Apple hires IBM exec to head iPods; IBM objects

Models of the new iPhone 3G with Chinese interface are shown during a promotional event at its launch in Hong Kong July 11, 2008.

NEW YORK (Reuters) - Apple Inc has named a former IBM executive, Mark Papermaster, to head its iPod and iPhone development team, a hire that IBM has vowed to fight in court.

Apple on Tuesday said it hired Papermaster as senior vice president of Devices Hardware Engineering, replacing Tony Fadell, who will stay on as an adviser to Chief Executive Steve Jobs.

Papermaster was until late October vice president of International Business Machines Corp's Blade Development unit, which develops powerful computers for corporate data centers.

IBM last week filed a lawsuit to prevent the hiring, saying that as a top manager, Papermaster had access to IBM secrets and that he had agreed not to work for a competitor for a year.

IBM spokesman Doug Shelton said the case is proceeding.

"Mr. Papermaster's employment is a violation of his agreement with IBM against working for a competitor should he leave IBM," he said. "We will vigorously pursue this case in court.

Apple's statement made no mention of the court case. It said Tony Fadell and his wife Danielle Lambert, who is vice president of Human Resources at Apple, are "reducing their roles" to devote more time to their family.

(Reporting by Franklin Paul, additional reporting by Supantha Mukherjee in Bangalore; Editing by David Holmes and Brian Moss)