The legal conflict between tech giants Apple and OpenAI has escalated significantly, with Apple formally rejecting OpenAI's request to dismiss a lawsuit alleging the theft of trade secrets. Apple's filing with a federal judge asserts that OpenAI's dismissal plea relies on "distortion, speculation, and improper extrinsic evidence."
Allegations of Trade Secret Misappropriation
Apple initially filed its lawsuit in July, accusing OpenAI and two former Apple employees—Chang Liu and Tang Yew Tan—of conspiring to steal proprietary information. Both Liu and Tan now work at OpenAI, and Apple claims they accessed and shared confidential data to assist OpenAI in developing a consumer hardware business.
Specifically, Apple alleges that Chang Liu exploited a "rare authentication bug" to gain unauthorized access to Apple's internal network storage. Following his move to OpenAI, Liu reportedly downloaded dozens of confidential engineering files, including sensitive data on how Apple's logic boards are manufactured and tested.
Similarly, Apple accuses Tang Yew Tan of using internal Apple project codenames during job interviews to inquire about unreleased Apple products. Furthermore, Tan is alleged to have asked an Apple employee to transport confidential hardware components directly to OpenAI.
OpenAI's Defense and Apple's Rebuttal
OpenAI had sought to dismiss Apple's lawsuit, arguing that Apple failed to conduct a proper investigation before filing the case. OpenAI claimed that Apple "has failed to demonstrate it owns a protectable trade secret" and "has failed to allege conduct that plausibly supports a claim of misappropriation."
Lawyers for OpenAI asserted in their motion to dismiss, "OpenAI has no use, need, or desire for Apple's trade secrets. OpenAI is building something entirely new and different from anything at Apple."
However, Apple's recent rebuttal vehemently disputes these claims, presenting its detailed allegations as evidence of misappropriation. The iPhone maker maintains that its claims are well-founded and require judicial review.
Next Steps in the Legal Battle
The intensifying dispute is now set to proceed, with Judge Edward J. Davila scheduled to hear arguments from both companies on October 1. The outcome of this legal battle could have significant implications for both Apple's intellectual property protection and OpenAI's strategic direction into hardware development.