A fine of up to $50 million from Apple Inc. (NASDAQ:AAPL) will be up for grabs for any Sapphire suppliers who leak any product secrets to the public. The findings were revealed on a court filing by GT Advanced Technologies Inc. (NASDAQ:GTAT), which is currently finalizing its bankruptcy proceedings.
Apple’s Oppressive Contracts
The court filings does not pinpoint exactly where the order came from, but it is evidently clear it is from Apple Inc. (NASDAQ:AAPL) considering it is GTAT’s major partner in the Sapphire glass business. Such oppressive and burdensome agreements are reportedly making it hard for GT Advanced Technologies Inc. (NASDAQ:GTAT) to finalize its bankruptcy proceedings as it is barred from revealing some details.
The Verge reports that there may be other arrangements that GTAT Advanced made with Apple that are subject to the secrecy requirement. GTAT has also reportedly asked the court to keep it a secret the reasons behind its unprecedented filing for bankruptcy a move that is normally unusual. Apple may be trying to hide its activities to ensure enjoys an advantage in terms of surprise when launching new products into the market.
Apple’s Weird Operations in China
Earlier in the year, Apple Inc. (NASDAQ:AAPL) enlisted the services of more than 200 security officers in china as it looked to clamp down on the sale of its accessories to the media and other people. GTAT might on the other hand use Apple Inc. (NASDAQ:AAPL)’s hard stance in this case to argue that the company was an oppressive company in terms if contractual demands.
Questions are already being asked as to what GTAT Advanced incurred for the production of each Sapphire glass. GTAT has already stated that it will close its Sapphire plant in December citing high operational costs that reach highs of $1 million a day.
