Apple broadens OpenAI trade-secret fight, flags more ex-staff
Apple has widened its trade-secret lawsuit against OpenAI, naming up to eleven more former staff and seeking an injunction. For Indian tech firms, the legal gap is glaring.
The News
Apple has escalated its trade-secrets lawsuit against OpenAI, telling a California court on 4 August 2026 that as many as eleven additional former employees, beyond the two it originally named, may have carried confidential material to the ChatGPT maker. Apple is asking for a preliminary injunction that would bar OpenAI from building AI hardware or products derived from Apple technology.
The suit, first filed on 10 July 2026, centred on Chang Liu, a senior systems engineer, and Tang Yew Tan, described as a chief hardware officer. In its latest filing Apple names a further eleven ex-staff as potential witnesses or participants, and points to Yu-Ting Peng, who now works at OpenAI. Apple alleges former staff shared screenshots of confidential documents about an unannounced product and discussed proprietary details ahead of an OpenAI interview.
Apple also claims several former employees who moved to OpenAI reached out about returning Apple-issued work devices they had kept after leaving. OpenAI has rejected the accusations, saying it does "not have, nor want" Apple's trade secrets and arguing that Apple made administrative errors, including emailing the wrong person.
Why It Matters
The dispute sits at the centre of the year's most closely watched hardware race. OpenAI's device ambitions, tied to the io startup co-founded by former Apple design chief Jony Ive, put it in direct competition with the company that defined the smartphone era. A courtroom fight over who owns the ideas behind the next form factor lifts the stakes well beyond a routine hiring squabble.
Trade-secret suits between technology giants are rare but consequential, because hardware knowledge, unlike code in a repository, is hard to un-see once an engineer changes badges. The last time a talent-driven secrets case reached this pitch, Waymo sued Uber in 2017 over self-driving files taken by a departing engineer; that fight settled in 2018 with Uber handing over roughly 245 million dollars in equity. Apple's move for an injunction signals it wants to freeze OpenAI's roadmap, not merely collect damages later.
Indian Angle
For Indian technology firms, the case is a live lesson in how differently two legal systems treat departing engineers. India has no standalone trade-secrets statute; protection leans on confidentiality contracts and the common-law action for breach of confidence. Section 27 of the Indian Contract Act, 1872 voids most post-employment non-compete clauses, so employers such as TCS, Infosys and Wipro rely on non-disclosure and garden-leave terms rather than the sweeping injunctions Apple is now pursuing in California.
The timing is awkward for a country courting both companies. Apple assembles a growing share of iPhones in India through Foxconn and the Tata group, while OpenAI has been expanding its India footprint and wooing local developers. As homegrown model builders such as Sarvam and Krutrim scale up hiring, aggressive cross-poaching of engineers who carry undocumented know-how could spark similar disputes, but with far weaker legal tools to resolve them.
There is also a data dimension. India's Digital Personal Data Protection Act, 2023 governs how personal information moves between employers, yet says little about proprietary product secrets. Founders here may read the Apple filing as a prompt to tighten device-return and exit protocols before a marquee hire becomes a courtroom liability.
FAQ
What is Apple asking the court to do?
Apple wants a preliminary injunction stopping OpenAI from developing AI devices or products built on Apple technology, alongside its wider trade-secrets claim. The 4 August filing broadens the pool of former employees Apple says may be involved from two to as many as thirteen people.
How many people are now named?
Apple originally named two former staff, Chang Liu and Tang Yew Tan. Its latest filing flags eleven more former employees as potential witnesses or participants, and references Yu-Ting Peng, who now works at OpenAI.
Has OpenAI responded?
Yes. OpenAI says it does "not have, nor want" Apple's trade secrets and argues Apple made administrative mistakes, including emailing the wrong person. No court has ruled on the claims, which remain allegations.
Why should Indian tech workers care?
Because India lacks a dedicated trade-secrets statute and voids most non-compete clauses under Section 27 of the Contract Act, disputes over departing engineers are harder to litigate here, making clear confidentiality and device-return policies more important than ever.
Where can I read the original report?
TechCrunch published the details of Apple's 4 August court filing; the full coverage is linked below.
This story was reported by TechCrunch. Read the full original coverage at TechCrunch.