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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."

32 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 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
    3. 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.
    4. 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?
    5. 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?
  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 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.
    2. 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.

    3. 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. 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."
  6. 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...

  7. 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.

  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
  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. 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
  12. 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!
  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. 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. :)
  19. 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.

  20. 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.
  21. Re:No surprise. by Wolface · · Score: 3, Funny
    ÜberBook iPro
    damn... even that sounds better than MacBook Pro.
  22. 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?