Sour Apples

When Steve Jobs resigned as chairman of Apple Computer two weeks ago, it seemed the final act in a stormy corporate drama. But the saga continues. Jobs had enraged Apple's board of directors by starting a rival computer firm and luring five company employees, including senior engineers and marketers, to join him. Jobs' new venture, to be called Next, Inc., is expected to compete directly in Apple's core educational market. Last week Apple lashed back, filing suit against Jobs in Santa Clara County's superior court. The computer company (1984 sales: $1.5 billion) charged that Jobs had "secretly planned" to compete with Apple "while pretending loyalty" to the firm he co-founded eight years ago. Apple further alleged that Jobs "secretly schemed" to misappropriate the corporation's confidential plans for a new computer. Apple, however, has not tried to prevent Jobs from founding his new company. /

"When someone calls you a thief in public, you have to respond," Jobs declared. "Maybe they want to parade me naked through the square." His way of responding was to call a press conference at his spacious but spare home in Woodside, Calif. Dressed in faded blue jeans, a wool sweater and tennis shoes (no socks), Jobs called the lawsuit "absurd" and insisted that he never intended to steal any of his old firm's proprietary technology.

Both Apple and Jobs had hoped to avoid a suit, but a proposed settlement collapsed after days of negotiation. Neither side will reveal precisely what caused the final break. Jobs states that he had agreed not to solicit any more Apple employees for a year and to refrain for six months from hiring any who approached him.

Apple officers maintain that they had no choice but to sue. "We only did this very grudgingly," said General Counsel Albert Eisenstat. The corporation's directors feared that if they did not take legal action against Jobs, they could themselves be sued for failing to protect the interests of Apple shareholders. Still, an out-of-court settlement remains possible. "We're always willing to listen," says Eisenstat. The company would undoubtedly like to avoid any public perception that it is beating up on the old boss.

Meanwhile, Jobs has inspired hopeful activity far from Silicon Valley. The Chamber of Commerce of Boulder, Colo., last week invited Jobs to bring his new company to that city (pop. 77,000), where some 7,000 high-tech workers have been laid off during the past 18 months. Jobs could probably use a Rocky Mountain high, but he has yet to respond to the offer.