On August 31, Apple filed new evidence in its trade trade-secrets lawsuit against OpenAI, presenting new evidence in its intellectual property litigation, alleging a former employee used a confidential Apple circuit schematic and an internal engineering tool in his work at OpenAI.
The employee enlisted a colleague to help destroy evidence, once he learned he was under investigation. The case follows previous July filing, in Northern California, also alleging trade secret theft.
Apple Claims Evidence Reaches Hardware
According to Apple, the findings strengthen its trade secrets lawsuit over protected engineering material. The company also invokes the Defend Trade Secrets Act (DTSA), which covers alleged misuse of confidential business information.
The evidence emerged after former Apple employee Chang Liu, now at OpenAI, surrendered his old work laptop. Apple claims Liu used a confidential circuit schematic at OpenAI, strengthening its intellectual property litigation rights.
The Apple files remain redacted, but the company calls them potential Apple trade secrets examples tied to unreleased engineering.
Apple also says Liu used a tool named an internal engineering application, suggesting possible stealing proprietary information.
“The MacBook represents the very limited information Defendants provided so far (and only after weeks of delay), and shows Apple is not conducting ‘fishing expeditions’ but that its trade secrets are being used and evidence is being destroyed,” according to Apple.
The tech giant also asserts Liu asked OpenAI colleague Yu-Ting Peng to destroy evidence, deepening the OpenAI data theft accusations.
“Apple now tries to shift the blame to ‘residual access,’ but they also don’t disclose that this is a common issue with Apple which is caused by them failing to properly manage system access when people leave,” OpenAI wrote.
According to Apple’s accusations against Liu, it says the former employee exploited a rare, previously unknown authentication bug, relevant to the Federal Defend Trade Secrets Act (FDTSA) dispute.
OpenAI’s Hardware Push Raises the Stakes
OpenAI’s device push has made intellectual property litigation more important as both companies move closer in hardware. OpenAI bought Jony Ive’s IO Products for $6.4 billion and has prototypes, but no public blueprint AI hardware product yet.
Apple claims Tang Tan encouraged Apple job candidates to bring actual parts for show and tell, another alleged case of stealing proprietary information.
“This much is clear, however: at every level, from members of its Technical Staff to its Chief Hardware Officer, and in coordination with business partners, OpenAI has been stealing Apple’s trade secrets and confidential information,” said Apple.
Apple also alleges OpenAI pursued an Apple-developed metal-finishing method, expanding the Trade Secrets lawsuit into manufacturing.
“Recently, significant evidence has emerged suggesting individuals employed by OpenAI wrongfully took Apple’s secret and confidential information regarding our unreleased technologies, processes, and products,” an Apple representative said.
OpenAI responded, claiming they have no interest in other companies’ trade secrets, and their focus remains on building innovative technology that empowers people everywhere.
Apple wants an injunction restricting disputed hardware work, giving intellectual property litigation consequences for OpenAI’s product plans. It also wants faster discovery and says more than 400 former Apple employees work at OpenAI, widening concern over Apple trade secrets.
Apple may rely on the Federal Defend Trade Secrets Act to argue against protected technology crossed into a rival company. Now, OpenAI is expected to dispute whether the evidence proves violations of the Defend Trade Secrets Act rather than normal employee movement.
For both companies, intellectual property litigation could define where employee knowledge ends, and protected engineering begins in consumer AI hardware.
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