Apple sues former employee over stolen Apple Watch trade secrets for Oppo

Apple sues former employee over stolen Apple Watch trade secrets for Oppo
Image via Apple

Apple Takes Legal Action Against Former Employee for Alleged Trade Secret Theft

In a noteworthy development in the tech industry, Apple has initiated legal proceedings against Dr. Chen Shi, a previous employee who contributed to the Apple Watch project as a Sensor System Architect. The lawsuit extends its scope to include Dr. Shi’s current employers, Guangdong Oppo Mobile Telecommunications Corp., Ltd.(commonly referred to as Oppo), and InnoPeak Technology, Inc.

Background of the Lawsuit

The legal action centers around accusations that Dr. Shi conspired to pilfer proprietary information from Apple to benefit Oppo, a direct competitor in the wearables sector. This case follows closely after another lawsuit in which Apple accused former senior system product design engineer Di Liu of similar actions prior to his transition to Snap Inc.

Details of the Allegations

According to court documents, Dr. Shi reportedly began clandestine communications with Oppo’s senior management while still employed at Apple as early as April. The lawsuit specifies that he participated in meetings with the Apple Watch technical team to gather sensitive information and, just days before his departure on June 27, downloaded an astonishing 63 confidential documents from a secure server.

Contents of the Stolen Information

The documents in question contained critical data about Apple’s proprietary chip designs, unreleased products, and intricate details regarding technology such as ECG (electrocardiogram) and PPG (photoplethysmogram) sensors. Furthermore, Apple has highlighted the involvement of Dr. Zijing Zeng, Oppo’s Vice President of Health, who allegedly received messages from Dr. Shi that conveyed his intentions to collect internal materials during his final weeks at the company. A particular message relayed plans to start work with Oppo on June 30, following his resignation, which he communicated to Zeng with minimal responses.

I’m planning to start on 6/30. This week I’ll inform my team about my resignation. Lately, I’ve also been reviewing various internal materials and doing a lot of 1:1 meetings in an effort to collect as much information as possible—will share with you all later.

Attempts to Conceal the Theft

After downloading the sensitive information, the lawsuit alleges that Dr. Shi attempted to erase any evidence of his actions. He reportedly searched online for ways to wipe his MacBook and inquired whether others could detect if he had accessed files on a shared drive. Furthermore, he removed the stolen data from his work laptop after transferring it to an external USB drive, while misleading co-workers about his departure, claiming he needed to care for his elderly parents in China.

Discovery of the Scheme

Apple became aware of these actions through a forensic investigation. By examining file download logs and the contents of Dr. Shi’s work-issued MacBook and iPhone, the company pieced together the alleged theft.

Legal Remedies Sought by Apple

In response to this breach of trust, Apple is pursuing several legal remedies typical for intellectual property theft cases. These include a court order to prevent Dr. Shi and Oppo from using the stolen trade secrets, financial compensation for damages incurred, and punitive damages aimed at penalizing the defendants for their actions. Apple is also requesting a jury trial to adjudicate the matter.

As the case develops, it raises significant questions about the protection of intellectual property within the technology sector and the measures companies must take to safeguard their innovations.

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