Bloomberg reports that during a hearing today, OpenAI voluntarily agreed not to use Apple’s alleged trade secrets while the legal battle between the two companies plays out. Here are the details.
Apple scores second win in a row against OpenAI
Earlier today, OpenAI filed a new motion in the lawsuit in which Apple accuses the company of stealing trade secrets, alleging that a former employee who left OpenAI to return to Apple took more than 100 confidential files related to its unreleased hardware.
Soon after, the parties in the lawsuit appeared at a hearing where, as reported by Bloomberg, Judge Edward Davila indicated he was “highly likely” to grant Apple’s request for a preliminary injunction against OpenAI.
The short backstory on the injunction is the following: after Apple filed its trade secret misappropriation lawsuit against two former employees (Chang Liu and Tang Tan), OpenAI, and io Products, the company also sought a preliminary injunction to prevent the defendants from accessing, using, or disclosing its confidential information while the case proceeds.
Apple also sought expedited discovery, requesting early access to internal documents, forensic evidence, and employee testimony to support its case for an injunction. Many of those requests were granted yesterday.
Back to today’s hearing, Judge Davila’s indication that he was “highly likely” to grant the injunction prompted OpenAI to voluntarily agree “not to use trade secrets that Apple Inc. claims were stolen,” as Bloomberg put it.
As part of the agreement established today, OpenAI also committed to collecting forensic images of devices from 14 employees “that may contain Apple’s confidential information,” says Bloomberg.
Judge Davila will have the authority to enforce the agreement, meaning OpenAI could face court-imposed sanctions if it fails to comply with its commitments.
However, the judge also reportedly pushed back against some of Apple’s demands, describing its request to inspect every device and repository that might contain its trade secrets as a “huge ask.”
In response, Apple’s attorney, John M. Desmarais, said the company would limit its inspections to a small group of former employees, adding that OpenAI doesn’t have “400 bad apples,” but rather “a few bad apples and know who they are.”
To read Bloomberg’s full report, follow this link.
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