Apple has won a trade secret lawsuit brought by Envirodigm over the iPhone's anodization process, but an appeal has revived the case in hopes of uncovering wrongdoing by Apple.
The lawsuit was filed against Apple in 2020 by Envirodigm, a consulting company Apple hired after the 2012 "Scuffgate" issue involving the iPhone 5. Envirodigm alleges that it disclosed a secret anodization process to Apple in an August 2013 meeting under a non-disclosure agreement, and that Apple used that process in iPhones from 2015 onward without involving the company.
Apple won the case through summary judgment because Envirodigm failed to disclose the formula it claimed was stolen. California case law holds that undisclosed or vaguely described trade secrets cannot form the basis for misappropriation claims. According to a report from Bloomberg Law, Apple has told the California appeals panel that the ruling should be upheld. Apple's representative, Michael von Loewenfeldt, argued that failing to disclose the secret in the trade secret disclosure means the claim is lost.
Envirodigm's appeal argues that it can still pursue a breach of contract claim based on the non-disclosure agreement, independent of the trade secret misappropriation claim it lost. Its representative said Apple conceded using a two-to-one ratio of organic to inorganic acid for anodizing the aluminum iPhone body, and began experimenting with it within two months of the 2013 meeting.
Whether the case moves forward now depends on whether the appeals panel finds merit in treating the breach of contract and misappropriation claims as separate matters. Apple maintains that its position is clear.
Source: AppleInsider · Summarized by HeadlinesBriefing