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Apple Escalates Trade Secrets Fight Against OpenAI, Seeking Court Order to Block Device Development

Martin HollowayPublished 21h ago5 min readBased on 10 sources
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Apple Escalates Trade Secrets Fight Against OpenAI, Seeking Court Order to Block Device Development

Apple asked a U.S. federal judge on August 4 for a preliminary injunction barring two former employees and OpenAI from accessing, using, or disclosing Apple's confidential trade secrets, escalating a lawsuit filed in July 2026 (Reuters).

A preliminary injunction is a court order issued before a full trial that either party must stop doing something while the case plays out. Here, Apple wants to prevent OpenAI from using its proprietary information and from developing devices Apple suspects are built on its technology. The request was filed in the U.S. District Court for the Northern District of California. Apple also filed a motion for expedited discovery, asking the court to compel the defendants to hand over documents quickly enough to support the injunction hearing itself (Claims Journal; QZ). The underlying lawsuit was filed in July 2026 against OpenAI and two former Apple employees: senior system electrical engineer Chang Liu and VP Tang Yew Tan (QZ).

Apple says an internal investigation has identified 11 additional former employees who may have witnessed or participated in the suspected misconduct, broadening the case well beyond the two original defendants (Engadget). The filings describe several specific instances. One former employee allegedly met with Chang Liu before an interview at OpenAI and discussed Apple proprietary information about unannounced products. Another allegedly took screenshots of confidential Apple documents about an unannounced product before an OpenAI interview. Multiple former Apple employees now at OpenAI also reportedly reached out to discuss returning Apple-issued work devices they had kept after leaving the company (Engadget).

OpenAI has pushed back forcefully. In a statement, the company said Apple's injunction request is "both based on false information and completely unnecessary because we do not have, nor want, any of their trade secrets" (Engadget). OpenAI also published text messages involving Chang Liu that appear to show Apple employees contacting him after his departure asking about the location of certain files. OpenAI characterized those messages as evidence of Apple "failing to properly manage system access when people leave" (Engadget).

The dispute centers on hardware. Rumors have circulated that OpenAI is developing an AI-enabled smart speaker with former Apple design head Jony Ive, and OpenAI's $6.5 billion acquisition of Ive's startup, io Products, is directly entangled in the litigation. io Products has been named as a co-defendant (Engadget). If granted, the injunction Apple seeks would halt OpenAI from developing devices suspected of being based on Apple's technology, potentially affecting the io Products hardware pipeline.

The competing narratives frame the case differently at a structural level. Apple's theory is that former employees systematically carried proprietary knowledge about unannounced hardware to OpenAI, and that the io Products acquisition served as a vehicle for that transfer. OpenAI's counter-narrative is narrower: whatever information may have circulated was a consequence of Apple's own offboarding failures, not deliberate exfiltration. The text messages OpenAI published support that second framing by showing Apple employees, not Liu, initiating contact about file locations after his departure.

Courts grant preliminary injunctions only when a plaintiff can demonstrate both a likelihood of success on the merits and irreparable harm that monetary damages cannot fix. Apple's burden is to convince the court that its trade secrets are actively at risk and that the harm from continued use cannot be undone after a full trial. The expedited discovery motion signals urgency on Apple's part; the company wants documents fast enough to support the injunction hearing, not just the eventual trial.

The involvement of 11 additional potential witnesses, if Apple's investigation holds up under scrutiny, could expand the factual record substantially. It also raises the practical question of how many former Apple hardware engineers now work at OpenAI or io Products, and where the boundary sits between general engineering expertise acquired over years at Apple and specific, protected trade secrets about unannounced products.

OpenAI's argument about offboarding procedure is not without precedent as a litigation strategy. In trade secrets cases, defendants frequently argue that information a plaintiff failed to safeguard adequately cannot be protected after the fact. Whether Apple's internal investigation and the specific allegations about screenshots and pre-interview document sharing will be enough to overcome that defense is a question the court will need to resolve at the injunction stage, likely in the coming weeks.

The broader context here is that the stakes extend well beyond the two named defendants. If the injunction is granted, it could constrain OpenAI's hardware development pipeline at a moment when the company is reportedly building its first consumer device. If it is denied, Apple's leverage in the broader litigation narrows, and the case proceeds to standard discovery timelines without the immediate pressure an injunction would provide.

Worth noting is the pattern this dispute fits into. We have seen similar conflicts in prior technology shifts, when talent moved between competing companies and the question of what knowledge travels with a person versus what stays with the employer became central. Two decades of coverage suggest these cases are as much about signaling to the broader workforce as they are about the specific individuals involved. The outcome here may set a useful reference point for how courts treat the movement of specialized hardware engineers into a company building a competing device.