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Apple vs Bloggers

Moby Cock writes "Jason O'Grady has posted a story on his ZDNet blog detailing the state of the current legal trouble he is embroiled in with Apple. He views it as another salvo in Apple's efforts to stamp out rumour sites posting 'trade secrets' prior to the official announcements. The discussion becomes rather pointed and goes as far as to suggest that the case is really a case in support of freedom of the press." From the article: "At issue was a series of stories that I ran in October 2004 about an upcoming product that was in development. Was it the next great PowerBook? Maybe the a red hot iPod? Maybe a killer new version of the OS? Nah. The stories about a FireWire breakout box for GarageBand, code-named 'Asteroid.' Yawn."

56 of 271 comments (clear)

  1. Its still illegal by Anonymous Coward · · Score: 4, Insightful

    "...yawn.".

    Whether or not the product in question was exciting doesn't make it any more legal to report trade secrets.

    1. Re:Its still illegal by burndive · · Score: 3, Informative
      It's not illegal.
      Yes. It is.
      --
      ...because "hacker" sounds way sexier than "code drone."
    2. Re:Its still illegal by mctk · · Score: 2, Funny

      The question is whether Steve Jobs authorized the leak. Cause then it's not a leak. Well, it is still a leak, but not one of those illegal kind. But then, of course, reporting it would be encouraged, cause, remember, it's not really a leak (the illegal kind, that is).

      --
      Paul Grosfield - the quicker picker upper.
    3. Re:Its still illegal by Overly+Critical+Guy · · Score: 2, Insightful

      Wrong, it means the employee violated the law too.

      --
      "Sufferin' succotash."
    4. Re:Its still illegal by Achromatic1978 · · Score: 2, Insightful
      And your medical information is no longer privileged when your doctor tells his wife. Right?

      Or your lawyer his. Right?

      Thought not.

    5. Re:Its still illegal by Firehed · · Score: 2, Insightful

      But surely rumors about a true video iPod or vanilla MacBook aren't trade secrets, just theoretical upcoming product releases, right? It's not as if Think Secret et al are posting how to reverse-engineer iTMSv6 FairPlay, which most definately would be a trade secret, not to mention DMCA violation. While I can't say I love Apple protecting release info like they do, they have every right to do so, but calling release data 'trade secrets' to make rumor sites illegal is crossing the line imo.

      --
      How are sites slashdotted when nobody reads TFAs?
    6. Re:Its still illegal by ehrichweiss · · Score: 4, Informative

      Actually depending on the circumstances, the employee may be the only one breaking any law. Since it's not known who told him or how, it could have been overheard in an elevator which would make him innocent of any wrongdoing. Theft of trade secrets involves KNOWINGLY spreading trade secrets and there are plenty of ways he might not have known.

      --
      0x09F911029D74E35BD84156C5635688C0
    7. Re:Its still illegal by 1155 · · Score: 3, Funny
      I would sue the pants off my doctor. Or my lawyer. Not their wives.
      I think I would have it the other way around.
    8. Re:Its still illegal by Draveed · · Score: 3, Informative
      Here, enjoy. Spy shots of a 2008 Mercedes C-Class. And for good measure, spy shots for the 2007 Chevrolet Tahoe.

      Neither Mercedes or GM seems to be suing The Car Connection or Brenda Priddy, the woman who took the photos. Is this different from posting pictures of a Mac Mini before its announcement?

      --
      Oh, Edmund, can it be true? that I hold here, in my mortal hand, a nugget of purest green?
    9. Re:Its still illegal by tgma · · Score: 2, Insightful

      They are trade secrets, because presumably that information would be useful to Apple's competitors. For instance, Dell, or Microsoft could plan competing product announcements for that day.

      Also, if the news gets out that Apple is about to issue a new product, then sales of Apple's analogous products will fall. So Apple has to play a finely balanced game of only announcing new products when they can be sure of getting them to market on time.

      All of these are major issues for Apple's business, and Apple has a right to decide what information release strategy is in its best interests. Obviously, there's a public right to know about corporate or individual malfeasance at Apple, but that is protected by whistle-blowing laws, and by the first amendment.

      In a way, Apple is asserting its right to privacy here, in the same way that a celebrity would.

    10. Re:Its still illegal by dwandy · · Score: 4, Informative
      From TFA:
      My position on the Asteroid postings is that I didn't steal the information and I didn't ask for it. Someone volunteered it to me and it looked credible, so I posted it. It wasn't marked confidential, trade secret or any such thing but it looked legit to me, so I ran it. When Apple later asked me to remove it, I complied.
      The Law (emphasis mine)
      In General.-- Whoever, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly-- (3) receives, buys, or possesses a trade secret, knowing the same to have been stolen or appropriated, obtained, or converted without authorization
      So assuming he doesn't get journalist protection (which imho he should, and in which case this entire case is pretty much moot), then they have to prove that he knew it was obtained without authorization. Since he says it wasn't marked, and he wasn't told, unless they can prove otherwise, I'd say Apple is SOL... 'course IANAL. :)

      I'm going to assume that Apple doesn't so much want him, as the for him to give up the source so they can lay some real hurt...

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
    11. Re:Its still illegal by dwandy · · Score: 2, Insightful

      Actually, to make a fine point, it's ignorance of the law that is not a defence.
      In this case, it's ignorance that the material in question is a trade secret. You need to know and profit and/or cause damange and some other bits. There's already several links in this thread to the law if you want to read it for your self.

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
  2. Putting quotes around "trade secrets" by Anonymous+Crowhead · · Score: 4, Insightful

    Doesn't make them not trade secrets.

    1. Re:Putting quotes around "trade secrets" by Elwood+P+Dowd · · Score: 2, Insightful
      Putting quotes around "trade secrets" doesn't make them not trade secrets.
      Telling them to a reporter does though.
      --

      There are no trails. There are no trees out here.
    2. Re:Putting quotes around "trade secrets" by dr.badass · · Score: 5, Informative

      Putting quotes around "trade secrets" doesn't make them not trade secrets. Telling them to a reporter does though.

      Actually, according to the Uniform Trade Secrets Act, it doesn't:

      (2) "Misappropriation " means: (i) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (ii) disclosure or use of a trade secret of another without express or implied consent by a person who (A) used improper means to acquire knowledge of the trade secret; or (B) at the time of disclosure or use knew or had reason to know that his knowledge of the trade secret was (I) derived from or through a person who has utilized improper means to acquire it; (II) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (III) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or (C) before a material change of his position, knew or had reason to know that it was a trade secret ad that knowledge of it had been acquired by accident or mistake.

      Given that rumor sites operate on the principle of soliciting inside information, it's hard to make the case that they didn't know they had gotten some unless they admit that most of what they print isn't inside information (i.e., that they make it up).

      --
      Don't become a regular here -- you will become retarded.
    3. Re:Putting quotes around "trade secrets" by NutscrapeSucks · · Score: 2, Insightful

      One thing to consider is that companies intentionally "leak" information all the time, especially in the computer industry where FUD is a common marketing tactic. Even Apple "leaked" their Intel plans to the WSJ and ZDNet, so they are not exempt to this rule.

      So how is a publisher supposed to know if a bit of info is an illicit trade secret, or simply a marketing whisper campaign? At the very least it's plausible denability.

      --
      Whenever I hear the word 'Innovation', I reach for my pistol.
    4. Re:Putting quotes around "trade secrets" by dr.badass · · Score: 2, Interesting

      The company can sue the employee who leaks a "secret" but once it has been leaked to the public, it's no longer "secret" - and its permissible to be published.

      Sure, sure, once it becomes public knowledge it's not really an issue, but you don't have the right to make it public just because you know it.

      The portion of the law I quoted says this is not so in cases such as this one. If someone that works for Company A reveals trade secrets to you, Website B, and you have reason to believe it is a trade secret, then by publishing it you are liable for misappropriation.

      Dealing in "stolen" information is illegal in the same way that fencing stolen goods is.

      If the blogger misappropriated the "secret" (ie conducted industrial espionage), then it's a criminal case - though the standard of proving guilt is significantly higher. A criminal investigation could establish if the blogger is breaking security measures or subpoena the defendant for his sources, and possibly land the blogger in Contempt.

      This is what is happening, more or less, though the criteria for "misappropriation" are far less than "industrial espionage"; simply asking for secrets seems to count. Apple is trying to figure out who leaked the information in the first place, but unfortunately the only people who know are more interested in protecting their preposterous parasitic business model than telling the truth. Hence it is now somehow a First Amendment issue.

      --
      Don't become a regular here -- you will become retarded.
    5. Re:Putting quotes around "trade secrets" by DarkVader · · Score: 3, Interesting

      Investigative journalism is not now, has not ever been, and will never be a "preposterous parasitic business model".

      It's flat out good citizenship, and it IS a first amendment issue.

      The trade secret laws are unconstitutional.

    6. Re:Putting quotes around "trade secrets" by dr.badass · · Score: 3, Insightful

      Investigative journalism is not now, has not ever been, and will never be a "preposterous parasitic business model".

      That should be a clue that investigative journalism is not what Apple rumor sites do.

      And before you say "whistleblower", please familiarize yourself with some of the relevant laws, as so few people choose to do. If these sites had published evidence that, say, Apple was dumping toxic waste or committing fraud, they would probably be protected. They didn't, though. The information they published had only commercial value, and it's disclosure was not in the public interest, no matter how interested the public may have been.

      --
      Don't become a regular here -- you will become retarded.
  3. RE: Apple vs Bloggers by Eugenia+Loli · · Score: 3, Informative

    Thom at OSNews also posted his opinion on an editorial published yesterday:
    http://www.osnews.com/story.php?news_id=14282

  4. Red Hot Ipods!?? by AWhiteFlame · · Score: 3, Funny

    > red hot ipod.

    And people thought black didn't really match the iMacs.

    --
    "Everything worth innovating today will go to court tomorrow."
  5. Symphathy for Apple by ajakk · · Score: 2, Insightful

    I feel symphathy for Apple on this one. Apple makes it money by getting behind innovative products that sell well. They need to be able to project an image that they will not tolerate people releasing their trade secrets, because Apple loses significant amounts of money to people cloning their products. While a Firewire breakout box isn't a big deal, think of the amount of money that people make putting out unlicensed accessories for the iPod. Apple wants to have some time while its product is out on the market that it gets the revenue stream from accessories before cloners get their products on the market.

    1. Re:Symphathy for Apple by venicebeach · · Score: 4, Interesting

      Yes, but the lawsuit involves a more subtle issue: who is responsible, the insider violated an NDA and leaked the info, or the person who reports on the leaked info? O'grady claims that the information was not specifically requested, and he merely reported on it when it was passed along to him. That's why they are framing it as a journalistic freedom issue. Definitely a gray area...

    2. Re:Symphathy for Apple by penguin-collective · · Score: 3, Insightful

      They need to be able to project an image that they will not tolerate people releasing their trade secrets, because Apple loses significant amounts of money to people cloning their products. While a Firewire breakout box isn't a big deal, think of the amount of money that people make putting out unlicensed accessories for the iPod.

      My, of course, you should have to get a license to sell products! Those evil add-on companies are even daring to ship their accessories in white, without a license!!!

      As for "cloning", Apple constantly clones other companies. It's the way business works. It's a good thing. If it weren't for the stuff Apple can copy freely, Apple products wouldn't be as good, since, although Apple engineers are pretty good, they can't invent everything by themselves.

    3. Re:Symphathy for Apple by multiOSfreak · · Score: 4, Funny
      Apple loses significant amounts of money to people cloning their products.

      Yes, but to be fair, it does take MicroSoft abour 24 to 36 months to re-innovate Apple's design features into their products. That's plenty of time for Apple to make money and then release new innovations. :)
    4. Re:Symphathy for Apple by incabulos · · Score: 2, Insightful

      They need to be able to project an image that they will not tolerate people releasing their trade secrets

      They can project images all they want, but the legal reality is they have no authority to demand takedowns or threaten anyone. Patents are how they protect interfaces and devices from people that may clone them ( and then they have to be sufficiently unique and ingenious before the device in question is eligable for patent ), not Trade Secrets.

      The bottom line is, Apple are the ones behaving in a criminal fashion by going through with these threats, not the people reporting news. Apple have no right to make money. They also have no right to be the sole creator of headphones or any other accessories, with the exception of when patents must be licensed from them to do this.

      What exception to the First Amendment exists that gives any company the right to silence reporters of news? None involving Trade Secrets. If the reporters have not signed NDAs and the like, Apple should be told to go piss up a rope. If they dont cease their illegal harassment of the reporters in question, its entirely appropriate to begin criminal proceedings against them.

    5. Re:Symphathy for Apple by 99BottlesOfBeerInMyF · · Score: 3, Insightful

      Yes, but the lawsuit involves a more subtle issue: who is responsible, the insider violated an NDA and leaked the info, or the person who reports on the leaked info?

      In most places, the law says they are both guilty.

      That's why they are framing it as a journalistic freedom issue. Definitely a gray area...

      This is only a "gray area" to those who haven't done any research. Different types of speech have different levels of protection. Political expression has the highest level of protection. Commercial has the lowest. These people are making money doing this and hurting another company. But that is not why this is illegal. It is illegal because of the following hypothetical:

      Bob works for big company A. Tom is an investor. Tom pays Bob (the poor working grunt) $1000 to give him insider information. Tom publishes said information causing company A's stock to plummet. Bob is convicted and goes to jail. Fifty people are laid off. Investors in company A lose their shirts. Tom makes a bajillion dollars by having invested in Company B and shorting company A's stock. Tom is guilty of no crime and starts looking for another desperate person, we'll call her Jane.

      Do you understand why they decided to make it against the law to knowingly publish trade secrets, especially when you are profiting from it?

  6. How to fix trade secrets by dada21 · · Score: 2, Insightful

    1. Don't tell anyone who can't keep a secret.
    2. If you tell someone in the media and they leak it, cut them off from future trade secrets.
    3. Realize that telling the media in advance of a product's release can be positive even if secrets are leaked -- giving an inside scoop can get you more media coverage upon release.

    The idea of trying to protect a secret once you give it away is ludicrous. Even under a contract it is hard to enforce as Party A can tell it to their cousin who can post about it. If you want to control secrets, don't let them out, or don't have them in the first place.

    Also, the Firewire interface for GarageBand would be awesome if it supported multiple channels (8, or more with multiple units), if it worked with the typical firewire delay, and if it was cheap. Apple could do it. I don't think it's "yawn" news since I personally know thousands of profitable small bands that use GarageBand over ProTools to record their basic EPs and do a fine job of it. I'm producing a band right now that made their demo on GarageBand and it sounds fantastic -- better than many of the ProTools recordings of the past 5 years that I've heard. Giving small bands more hardware is wise.

    1. Re:How to fix trade secrets by Space+cowboy · · Score: 4, Insightful

      The problem with (1) is that Apple is a *big* company. They have lots of people working for them, most of whom will know *something* about some secret project/gizmo/whatever.

      Apple has a strong tradition of corporate secrecy, but what *exactly* can they do if some employee lets something slip after a few too many drinks, or for money, or for the "thrill" of revealing an exclusive ? I mean, it's not as though they're going to send 'steve@apple.com' an email the next morning confessing all, is it ?

      From what I read earlier on digg, although he makes a big deal about the money Apple make/have in the bank, he's not being sued for cash or penalities, he's being sued to reveal his source, because it's the only way Apple can find and fire the guilty employee.

      As for 'first amendment rights' being abused, I thought they were only rights that the government couldn't abuse, not that any limits on civil suits by corporations were imposed, but hell, I'm a bloody foreigner, so I'm probably wrong.

      Simon

      --
      Physicists get Hadrons!
    2. Re:How to fix trade secrets by lesv · · Score: 2, Funny

      When I was at Apple, I had no problem keeping secrets from leaking from Engineering. Every time I disclosed information to a new person on the project http://www.apple.com/airport/, I started the meeting by saying that if you spoke to anyone about this project you would be fired. Remarkably, no problems.

    3. Re:How to fix trade secrets by vought · · Score: 2, Insightful

      The problem with (1) is that Apple is a *big* company. They have lots of people working for them, most of whom will know *something* about some secret project/gizmo/whatever.

      Apple is pretty compartmentalized - while I'm sure everyone knows *something* is coming, I'd be willing to bet that very few people have all the details.

      One example: I'd be surprised if anyone besides ID, testing and the ad agency knew what a new product was actually going to look like until several days before release. Which explains why we've never seen even a picture of new Apple product more than a couple of days before an announcement over the past few years.

  7. Yawn yourself... by monktus · · Score: 3, Interesting

    Just because the product in question isn't about the new 8 GHz opticore PowerBook, a yawn certainly isn't necessary. In fact, a FireWire interface from Apple would be pretty damn exciting news. Remember that one of Apple's strongest niches is in music production; not only have Macs been the industry standard platform for pro audio for years, Apple of course now own Logic. A FireWire audio interface would be a smart move, especially since Digidesign's recent purchase of M-Audio.

    --
    Weaseling out of things is important to learn. It's what separates us from the animals... except the weasel."
  8. Re:No surprise. by CRC'99 · · Score: 3, Informative

    At least he gets a reply from Apple!

    I just get told to get bent when I'm reporting a fault with my equipment. I'd be happy to get Apple to fix my SuperDrives.

    Telling people with faulty equipment to get bent? Evil? Check on both accounts.

    --
    Sendmail is like emacs: A nice operating system, but missing an editor and a MTA.
  9. Oh whatever... by CODiNE · · Score: 5, Insightful

    Let's just quit the games and cries of "FWEEDOOOM!!!" and face the facts. This isn't about bloggers getting protection and freedom of the press, this is about NDA's and posting, yes, "trade secrets". This is already legally established for members of the press, journalists don't get protection when they break the law, neither should they. He'd be in the same legal trouble if he worked at the Washington Post, in fact he'd probably have lost his entire career over this.

    --
    Cwm, fjord-bank glyphs vext quiz
    1. Re:Oh whatever... by Thnikkaman · · Score: 2, Insightful

      That's exactly the GP's point. The 1st Amendment does NOT let you assist others in breaking their NDAs. It's against the law to publish trade secrets and this blogger is trying to get sympathy from people who think Apple is picking on him. He's not being sued for money or anything like that. Apple just wants to know who gave him the information so they can plug the leak. He's hardly a martyr for civil rights as he'd like us to believe.

  10. No lawsuits for the big guys? by mgabrys_sf · · Score: 5, Insightful

    Freedom of speech isn't the same thing as freedom from consequences - reasonable or otherwise.

    There's also litigation bombs potential pertaining to libel and slander. You can choose to engage in libel and slander - but don't expect a free ride. Same thing here - you can spill the beans all you want. Just don't expect not to get a friendly reminder if the target decides to take action. And trust me - no one in this country needs to justify calling a lawyer - that's sorted out later.

    I particularly love it when people cite newspapers as somehow being above the legal-fray that the little boy blogger gets.

    I used to work for Pulitzer Publishing - and we used to get PILES of notifications from readers, companies, sponsers, sources - you name it. Just because there was a legal office - doesn't mean that they were playing foosball in there. We got whacked upside the head all the time. Next time you look at the local paper - check around the masthead for "corrections". Those usually are the result of an editor getting a friendly rejoinder from the legal department.

    In otherwords bloggers - welcome to the club - there's plenty of legal bullshit to go around not to share. Enjoy!

    1. Re:No lawsuits for the big guys? by mgabrys_sf · · Score: 5, Insightful

      re:"I do not have a right to take you to court, and neither does the government"

      What a lovely world you live in - here's the real one.

      You can be sued for anything - at anytime - for any reason - and here's the kicker - unlike the UK? If you win - the other guy doesn't have to pay your legal expenses. Which means you could be a winner - but bankrupt. Way to go winner!

  11. Putting a Law Around "Trade Secrets" by Black+Copter+Control · · Score: 2, Insightful
    Putting quotes around "trade secrets" Doesn't make them not trade secrets.

    And putting a law around "Trade Secrets" doesn't make them constitutionally protected.

    If the government gives a corporation the 'right' to take away my constitutional rights, that's a government action -- even if by proxy.

    --
    OS Software is like love: The best way to make it grow is to give it away.
  12. Attacking the weak link by angrychimp · · Score: 4, Interesting

    The reason I'm upset with Apple here is that according to this blog post, Apple went after the ISP first. That to me is a low blow. The ISP doesn't want to get in trouble with a corporate entity of Apple's size, so they'll do whatever they need to in order to get out of the crosshairs of a lawsuit.

    The other problem is that the blogger mentions that the information he received was not identified as "confidential" or a "trade secret". When asked to remove the information, he compiled (again, according to his account). To me it appears that this guy did was he was asked and only did what any gossip columnist would have done in a print publication. This concern here (and what apparently brought in the EFF) was that if this had been a print publication, it would have been expected that the reporter would have been covered by first amendment rights. Whether or not that entitles Apple to seek the identity of the informant is a job for the courts. I personally feel that the informer should be punished.

    1. Re:Attacking the weak link by smart2000 · · Score: 5, Informative
      The reason I'm upset with Apple here is that according to this blog post, Apple went after the ISP first. That to me is a low blow. The ISP doesn't want to get in trouble with a corporate entity of Apple's size, so they'll do whatever they need to in order to get out of the crosshairs of a lawsuit.

      You are upset for the wrong reasons then.

      I'm the ISP / person who was subpoenaed. I have no problem telling a company the size of Apple to pound sand, I've done it twice before and been successful. When I received the initial request I refused it because it wasn't a subpoena signed by a judge.

      I don't feel threatened at all by Apple. At no point has Apple or their lawyers ever "intimated" me. On the other hand the EFF has attempted to coerce and intimidate me in this matter. Their legal filings imply that my conversations in response to the subpoena from Apple were violations of federal law. The EFF cherry picks what parts of the case they want to display on their web page. Meanwhile I have a foot tall stack of filings from the case.

      Jason has left out that the reason that I got into the loop at all is because he used my phone and address instead of his for his domain registration. He has since changed it to a PO Box.

      His article twists words ("...can sue any journalist..." to make it seem like he is being sued. He isn't. What has been requested is that he return the material that they have asserted is their trade secret, namely the documents that the leaker sent to him.

      The assumption is that Apple would be able from the documents to tell who leaked the material. Jason asserts that they don't say "Confidential" or "Trade Secret" anywhere on them. Given the Apple attitude towards secrecy, I somehow find that unlikely.

      --
      To purchase it is not like spending money but rather it is an investment in the future in a blow against the empire
  13. Re:No surprise. by Overly+Critical+Guy · · Score: 4, Insightful

    It amuses me how people on Slashdot make fun of fundamentalist values like "Jesus" and "evil," but when a company dares try to protect leaks of its future in-development technologies, it's EVIL! In fact, apparently there is "Microsoft evil" and "lawyer oriented evil."

    And what is this "old Apple" crap you're talking about? Apple has always been litigious, and this claim that they will "further alienate" the fan base, as if they're alienating them now, has no basis in fact. Actually, they're doing quite well as the quarterly results call is expected to show in May.

    Basically, I'm out of quotation marks here to throw around your goofy phrases.

    --
    "Sufferin' succotash."
  14. Re:What if..? by Overly+Critical+Guy · · Score: 3, Insightful

    What if Apple had not hit the iPod jackpot? Would they still be suing small-time bloggers?

    Hell, yeah, Steve Jobs instituted a strict "no leaks" policy when he returned to Apple. A few people got into trouble, including one lady who inadvertently had the upcoming "Think Different" ad budget published in an industry newsletter.

    The saddest part of this story is (from a consumer point of view) how a loyalist is kicked in the nuts by the company he/she has loved.

    Since when do "loyalists" have the right to kick a company in the nuts by blabbing about all its secret in-development products? I love the way people on Slashdot assume they have the "right" to absolutely anything at anyone's expense, especially if it's a company. Because companies are evil, right? Yawn.

    --
    "Sufferin' succotash."
  15. Re:Not if... by vought · · Score: 4, Informative

    he didn't intend, or didn't know that the offense would injure the owner of that trade secret. It's not clear that Apple has suffered any injury (although they'll no doubt claim they have), but that is for the court to decide.

    Jason O'Grady has been publishing leaks about unreleased Apple products for over ten years. I'd say he knows exactly what he did, and that it was against the law.

  16. Re:No surprise. by vought · · Score: 5, Insightful

    Since Apple started making the big Ipod+Itunes money, they've started getting...well...EVIL!!!

    No, it's more like "since Steve Jobs came back Apple's had some fucking pride, discipline and follow-up"

    Apple employees have been wanting O'Grady's ass in a sling for over ten years now. Since Steve returned, the level of cynicism at the company has fallen to all time lows (though by no means extinguished) and employees understand they have a stake in every last competitive advantage possible - including secrecy about unannounced products.

    Every time O'Grady publishes a leak from an Apple contractor, third party, or employee, he materially damages all the hard work and expense of keeping those products secret.

    Apple spends a shit load (metric) of money to keep developing products under wraps - security patrols, disguises, etc. - very similar to how large car companies develop and test new designs.

    And though you can find snapshots of heavily-disguised prototype cars in the auto magazines, those photographers hunt down the testers and photograph from great distances - they're not passing along privileged information from an employee who signed a contract to keep that information secret.

    In other words, if some doofus Apple employee took the new ÜberBook iPro to the Donut Wheel and someone snapped a picture and published it, neither the photographer or publisher would be liable. If the same employee sent O'Grady an e-mail about the machine, both parties would be liable for dissemination of the information.

    See the difference?

  17. Re:What if..? by vought · · Score: 5, Insightful

    Since when do "loyalists" have the right to kick a company in the nuts by blabbing about all its secret in-development products? I love the way people on Slashdot assume they have the "right" to absolutely anything at anyone's expense, especially if it's a company. Because companies are evil, right? Yawn.

    Fuckin' A. Maybe Jason should have to pay Apple back for the development costs of the product - or maybe just the costs of keeping the product secret, including security patrols, badge readers and the maintenance of, printing of employee handbooks that explicitly detail the company's NDA policy, heck - even down to the software they're probably now using to monitor their network for e-mail going to...Jason O'Grady.

    JD, you got in trouble because you did something wrong and you knew it. Buck up, and don't use ZDNet's blog to get sympathy - it only makes you look pathetic.

  18. This is conduct, not speech. by monoqlith · · Score: 4, Insightful

    To me, Apple's defense of its trade secrets is warranted and does not constitute violation of free speech.

    Certain business language such as stock trading information, executive orders, are priveleged outside of the realm of free speech. That is, utterances such as someone giving insider trading information can have active results that cause harm to people; it thus qualifies as conduct, since it has a locutionary force that separates it from harmless, mundane speech. Similarly, an executive telling an accountant to shred documents regarding financial figures is a violation of business conduct laws, and a general telling his subordinates to murder innocent civilians violates war crimes laws.

    This is no different. Disclosing trade secrets has done and does do appreciable damage to the company for whom they are secrets.

    Whether or not it is sensible for Apple to go after blogs to protect its trade information is a matter I haven't really decided on. However, to me, it makes sense in the same way as Rudolph Guiliani's policy of going after small-time lawbreakers to deter the bigger offenses - go after jaywalking, so that it looks like you're tough on crime in general. Similarly, Apple is obviously protecting what appears like trivial information about an upcoming product to prevent bloggers from thinking they can get away with disclosing larger trade information.

    Apple obviously made the wager that allowing people to disclose trade secrets at all damages them in such a way that all the free advertising in the world can't make up for. I'm not sure I would have made the same wager, but I can respect Apple's decision to make it.

    1. Re:This is conduct, not speech. by leomaster · · Score: 2, Insightful
      NOt entirely correct. As an outsider you don't have an NDA or any other agreement with the corporation. But as a blogger with a known history of releasing rumors you can be held responsible for publishing information held as a trade secret and covered under an NDA by the person supplying the information to you. The difficult link to establish is whether you as the blogger would have reasonably KNOWN the information was a trade secret. If the case was for millions of dollars, this connection would have to be firm. Since it's only for the identity of your source, and you have a well-established habit of publishing "information from inside sources" the connection can be weak and fuzzy.

      Also, the First Amendment only applies to restricting Congress and government. It doesn't do anything to restrict your liability in regards to speech about corporations.

  19. Re:Easy by NutscrapeSucks · · Score: 2, Insightful

    I think you misunderstand the reason that companies "leak" info -- they are looking for plausible denability as well. If it takes a signed statement from Steve Jobs to leak information about Intel chips to the WSJ, Apple might as well have issued a press-release.

    The people doing the fake "leaks" are trying to get you to do something that sounds sketchy, for their benefit

    The publisher's goal is to sell papers, not question motives.

    --
    Whenever I hear the word 'Innovation', I reach for my pistol.
  20. two scenarios by Khashishi · · Score: 2, Insightful

    1. If the blogger signed a NDA, Apple has every right to sue his ass off.

    2. If the blogger didn't sign an NDA, how can he be any way responsible for any damage?

    If somebody else signed an NDA and passed the information to a media outlet, the signer did the infringement, not the media.

  21. First Amendment by Ash-Fox · · Score: 3, Informative

    > It's about the First Amendment. If we don't have a free press and protection under the First Amendment large corporations can sue any journalist publishing something that they don't agree with.

    First Amendment protects your right of speech against the government, not against corporations. You'd think Americans would know their constition a bit better.

    Corporations have every right in the United States of America to attempt to sue people for things they say.

    --
    Change is certain; progress is not obligatory.
  22. Warning - Geeky Grammar Objection by bcnstony · · Score: 2, Informative

    This killed me: The stories about a FireWire breakout box for GarageBand, code-named 'Asteroid.'

    The story is = The story's != The stories

    'stories' means plural story, not 'story is'.

    OK,OK, maybe grammar geek needs to get laid, but still!

  23. Re:What about the other side of this? by nugneant · · Score: 2, Interesting

    Apple are morons for doing this. They should be slowly stirring the pot, like Google is. It generates speculation, excites potential customers, and probably even reveals some good future product ideas in the process! I've never seen rumours subtract from the effectiveness of a Google product launch, and I see no reason why it should be any different for Apple.

    *flamesuit on*
    The key difference between Google and Apple is that Apple is an exterior trend. Their products are generally physically inferior (as in, throw an iPod and a Diamond Rio down the stairs, and my money's on the Diamond Rio to survive) and less cost-effective than the competition (fact, not opinion).

    Google, on the other hand, provides arguably the best service of its class, usually at the best price. I'm thinking primarily of Gmail here, though it certainly applies to lots of other services as well. Basically, I'm not saying Apple sux Gmail rulez (though that's definitely how I'm biased) - but rather, we're comparing a Paris fashion design company (Apple) to Osh Kosh B'Gosh / Levy's Jeans (Google)

    So, basically, the theory goes that people are buying Apple because A) it's a surprise, and B) it'll be guarenteed trendy and eye-catching for months to come.

    If the nefarious "competition" can figure out how an Apple device is going to look, and manages to rush something that looks substantially similar out the door - bang. Apple's lost a substantial number of customers. It doesn't matter if the "competition"'s device is half as good and self-destructs when the batteries go out - because by the time iWhatever comes out and is deemed "twice as good" as Nigerian Products Ltd's Gloriously Functioning Audio Versatile Unit, it's still not the first on the block to look the way it does.

    Google, on the other hand, doesn't really lose as much from not being the first on the block. A startup site can copy Google's basic look and feel and have free webmail, free blogspace, free web hosting and even bonus free spyware (FOR FREE!!) - so what, who cares. People will migrate to Google's services, provided they're better/faster/cheaper/etc than the startup. While a Gmail address is a sexy, trendy thing in some circles, it's not something I'm chained to in the great wide out of doors. iWhatever, on the other hand, is - and if I, the shallow and none-too-savvy trendy consumer on the street, can save $20 to put towards Gapercombie and Fitch jeans AND buy something "totally new and seXXXy", then so be it.

    Just my (probably incoherant and bouncing all over the place) two cents.

  24. Re:No surprise. by Wolface · · Score: 3, Funny
    ÜberBook iPro
    damn... even that sounds better than MacBook Pro.
  25. Exactly! by tgma · · Score: 2, Interesting

    Thank you for a very interesting post.

    Everyone knows that Apple protects information about forthcoming products - that's why the rumour sites exist. So it's disingenuous for Jason to say that he didn't know that the information was a trade secret or confidential. If anyone should know that Apple doesn't want to publish this information, it should be someone who attracts readers to his site with the promise of access to that information.

  26. Official Secrets Acts by ObsessiveMathsFreak · · Score: 2, Insightful

    Whether or not the product in question was exciting doesn't make it any more legal to report trade secrets.

    Yet because no real equivalent of an Offical Secrets Act exists in the United States, it is legal to disclose any secret dealings of the US Government. It is legal to publish leaks from the White House for example, or the Pentagon Papers.

    How strange that the trite dealings of private companies are afforded more clandestine protections that the secret wranglings of the government, or indeed the private affairs of individuals. Celebrities for example, cannot argue prior restraint, or restraint of any kind when glossy magazines publish intimate details of their private lives. Neither can you.

    However, a corperation can claim prior restraint on just about anything it likes, as long as it claims copyright, or "trade secret" laws apply. I wonder why I can't register myself as a private company and avail of this seemingly extralegal protection?

    --
    May the Maths Be with you!
  27. It was a trade secret, but... by qazwart · · Score: 2, Insightful

    However you slice it, it was a trade secret, and Apple has full right to use legal recource to find out who leaked it. They also have a right to go after non-employees who purposely are involved in the leaking of these secrets.

    Now, is it the thing Apple should have done? It certainly didn't help create the normal Apple love-fest that usually follows these tradeshows, and it didn't improve Apple's relationship with Geekdom. In the end, the leak didn't hurt Apple financially, and if I was part of Apple's legal team, I would recommend to drop the whole thing very quietly. They got our point across,

    Heck, I've been reading these blogs for years. Right before every Macworld, These blogs list a plethora of the products that never come to be (Apple will announce a personal jetpack called the iPack! We've got photoshopped pictures to prove it!). No one ever takes these speculations seriously. I originally thought Apple's legal wrangles was a publicity gimmick. They got the world's attention, and suddenly everyone wanted a gander at the next hot Apple product. Once the Macworld was over, Apple would simply drop everything.

    I mean you'd have to be some sort of control-freak egomaniac to keep on pushing something like this, and that certainly doesn't describe anyone I know of at Apple.