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Apple Lawsuit: OpenAI Seeks Dismissal of Trade Secrets Case

Apple lawsuit against OpenAI has reached its first major procedural challenge, with the ChatGPT developer asking a US federal judge to dismiss allegations that it acquired or used trade secrets taken by former Apple employees.

OpenAI submitted its 31-page dismissal motion on Wednesday in the US District Court for the Northern District of California. The filing argues that Apple has not adequately identified protectable trade secrets or alleged facts showing that OpenAI misappropriated confidential information.

Apple filed the case on July 10 against OpenAI, its io Products hardware operation, former Apple Vice President Tang Yew Tan, and former electrical engineer Chang Liu. The complaint accuses the defendants of obtaining information connected to Apple’s product development, manufacturing, components, testing, and supply chain operations.

The allegations have not been proven, and OpenAI denies possessing or seeking Apple’s trade secrets. US District Judge Edward Davila must now decide whether Apple’s complaint contains enough factual detail for the litigation to continue.

OpenAI Challenges the Apple Lawsuit

OpenAI’s motion focuses initially on how Apple described the information it claims was stolen. According to OpenAI, the complaint relies on generalized product-development categories without identifying the protected information with enough precision.

Trade secret plaintiffs face a difficult balance at the beginning of litigation. Apple must describe the protected material sufficiently to establish a plausible legal claim, but revealing the material publicly could expose the same information it is trying to protect.

Sensitive details can later be handled under seal or through a protective order. At the dismissal stage, however, Apple must still provide enough information for the court to distinguish genuine trade secrets from general engineering knowledge, employee experience, or skills acquired through years of work.

OpenAI argues that Apple has not crossed that threshold. Its motion says the complaint fails to establish ownership of a protectable trade secret and does not plausibly allege that OpenAI acquired, disclosed, or used such information.

The filing also disputes the commercial premise behind Apple’s accusations. OpenAI says it is developing products that are different from Apple’s hardware and has no need or desire to use the iPhone maker’s confidential material.

That position does not settle whether information was taken. A company can potentially misappropriate trade secrets even when its eventual product has a different design. The court’s immediate task is narrower: determining whether Apple has alleged facts that could support its claims if those facts are later proven.

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Apple Park | Image Source: Google

Disputed Access to Apple Information

Apple’s complaint centers partly on Chang Liu, who spent eight years working as a senior system electrical engineer at the company before joining OpenAI in January 2026.

Apple alleges that Liu retained an Apple-issued computer and accessed confidential technical information after leaving. It claims he exploited residual authentication access on multiple occasions to obtain internal documents while already working for OpenAI.

OpenAI presents a different explanation. It says Apple employees contacted Liu after his departure and asked him to help locate files needed for ongoing Apple work. The company published redacted messages that it says support this account.

OpenAI argues that Apple’s systems and policies allowed personal and corporate information to become intermingled through iCloud accounts. Former employees, it says, could retain access to Apple files without requesting it or realizing that access remained active.

The motion maintains that Apple cannot treat the foreseeable effects of its own access-management practices as proof that former employees intentionally stole data. Apple, in contrast, alleges that its records document repeated access to restricted information rather than an accidental discovery of lingering permissions.

These competing accounts are likely to become central if the case enters discovery. Authentication logs, downloaded files, device records, internal communications, and employment timelines could establish whether access was deliberate, what information was obtained, and whether it reached anyone working on OpenAI products.

A dismissal motion normally tests whether the complaint states a legally sufficient claim. It is not a trial, and the judge is not expected to resolve every factual disagreement using competing evidence at this point.

Tang Tan and OpenAI’s Hardware Team

Apple separately accuses Tang Tan, OpenAI’s chief hardware officer, of seeking confidential information from Apple employees during recruiting conversations.

Tan spent more than 24 years at Apple and worked on products including the iPhone, Apple Watch, AirPods, and iPod. He later helped establish io Products with former Apple design chief Jony Ive and other collaborators. OpenAI acquired the hardware company as part of its effort to create a family of devices built around artificial intelligence.

Apple alleges that Tan used confidential project names, retained internal materials, and encouraged job candidates to discuss unreleased components or bring physical parts to interviews. OpenAI rejects the claim that these interactions formed a coordinated effort to collect Apple secrets.

OpenAI says Tan repeatedly instructed employees that confidential information from previous employers could not be brought into its organization. It also offers an alternative explanation for an Apple offboarding document found in his possession, arguing that Tan retained it to help incoming employees comply with Apple’s departure procedures.

Apple’s position is that the document and recruiting communications must be examined alongside the other alleged conduct. It describes the events as part of a connected campaign rather than isolated employment or administrative issues.

The dispute comes during intense competition for engineers capable of developing consumer AI hardware. Apple alleges that more than 400 former employees have moved to OpenAI, although hiring people from a competitor does not by itself establish trade secret misappropriation.

A company must generally connect recruitment to the acquisition, disclosure, or use of protected information. OpenAI is relying heavily on that distinction, presenting Apple’s lawsuit as an attempt to respond to employee departures and its difficulties competing for AI talent.

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Image Credit: Getty Images

Apple Seeks Immediate Restrictions

OpenAI’s dismissal request arrives shortly after Apple asked the court for a preliminary injunction. Apple wants restrictions imposed while the lawsuit proceeds, arguing that it could suffer harm if its confidential information is used during OpenAI’s hardware development.

The requested relief would prevent OpenAI and the individual defendants from acquiring, accessing, using, or disclosing the alleged trade secrets. Apple has also requested expedited discovery and forensic examination of relevant devices and accounts.

OpenAI says those restrictions are unnecessary because it does not possess or want Apple’s protected information. It has described Apple’s request as based on false information and has offered to cooperate in addressing specific concerns.

The two companies also disagree over their communications before the lawsuit. Apple initially said its concerns had been raised with OpenAI months earlier. OpenAI responded that Apple’s outside lawyers contacted the wrong person after confusing names and incorrectly described a conversation with OpenAI’s general counsel.

OpenAI says Apple did not present the specific accusations before filing the case and that the companies had previously discussed resolving any access issues. Apple has since provided additional information in support of its injunction request, including allegations involving other former employees.

These disputes have moved beyond ordinary court filings. OpenAI published messages and emails on its website to support its version of events, calling Apple’s lawsuit aggressive and poorly investigated. Apple has primarily presented its account through formal legal submissions.

Judge Davila could dismiss some or all of Apple’s claims, deny the motion, or allow Apple to amend its complaint with more specific allegations. Even a dismissal would not necessarily end the case if permission to revise the complaint is granted.

The next scheduled public test is an October 1 hearing covering Apple’s preliminary injunction and request for early discovery. That proceeding may determine whether OpenAI faces immediate limits on its hardware work before the underlying trade secret claims receive a full evidentiary review.

The post Apple Lawsuit: OpenAI Seeks Dismissal of Trade Secrets Case appeared first on AppleMagazine.

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Trans Suspects Can Still Request Female Strip-Search, High Court Rules

Campaigners have failed to overturn police guidance allowing trans suspects to request a strip-search by an officer of their 'lived-in gender' after the High Court ruled the practice was lawful.

The post Trans Suspects Can Still Request Female Strip-Search, High Court Rules appeared first on The Daily Sceptic.

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Paramount Agrees to Postpone Warner Bros. Merger Until June 2027

Paramount Skydance has agreed to postpone its $111 billion Warner Bros. Discovery merger until five days after an antitrust trial or June 1, 2027, whichever comes first. The agreement with a 12-state coalition led by California effectively shelves the deal for months while states argue it would reduce competition in cable and theatrical markets. Variety reports: Paramount had been keen to close the deal before Sept. 30, when it will begin to incur a $7-million-a-day "ticking fee" to be paid to Warner Bros. investors. The agreement is a tacit acknowledgement that that will not happen, barring a settlement with the states. Paramount previously sought a three-day hearing on the injunction motion in late August, hoping to win the judge's blessing to close the deal sometime in early September. But the states resisted that idea, saying they would need more time to take discovery and prepare for a full trial on the merits. The states were due to file their injunction motion on Thursday night, but held off as the two sides held discussions on a path forward. In a statement, the company said the agreement is a "significant win." "Today's agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence," a Paramount spokesperson said. "This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. Plaintiffs' market definitions bear no relationship to the realities of today's marketplace and cannot withstand scrutiny. We look forward to proving our case at trial." A hearing was scheduled for Aug. 3 in federal court in Oakland, at which point the two sides were expected to argue over the injunction motion. The two sides agreed to cancel that hearing. U.S. District Judge Araceli Martinez-Olguin approved the joint stipulation on Friday afternoon, about an hour after it was entered. The Writers Guild of America filed its own motion for an injunction earlier this week, which was also set to be heard on Aug. 3. That motion has been withdrawn, as Paramount has effectively conceded that it will not close the deal until a determination of the merits of the antitrust claims. The parties also agreed to submit a joint stipulation by July 31 on their respective positions on trial scheduling. The states previously proposed to hold the trial in April 2027.

Read more of this story at Slashdot.

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Family of 18 From Gaza Wins Human Rights Challenge to Allow Them to Come to Britain

A family of 18 from Gaza has won the right to come to Britain with "access to public funds" after winning a human rights challenge in the British courts.

The post Family of 18 From Gaza Wins Human Rights Challenge to Allow Them to Come to Britain appeared first on The Daily Sceptic.

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Book Publishers Sue Google For Copyright Infringement Over Gemini AI Training

Major publishers Hachette, Cengage, Elsevier, and author Scott Turow have sued Google, accusing it of using millions of copyrighted books to train Gemini without permission or payment, in "one of the most prolific infringements of copyrighted materials in history." The Guardian reports: The publishers argue that Google repurposed books that had been supplied for limited services such as Google Books, Google Play Books and Google Scholar. Those services allowed Google to use the works in specific ways -- for example, to display searchable snippets or sell ebooks -- but not, the lawsuit claims, to copy them for training commercial AI products. "Desperate to maintain its online dominance, Google abandoned its early motto of 'Don't be evil' and engaged in one of the most prolific infringements of copyrighted materials in history," the suit states (PDF). According to the complaint, the tech company made copies of copyrighted books to train Gemini without permission or payment, despite internal discussions acknowledging the legal risks. The filing claims Google flagged internally that it could face "$10Bs-$100Bs in potential fines" for using texts provided by publishers for Google Play Books. The publishers say Google's actions are harming authors and the wider publishing industry, arguing that AI-generated content could negatively impact book sales. It notes that, for example, Gemini could generate "a 100-page murder mystery set in a quiet seaside town filled with secrets, that substitutes for an original copyrighted murder mystery on which Gemini trained" in 20 minutes for 39 cents. "No publisher or author can compete with that." The lawsuit names a number of specific books that the publishers allege were among the copyrighted works used without permission, including NK Jemisin's The Fifth Season, and Lemony Snicket's Who Could That Be at This Hour?

Read more of this story at Slashdot.

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Gamers Sue PlayStation: It's Not Clear They're Selling Licenses Rather Than Ownership of Games

The gaming news site Aftermath reports: Four gamers are suing Sony Interactive Entertainment for allegedly breaking a California law that requires digital storefronts selling games to make it clear people are buying licenses, not actually owning the games. Sony Interactive Entertainment's PlayStation store uses language like "Buy Now" and "Confirm Purchase," lawyers wrote in a complaint filed on Thursday... "In reality, consumers who 'purchase' digital games through PlayStation do not obtain ownership of those products," lawyers wrote. "Instead, PlayStation grants only a limited, revocable license to access the software, subject to multiple restrictions contained in a separate Software Product License Agreement".... [T]he PlayStation store does have a disclosure. Above the "Confirm Purchase" button, there's a note: "By selecting [Confirm Purchase], you agree to complete the purchase in accordance with the PlayStation Terms of Service before using this content. You further acknowledge that your purchase of this digital product amounts to a license subject to the Software Product License Agreement." These four gamers aren't satisfied with that; they said in the complaint that it's too small, and that "a reasonable customer completing a purchase would not necessarily notice this disclosure." "It's a proposed class action complaint, meaning the group of four gamers is asking a judge to grant them class action status."

Read more of this story at Slashdot.

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Google Sues Chinese Cybercrime Operation That Used Gemini AI To Send Scam Texts

An anonymous reader quotes a report from TechCrunch: Google is suing to dismantle the infrastructure behind an alleged massive AI-powered cybercrime operation. On Friday, the tech giant announced a lawsuit against an alleged Chinese cybercrime network called Outsider Enterprise, which Google says uses AI in its campaigns to send scam text messages impersonating Google and other brands to steal passwords and credit card numbers. Outsider Enterprise has financially scammed "hundreds of thousands of victims" with losses "estimated in the millions." The group deployed 9,000 fake websites, 1 million fraudulent web domains, and 2.5 million texts sent to Android users in a two-week period, according to Google. "55,000 spam texts were flagged by Android users in just two weeks this past May -- that's more than two text spam complaints a minute," Google said. Google said it uses "AI-powered tools to fight AI-powered scams", which enable the company to detect scams and alert users of suspicious calls and text messages, leading to the interception of more than 10 billion scam messages a month. The company said it has been collaborating with AT&T, T-Mobile, and Verizon to block the scam text messages and said it is coordinating with the FBI, which is taking unspecified law enforcement actions.

Read more of this story at Slashdot.

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Sam Bankman-Fried Loses Bid To Overturn Crypto Fraud Conviction

Sam Bankman-Fried lost his appeal to overturn his FTX fraud conviction and 25-year sentence. Reuters reports: In a unanimous decision, a three-judge panel of the Manhattan-based 2nd U.S. Circuit Court of Appeals said prosecutors' evidence against Bankman-Fried "was, conservatively stated, robust." "While he was publicly reassuring customers, investors and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments," Circuit Judge Barrington Parker wrote on behalf of the panel. Bankman-Fried's lawyers did not immediately respond to a request for comment. They may next ask all the active judges on the 2nd Circuit to hear the case, or ask the U.S. Supreme Court to take up the case. Bankman-Fried is also seeking a pardon from President Donald Trump, according to the Justice Department's Office of the Pardon Attorney. Bankman-Fried was sentenced to 25 years in prison in 2024 for "masterminding one of the largest financial frauds in American history," wrote US District Judge Lewis Kaplan. He was convicted on all charges, including wire fraud, conspiracy to commit securities fraud, commodities fraud, and money laundering.

Read more of this story at Slashdot.

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