Apple challenges OpenAI’s hardware push in trade-secret lawsuit

Apple has filed a 41-page federal lawsuit in the US District Court for the Northern District of California against OpenAI, its hardware subsidiary io Products, and two former Apple employees, Tang Yew Tan and Chang Liu. The complaint alleges a coordinated pattern of misconduct involving the theft of confidential product designs, manufacturing methods, and supplier information to accelerate OpenAI's hardware development. Specifically, Apple claims that Chang Liu accessed company network storage after leaving the firm to download extensive technical data, and that Tang Yew Tan used internal project names and requested physical prototypes during interviews with Apple employees.

The lawsuit includes four claims under the federal Defend Trade Secrets Act and two breach-of-contract claims. Apple is seeking preliminary and permanent injunctions, damages, and the return of its information. While the legal battle creates tension, Apple has clarified that the dispute is separate from its existing partnership to integrate ChatGPT into Apple products and does not challenge the integration agreement itself.

This legal action follows similar high-profile industry disputes, such as Apple's previous litigation against Rivos and Waymo's lawsuit against Uber regarding the theft of proprietary technology by departing employees. The court will eventually determine if the information acquired by the defendants constitutes legally protected trade secrets and if they were obtained through improper means.

(Source：Jurist)