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Apple Sues OpenAI for Trade Secret Theft

With the objective of informing the Legalink community about a case of strategic relevance in the field of intellectual property and technology, we present an analysis of the historic lawsuit that Apple has filed against OpenAI for alleged theft of trade secrets and breach of confidentiality agreements. This case illustrates the critical importance of implementing robust mechanisms to protect intellectual property in technology innovation environments.

Below, we present the most relevant aspects:

What is the main accusation?

Apple accuses OpenAI of systematically stealing trade secrets and confidential information at all organizational levels. The lawsuit alleges that OpenAI used this information to develop its own hardware line, positioning itself as a direct competitor in consumer devices.

Who are the defendants?

The main defendants include: Tang Tan, current OpenAI hardware chief and former Apple vice president of product design (24 years at the company); Chang Liu, former senior engineer who allegedly stole a corporate laptop; and IO Products, an OpenAI-affiliated company.

How was the theft allegedly committed?

According to the lawsuit, OpenAI instructed job candidates — still working at Apple at the time — to bring actual Apple parts to interview “show and tell” sessions. Additionally, OpenAI allegedly provided departing Apple employees with a checklist on how to bypass security procedures when leaving.

What information was allegedly taken?

The information includes: technical specifications of unreleased products, manufacturing processes, hardware designs, Apple-patented metal finishing techniques, internal documentation, and information about critical product lines such as iPhone, Apple Watch, and AirPods.

What is the scale of employee migration?

OpenAI has aggressively recruited over 400 former Apple employees, many with significant compensation packages. In certain iPhone design teams, personnel departures were so massive that Apple had to completely rebuild those groups.

What is apple requesting from the court?

Apple seeks:

  1. An injunction prohibiting OpenAI from retaining, exploiting, or distributing trade secrets.
  2. Return of all stolen intellectual property.
  3. Monetary damages and compensation.
  4. Preliminary injunctions that could halt the launch of OpenAI’s hardware device.

Conclusion

This case represents an inflection point in trade secret protection in the artificial intelligence era. It demonstrates that even prior strategic partnerships — Apple and OpenAI integrated ChatGPT in 2024 — do not guarantee protection against unauthorized intellectual property transfer. The lawsuit underscores the critical need to implement rigorous employee exit protocols, audits of confidential information access, and confidentiality agreements with specific clauses.

For companies in the technology sector, this litigation serves as a reminder of the risks inherent in aggressive personnel recruitment and the importance of safeguarding intellectual property as a fundamental strategic asset.

 

Authors

Edmundo Elías-Fernández | Partner | eelias@rrs.com.mx

Alejandro Ripoll González | Partner | aripoll@rrs.com.mx

Juan Rafael Amador Espinosa | Senior Associate | ramador@rrs.com.mx

Daniela Márquez Ledezma | Associate | dmarquez@rrs.com.mx

Sofía Castañeda García | Jr. Associate | scastaneda@rrs.com.mx

Andrea Naomi Ramos Macías  |  Jr. Associate |  nramos@rrs.com.mx