History (1992): Seagate Files Counterclaims vs. IBM

On February 20, 1992, Seagate Technology (Scotts Valley, CA) filed a counterclaim vs. IBM stating that IBM has engaged in unfair business practices that directly impact the freedom and mobility of professionals to enhance their careers, and the ability of employers to attract and employ highly qualified individuals.

In a separate filing announced vs. IBM, Dr. Peter I. Bonyhard, a one-time IBM employee who now works for Seagate, has accused IBM of breach of contract and unfair treatment.

In its claim, filed with the US District Court in Saint Paul, MN, Seagate alleges that IBM’s efforts to block current and former IBM employees from working elsewhere constitute unfair competition.

Seagate also challenges that IBM has interfered with Seagate’s right and ability to hire talented employees and has recently begun harassing Seagate regarding former IBM employees who have been employed by Seagate for several years.

The Seagate and Dr. Bonyhard counterclaims are in response to IBM’s October 11, 1991 filing that alleges Dr. Bonyhard unlawfully transferred IBM MR head technology to Seagate.

He was appointed director of technology for Seagate’s Minneapolis-based advanced components division in June 1991. In a December ruling, the US District Court ruled that Dr. Bonyhard was prohibited from participating in any Seagate MR head development based on the “Doctrine of Inevitable Disclosure”, which precludes employees from working for competing firms because, according to the doctrine, a transfer of proprietary information is inevitable.

In a separate statement, Seagate announced that it has inducted Greg Mowry, a scientist at its Minneapolis operation, into the Seagate Hall of Fame in recognition of Mowry’s decade-strong pioneering R&D efforts in MR head technology. According to Seagate, since 1982, Mowry has received 10 US patents in magnetic recording technology, with a primary focus on MR head-related development. The “Hammerhead” MR sensor design (1985), double-gap MR head topology (1989) and boundary control stabilization (1990) patents represent the root technological concepts applied today by Seagate and other companies involved in MR head developments.

This article is an abstract of news published on the former paper version of Computer Data Storage Newsletter on issue ≠50, published on March 1992.