Hurd Hire Puts HP, Oracle Biz Relations At Stake

Palo Alto, CA, United States (AHN) – An unhealthy business competition is now brewing between HP and Oracle as the former filed lawsuit against the latter over the hiring of a top chief executive who shifted positions to the rival IT firm.

The enterprise rivalry heated up following former HP CEO Mark Hurd’s resignation on Aug. 6 over charges of sexual harassment. Oracle reported Monday that it had hired Hurd as president.

Following the news of Hurd’s hiring by Oracle, HP filed a suit Tuesday in California Superior Court against Hurd for breach of contract..

“Hurd agreed to and signed agreements designed to protect HP’s trade secrets and confidential information. HP intends to enforce those agreements,” the computer giant said in a statement.

In response, software giant Oracle said the move has “turned sour” the harmonious business relations between the two leading IT providers.

“Oracle has long viewed HP as an important partner. By filing this vindictive lawsuit against Oracle and Hurd, the HP board is acting with utter disregard for that partnership, our joint customers, and their own shareholders and employees,” Oracle CEO Larry Ellison said in a statement.

“The HP Board is making it virtually impossible for Oracle and HP to continue to cooperate and work together in the IT marketplace,” Ellison added.

But HP argued that Hurd’s entry to Oracle would “endanger HP’s long-kept best secret in doing business.”

“Despite being paid millions of dollars in cash, stock and stock options in exchange for Hurd’s agreements to protect HP’s trade secrets and confidential information during his employment and following his departure, HP is informed and believes and thereon alleges that Hurd has put HP’s most valuable trade secrets and confidential information in peril,” HP claimed.

“In his new positions, Hurd will be in a situation in which he cannot perform his duties for Oracle without necessarily using and disclosing HP’s trade secrets and confidential information to others,” HP claimed.

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