Motorola has reached an agreement to settle the lawsuit against Mike Zafirovski, the company's former president and COO, following Zafirovski's recent appointment as president and CEO of Nortel.
In the lawsuit, Motorola alleged that Zafirovski's move to Nortel threatened an unlawful misappropriation of Motorola trade secrets and a breach of multiple non-compete, confidentiality and no solicitation agreements Zafirovski signed with Motorola. Both Zafirovski and Nortel are parties to the settlement. The lawsuit will be dismissed, but the court will retain jurisdiction of the matter to enforce the terms of the settlement.
In order to protect Motorola's intellectual capital and proprietary information, the terms of the settlement reaffirms Zafirovski's obligations to protect Motorola's trade secrets and confidential information and restricts him from internal and customer activities that could lead to his use of and sharing of such information to Nortel's unfair advantage.
The settlement also restricts certain recruiting activities by Nortel and Zafirovski.
The settlement includes an $11.5 million cash payment to Motorola and requires Zafirovski to regularly certify compliance to Motorola and Nortel's board of directors.
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