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OpenAI counters Apple trade secrets suit: Apple's own security lapses enabled access

OpenAI counters Apple trade secrets suit: Apple's own security lapses enabled access

3 Key Points

  1. What happened

    OpenAI filed a motion to dismiss Apple's July trade secrets lawsuit, arguing that Apple's poor security practices—including allowing employees to use personal iCloud accounts for work and failing to revoke access after departure—undermined the company's ability to claim the information was legally protected.

  2. Why it matters

    OpenAI is reframing the case from theft to negligence on Apple's part, suggesting former Apple employees were simply assisting colleagues rather than orchestrating a scheme. The motion also challenges Apple's vague description of what was allegedly stolen ('generic categories' like component manufacturing and vendor relationships rather than specific trade secrets), which may weaken Apple's legal standing.

  3. What to watch

    Apple this week asked the court to expedite discovery, citing an internal investigation indicating additional former employees may have participated in or witnessed the alleged theft. OpenAI also characterizes the lawsuit as a competitive tactic—arguing Apple is using it to slow its AI-hardware development rather than address its own product and talent retention shortcomings.

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Context & Analysis

Apple filed its complaint in July, accusing OpenAI of orchestrating a scheme to obtain confidential hardware information from former Apple engineers. The lawsuit centers on whether proprietary information was misappropriated during employee transitions. OpenAI's defense strategy pivots away from disputing the facts of data access and instead attacks Apple's foundational claim that the information was adequately protected as trade secrets under the law.

The motion reveals that Apple's internal investigation has identified additional former employees who may have been involved, and the company has now asked the court to expedite discovery—a procedural move that suggests Apple views the case as time-sensitive. However, OpenAI's framing of Apple's security gaps serves a dual purpose: it weakens the "trade secret" classification (which requires reasonable protective measures) and recharacterizes employee assistance as a natural consequence of Apple's own negligence rather than deliberate theft. OpenAI also argues the lawsuit is pretextual—a way for Apple to address its competitive weakness in AI-hardware talent and market positioning rather than genuine intellectual property protection.

FAQ
What specific security lapses is OpenAI citing in its defense?
OpenAI points to Apple allowing employees to use personal iCloud accounts for work and failing to revoke access after they departed. Text messages also show an Apple manager remained logged into the personal iCloud account of defendant and former Apple engineer Chang Liu after he left, transferring files and later asking him for help with technical questions about Apple projects.
What does OpenAI say about the information Apple claims was stolen?
OpenAI argues Apple hasn't specified which trade secrets were allegedly stolen, referring to them instead as 'generic categories of the product-development process—such as component manufacturing, product testing, vendor and supplier relationships, and distribution channels.' OpenAI contends these descriptions are too vague and generic to qualify as protectable trade secrets.

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