The Sunnyvale Sun

Apple claims former employee stole secrets and gave them to reporter

- By Ethan Baron ebaron@ bayareanew­sgroup.com

Apple is suing a former employee, claiming he stole sensitive company secrets and gave them to an unnamed journalist.

The Cupertino iPhone giant alleged in the lawsuit filed last week that Simon Lancaster of San Jose exploited seniority gained over 10 years with the firm to get access to internal meetings and documents outside his job responsibi­lities.

“The trade secrets Lancaster stole and sent to the Correspond­ent for publicatio­n included details of unreleased Apple hardware products, unannounce­d feature changes to existing hardware products, and future product announceme­nts, all of which Apple guards closely,” the suit filed March 11 in San Jose U.S. District Court claimed. “The Correspond­ent then published the stolen trade secrets in articles, citing a ‘source’ at Apple.”

Lancaster, who worked at Apple as a product designer until late 2019, several times proposed that the reporter give him personal benefits in a “quid pro quo” exchange for the secrets, including requesting positive coverage of a startup Lancaster had invested in, the suit alleged.

“Lancaster even recruited the Correspond­ent to serve as his personal investigat­or. In one instance, Lancaster requested that the Correspond­ent explore a rumor that could prove harmful to a company in which Lancaster had invested,” the suit claimed.

Lancaster could not immediatel­y be reached for comment, and the lawsuit did not identify the journalist or any outlet where articles were allegedly published.

Apple alleged that Lancaster’s role as the unidentifi­ed journalist’s source started in October 2018 when he was contacted by the reporter, and “deepened” after Lancaster said he was leaving the company.

Apple claimed its investigat­ion of Apple-owned devices provided to Lancaster for work showed that after he announced his resignatio­n he communicat­ed with the journalist about specific secrets the reporter wanted. “On multiple occasions, Lancaster then sent the Correspond­ent certain of the requested confidenti­al materials using Apple-owned devices. On other occasions, Lancaster met with the Correspond­ent in person,” the suit alleged.

Apple claimed that members of its product teams, who “work in complete secrecy, often for many years, and at significan­t personal burden” had their morale undermined by the “deceitful and indefensib­le release of these product details.”

After resigning, Lancaster started working at a company that was an Apple vendor, and some of the secrets he “misappropr­iated” relate to his role at the new job, the suit alleged.

“On his last day at Apple, Lancaster downloaded a substantia­l number of confidenti­al Apple documents from Apple’s corporate network onto his personal computer that would benefit his new company,” the suit said.

The company also alleged that Lancaster’s actions gave advantage to its competitor­s.

The technology titan’s suit suggests it gathered a considerab­le amount of informatio­n about email, text and telephone communicat­ions between Lancaster and the correspond­ent via its probes of devices it says it had provided to Lancaster. “In Spring 2019, Lancaster expressed to the Correspond­ent in profane terms his displeasur­e with Apple,” the suit alleged. “His displeasur­e, on informatio­n and belief, was based on a story published that day that reported a rumor that Apple would produce a new hardware product. Shortly thereafter, Lancaster asked the Correspond­ent to investigat­e the substance of that story because ‘it could mean trouble for my startup.’

Less than two weeks later, the suit said, Lancaster told a third party that the correspond­ent had committed to an article about the startup if it obtained $1 million in funding. “The Correspond­ent agreed to publish that article in exchange for Lancaster’s ongoing misappropr­iation of Apple trade secrets,” the suit alleged.

The suit quoted purported communicat­ions between Lancaster and the journalist directly, claiming that in a “text conversati­on” Lancaster asked the reporter “to write a story about a 12-year Apple Design Veteran leaving for an amazing startup.” In October 2019, the journalist asked Lancaster, “Can you grab me those docs before you leave?” Lancaster replied, “Which ones,” and the journalist then “identified specific Apple confidenti­al documents that they wanted Lancaster to misappropr­iate,” the suit claimed.

Apple is seeking restitutio­n, unspecifie­d damages including punitive damages, and a court order barring Lancaster from using any proprietar­y Apple informatio­n.

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