OpenAI vs. Apple: Lax Data Security Undermines Trade Secret Suit
OpenAI has chosen an unconventional defense in Apple's trade secret lawsuit: it argues that Apple itself violated its own data security rules. The central claim is that Apple let one of its managers access the iCloud account of a fired engineer. US trade secret law requires a plaintiff to show it took "reasonable measures" to protect the information, and OpenAI intends to show that Apple did not.
AI-processed from TechCrunch; edited by Hamidun News
In early August 2026, OpenAI submitted new materials to the court in the Apple trade secret case. The company's legal strategy is an unusual one: instead of directly rebutting the allegations, OpenAI plans to attack the security regime of the plaintiff itself.
What the new court filings show
The newly filed evidence reveals the core of OpenAI's defense. The company argues that Apple repeatedly violated its own information security procedures, and that this undermines a key element of any trade secret claim.
The central fact in the filings is that Apple allowed one of its managers to access a former engineer's iCloud account after the engineer had left the company. Under the US Defend Trade Secrets Act (DTSA), legal protection applies on only one condition: the rights holder must have taken "reasonable measures" to safeguard the information. OpenAI insists that granting access to a departed employee's cloud storage directly contradicts that requirement.
- The case: Apple's trade secret lawsuit involving OpenAI
- Defense strategy: challenge not the fact of the leak itself, but the plaintiff's data protection regime
- Key fact: an Apple manager accessed a fired engineer's iCloud after his departure
- DTSA legal requirement: the plaintiff must prove "reasonable measures" to protect the trade secret
Why the iCloud argument carries legal weight
An employee's iCloud account holds work documents, correspondence and backups of corporate data. Standard offboarding procedures typically lock or remotely wipe exactly this kind of material. If Apple let an outside manager read such an account after the employee's dismissal, that looks like a direct breach of basic corporate security standards.
In US case law, gaps in the plaintiff's own information security regularly serve as grounds for dismissing a trade secret claim. Courts consistently apply the principle that a company that fails to protect its own secrets cannot ask the court to protect them. That precedent gives OpenAI a very real path to defeating the allegations, even if the leak itself is proven.
"Apple's own practices when employees leave undermine its claim that the information was properly protected,"
OpenAI's court filings state.
Why such lawsuits have become more frequent in the AI industry
Trade secret cases over employees moving between competing technology companies have surged as the AI market has grown. Large corporations go to court when key engineers leave for competitors, including OpenAI. For Apple, whose AI strategy rests on several critical machine learning projects, protecting intellectual property has direct consequences for its competitiveness.
At the same time, the strict requirements of the DTSA make such cases difficult for plaintiffs: the court evaluates not only the defendant's actions but also how consistently the company itself protected the secrets it claims. Judging by the tactic OpenAI has chosen, its legal team intends to make exactly this question central to the trial and to turn Apple's own offboarding practices into its main counterargument.
What this means
Sloppy internal offboarding procedures can wipe out even a well-founded trade secret claim. For the entire tech industry, this episode is a clear reminder: companies that plan to defend their intellectual property in court must first build airtight access controls over the data of departed employees. OpenAI apparently expects this argument to become its main shield in the unfolding legal fight with Apple.
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