Apple vs OpenAI: iPhone Maker Seeks Court Restrictions in Trade Secret Case

The iPhone maker has accused former employees now working at OpenAI of misusing confidential information linked to its hardware development

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Photo: AI generated representative image
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Summary
Summary of this article
  • Apple has asked a US court to restrict OpenAI and two former employees from accessing or using alleged trade secrets.

  • The legal action comes after Apple accused the former employees of sharing confidential information with OpenAI.

  • The dispute highlights a broader battle over the future of AI-powered consumer devices.

Apple has asked a US judge to temporarily prevent OpenAI and two former employees from accessing, using or sharing alleged confidential information as part of its trade secrets lawsuit against the artificial intelligence (AI) company.

The iPhone maker filed the request for a preliminary injunction, according to a Reuters report. Apple had last month sued OpenAI and two former employees, alleging that they misused its trade secrets to support OpenAI’s push into consumer hardware.

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The latest legal move marks a sharp escalation in tensions between the two companies, which are competing in the rapidly evolving AI market. Apple has also sought expedited discovery, including documents related to the alleged access of its proprietary information.

Apple Seeks Depositions, Document Access in Case

As part of its request, Apple has asked the court to order depositions of its former employees Chang Liu and Tang Yew Tan, who are now working at OpenAI. Liu previously served as a senior system electrical engineer at Apple, while Tan was the company’s vice president of product design for iPhone and Apple Watch.

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Apple has also sought depositions from OpenAI employee Yu-Ting Peng and another unnamed OpenAI employee who previously worked at Apple. The company has requested testimony from representatives of OpenAI and io Products, OpenAI’s commercial arm that has also been named as a defendant in the lawsuit.

Apple argued in its court filing that it could face “irreparable harm” if the injunction is not granted. The company is seeking restrictions that would prevent the defendants from using or disclosing information that Apple claims is protected trade secret material.

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OpenAI Rejects Apple’s Claims

OpenAI has rejected Apple’s allegations, saying the company does not possess or want Apple’s trade secrets. In a blog post, OpenAI said Apple’s request for a preliminary injunction was based on “false information” and was unnecessary.

The legal dispute comes as technology companies race to develop next-generation AI devices that could change how consumers interact with technology. Analysts believe OpenAI is exploring hardware products that could compete with traditional smartphones and operating systems.

The lawsuit, filed in the US District Court for the Northern District of California, also comes at a time when AI companies are increasingly competing for talent and technology. The outcome of the case could influence how companies protect intellectual property as the AI hardware market begins to take shape.

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