Former Apple Employee Charged With Theft of Trade Secrets Related to Autonomous Car Project [Updated]

The United States Federal Bureau of Investigation this week charged former Apple employee Xiaolang Zhang with theft of trade secrets, according to documents filed with the Northern District Court of California.

Zhang was hired at Apple in December of 2015 to work on Project Titan, developing software and hardware for use in autonomous vehicles. Zhang specifically worked on Apple's Compute Team, designing and testing circuit boards to analyze sensor data.

appleintellectualpropertydocument

The intellectual property disclosure on one of the documents Zhang stole

He was provided with "broad access to secure and confidential internal databases" due to his position, which contained trade secrets and intellectual property for the autonomous driving project that he ultimately ended up stealing.

In April 2018, Zhang took family leave from Apple following the birth of his child, and during that time, he visited China. Shortly after, he told his supervisor at Apple he was leaving the company and moving to China to work for XMotors, a Chinese startup that also focuses on autonomous vehicle technology.

Zhang's supervisor felt that he had "been evasive" during the meeting, which led Apple's New Product Security Team to begin an investigation, looking into Zhang's historical network activity and analyzing his Apple devices, which were seized when he resigned.

Apple found that just prior to Zhang's departure, his network activity had "increased exponentially" compared to the prior two years he had worked at Apple. He accessed content that included prototypes and prototype requirements, which the court documents specify as power requirements, low voltage requirements, battery system, and drivetrain suspension mounts.

The majority of his activity consisted of both bulk searches and targeted downloading copious pages of information from various confidential database applications. The information contained within the downloading contained trade secret intellectual property, based on the level of Zhang's access within Apple's autonomous vehicle team.

A review of recorded footage at Apple indicated Zhang had visited the campus on the evening of Saturday, April 28, entering both Apple's autonomous vehicle software and hardware labs, which coincided with data download times, and he left with a box of hardware.

In a second interview with Apple's security team, Zhang admitted to taking both online data and hardware (a Linux server and circuit boards) from Apple during his paternity leave. He also admitted to AirDropping sensitive content from his own device to his wife's laptop.

All of Apple's evidence was relayed to the FBI after the company's Digital Forensic Investigations team discovered that at least 60 percent of the data Zhang had downloaded and transferred to his wife's computer was "highly problematic." The FBI, in the court filing, describes the information as "largely technical in nature, including engineering schematics, technical reference manuals, and technical reports."

Of interest, the filing also gives a glimpse into Apple's security protocols. To access sensitive projects like Titan, an employee must be logged into Apple's virtual private network and must be granted "disclosure," a status that can only be granted when an employee is sponsored by another employee who already has access to the project, with an administrator reviewing all requests. Approximately 5,000 Apple employees have access to data on Apple's autonomous driving efforts, with the databases Zhang accessed further restricted to approximately 2,700 "core employees."

When hired, Zhang signed an Intellectual Property Agreement and attended a mandatory in-person secrecy training session, which he violated. Zhang was interviewed by the FBI in late June, where he admitted to stealing the information, and he was later arrested attempting to leave to China on July 7.

For stealing Apple's trade secrets, Zhang is facing up to 10 years in prison and a $250,000 fine.

It's no surprise that Apple cracked down on Zhang. Shortly before Zhang's theft was discovered, Apple sent out a lengthy cautionary memo to employees warning them against leaking data to the media. In the letter, Apple said that in 2017, it caught 29 leakers, with 12 of those individuals being arrested and charged.

Update: Apple provided the following statement on the case to TechCrunch: "Apple takes confidentiality and the protection of our intellectual property very seriously. We're working with authorities on this matter and will do everything possible to make sure this individual and any other individuals involved are held accountable for their actions."

Update 2: XMotors said there is no indication that Zhang ever communicated any sensitive information from Apple to XMotors, according to Reuters. XMotors also said the firm had terminated Zhang and is supporting local authorities.

Update 3: On July 16, Zhang pled not guilty to the charges.

Popular Stories

iOS 18

Here Are Apple's Full iOS 18.5 Release Notes

Tuesday May 6, 2025 2:17 pm PDT by
Apple today seeded the release candidate version of iOS 18.5 to developers and public beta testers, giving us a look at the final version of the update that will be provided to the public next week. With the release candidate, Apple provided release notes, so we have a more complete look at the new features that are included in the update, including those that weren't found during the beta...
siri glow

iPhone Users Now Able to Submit Claims in $95 Million Siri Spying Lawsuit

Wednesday May 7, 2025 11:40 am PDT by
If you owned a Siri-compatible device and had an accidental Siri activation between September 17, 2014 and December 31, 2024, you could be eligible for a payment from Apple as part of a class action lawsuit settlement. Apple in January agreed to pay $95 million to settle a class action lawsuit involving Siri spying accusations, and a website to distribute the funds has now been set up and...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17: What's New With the Cameras

Friday May 2, 2025 3:52 pm PDT by
We've still got months to go before the new iPhone 17 models come out, but a combination of dummy models and leaks have given us some insight into what we can expect in terms of camera changes. Apple is adding new camera features, and changing the design of the camera bump for some models. You might be skeptical of dummy models, but over the years, they've proven to be a highly accurate...
iOS 18

Apple Says iOS 18.5 Coming Soon, Here is What's New

Monday May 5, 2025 8:19 am PDT by
In its press release for the new Pride Band today, Apple said that iOS 18.5 is "upcoming," following more than a month of beta testing. We expect the iOS 18.5 Release Candidate to be released this week, and this should be the final beta version, barring any last-minute bugs or changes. The software update should then be released to the general public next week. iOS 18.5 is a relatively...
Nineth iOS 19 Feature

iOS 19 Beta is a Month Away With These New Features for Your iPhone

Thursday May 8, 2025 7:37 am PDT by
The first iOS 19 beta is just one month away, and there are already many new features and changes that are expected with it. Apple should seed the first iOS 19 beta to developers immediately following the WWDC 2025 keynote, which is scheduled for Monday, June 9. Following beta testing, the update should be released to the general public in September. Below, we recap the key iOS 19 rumors...
Foldable iPhone 2023 Feature Homescreen

Foldable iPhone Said to Have Two Key Advantages

Monday May 5, 2025 6:41 am PDT by
Apple plans to release its first foldable iPhone next year, according to several reporters and analysts who cover the company. In his Power On newsletter today, Bloomberg's Mark Gurman said the foldable iPhone will offer two key advantages over other foldable smartphones. First, he said the foldable iPhone will have a "nearly invisible" crease when unfolded. This means the device's...
Foldable iPhone 2023 Feature Homescreen

Apple's Foldable iPhone Display Tech May Set New Industry Standard

Thursday May 8, 2025 3:29 am PDT by
Apple's upcoming foldable iPhone will feature a new type of display panel developed by Samsung that has never been used in a foldable product, claims a source with links to Apple's supply chain. According to the account yeux1122 on the Korean Naver blog, the foldable iPhone will use a custom display process for which Apple will hold branding trademark rights, and that meets Apple's stringent ...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Tuesday April 29, 2025 1:30 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...

Top Rated Comments

JohnGrey Avatar
89 months ago
There's no way this wasn't a state-sponsored quid pro quo to give the Chinese company a leg up on automated vehicles. This will continue until there's a 100% punitive embargo on China, including their strategic staples like pork, requiring them to deliver full economic compensation for theft of intellectual property and complete monitored compliance with WTO regulation. Until that happens, this is equivalent to letting banks make tens of billions in fraudulent instruments and then fining them a few million in damages. Their investors don't care about the public and brand cost so long as the penalties are a tiny fraction of profits. China doesn't care either because, at the moment, the benefits outweigh the cost.
Score: 36 Votes (Like | Disagree)
Apple_Robert Avatar
89 months ago
Glad to see Apple found out and took swift action. Hope he gets the maximum sentence.
Score: 34 Votes (Like | Disagree)
AZREOSpecialist Avatar
89 months ago
This is how propaganda and disinformation work...

There's no way this wasn't a state-sponsored quid pro quo to give the Chinese company a leg up on automated vehicles.
Step 1: State an unprovable assumption that is designed to make the reader angry.

This will continue until there's a 100% punitive embargo on China, including their strategic staples like pork, requiring them to deliver full economic compensation for theft of intellectual property and complete monitored compliance with WTO regulation.
Step 2: State a second, unprovable assumption based on the first, unprovable assumption, along with a list of retaliatory responses that mirror a current political position that the author is attempting to justify.

Step 3: Try to get a blogger somewhere to focus on the unprovable assumptions and other inaccuracies as a way to justify a political stance, then peddle that blog to a large propaganda outlet like Fox News as a way to legitimize the misinformation.

You forgot Step 3. Maybe you're still working on that?

Yes, folks, this is how it's done.
Score: 33 Votes (Like | Disagree)
Crzyrio Avatar
89 months ago
You'd think that huge amounts of data access would be a red flag for their security people, especially at off hours.
There is no such thing as off hours in Silicon Valley :P
Score: 29 Votes (Like | Disagree)
Blackstick Avatar
89 months ago
He took the “great artists steal” thought to the next level.
Score: 21 Votes (Like | Disagree)
Mikey44 Avatar
89 months ago
Well... I think this confirms that they were working on a car.
Score: 17 Votes (Like | Disagree)