Director":
               | https://www.linkedin.com/in/gerard-williams-iii-27895aa/
               | 
               | It's not like he was some kind of low-ranking IC engineer
        
               | kelnos wrote:
               | Director in this sense does not mean what it means in the
               | definition for "duty of loyalty", which is talking about
               | board members, not (even high-ranking) employees.
        
               | outworlder wrote:
               | Well, being a "senior director" (sounds like an oxymoron
               | to me) would seem to apply.
        
             | bdowling wrote:
             | The concept also applies to random employees. For example,
             | if an employee placed in charge of a shop charges customers
             | more than the set prices and keeps the difference for
             | himself, that would be a breach of the duty of loyalty. The
             | idea is that the employee is abusing the trust placed in
             | him and appropriating the company's business interests for
             | himself. It can happen at any level, from executives with
             | conflicts of interest to employees stealing from the till.
        
           | newnewpdro wrote:
           | I'm laughing because my understanding is that he's an
           | employee, if he's beholden to fiduciary duties then it's a
           | different situation.
        
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