Apple vs OpenAI: iPhone Maker Rejects ChatGPT Firm’s Bid To Dismiss Trade Secrets Case

Apple has formally pushed back against OpenAI’s attempt to dismiss a lawsuit accusing the ChatGPT maker and two former employees of misappropriating its trade secrets. In its latest court filing, Apple argued that OpenAI had distorted the allegations and relied on speculation and improper evidence in seeking dismissal, according to AppleInsider.

Apple’s lawsuit, filed in July, alleges that OpenAI obtained and used confidential information through former employees, recruitment efforts and supplier relationships as it works on its consumer hardware ambitions. The case names former Apple employees Chang Liu, a former senior system electrical engineer, and Tang Yew Tan, a former vice president of product design for iPhone and Apple Watch.

OpenAI had earlier asked the court to dismiss the case, arguing that Apple had not adequately shown that it owned protectable trade secrets or that OpenAI had misappropriated them. The company also said it had no use or need for Apple’s trade secrets.

Apple Challenges OpenAI’s Defence

Apple has rejected those arguments, saying its original complaint identifies specific trade secrets that were allegedly taken and provides enough information for the case to proceed.

According to AppleInsider, Apple also disputed OpenAI’s description of an incident involving Liu, who allegedly accessed Apple’s network storage after leaving the company.

Apple claims Liu exploited an authentication vulnerability to reach a cloud-based repository containing confidential material. The company further alleges that he downloaded dozens of files over several weeks while working on hardware for OpenAI.

Apple also rejected the suggestion that the incident was simply an interaction between Liu and a former colleague. It said the complaint does not allege that Liu accessed his personal iCloud account or responded to questions from his former manager in the manner suggested by OpenAI.

OpenAI Says It Is Building Something New

OpenAI had argued that Apple’s lawsuit was filed without adequate investigation and that the company had failed to establish ongoing harm. Its lawyers said OpenAI was interested in hiring talented engineers and that employees leaving Apple for OpenAI were attracted by the work being done there.

Mint reported that Apple’s lawsuit accuses OpenAI of systematically obtaining and exploiting confidential information through former employees and other channels to support its consumer hardware plans.

The legal dispute is the latest escalation between the two technology companies, whose relationship has already come under strain over competition in artificial intelligence and consumer technology.

Apple has asked the court to reject OpenAI’s dismissal motion. The case is expected to move forward with a hearing on Apple’s request for expedited discovery scheduled for October 1.