Apple alleges former MacBook Pro designer leaked secret details to reporter

Apple on Thursday sued a former employee, alleging he leaked trade secrets to a reporter and solicited the reporter’s favors in return.

The lawsuit was brought against Simon Lancaster in the United States District Court for the Northern District of California. Lancaster spent 11 years at Apple before accepting a position as Head of Consumer Products at Arris Composites at the end of 2019. Lancaster was Head of Advanced Materials and Product Design Architect at Apple, where he “played a role determining in the development of the MacBook 13 “/ 15” Pro with the touch bar, and the design of new Apple products, “said a press release from Arris Composites at the time.

Apple’s lawsuit alleged:

Despite more than a decade of employment with Apple, Lancaster abused his position and trust within the company to routinely release Apple’s confidential information for personal gain. He used his seniority to access internal meetings and documents outside of his professional responsibilities that contained Apple trade secrets, and he provided those trade secrets to his outside media correspondent. The correspondent then published the stolen trade secrets in articles, citing a “source” at Apple. On several occasions, Lancaster has proposed that the correspondent grant benefits to Lancaster in exchange for Apple’s trade secrets. For example, Lancaster proposed that the correspondent provide favorable coverage of a start-up company in which Lancaster was a counterpart investor. Lancaster even recruited the correspondent to serve as his personal investigator. In one case, Lancaster asked the correspondent to explore a rumor that could prove detrimental to a company in which Lancaster had invested.

These last two sentences relate to an incident in the spring of 2019 in which Lancaster told the reporter his “dissatisfaction with Apple” over “a story published that day which reported a rumor that Apple was producing a new hardware product,” according to the lawsuit. “Shortly thereafter, Lancaster asked the correspondent to investigate the merits of this story because ‘it could cause trouble for my [Lancaster’s] Start. ‘ The correspondent replied, “I’ll see what I can find.” “

Lancaster subsequently “communicated to a third party that the correspondent had undertaken to publish an article about the Lancaster startup if he secured a million dollar funding,” Apple said, alleging that “the correspondent had agreed to publish this article in exchange for the continued hijacking of Apple by Lancaster. trade secrets. ” When he left Apple for Arris Composites, Lancaster asked the reporter “to write a story about a 12-year-old Apple Design veteran leaving for an incredible startup,” Apple said. The lawsuit does not say whether these Lancaster-proposed stories were published.

We have contacted Lancaster regarding the lawsuit and will update this article if we get a response. The reporter was not named in the lawsuit. Apple said the leaks included “unreleased Apple hardware products,” but did not specify which ones.

Apple Trade Secrets

Apple’s lawsuit alleged Lancaster violated federal Defend Trade Secrets Act and the California Uniform Trade Secret Act and violated a confidentiality and intellectual property agreement.

Apple alleged Lancaster continued to give the reporter trade secrets after announcing his resignation. “Lancaster’s role as the correspondent’s ‘source’ deepened even after he announced his resignation from his role at Apple,” the lawsuit said. “Indeed, Apple’s internal investigation into Apple-owned devices supplied to Lancaster as part of his employment shows that after Lancaster announced his resignation, he contacted the correspondent regarding specific Apple trade secrets sought. by the correspondent and took specific steps to obtain Apple additional. trade secrets. “

Apple is famous for its future product plans, but details are often reported ahead of announcements due to leaks to reporters.

“The trade secrets that Lancaster stole and sent to the correspondent for publication included details of previously unreleased Apple hardware products, unannounced feature changes to existing hardware products, and future product announcements, all being closely watched by Apple,” he said. Apple said in the lawsuit. “Apple’s product teams – innovators, designers and builders – work in secrecy, often for many years, and with a heavy personal load, all to surprise and delight Apple customers with their creations. These deceptive and indefensible product details made possible by The Lancaster hijacking has undermined the morale of the teams who worked on the products and features in question. “

Apple said a “forensic examination” of Lancaster’s work devices shows that “Lancaster and the correspondent coordinated to steal specific documents and product information from Apple. On numerous occasions, the correspondent had requested Lancaster to obtain specific documents and information on Apple’s trade secrets. On some occasions, Lancaster subsequently sent the correspondent some of the confidential documents requested using devices belonging to Apple. on other occasions, Lancaster has met with the correspondent in person to provide him with the requested Apple confidential information. The extent of their plot is currently unknown; however, Apple’s investigation is ongoing. “

Apple security measures

Apple said it “takes all reasonable steps to maintain the confidentiality” of its trade secrets, including physical security in buildings, monitoring of computer access, “demands[ing] all employees to execute strict confidentiality agreements “and to train employees in policies for handling confidential information. Apple said Lancaster signed the company’s confidentiality and intellectual property agreement in May 2008.

Lancaster had access to confidential information because he had a “lead role” which involved “evaluating materials and prototyping innovations to enable future generations of products,” Apple said.

Although Apple did not name Arris Composites directly in the lawsuit, the complaint indicated that Lancaster’s new employer had a supplier service contract with Apple. “Parts of the trade secret information that Lancaster hijacks relates directly to his role with his new employer, and Lancaster’s misuse of Apple’s trade secrets is likely to continue to this day,” Apple said. “In fact, on his last day at Apple, Lancaster downloaded a substantial number of confidential Apple documents from Apple’s corporate network onto his personal computer which would benefit his new business.”

The supplier agreement with Apple includes a confidentiality agreement to which Lancaster is subject, Apple said. “Apple therefore requests the return of all copies of its [trade secrets] and to ensure that Lancaster no longer owns this data and information and an injunction against any use of this information, ”the complaint states.

Arris Composites, founded in 2017, claims to manufacture “carbon fiber composites that can be combined with other materials such as metals and even electronics”.

In addition to requesting an “injunction ordering [Lancaster] to continue to hijack Apple’s trade secret information, “Apple asked the court to make Lancaster pay damages, punitive damages, restitution, and attorneys’ fees and costs.

“Why did I leave Apple”

Lancaster wrote favorably about his time at Apple in a November 2019 LinkedIn post titled “Why I Left Apple and Joined Arris Composites.” At Apple, “I was able to step up and help the engineering product design department take sketches off the drawing board and turn them into real products,” he writes. “I fell in love with the magic of certain processes, like additive manufacturing and composites, and I would stay to be Apple’s leader in advanced materials.”

Lancaster has a few dozen patents from his time at Apple. As Lancaster became an angel investor in startups, “I realized how much I missed the thrill of the unknown, the journey of exploration many of these young founders were on,” he writes. Apple, on the other hand, was a “well-oiled machine” that “works so well that it’s hard to justify changing it.” Lancaster wrote that Arris “will show that composite manufacturing is not just something for space shuttles, but can change the products we carry in our pockets and cherish on our desks.”