Apple to OpenAI: If you have nothing to hide, you have nothing to fear
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Apple wants to take a look at the device OpenAI is developing to ensure its trade secrets have not been abused in the process of designing that product.
Apple to OpenAI: If you have nothing to hide, you have nothing to fear
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Apple wants to take a look at the device OpenAI is developing to ensure its trade secrets have not been abused in the process of designing that product.
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Credit: Ascannio / Shutterstock
Just because Apple now has AI, a new folding iPhone, and a newly minted CEO doesn’t mean the litigation between it and OpenAI has gone away. Apple now wants to force OpenAI to let it look at the hardware it has been building, according to a new report.
A reasonable request?
It seems a reasonable request, doesn’t it? After all, Apple’s argument is that OpenAI has been engaged in trade secret theft to help it design and develop its new hardware. OpenAI’s defense against these claims feel flimsy, at least to this reporter. They seem to coalesce around something like, “We don’t need your trade secrets because we’re making something brand new.”
The problem with that defense is, contextually, that while on this stated mission to do something completely new, the company has hired around 400 former Apple staff so far, including its chief designers. And Apple thinks part of that process has been OpenAI, in whole or in part, working to exfiltrate its trade secrets.
What Apple wants — and why
With those facts as your guide, Apple’s request to Judge Edward J. Davila seems reasonable. It wants to take a look at what OpenAI is developing to ensure its trade secrets have not been abused in the process of designing that product. Apple argues that if it is forced to wait until the product is released, then it will be impossible to make its trade secrets confidential again, particularly as the defense seems to consist of that pinky promise that no Apple trade secrets have been harmed.
Apple legal also argues that it cannot be fair to allow OpenAI to defend itself by alleging its unreleased and unseen product doesn’t contain any trade secrets without permitting Apple — and the court — to verify that. While Apple’s counsel doesn’t seem to have said it, you could paraphrase the request as Apple telling the genAI firm, “Let us see what you are building; if you have nothing to hide, you have nothing to fear.”
Except, of course, that while building its defense, OpenAI is giving many of us the distinct impression that it may have something to fear.
What may happen next
Despite the merits of the argument, I think Apple’s request will not prevail, in part because the court may assess that if Apple takes a look at OpenAI’s homework it may compound the risk of IP theft. But that doesn’t mean Apple’s attempt will fail outright, as the compromise position is likely to be the appointment of a trusted, independent, third-party expert witness to take a look at what Apple’s competitor is making in Apple’s stead.
There is precedent for this. That’s more or less what happened when Waymo pursued a similar case against Uber, or when AMCS litigated against Sinovel. There are nuances to all three cases that mean they aren’t perfectly aligned, but that does seem a logical next step to this layman.
Of course, just because it’s logical doesn’t mean either party is going to like it, but OpenAI could conceivably even suggest such an approach as it seeks to buy itself time to build and release its still mythical hardware. That’s also why Apple wants a chance to look at documents pertaining to that hardware to make very certain it hasn’t infringed any of Apple’s own trade secrets.
A side order of humble pie
All the same, if this case does indeed turn out to be a scenario in which one company has been found with its hand in the cookie jar, then the best possible approach for the company with crumbs around its mouth is going to be damage control. That’s going to take a lot less war-war and a great deal more jaw-jaw. It’s also going to require the intake of a very, very large slice of humble pie. Right now, it seems to me that Apple isn’t talking, and OpenAI isn’t hungry enough to take that first bite. Not yet.
The case, number 5:26-cv-07078, rolls on.
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