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Steve Jobs Defied Convention, and Perhaps the Law

Hugh Pickens DOT Com (2995471) writes "James B. Stewart writes in the NYT that recent revelations that Steve Jobs was the driving force in a conspiracy to prevent competitors from poaching employees raises the question: If Steve Jobs were alive today, should he be in jail? Jobs 'was a walking antitrust violation. I'm simply astounded by the risks he seemed willing to take,' says Herbert Hovenkamp, a professor at the University of Iowa College of Law and an expert in antitrust law. 'Didn't he have lawyers advising him? You see this kind of behavior sometimes in small, private or family-run companies, but almost never in large public companies like Apple.' In 2007, Jobs threatened Palm with patent litigation unless Palm agreed not to recruit Apple employees, even though Palm's then-chief executive, Edward Colligan, told him that such a plan was 'likely illegal.' That same year, Jobs wrote Eric E. Schmidt, the chief executive of Google at the time, 'I would be extremely pleased if Google would stop doing this,' referring to its efforts to recruit an Apple engineer. When Jobs learned that the Google recruiter who contacted the Apple employee would be 'fired within the hour,' he responded with a smiley face. 'How could anyone have approved that?' says Hovenkamp. 'Any competent antitrust counsel would know that's illegal. And they had to know they'd get caught eventually.'" (Read more, below.) Pickens continues: "But the anti-poaching pact was hardly Jobs's only brush with the law. Jobs behavior was at the center of an e-book price-fixing conspiracy with major publishers where a federal judge ruled that "Apple played a central role in facilitating and executing that conspiracy." (Apple has appealed the decision. The publishers all settled the case.) Jobs also figured prominently in the options backdating scandal that rocked Silicon Valley eight years ago. An investigation by Apple's lawyers cleared Jobs of wrongdoing, saying he didn't understand the accounting implications but five executives of other companies went to prison for backdating options, while Jobs was never charged.

There's no way of knowing whether Jobs, had he lived and been healthy, would have faced charges, especially since he was a recidivist. Given Jobs's immense popularity, prosecutors might not have wanted to risk a trial, says Hovenkamp. Jobs probably came closest to being prosecuted in the backdating scandal, but by then he was already known to have pancreatic cancer. Jobs' biographer Walter Isaacson notes that 'over and over, people referred to his reality distortion field.' Isaacson added, 'The rules just didn't apply to him, whether he was getting a license plate that let him use handicapped parking or building products that people said weren't possible. Most of the time he was right, and he got away with it.'"

21 of 311 comments (clear)

  1. Simple by rainer_d · · Score: 4, Informative

    He was going to die. And he knew it. So he was able to take risks that no one else was going to take.
    Because he knew: whatever he did (short of doing an OJ-Simpson style stupidity), he would only be judged by his achievements, the products he created.
    Nobody remembers Charlie Chaplin for his three teenager-wifes and pre-marriage pregnancies - even though it was a major scandal even back then.
    What lives on are his works.

    --
    Windows 2000 - from the guys who brought us edlin
    1. Re:Simple by Travis+Mansbridge · · Score: 4, Interesting

      Jobs was the only tech industry giant with the gall to assume that he deserved a cut of every piece of software sold over his company's platforms, and this is why they made multiple pushes to take over and lock down the entire software industry. I'm not saying Windows or Android are better, but at least those users can run whatever software they want. Jobs was always a megalomaniac.

    2. Re:Simple by stenvar · · Score: 5, Informative

      He was going to die. And he knew it. So he was able to take risks that no one else was going to take.

      That's not what happened. His cancer was likely easily treatable and curable when it was discovered. But Jobs refused "conventional treatment" and went for a "holistic approach". By the time he went back to regular doctors, many months later, it was too late. And instead of the heroic dying hero you try to make him out as, there is fairly little he accomplished after that.

      Jobs did "think different" and it killed him.

    3. Re:Simple by Anonymous Coward · · Score: 4, Insightful

      IMHO, the problem is that Jobs didn't invent light bulbs or put on a good act to be remembered. He made toys, and in 5-10 years, the "insanely great" products may be something of yesteryear. People don't remember Sony's MP3 devices which were groundbreaking, nor Creative and the Nomad Jukebox which was one of the first popular players.

      With that in mind, he seemed to leave a lot of negative legacies. His ship and the large sums of money owed on that, the handicapped parking place issue (be it real or a rumor), and the fact that he is on record for giving $0 to any charity. There isn't a Jobs foundation for the arts. Nor is there a Jobs foundation for anything. He might have donated behind the scenes, but that doesn't matter to history where it matters what is on the books.

      One can contrast him to the 19th century robber barons. They at least left behind hospitals, schools, foundations, and trusts as a legacy which persists today.

      IMHO, once his devices become items from a bygone time, there won't be much positive that Jobs will be remembered for other than yet another brutal CEO.

    4. Re:Simple by blincoln · · Score: 5, Interesting

      Actually, 10% above cost is the maximum that Costco will price merchandise without having something like VP-level approval. They seem to be doing well enough.

      --
      "...always new atoms but always doing the same dance, remembering what the dance was yesterday." -Richard Feynman
  2. No way of knowing? by ATMAvatar · · Score: 4, Insightful

    It seems pretty silly to ask whether Jobs would have gone to jail. Of course he wouldn't.

    Between his celebrity status and bankroll, there's a snowball's chance in hell that he could get convicted of anything, barring committing the crime right there in the courtroom.

    --
    "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety."
  3. And he's the only one? by briancox2 · · Score: 5, Insightful

    I can't seems to stop a suspicion from forming in the back of my mind that somewhere someone is trying to shift blame on the recent news of anti-trust behavior onto the one guy who is no longer here. Doesn't it take 2 to tango? In this very news story, I read that Google was complicate in the scheme of preventing a competitive job market. So let's report on the story that should be reported, please -- Who in Google is going to jail over this?

    --
    We should learn what we need to know about issues, before we decide what we need to feel about them.
  4. Re:OH BOY, THE BIG GOVERNMENT CROWD IS OUT !!! by Nidi62 · · Score: 5, Insightful

    Why do people who have achieved nothing in life love to find fault with the innovators that are the engine of modern economic growth.

    So because Hitler was the driving force behind the autobahn, VW, and the foundations of modern space exploration we should just give him a pass on that little Holocaust thing? I mean, he was even partly responsible for bringing the US out of the Great Depression!

    --
    The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
  5. Just the cost of doing business. by Immerman · · Score: 5, Insightful

    Seriously, where do they get off saying it's rare for big companies to do illegal shit? Name me one that *doesn't* at least walk really close to that line.

    1) break the law
    2) profit
    3) maybe get caught
    4) if caught, pay a fine of 1% of the excess profits

    Why *wouldn't* a company break the law in such circumstances? There is absolutely no reason for it to stop until it becomes routine to either fine corporations an amount much greater than the excess profits (to compensate for all the times they presumably didn't get caught), or it becomes normal to hold the executives personally liable for the corporate actions they endorsed.

    --
    --- Most topics have many sides worth arguing, allow me to take one opposite you.
    1. Re:Just the cost of doing business. by es330td · · Score: 5, Insightful

      The only way to fix this is for the people behind decisions to face penalties. Whether or not a corporation is considered an entity, a real person makes every decision, and only holding the people behind a decision to break the law responsible will fix this kind of behavior.

    2. Re:Just the cost of doing business. by Charliemopps · · Score: 5, Insightful

      So we're defending Steve Jobs with "Well, everyone does it, of course he does to" now? Steve Jobs was a terrible person. He setup a deal with a local car dealership to switch cars on a regular basis for the sole purpose of never having to get a license plate so he could park in handicap spaces without getting a ticket. He could have had his own parking spot damned near anywhere he went, but no, he was such a huge asshole he couldn't just have the spot, he had to take it from someone else that needed it. Jobs fanboys always like to sweep that fact under the rug... now we also have to sweep the plethora of federal laws he broke just to win... and again, it always had to be at someone else's expense. The guy was a grade A jerk, and hope time will eventually reflect that once everyone finally gets their rose colored glasses off.

      Ok, mod me down Apple fanatics. It's worth the karma.

    3. Re:Just the cost of doing business. by Mike_EE_U_of_I · · Score: 5, Insightful

      Seriously, where do they get off saying it's rare for big companies to do illegal shit? Name me one that *doesn't* at least walk really close to that line.

      I've consulted in big companies for quite a while. My experience has been that most of time, most people are trying to obey all the laws. That said, yes, "the line" does get crossed. In all the cases I've personally seen, "the line" was crossed either because of ignorance or for precisely the reason you state (the fine is lower than the expected profit).

      And that's why this case is astonishing. Steve Jobs went so far over the line, he might have wound up in jail. That's something I've not seen. You know why no banker went to jail? I've seen this shit in meetings. Someone proposes something that is illegal. The discussion then focuses on costs and profits. It then moves to plausible deniability and the chance of going to jail. If the conclusion is that there is the slightest chance someone will go to jail, that's it. That idea is dead dead dead.

        Steve Jobs, like the Honey Badger, didn't care. He left a trail, IN WRITING, that could have put him in jail.

      Insanely illegal.

    4. Re:Just the cost of doing business. by davydagger · · Score: 4, Insightful

      thats bullshit. I know the constitution inside and out. The constitution is just that, a piece of paper. All laws are just that, pieces of fucking paper.

      If the system won't enforce the laws, they for all intents and purposes don't exist. Stop arguing over technicalities.

      Look at the former soviet union, which on paper, was a democracy with strong civil rights protections.

      Heck, even on paper North Korea is a democracy with a very popular elected leader.

      Its easy to see it somewhere else, but its sometimes hard to see the forrest from the trees

    5. Re:Just the cost of doing business. by Trepidity · · Score: 4, Insightful

      I agree it's uncommon in large companies. I think it's something you only tend to find in companies that are kind of the personal fiefdom of a strongly opinionated person who is much bigger into risk-taking than a professional management would be. For example Rupert Murdoch makes some decisions with his business empire that a professional group of managers would probably not risk, because he has extra-corporate goals (like promoting certain political agendas) and a bit of a belief in his own untouchability.

  6. Jobs himself said ... by romanval · · Score: 4, Insightful

    that the best programmers/software engineers are astoundingly more productive; something like 10 to 25 times faster then average ones. He obviously wanted to do what it took to retain them, since he was knew that his new product developments relied on impossibly fast deadlines.

    1. Re:Jobs himself said ... by sideslash · · Score: 5, Insightful

      that the best programmers/software engineers are astoundingly more productive; something like 10 to 25 times faster then average ones. He obviously wanted to do what it took to retain them, since he was knew that his new product developments relied on impossibly fast deadlines.

      I have an amazing, original idea for retaining talent. Ready for this? ........ Pay them a competitive salary.

    2. Re:Jobs himself said ... by 140Mandak262Jamuna · · Score: 4, Insightful
      Productivity of the good programmers is very seriously under estimated. A bad algorithm to solve a problem will suck in so much or resources in implementation, debugging and maintenance. When such a code is retired/replaced by fundamentally better algorithm the performance improvement would be orders of magnitude better. Productivity is (output/input). If we define output as the problem solved and the input as the resources consumed during creation, maintenance and execution of the code, you would see the good programmers one order of magnitude better than average one. Great programmers could easily achieve two or even three orders of magnitude improvement on a module that has a service life of 20 years. When a great algorithm is implemented the first time, even people intimately involved with the project might not have a full idea of how much of resource wastage has been averted.

      On the other hand if you define output as so many lines of code and the input as so many hours spent on the keyboard, you would get a totally useless metric. Call it anything you want, but please, please do not call it productivity.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  7. Stve Job At His Finest by Anonymous Coward · · Score: 5, Interesting

    I worked as a contractor at Apple for some years in the early 1980s. I was offered a permanent position there which I turned down. In those days Apple was small and I interacted with Jobs on a semi-regular basis.

    Inside Apple, Jobs was a capricious tyrant who inspired fear or loyalty depending on whether he liked you or not. The stories about him are legion. He liked people to challenge him, to a point, but if you went over that point he would never listen to you again. He felt that he understood what users wanted much better than the user experience people (maybe correctly). He was the ultimate micro-manager. He gave a few secretaries a $50k spending limit when their boss might have a $5k limit (or less in one case). He ignored convention - but only when that helped him. He hated colored screen output - Woz had to sneak in the 6 colors the Apple II had. In the early days he swindled Woz out of profits from a joint venture. He considered most people as objects to be used to achieve his objectives. He considered laws as something to be worked around. I'm reasonably convinced he had very little or no conscience.

    But he knew what he wanted from people. Customer experience was everything. He could charm people when he felt he needed to. He was loyal to people in his inner circle (mostly). He would not compromise if he felt this would result in an inferior product. He had very high expectations of people's work output (and he let them know in no uncertain terms when they didn't meet those expectations).

    He had his good side and his bad side. He was not a suitable person to run a company. Firing him was the best thing that could have happened because it changed him fundamentally. He actually started to be concerned about what others thought, and realized that and sometimes you have to listen to them, and on occasion someone else could be right. But be in no doubt, at the bottom of his heart he still considered other people as stepping stones to help him go where he wanted to go - to provide money as investors or customers, to create products for him to sell, or to help him sell those products.

  8. Re:OH BOY, THE BIG GOVERNMENT CROWD IS OUT !!! by next_ghost · · Score: 4, Insightful

    I still believe that Jobs was a jerk and an imitator, not an "innovator" in any sense of the word. He pretty much said himself that his skill was in identifying the best things to "steal" (his word) from his competitors.

    That's what innovation is all about. Nobody can make all the puzzle pieces themselves from scratch. But if you can get the pieces from others, you can then put them together into something new.

  9. Re:Master of manipulation by killhour · · Score: 5, Insightful

    Jobs was well known to be a sociopath. He cared nothing for people or anything that didn't directly further his vision. That's part of what made him such a successful artist and business man, but it's very obvious to anyone that spent any time at all with him that he just didn't care about the law or anything that he saw as standing in his way of getting what he wanted. Just watch any video with him talking about his competitors. He's dismissive, and rude, and obnoxious. And for some reason, people loved him for it. https://www.youtube.com/watch?...

  10. Re:Psychopathic Personalities by Concerned+Onlooker · · Score: 4, Insightful

    No. The word you are looking for is sociopath. Jobs did not display violent behavior and he was not unstable. He was, however, un-empathic to those around him and displayed anti-social behavior.

    I'm a Mac user and I really like my Apple products, but I don't mythologize or worship Steve Jobs. He was driven to make cool stuff but as with most people who affect the world in big ways he was doing it strictly for reasons of ego.

    And yes, Larry Ellison is, too.

    --
    http://www.rootstrikers.org/