Apple has filed a lawsuit in California against former engineer Di Liu, accusing him of stealing trade secrets related to its Vision Pro headset.

The court filing, dated June 24, claims that Liu downloaded thousands of confidential documents to personal cloud accounts before leaving Apple to join Snap, a company known for its augmented reality products.

The lawsuit alleges Liu failed to disclose his new role at Snap upon resigning. This allowed him continued access to Apple systems during a standard two-week transition period.

Apple contends Liu used this time to transfer proprietary information, including technology files, product designs, and supply chain details, many of which were codenamed.

Liu worked at Apple as a system product design engineer from 2017 to 2024. However, he has not publicly commented on the allegations.

Snap said it has reviewed Apple’s claims and found no evidence linking them to Liu’s current employment or conduct.

Apple is seeking damages and a forensic examination of Liu’s devices to confirm the deletion of its trade secrets.

While Snap is not named as a defendant, the lawsuit suggests Liu could potentially use Apple’s confidential information in his new position.

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🔗 Source: CNBC

🧠 Food for thought

1️⃣ Trade secret litigation reveals intense competition in AR/VR space

Apple’s lawsuit against its former Vision Pro engineer highlights how fiercely competitive the augmented and virtual reality space has become among tech giants.

This case reflects a broader trend in the industry, with multiple high-profile trade secret disputes in recent years, including Apple settling with chip startup Rivos and suing other former employees who allegedly leaked information.

The timing is significant as Snap is actively developing its next generation of AR glasses, having invested over $3 billion in AR technology over the past 11 years and planning to launch consumer “Specs” glasses in 2026 1.

This legal action demonstrates how companies view employee transitions to competitors as a major vulnerability, especially in emerging technology fields where intellectual property can represent years of development and billions in investment.

The specific allegations that Liu downloaded thousands of documents related to Apple’s Vision Pro before joining Snap as a product design engineer highlight the strategic importance of AR/VR expertise in today’s tech landscape.

2️⃣ Employee departures represent critical IP security challenges

This case exemplifies why employee transitions are considered one of the highest-risk periods for trade secret protection in the tech industry.

According to the lawsuit, Apple allowed Liu a standard two-week transition period without revoking his access, a common practice that backfired when he allegedly used this time to download thousands of confidential files containing proprietary information.

Trade secret theft has significant economic consequences, with estimates suggesting it costs the U.S. economy approximately $300 billion annually 2.

The specific details align with other high-profile cases, such as when Jizhong Chen, a former Apple self-driving car engineer, allegedly backed up his work computer to a personal hard drive before applying to a competitor 3.

Legal experts recommend implementing comprehensive exit procedures, including immediate access revocation and forensic device analysis for departing employees working with sensitive information, particularly when they’re joining competitors 4.

These protocols have become increasingly important as the tech industry faces mounting threats from both insider risks and external cyber espionage, with companies needing to balance efficient operations with protecting valuable trade secrets.

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