GT Advanced Technologies filed for Chapter 11 bankruptcy protection last week, and the court documents have revealed an interesting agreement with Apple. GT Advanced, which was contracted to make sapphire glass displays for Apple, stated that there was a clause in its contract that would see them fined upward of a $50 million (USD) penalty for any leaked products.
According to the court document, GTAT notes that it “entered into several agreements with or for the benefit of Apple. The agreements shifted the GTAT’s Group sapphire-related business model from being primarily an equipment manufacturer/supplier to also being a sapphire materials manufacturer… the agreements imposed oppressive and burdensome terms and obligations on GTAT.”
Apple has been known for its intense secrecy of products, which CEO Tim Cook explained was to delight and surprise its customers. What’s not known is if this $50 million penalty is a standard rate, or simply reserved for this partner.