Apple could compensate car battery maker for stealing its workers

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The Apple Car's going to need batteries after all. Photo: Cult of Mac/USPTO
The Apple Car's going to need batteries, after all. Photo: Cult of Mac/USPTO

Apple has asked a Massachusetts federal judge for more time in its lawsuit with A123 Systems, suggesting that the Cupertino company wants to settle with the electric car battery maker.

Apple was first slapped with the lawsuit last month, after it reportedly began an “aggressive campaign” to poach top engineers with expertise in performing critical development and testing activities on cutting-edge electric vehicle batteries: once again hinting that an Apple Car could be in the company’s future.

“Apple is currently developing a large-scale battery division to compete in the very same field as A123,” the original lawsuit read. A123 specializes in “advanced energy storage for electric-drive vehicles,” with the company claiming that it has created more lithium-ion hybrid systems for transit buses than any other manufacturer in the world.

A123 filed a breach of contract lawsuit against Apple and five former A123 employees, seen below. Apple has reportedly given the five new employees the same job in Cupertino that they were carrying out previously, thereby violating noncompete and nondisclosure agreements. As per the suit, the first employee to leave A123 then helped recruit the other four people who also joined Apple.

In defense of those jumping ship, A123 has run into financial difficulties: filing for Chapter 11 bankruptcy in late 2012, at which point it listed assets of $459.8 million and liabilities of $376 million. Fleeing a sinking ship for a world-beating company like Apple is no poor reflection on the employees in question, but A123 is arguing that it is the way that they left which is problematic.

In the meantime, none of the employees have updated their LinkedIn profiles to reflect their new roles at Apple, although one makes mention of a “Bay Area start up,” which would seem to be a description of Apple that is at least 30 years out of date.

The five employees named in the lawsuit. Photo: LinkedIn
The five employees named in the lawsuit. Photo: LinkedIn

The lawsuit as stands requests unspecified damages, alongside a one-year order barring Apple from working on any technology that directly competes with A123’s business interests. When A123 was previously listed as one of MIT Technology Review‘s most innovative companies, its key innovation was described as a “Nanostructured electrodes [resulting] in lithium batteries more durable and safer than those in cell phones and laptops.”

Although an Apple Car is still very much a rumor (during a recent interview, Tim Cook said he was aware of reports, but was unable to comment), A123 isn’t the only battery maker with automotive expertise that Apple has targeted as of late. Samsung’s battery division has also been targeted by Apple recently, with employees offered lucrative perks and salaries to jump ship.

“As the electric vehicle business is a new one, Apple needs patents and experts in battery technology,” one source told the Korea Times. “Top human resources firms have been approaching Samsung’s battery experts, individually, and I think such human exchange moves are a win-win for both.”

We’ll have to wait to see how things pan out, but if Apple has its way this A123 lawsuit may never make it to court — which from a secrecy perspective is exactly what Apple no doubt wants.

Source: Reuters 

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