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Apple Accuses OpenAI Of Misusing Confidential Information, Opposes Trade Secrets Case Dismissal

Apple accuses OpenAI of misusing confidential information obtained through former employees as the AI firm expands into consumer hardware.

Apple Accuses OpenAI Of Misusing Confidential Information, Opposes Trade Secrets Case Dismissal
OpenAI has maintained maintained that it had no use or need for Apple's confidential information
(Photo: Unsplash)

Apple has challenged OpenAI's attempt to have a trade secrets lawsuit dismissed, accusing the ChatGPT maker of misrepresenting its claims and relying on speculation and inadmissible evidence, reports said.

In a Wednesday filing viewed by AppleInsider, Apple fiercely rejected OpenAI's bid to dismiss the case, calling the defense a mix of distortion, speculation, and improper evidence. The tech giant reportedly reiterated its allegations in detail, stating it holds concrete proof of trade secret misappropriation orchestrated and encouraged by OpenAI.

Apple had filed a lawsuit in July alleging that OpenAI obtained confidential information through former employees, recruitment efforts and supplier relationships as the ChatGPT maker works to expand into consumer hardware.

The case names former Apple senior system electrical engineer Chang Liu and former vice president of product design for iPhone and Apple Watch, Tang Yew Tan.

OpenAI had sought dismissal, arguing that Apple had failed to establish that the information qualified as protectable trade secrets or that OpenAI had misappropriated them.

ALSO READ: Apple To Charge 5% Commission On Apps Distributed Outside App Store In EU

It also maintained that it had no use or need for Apple's confidential information.

Apple, however, said its complaint identifies specific trade secrets and contains sufficient allegations for the case to proceed, according to AppleInsider.

The iPhone maker also challenged OpenAI's account of Liu's alleged access to Apple's systems after leaving the company. 

Apple claims Liu exploited an authentication vulnerability to access a cloud repository containing confidential files and downloaded dozens of documents over several weeks while working on hardware-related projects at OpenAI.

Apple disputed OpenAI's characterization of the incident as a limited interaction involving Liu and a former colleague, saying the company's complaint makes no such allegations.

OpenAI has argued that Apple filed the case without adequate investigation and failed to demonstrate continuing harm. 

Its lawyers have maintained that engineers were attracted to OpenAI because of its work and opportunities.

The legal dispute marks another escalation in tensions between the two technology giants. A hearing on Apple's request for expedited discovery is scheduled for October 1.

ALSO READ: Apple's Anti-AI Position Is Becoming Stock Market Baggage

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