Apple’s Supplier Agreements Include $50M Penalty for Leaks

Fresh details leaked from court filings made by GT Advanced Technologies related to Apple’s supplier non-disclosure agreements during its bankruptcy proceedings, have revealed that Apple’s supplier contracts also include a hefty $50 million penalty “per occurrence” for leaking information about any upcoming, unannounced product, AppleInsider is reporting.

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The Financial Times reports that GT Advanced is arguing in the court that even more information about its relationship with Apple should be published. The company also claimed that the terms of Apple’s contract were unreasonable, calling them “oppressive and burdensome.” GT Advanced’s filing notes that even the confidentiality agreement between the two companies is identified as “confidential”, it has asked for permission to disclose the details of its agreement in the interest of creditors and other stakeholders.

“Details of Apple’s non-disclosure agreements, which suppliers are not even allowed to acknowledge, have already emerged in court filings by GT Advanced Technologies, including the $50m penalty the iPhone maker imposes for any leak of product information. In filings last week, the Arizona-based manufacturer called its supplier agreement with Apple “oppressive and burdensome”. That marked a sudden about-turn by the Nasdaq-listed company, which only a year ago was enthusing to shareholders how its partnership with the US tech group would transform its business and power a new source of growth.”

GT Advanced plans to close its plants in both Arizona and Massachusetts, which could cost a total of 890 jobs, though Apple has said its focus is on preserving these jobs.

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  • sukisszoze

    The terms of the contract is unreasonable?..it takes two to tango..GT doesn’t have to sign any agreement it doesn’t want to..guess they can’t resist the $578M advance.

  • FragilityG4

    Agreed. I hate it when people speak this way … If the deal is unreasonable don’t do it. Apple made them rich and they pissed it away.

  • Stefan

    I have a feleling that apple will buy gt and that this was just a move to get the gt for 0$