HP Sues Mark Hurd After Hurd Joins Oracle

Hewlett-Packard filed a lawsuit against former CEO Mark Hurd today. Yesterday, Hurd agreed to join Oracle as co-president. HP claims Hurd is violating his confidentiality agreement and will reveal the HP’s trade secrets to competitor Oracle. The agreement was part of Hurd’s severance package.

Here’s an excerpt from the lawsuit’s introduction, from HP’s blog:

“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 from his positions at HP as Chairman of the Board, Chief Executive Officer, and President, HP is informed and believes and thereon alleges that Hurd has put HP’s most valuable trade secrets and confidential information in peril. Hurd accepted positions with Oracle Corporation (“Oracle”), a competitor of HP, yesterday as its President and as a member of its Board of Directors. 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.”

According to the New York Times:

(When Hurd was fired,) H.P. found no evidence of sexual harassment, but said Mr. Hurd had tried to conceal a personal relationship with (female contractor) Ms. Fisher by removing her name from his expenses for meals. Mr. Hurd settled with Ms. Fisher for an undisclosed sum and fought H.P.’s decision to make the sexual harassment claims public.

Oracle’s chief executive and largest shareholder, Lawrence J. Ellison, a personal friend of Mr. Hurd’s, had criticized H.P.’s board last month in an e-mail message, calling the dismissal “the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago.”

Ellison, meanwhile, has a new samurai for his cutthroat Oracle team, according to MarketWatch:

Steve Allen of Sierra Tech Research cited Ellison’s move as a strategic masterstroke, saying “he has just recruited a general from the enemy. Who knows the enemy better than Hurd? The drums are beating. There is talk of war.”

When it comes to waging war in the corporate tech arena, Oracle is known to be relentless. Oracle’s co-president, Safra Catz, testified about an internal program code-named “Kill SAP,” referring to the German software player. “It’s a little military, but our guys get excited,” she said.

While the executive he just hired to be co-president got sacked in an embarrassing scandal, Ellison himself has survived similar tough spots — including a very public dispute involving sex. This happened in the 1997 trial of Adelyn Lee, Ellison’s ex-girlfriend and a former Oracle secretary, who had accused him of illegally firing her and won her a settlement. However, Lee was later convicted of perjury for faking an email she used in her complaint.

Hurd and Ellison are peas in a pod. But if HP can’t stop Hurd from spilling trade secrets, the company could try to get him where it Hurds, so to speak. According to one analyst (via SFGate):

Mr. Hurd’s former employer would argue, “We already have paid you for the confidentiality agreement and we assume you are going to violate that,” the pay consultant said. H-P also “could sue him for a lot more than they paid him” for leaving, Mr. Reilly said.

This lawsuit comes after a shareholder sued the HP board for firing Hurd–err, letting him resign. Maybe this isn’t about HP draining Hurd of his golden parachute, but about HP proving that it’s taking action after ticking off shareholders by firing its superstar CEO. If HP lawyers don’t have tangible proof of Hurd’s spilling secrets, how can they have anything but a long, drawn-out case?

Politics as usual, in other words.


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Facebook Marketing Misses the Mark

http://homewealthproject.com/wp-content/blogs.dir/1/files/HLIC/1d14daeff104c2e4482914f3b4330e93.jpg A report from the Pew Internet and American Life Project shows that older users are the fastest growing audience on Facebook,…
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HP CEO Mark Hurd Resigns

Hewlett Packard CEO Mark Hurd, best known for his 5-year HP turnaround success, in which HP stock outperformed the market by 101%, resigned Friday. The reason? Like so many other successful leaders, Hurd couldn’t keep his pants on (or expense reports straight) when it came to one female contractor. From the Wall St. Journal:

H-P said Friday that Mr. Hurd, 53 years old, didn’t violate the company’s policy regarding sexual-harassment but submitted inaccurate expense reports that were intended to conceal what the company said was a “close personal relationship” with the woman.

The amount of money in question wasn’t disclosed. The woman wasn’t identified but was described as an outside marketing contractor for H-P between the fall of 2007 and the fall of 2009.

H-P hired a law firm to investigate the matter after the woman’s lawyer sent a letter alleging sexual harassment to Mr. Hurd’s office on June 29. Mr. Hurd turned the letter over to the company’s legal department and the board was informed the next day, according to a person familiar with the matter.

In addition to Mr. Hurd’s own expenses, H-P investigated whether the contractor provided all the services she was paid for. There are “a couple of instances where that was in question,” Mr. Holston said.

The expenses in question didn’t add up to more than $20,000, according to the WSJ, which also says Hurd could get a golden parachute of more than $35 million, $12.2 of that in cash.

This might be a good time for Mark Hurd to consider running for office. He already has the money and the sex scandal under his belt.


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One on One with Mark Geyman of OhioBiz.com

Recently, I spent some time with Cleveland, Ohio’s Mark Geyman.  Mark owns and operates OhioBiz.com which is (and has been since 2000) Ohio’s largest locally-owned business directory.  Mark is an active member of Northeast Ohio’s tech community.

Question 1.  You created one of the country’s first local/regional business directories back in the 90’s. (Ohiobiz.com) Since then, what’s changed the most in your business, and in local business search?

Mark Geyman: Change happens at such an exponentially rapid pace now, versus back in 1995 when I started my first local business directory.  It’s mind-boggling! I believe the rate of change and the degree of sophistication of the tools used for personalized human communication are the areas that have changed most. This is true in many industries, let alone those of us in the electronic communications industry. More specifically, in my business, going from developing strictly business information and eCommerce websites to how to best integrate a client’s marketing efforts with those sites and the newer social media platforms – it’s a fluid world along with constantly new challenges and opportunities.

In 1995, the emphasis on utilizing the Internet was “global, global, global,” with very minimal emphasis on local aspects of business communications via the Web. As the search business matured over that time period, people’s searches have trended more local and more specific in nature. Broad, general, one and two-word searches were the norm, and now they are the exception. Multiple, geo-specific word phrases are now the new normal, as people, in general have become much more sophisticated in their knowledge discovery efforts. People pretty much have followed the advances in search technology with a corresponding degree of search sophistication – there is a direct correlation.

Question 2.  A huge number of Ohio businesses appear in your Ohiobiz.com search directory. What resources did you use when you started, and what resources are you using now, if different?

Mark Geyman:  When I started my first iteration of OhioBiz (Geyman’s Northern Ohio Directory of Businesses) 15 years ago, I wanted to focus on local business presence on the Web. Growing up in rural northern Ohio and knowing there are a lot of great rural Ohio-based companies, I wanted to give them some online exposure as well.

Back then it was rather easy to “seek out” local business websites to include in my directory. It actually started out as a link directory versus more of a yellow pages model, so the emphasis was on discovering and listing the business or organization’s website link. The original site morphed into Sitesonline Ohio around 1997 and actually became OhioBiz.com when I started my own business in 2001.

Originally, I found links by utilizing the engines and large national directories at the time. As time progressed, more businesses found out about my local directory and started submitting their business sites to me.  Over time, the process became more sophisticated, as it now is a combination of site submission, purchasing databases of information  and re-purposing/customizing it for my directory. Rarely, I’ll actively search for new business sites, but it’s a time- intensive process and these days, who has that kind of time?

Question 3.  Do you compete with Google, Bing, and Yahoo.com?

Mark Geyman:   You always compete to a certain degree with the “monsters” in the industry.  A site like mine competes for eyeballs, time, and knowledge discovery. Luckily, my directory has had reasonably good search engine rankings in all of the major traditional search engines for targeted phrases such as “Ohio business,” “Ohio companies,” “Ohio business directory,” “Ohio search,” etc. Typically, this gives the businesses that list in the directory, great additional marketing exposure for local business searches around their targeted key phrases.

For so many reasons, it’s extremely important to the keep the directory’s data “fresh.” It is the largest challenge for any business directory. It also is one of distinguishing factors that separates OhioBiz.com from its competition along with offering data not readily available elsewhere in a user-friendly format.

4. Do you know of any other state specific business directories?

Mark Geyman: Sure, there are many of them out there. As with any industry, there are some directories that are better than others. Many of them are very incomplete and do not offer a very comprehensive data set. Some are yellow pages format, versus a link directory.

There are what I call “bottom-up” directories, such as OhioBiz.com and The Michigan Business Directory. They are directories that started with some sort of niche, in this case, geographic, not trying to be everything to everyone. There are also the top-down directories that are national in focus and divide their sites up into smaller segments (by state) for example, USCity.net and LocalPages, in order to attempt to target smaller geographic segments.

Question 5.  Looking back, what do you wish you would have done either differently, or sooner, as it relates to OhioBiz.com?

Mark Geyman:  In looking back, honestly, I wish I could have better marketed and monetized the site before “local” actually caught on. Being a small Web consulting firm, client work takes top priority over personal projects.

That said, I still really enjoy working on the site 15 years later, since I am still passionate about helping local small businesses seek greater exposure and more sales in targeting a local audience. Sure, I’ve made some money off the site both directly and indirectly over the years, but I’d rather be remembered as having helped others versus making millions of dollars!

Question 6.  What advice would you give to local businesses that want to get found online, nowadays?

Mark Geyman: If you are just starting out, research and explore as many realistic opportunities as possible to get your name and brand out there. Know who your clients / customers are and where they “hang out” online. That means not only developing your website but having a presence on Facebook, Twitter, LinkedIn, other social networks, blogs, participate in pertinent forums, videos, local directories, and industry-specific directories. Make sure to cross-promote your various online presences.

If you already have a presence out there, make sure your basic company information is correct and current.  I can’t stress that enough! Use a service such as Universal Business Listing (ubl.org) to make sure your business information is current on all major data provider services, search engines and directories. Make sure you are accurately listed in Google Places and the Bing Local Listing Center.

Question 7.  If you had an opportunity to have face time with representatives from the biggies, like Google, and Bing, what would be the one question you would ask them?

Mark Geyman: I would definitely ask them if there will always be a place for us “little guys” in the local search business?  And if so, what opportunities or what roles they see us fulfilling that may not make sense for them?

From Small Business Trends

One on One with Mark Geyman of OhioBiz.com

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Finally Mark Anastasi Announces Shaqir Hussyin & Jani G to Appear on Stage at his Social Media Summit

PR: Shaqir Hussyin &… with their social media listbuilding tactics (PRWEB) June 24, 2010 — Shaqir Hussyin speaks at the Social Media Millionaire…..
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Charlotte Automobile Dealers Association sets date for Mark Griggs to discuss social media strategy

Charlotte Automobile Dealers Association sets date for Mark Griggs to discuss social media strategy. The Charlotte Auto Dealers Assoc. has invited Mark…
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Mark McLaughlin: Internet Privacy and Big Government

The random delivery of advertising is wasteful for everybody (marketer, publisher and consumer) while targeting strategies that improve relevance are…
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Mark Zuckerberg Writes Op-Ed on Privacy

The Washington Post published an op-ed on privacy by Facebook CEO Mark Zuckerberg this morning. In it, Zuckerberg acknowledges that users need to be able to control their privacy settings more easily. Among the highlights:

Facebook has been growing quickly. It has become a community of more than 400 million people in just a few years. It’s a challenge to keep that many people satisfied over time, so we move quickly to serve that community with new ways to connect with the social Web and each other. Sometimes we move too fast — and after listening to recent concerns, we’re responding.

The biggest message we have heard recently is that people want easier control over their information. Simply put, many of you thought our controls were too complex. Our intention was to give you lots of granular controls; but that may not have been what many of you wanted. We just missed the mark.

We have heard the feedback. There needs to be a simpler way to control your information. In the coming weeks, we will add privacy controls that are much simpler to use. We will also give you an easy way to turn off all third-party services. We are working hard to make these changes available as soon as possible.

We have also heard that some people don’t understand how their personal information is used and worry that it is shared in ways they don’t want. I’d like to clear that up now. Many people choose to make some of their information visible to everyone so people they know can find them on Facebook. We already offer controls to limit the visibility of that information and we intend to make them even stronger.

Here are the principles under which Facebook operates:

– You have control over how your information is shared.

– We do not share your personal information with people or services you don’t want.

– We do not give advertisers access to your personal information.

– We do not and never will sell any of your information to anyone.

– We will always keep Facebook a free service for everyone.

I believe Zuckerberg when he says that rapid growth (and the resultant steep learning curve) led the company to make mistakes. I also think, however, that rapid growth made executives prioritize other factors, like scaling effectively, over privacy. The privacy issue came as a PR firefight, and rightly so–without a public uproar, management would have gone on its happy way, scaling and monetizing, and privacy would have been left on the backburner.

The interesting thing is that people keep using Facebook despite having problems with the way it’s set up. Why? Because, at least if you’re in the States, there are no viable alternatives with the scope and reach of Facebook. Nowhere else can you find as many friends, colleagues, and acquaintances in one place. It’s not ideal–heck, it’s not even that great in many ways–but you use it anyway.

If this sounds something like using Comcast or AT&T because you lack other alternatives, read this post by danah boyd about Facebook as a utility. It may make you think differently about Facebook as a choice, as well as the future of social media regulation.


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5 Deadly Search Engine Marketing Mistakes to Avoid By Richard Mark

The Internet is now the place 74% of consumers and 81% of businesses go when they are looking to buy; and the search engines are the number one…
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The Face of Malaria (and How Social Media Can Help) — Mark Hayward

http://homewealthproject.com/wp-content/blogs.dir/1/files/HLIC/1db24ded3743e41b37bf87599f1c9f82.jpg Small business, social media marketing and life from the bottom up… on March 21, 2010 What would you do right now, if you got sick?
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