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OpenAI Fires Back at Apple in Trade Secret Dispute

OpenAI has pushed back against Apple in an escalating legal battle over allegations that two former Apple employees stole trade secrets, describing the situation as "a mess of Apple's own making." The dispute centers on whether engineers Chang Liu and Tang Tan misappropriated confidential...

OpenAI Fires Back at Apple in Trade Secret Dispute - OpenAI Apple trade secret
OpenAI has pushed back against Apple in an escalating legal battle over allegations that two former Apple employees stole trade secrets, describing the situation as "a mess of Apple's own making." The dispute centers on

OpenAI has pushed back against Apple in an escalating legal battle over allegations that two former Apple employees stole trade secrets, describing the situation as “a mess of Apple’s own making.”

The dispute centers on whether engineers Chang Liu and Tang Tan misappropriated confidential information from their time at Apple to help OpenAI develop an AI hardware device. Apple alleges that both engineers downloaded confidential engineering files after leaving the company, spanning hardware design and other areas.

Apple’s Forensic Evidence

Apple was granted access to a MacBook belonging to Liu, a former employee who moved to OpenAI, to conduct a forensic analysis for signs of unlawful access to its intellectual property. In a court filing, Apple said the review uncovered four “shocking” pieces of evidence supporting its claims.

Liu and Tan are the two former employees at the heart of the case, which seeks to determine whether either engineer took confidential material acquired during their employment at the iPhone maker.

OpenAI’s Response

In its own filing submitted the same day, OpenAI did not hold back. “Employees can leave a company like Apple that has struggled to adopt AI and move to an exciting startup that builds innovative products,” the company wrote. “Apple may not like those choices. But it cannot claim those choices are unlawful, and it cannot use its own sloppy procedures to blame others for its own mess.”

OpenAI argues that the problems stem from three issues tied to Apple’s internal practices. First, Apple encourages employees to use personal iCloud accounts to access company documents. Second, departing employees aren’t given enough time to return company devices, transfer files back, and hand over their responsibilities. Third, former employees are contacted by their old team members for assistance after they leave, which requires them to access company information.

What the Case Could Hinge On

OpenAI does not appear to be denying that confidential Apple information was involved, but is instead arguing that Apple failed to properly protect it. That distinction could prove pivotal, since companies can generally claim that information constitutes a trade secret only if they have taken appropriate steps to safeguard it.

If OpenAI can demonstrate that Apple did not adequately protect the material, the AI company could prevail even if the use of the information is established. The lawsuit remains ongoing, with both sides having submitted competing filings on the same day.

Source
Image: 9to5mac.com

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