Two of the leading manufacturers of high end mobile phones, Motorola

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Principles and Practice of Management
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• Principles and Practice of Management
•  
• CASE STUDY (20 Marks)
• Two of the leading manufacturers of high
  end mobile phones, Motorola, Inc. (Motorola) and
  Research in Motion Ltd. (RIM), had entered into
  an agreement in February 2008, whereby the two
  companies had agreed not to poach each other's
  employees. In September 2008, Motorola sued RIM
  and claimed for damages accusing the latter of
  poaching 40 of its employees in Florida. In
  December, RIM countersued Motorola accusing the
  company of illegally preventing it from hiring
  employees who had been fired from Motorola though
  the original agreement between the two companies
  had expired in August 2008. While experts are
  still divided on whether talent poaching is
  ethical, there has been a steep increase in
  employee poaching lawsuits across all sectors as
  employers are concerned with protecting their
  trade secrets .

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• In December 2008, Research in Motion Ltd.
  (RIM) sued Motorola Inc.(Motorola) for, what it
  called, illegally preventing it from hiring
  employees that Motorola had laid off. According
  to RIM, the two companies had entered into an
  agreement in February 2008 on not hiring each
  other's employees or the newly separated ex
  employees. When Motorola announced layoffs in
  large numbers, RIM, attempted to hire and gain
  some engineers at a lower cost. RIM considered
  that the agreement had expired in August 2008 and
  prayed to the Chicago court for damages. RIM
  contended that despite the agreement having
  expired, Motorola had unlawfully extended the
  contract and prevented RIM from offering jobs to
  the fired Motorola employees.

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• Answer the following question.
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• Q1. Give an overview of the case.
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• Q2. Discuss talent poaching and give reasons why
  talent poaching is illegal

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