Apple's non-disclosure agreements come with a $50m fine for leaks says bankrupt supplier GT Advanced
A bankrupt Apple supplier has revealed the alleged hefty charge the iPhone producer burdens firms with if they leak any information regarding future products.
GT claimed the Apple agreement over-shadowed its other businesses
Following GT Advanced’s shock bankruptcy last week, which saw share values drop by a staggering 90 per cent, the sapphire display producer told a US Bankruptcy Court in New Hampshire that Apple charges firm’s $50m for leaking product information as part of a contractual non-disclosure clause, according to the Financial Times.
Speaking before the court case commenced on Wednesday, GT lawyers said they might publish more information about its “oppressive and burdensome” relationship with Apple.
They added that the contract said that “each breach of the confidentiality obligations will require GTAT Corp to pay liquidated damages to Apple in an amount of $50m per occurrence”.
The firm claimed Apple treated the clause as confidentially as the designs it protected in a bid to protect its future designs and the marketing buzz surrounding it. However, GT said the agreement created “significant logistical problems” and gave Apple “disproportionate power” over the manufacturer.
The reason behind GT’s sudden bankruptcy has yet to be revealed although rumours have emerged stating that it was the five-year sapphire screen display supply deal with Apple that caused the crash, putting 890 jobs at risk at Arizona and Massachusetts plants.
The case continues with more information on the agreement set to emerge.
Apple is also very protective of its past releases with design chief Jony Ive earlier this week accusing Chinese smartphone developer Xiaomi of stealing its designs.
Responding to the accusation, the firm’s president Lin Bin later claimed Ive has never tried a Xiaomi device to come to that conclusion.
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