SAN FRANCISCO, July 11 — The stakes are enormous in Silicon Valley’s long-running trade secret wars. The latest front in this battle, Apple v. OpenAI, continues a pattern that has shaped the tech industry, centering on allegations of stolen AI hardware and software trade secrets.
The Defend Trade Secrets Act, signed into law by President Barack Obama on May 11, 2016, created a federal framework for companies to sue for misappropriation. Since then, the docket of high-profile cases has grown steadily, with outcomes that have often involved significant financial settlements.
Waymo v. Uber: The $245 Million Precedent
Perhaps the most consequential case was Waymo v. Uber, filed in February 2017. Waymo, a subsidiary of Alphabet Inc. founded in 2009, accused Uber of stealing trade secrets related to self-driving car technology.
The case settled in February 2018, with Uber giving Waymo $245 million in equity. The bottom line: a clear signal that trade secret litigation carries real financial teeth.
That case set a template. Former employees downloading files or sharing proprietary information with competitors became the central allegation in a string of lawsuits that followed.
Apple’s Legal Battles
Apple has been a frequent plaintiff. In January 2020, the company filed suit against Masimo, accusing the medical technology firm of stealing trade secrets for blood oxygen monitoring technology used in the Apple Watch. In 2019, Apple also sued former employee Gerard Williams III, alleging he stole trade secrets related to chip design.
The U.S. Department of Justice entered the fray in 2023, charging a former Apple employee with theft of trade secrets for a self-driving car project. That criminal case underscored that trade secret misappropriation is not merely a civil dispute — it can carry federal criminal penalties.
Pattern of Allegations
These cases share a common thread. Allegations typically involve former employees taking confidential files — schematics, source code, technical specifications — and sharing them with a new employer or competitor. The Apple v.
OpenAI lawsuit continues this pattern, focusing specifically on AI hardware and software trade secrets. The timing matters.
As artificial intelligence becomes the defining technology race of the decade, the value of proprietary AI research has skyrocketed. Companies are now guarding their algorithms and chip designs with the same ferocity that earlier generations guarded their source code and product blueprints. What to watch next: how courts apply the Defend Trade Secrets Act to the rapidly evolving field of AI.
The legal framework was written before large language models and generative AI became mainstream business assets. The Apple v.
OpenAI case will test whether existing trade secret law can keep pace with technology that learns and evolves.
