Labor & Employment Law Daily Wrap Up, LITIGATION NEWS, TRENDS—Apple sues former employee and his new employer alleging theft of trade secrets, (Aug 27, 2025)

By Carolin Dennis, B.Sc., LL.B., LL.M.

The complaint alleges that the smartphone maker OPPO encouraged Apple’s former employee to steal trade secrets related to the Apple Watch before leaving Apple.

Apple Inc. filed a lawsuit against a former employee and his new employers, Guangdong Oppo Mobile Telecommunications Corp., Ltd. (OPPO) and InnoPeak Technology, Inc. (InnoPeak) (collectively, OPPO defendants), for trade secret misappropriation and breach of contract. According to the complaint, the OPPO defendants improperly acquired and participated in the use of Apple’s trade secrets as the employee’s download and transfer of Apple’s trade secrets to the secret USB hard drive occurred after he accepted employment with the OPPO defendants (Apple Inc. v. Shi, No. 5:25-cv-07105 (N.D. Cal.)).

Apple is a global technology company renowned for its innovative consumer electronic products, including the iPhone, iPad, Apple Watch, AirPods, and Mac computers. In 2015, Apple introduced Apple Watch, a wearable device with integrated health, fitness, safety and connectivity features to help people lead healthier lives. Apple has since invested hundreds of millions of dollars to improve upon its features and services, including the optical sensors that enable the detailed monitoring of health information. Between January 2020 and June 2025, the employee worked for Apple as a Sensor System Architect on the Apple Watch team. Apple entrusted him with valuable trade secret information about Apple Watch, including its design and development documentation, internal specifications, and product roadmap.

OPPO is a Chinese corporation and smartphone maker. OPPO owns and operates a “Research Center” in the heart of Silicon Valley that it operates under both the “OPPO” or “InnoPeak” brands. InnoPeak is a California corporation. In 2025, amidst the continued success of Apple’s cutting-edge Apple Watch technology, the OPPO defendants had an opportunity to gain unauthorized access to Apple trade secrets by hiring an Apple employee who had substantial access to Apple’s proprietary technologies. In early June 2025, the employee formally signed his offer letter to join the OPPO defendants’ wearables team. On June 5, 2025, the employee informed his manager that he was resigning from Apple, and that his last day of work was set for June 27, 2025. The employee claimed that he was planning to take time off to care for his aging parents, and that he was currently not looking for work. On June 20, 2025, the employee submitted his formal letter of resignation to his manager. In the letter, he stated that he was resigning from his position “due to personal and family reasons.” However, the employee did not disclose that his new employers were the OPPO defendants. Despite his legal obligations and his ethical obligations to his fellow engineers to maintain the secrecy of their work product, the employee conspired to steal Apple’s trade secrets relating to Apple Watch and to disclose them to his new employers. In his final days at Apple, the employee, on behalf of the OPPO defendants, downloaded Apple confidential, proprietary materials, and transferred them to an external USB hard drive at the inducement of, in furtherance of his job responsibilities and within the scope of his new employment with the OPPO defendants that he had been working for months to secure.

In its complaint, Apple pointed out that the trade secrets that the employee illicitly downloaded and took with him to share with the OPPO defendants are the result of years of technological innovation and business acumen. Apple’s efforts and investments to develop these materials over the years have materially contributed to Apple’s position as a market leader in health sensing technologies. Apple claimed that it keeps these trade secrets strictly confidential.

Apple emphasized that due to its security measures, its trade secrets, including those that the OPPO defendants misappropriated, are not available to the public or to Apple’s competitors through any legitimate means. All Apple employees are required to sign a Confidentiality and Intellectual Property Agreement (IPA), and the employee signed a copy of the IPA on September 10, 2019. Apple ensures its employees understand their obligations by providing trainings addressing their confidentiality obligations. Apple also requires all its employees to take a “Business Conduct” course annually. In the Business Conduct course, Apple informs its employees that they must keep trade secrets strictly confidential. The employee took this Business Conduct course in 2020 and every year through 2024. Apple also claimed to follow standard departure procedures to protect its confidential information. Departing employees must return Apple devices, including laptops and mobile devices, as well as their badges and other Apple-owned equipment. When departing Apple, employees are reminded that their confidentiality obligations remain even after termination.

According to Apple, the inspection of the employee’s Apple-issued work devices revealed his communications with senior leadership at the OPPO defendants. Specifically, the Vice President and Head of OPPO Health confirmed the employee’s friend request on April 15, 2025, and spoke to him on the same day. Additionally, the OPPO defendants were aware that the employee was employed by Apple, and of the nature of his work and responsibilities as an Apple employee. The messages demonstrate that OPPO encouraged, approved, and agreed to the employee’s plan to collect Apple’s proprietary information before leaving Apple.

Claims, remedies sought. Apple asserts two causes of action: (1) misappropriation of Apple’s trade secrets under the Defend Trade Secrets Act (DTSA) against InnoPeak and OPPO, and (2) breach of Contract against the employee. Among other relief, Apple is seeking a jury trial, and asks the court to award punitive and/or exemplary damages; disgorgement of profits; preliminary and/or permanent injunction prohibiting the OPPO defendants and the employee, and all those acting on their behalf of or in active concert or participation with them: from possessing, using, or disclosing Apple’s trade secrets and altering, destroying, or disposing of any evidence, in any form, relating to this action, including without limitation emails and paper electronic documents, including current or archived electronic logs, metadata, and directories; pre-judgment and post-judgment interest; and attorneys’ fees and costs.

The case is No. 5:25-CV-7105.

Companies: Apple Inc.; Guangdong Oppo Mobile Telecommunications Corp., Ltd.; InnoPeak Technology, Inc.

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