Aug 3 - Apple has moved the court for an immediate preliminary injunction aimed at preventing two former staff members and OpenAI from accessing, acquiring, using or revealing information Apple contends is confidential, according to a filing in the ongoing trade secrets litigation.
The motion follows Apple’s suit last month against OpenAI and the two former employees, who are now employed by OpenAI. The complaint alleges the defendants misappropriated Apple trade secrets to advance OpenAI’s push into consumer hardware, marking a significant escalation in tensions between the companies.
In the same filing, Apple asked the judge to authorize expedited discovery. The request seeks production of documents that relate to the defendants’ alleged access to Apple’s proprietary and trade secret material. Apple specifically asked the court to order depositions of the two former Apple employees named in the suit - Chang Liu and Tang Yew Tan - as well as of OpenAI employee Yu-Ting Peng and an unnamed OpenAI employee who previously worked at Apple.
The filing identifies Chang Liu as a former Apple senior system electrical engineer and Tang Yew Tan as Apple’s former vice president of product design for iPhone and Apple Watch. Apple also requested depositions from corporate representatives of OpenAI and io Products, the commercial arm of OpenAI that is listed as a defendant in the lawsuit.
Apple said in its filing that it would be irreparably harmed absent a preliminary injunction.
OpenAI responded publicly in a blogpost late on Monday, saying: "Apple’s request for a preliminary injunction is both based on false information and completely unnecessary because we do not have, nor want, any of their trade secrets."
The lawsuit, filed in the U.S. District Court for the Northern District of California, arrives after OpenAI successfully defended itself against a legal challenge from Elon Musk’s xAI. The dispute establishes a potential legal and commercial contest over future AI-driven devices - devices that may operate without traditional apps or operating systems and that, if realized, could shift consumer attention away from Apple’s flagship iPhone.
Market data included in filings shows AAPL trading down by 1.78% and OAI unchanged in the snapshot presented with the complaint.
Analysts cited in materials connected to the case believe OpenAI may be developing a phone or other consumer device, a prospect that underpins the strategic stakes described in the pleadings. Apple’s legal actions - the preliminary injunction request and the push for rapid discovery and depositions - set the stage for a more accelerated fact-finding phase as the court evaluates the merits of the trade secrets claims.
Key points
- Apple has asked a federal judge for a preliminary injunction to bar two former employees and OpenAI from accessing or using information Apple alleges is confidential.
- The company also requested expedited discovery and depositions of named individuals and corporate representatives, including io Products.
- The litigation could influence competition over future AI devices that may not rely on traditional apps or operating systems, with potential market implications for consumer electronics and software sectors.
Risks and uncertainties
- Unclear legal timeline - the request for expedited discovery indicates the process could accelerate, but outcomes and timing remain uncertain for both parties and affected markets.
- Potential competitive impact on consumer electronics - the dispute centers on alleged misappropriation tied to possible AI devices that could draw consumer attention away from existing smartphone platforms.
- Reputational and operational risk for individuals and corporate defendants - depositions and document production could reveal information with implications for the companies and people involved.