Apple doesn’t like information about its forthcoming including unannounced products leaked. In fact, if any of its partners indulge in such activities, they end up paying heavy fine for it, as revealed in GT Advanced Technologies’ bankruptcy filings. The sapphire maker was imposed a $50 million penalty “per occurrence” for leaking information about the material used in company’s future products, reports Financial Times. Also Read - PUBG New State receives over 17 million pre-registrations as closed alpha testing ends
The court filings made by GT Advanced Technologies reveals the insane penalty Apple’s partners pay for leaking any product info. The terms of agreements are so complex, confidential and strict that the sapphire maker had to take permission from Apple before revealing them to the court. The company said that it had to disclose such information in the interest of creditors, equity holders, and other shareholders – who are claiming that GT “misrepresented and/or concealed” its financial position. Also Read - iPhone selling in LG stores? Apple is apparently in talks for a new deal
GT finds this sort of restrictions “oppressive and burdensome” and said that it revealed it to the public “to ensure an open, transparent and fair process.” The company also believes that such agreements create “significant logistical problems” and gives Apple “disproportionate power”. Furthermore, GT’s lawyers are demanding that more information about its relationship with the Cupertino giant should be made available to the public. Also Read - Apple CEO Tim Cook claims iOS is more secure than Android
Last year, Apple said that it will lend the company a whopping sum of $578 million to help it setup sapphire manufacturing facility in Arizona. The company uses sapphire supplies in its iPhones and iPads for Touch ID fingerprint sensor, and on top of the camera. It is also using sapphire glass in two of the three Apple Watch models. However, in less than a year of what would have been a 5-year relationship, GT filed for bankruptcy. This sudden announcement surprised many, including Apple. However it ensured the company that it will help it protect some jobs.
In order to protect its intellectual properties and maintain the suspense until the official unveiling, Apple demands incredible confidentiality from its partners. GT’s recent revelations may affect company’s future partnerships with Apple, in an event it is able to get the company on the right track again.