By David Sims
david@firstcoffee.biz
The news as of the first coffee this morning, and the music
is Fairport Convention’s great sing-along “Meet On the Ledge:”
Nortel Networks Corporation has announced
that Mike Zafirovski, Motorola, Inc. and Nortel have reached a settlement regarding the
lawsuit filed October 18, 2005 against incoming Nortel President and Chief
Executive Officer Mike Zafirovski.
“We worked in good faith to resolve this issue with Motorola and we are very
pleased with the successful outcome,” said Harry Pearce, chairman, Nortel Board
of Directors.
Zafirovski will begin his tenure as Nortel president and CEO, and director of
the Boards of the Company and Nortel Networks Limited, on November 15, 2005, as
originally planned and announced.
The crux of the problem was that when Zafirovski resigned
earlier this year as Motorola’s president and chief operating officer, he was
given millions of dollars in cash, stock and stock options to agree not to work
for a Motorola competitor for two years after leaving the company.
So when he agreed to work for Nortel, Motorola’s lawsuit
alleges, he violated various noncompete agreements, since his work with Nortel
would “inevitably” result in the use or disclosure of Motorola’s trade secrets.
The lawsuit sought among other relief, an injunction to
enjoin Zafirovski from rendering services to Nortel for two years, from
soliciting or hiring Motorola employees, and from using or disclosing Motorola’s
confidential information.
Zafirovski left Motorola at the beginning of the year after
being passed over for promotion to the top job there.
Under the terms of the settlement, which is subject to
confidentiality restrictions, there are no admissions by Zafirovski, Nortel or
Motorola of any violations of law, breaches of any agreements, or any other
improper conduct, which all parties deny.
The terms of the settlement provide that Zafirovski cannot disclose Motorola
trade secrets or confidential information, and Zafirovski and Nortel have
agreed for a specified period to refrain from hiring or recruiting Motorola
employees under certain circumstances.
The settlement also includes restrictions, until July 1,
2006, on Zafirovski’s communications with certain specified companies, some of
which are Nortel customers, and limitations on his ability to advise Nortel on
competitive strategy or analysis relative to Motorola for a defined period.
Zafirovski will also repay Motorola $11.5 million, which is
part of his separation payment from Motorola, and Nortel has agreed to fully
reimburse Zafirovski for this repayment. When this sort of thing happens in
European soccer it’s called a “transfer fee.”
...
Calypso Wireless, Inc., a vendor of
wireless telecommunications technology is announcing a purchase order for $16.2 million from South American distributor Inversiones CCS SA, for the delivery of
the Calypso C1250i Dual Mode WiFi-GSM-GPRS VoIP cellular phone, which runs on
Intel PXA series application processor and Microsoft WinCE 5.0 operating
system.
The cellular GSM service will be provided by Telefonica Moviles Movistar mobile
networks, a Telefonica subsidiary. Mobile carriers will offer new
functionalities and value added services to the mobile subscribers when using the
Calypso C1250i WiFi-GSM VoIP cellular phone and interconnecting with the WLL/WiFi
networks.
…
Cambridge, England-based TTP Communications plc has
announced that its subsidiary, TTPCom Ltd has entered into a partnership with Skyworks
Solutions, Inc., a provider of analogue, mixed signal and digital
semiconductors for mobile communications applications. Skyworks has licensed TTPCom’s digital cellular silicon intellectual
property and EDGE protocol software to develop its Lynx EDGE cellular
system product line, which delivers enhanced multimedia capabilities suitable
for mid to high tier handsets.
Skyworks has been offering complete handset systems since 1996.