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Apple Ordered to Pay Blogger Legal Fees

inetsee writes "Apple has been ordered to pay legal fees for two web sites that reported on an in-development Apple project code named 'Asteroid'. According to the article on WebProNews, Apple was ordered by a Santa Clara County court to pay almost $700,000 in legal reimbursement to AppleInsider and PowerPage after the court agreed with the Electronic Frontier Foundation legal team that the web sites 'qualified as legitimate online news sites' engaging in trade journalism. Apple had claimed that it had a right to protect its trade secrets, but the EFF successfully argued that 'Subpoenaing journalist sources is not an acceptable means of discovery.'"

37 of 161 comments (clear)

  1. More of This, please by Mateo_LeFou · · Score: 4, Interesting

    I lament the fact that acquiring justice, or clearing your name from a SLAPP, requires so much money. I think that there should be punitive damages in addition to legal fees when companies go after individuals in this way.

    --
    My turnips listen for the soft cry of your love
    1. Re:More of This, please by AlHunt · · Score: 4, Interesting

      I lament the fact that acquiring justice, or clearing your name from a SLAPP, requires so much money.
      As usual, the lawyers win. Class Actions are what always scald my ass. The consumers get a free CD and the lawyers collect $2.5M in legal fees.
      --
      1 in 4 Maine children in struggle with hunger.
    2. Re:More of This, please by damsa · · Score: 3, Interesting

      The lawyers in this case are the EFF which I believe is a non profit.

  2. Worried about Apple... by popo · · Score: 5, Insightful

    Does it seem like every day, Apple is seeming less like the good guy?

    This isn't flamebait... (I love my Mac) its an observation that IMHO
    over the past year Apple seems to have been far more agressive at implementing
    "control" measures through legal means -- not as bad as MSFT, but a far cry f
    rom the "We want everyone to love us" attitude of the past.

    My question is: what changed? And is this the Apple of the future? Or
    is this a result of some shift in management attitudes. (Or a case of
    money and power corrupt, no matter who you are?)

    --
    ------ The best brain training is now totally free : )
    1. Re:Worried about Apple... by Thansal · · Score: 5, Informative

      Actualy these types of things have been around for ages with Apple. They are VERY trigger happy when it comes to protecting their secrets. The only big difference is that as they gain more market/mind share (and as the internet grows), the chance of some one managing to reveal Apple's secrets, and so we see more instances of Apple doing 'evil' things.

      --
      Do Or Do Not, There Is No Spoon, There Is Only Zuul. Everything in the above post is probably opinion.
    2. Re:Worried about Apple... by oohshiny · · Score: 5, Insightful

      Does it seem like every day, Apple is seeming less like the good guy

      Apple makes nice products, but the notion that they are "the good guy" is a fiction created by their marketing.

      For example, in the 80's, they legally threatened many people over GUIs and they deliberately broke standards like SCSI. They have done more for establishing DRM than Microsoft. They keep ripping off ideas from other companies and open source, and they don't give a damn about stepping on other people's trademarks or open source project names.

      Overall, Apple's record is decidedly mixed.

      My question is: what changed?

      Only your perception, really.

      If anything, Apple has actually become significantly nicer over the last couple of decades, and their products have improved as well.

    3. Re:Worried about Apple... by squiggleslash · · Score: 4, Insightful

      They've never been "the good guy". They've gone through periods of being "the innovative guy" without doing too much evil for people to dislike them, but they're also the pioneers of the "look and feel" lawsuits that caused immense damage in the 1980s, and, especially concerning the Macintosh, have always had an absurdly controlling and proprietary attitude towards it. Even their attempts at open source have either been forced (Objective C was originally closed, and NeXT were forced to open it by the FSF, likewise WebKit et al are open because they're required to be by licensing), or with legal catches and a less than forthright approach (such as Darwin, and the evil APSL.)

      They're the (mythical) Mussolini of the computer world, revered by many for making the trains run on time, but with a slap of dictatorial control most of us steer away from.

      Apple's strength is its ability to package together interesting new products that inspire much of the industry. That's it. It's not a charity, indeed it makes IBM look warm and cuddly.

      --
      You are not alone. This is not normal. None of this is normal.
    4. Re:Worried about Apple... by elrous0 · · Score: 4, Insightful
      The truth is that I don't think they ever were the "good guy." I think that's just an image they successfully cultivated. It's unfair that they've been held up this way all these years, while MS got kicked in the head as the "bad guy."

      And before I get modded down or flamed, yes, MS has done a lot of bad stuff, no doubt. But, as a person, Bill Gates has done a LOT more "good guy" stuff than just about anyone else in his position ever has. How many billionaire CEO's have ever given as much to legitimate charities as Bill Gates? How many others have decided to give their entire $multi-billion fortune away when they die to a charitable foundation? Guys like Gates and Warren Buffet deserve at least a little "good guy" cred for that.

      -Eric

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    5. Re:Worried about Apple... by Ryan+Amos · · Score: 2, Insightful

      What changed?

      Apple became profitable and successful, and thus a target. Much of their marketing strategy relies on secrecy and misdirection; it makes sense if you're developing new products that are unique in design, you don't want your competitors ripping off your hard-worked design before your product has a chance to establish itself as a "brand-name." Nobody would have cared back in the pre-iMac days, but Apple is a trendsetter now, so competitors watch them closely.

    6. Re:Worried about Apple... by oohshiny · · Score: 2, Informative

      In the early days, Apple used to put special identifiers in their own SCSI disk drives that they'd query, and their disk formatting software would only work with their own drives. I think people pretty quickly found ways to work around it, but it's the thought that counts in this context.

    7. Re:Worried about Apple... by idontgno · · Score: 2, Informative

      And let us not forget that bastardized 25-pin "not nearly enough grounding" pseudo SCSI connector standard they championed. Meh.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    8. Re:Worried about Apple... by gentlemen_loser · · Score: 3, Interesting

      First off, in business, there are very rarely "good guys" and "bad guys". In that sense, I agree with you that Apple has never been the "good guy". There are companies that go about achieving their end goal (making profit) ethically, and those that do not. I would very strongly put Microsoft in the latter category and Apple somewhere in the middle.

      I do not think that the APSL, or Darwin for that matter, is evil. It is simply structured to protect Apple's revenue generating interests. As a case in point, I would firmly place Redhat as one of the "good guys" - to use that terminology. They regularly contribute to the community and in some respects, were instrumental in getting Linux accepted into the Enterprise. However, the GPL is a two edged sword. Now you have a company like Oracle (whom I can not stand), offering Linux support for 1/2 the price. Their contributions to the community are completely non-existent, but because of the GPL wording, it is entirely possible that they put Redhat out of business. In the end, this ultimately hurts everyone, with the exception of Oracle's shareholders. I firmly believe that should they ever start offering support for mySQL we'll see another great company go under.

      All parties being discussed: 1) Oracle, 2) Redhat, 3) mySQL, and 4) Apple are (for the most part - I will not start a debate on iTunes and DRM here) operating within their legal bounds. However, the APSL protect's Apple's hard work while the GPL allows an asshole company like Oracle to sweep in and destroy other companies by taking complete advantage of their work. My ultimate point is that one can not attack a company for operating within the bounds of law. Either the law, or the license agreements, need to change.

      The immediate solution to the Oracle problem is to append: "If you are Oracle Corporation, or any wholly or partially owned subsidiary, or affiliated with Oracle Corporation in any manner, you are hereby restricted from distributing or providing support for the product released under this GPL."

      And then we can adjust it from there to dissuade anyone else from engaging in similar practices :)

  3. Hallelujah! by drinkypoo · · Score: 2, Insightful

    I realize that this comment isn't going to win me any friends in Apple-land, but it's good for everyone (Except maybe Apple shareholders) if Apple's wrongdoings and attempts to intimidate news outlets into not carrying the news are exposed to a wider audience. A lot of people out there (including many slashbots) see Apple as the Brave Crusader out to kill the Microsoft dragon, but this view could not be farther from the truth. In reality, Apple is just another corporation, really not significantly better or worse than any other. They really are the lesser of two evils in the Mac vs. PC war.

    A lot of people have cited Microsoft wrongdoing as part of their motivation to purchase a Macintosh. As this is basically an ignorant, knee-jerk reaction given Apple's own history, I theorize that these are the same people who don't believe a corporation has done anything wrong until it is proven in court. I hope that I am right, because this sort of thing has a chance to dent Apple's wallet, which is the only stimulus to which corporations really respond.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    1. Re:Hallelujah! by Todd+Knarr · · Score: 5, Insightful

      Well, first off disclosure of trade secrets isn't a crime. It's a civil tort, specifically breach of a non-disclosure agreement. Of course the Web sites in question hadn't signed any NDA with Apple, so they couldn't have breached the (non-existent) agreement. Under the law the burden of keeping a trade secret secret rests on the company that owns it, not the general public.

      And there's a couple of things. First is the fact that Apple couldn't show that the Web sites in question knew their source was breaching an NDA. Second is the rule that says you can only subpoena a journalist in the way Apple wanted to if all other avenues of investigation have been exhausted. As the judge observed, Apple could have questioned it's own employees about whether they'd disclosed the information and to whom, and done so under penalty of perjury to add weight to the questioning. This could've revealed the names Apple was looking for without requiring anything from the Web sites. Apple choose not to pursue internal questioning, and the judge ruled that their mere desire not to demoralize their employees wasn't enough to justify putting the burden on someone else.

    2. Re:Hallelujah! by elrous0 · · Score: 4, Insightful

      Being able to protect your source that broke the law isn't good for *anybody*

      Horseshit! Just about every major scandal that ever broke in political or business history has been the result of some leaker willing to break the law and/or risk his life. Think it was legal for Mark Felt to leak information from classified meetings and secret FBI files to Bob Woodward? And how many business scandals have been exposed by an honest insider willing to break his NDA or steal documents (like Brown & Williamson)? How many WOULD have been if someone had been willing to break the law sooner (Enron)?

      -Eric

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
    3. Re:Hallelujah! by dr.badass · · Score: 2, Informative

      Basically, this is a ruling that says you can brag about your crimes to a blogger, and they can publish your account, and they are free to cover up your crime.

      Um, no. That's not what was decided. In fact, that aspect of the case was pretty much thrown out a long while ago. What was decided was actually in the article summary: 'Subpoenaing journalist sources is not an acceptable means of discovery.'

      --
      Don't become a regular here -- you will become retarded.
    4. Re:Hallelujah! by gnasher719 · · Score: 2, Informative

      '' Well, first off disclosure of trade secrets isn't a crime. It's a civil tort, specifically breach of a non-disclosure agreement. ''

      You are very confused here.

      A trade secret is anything that a company keeps secret, and that is of commercial value to the company.
      If a company told you a trade secret without an NDA, then it wouldn't be a secret anymore, and therefore no trade secret.
      If a company tells you something under NDA that is not a trade secret, and you publish it, that is breach of a non-disclosure agreement.
      If a company tells you a trade secret under NDA, then the fact that there is an NDA makes sure that it is still a trade secret, and if you publish it, that is _both_ breach of a non-disclosure agreement _and_ violation of a trade secret.
      If you publish a company's trade secret that you found out illegally without being under an NDA, that is violation of a trade secret but _not_ breach of a non-disclosure agreement.
      If you publish a company's trade secret that you found out legally (because they didn't keep it secret), then it wasn't a trade secret anymore and you are fine.

      The only bit that you are right about is that a subpoena to a journalist must be the last resort for a company. Let me just say that we know that now, and that Apple knows that now, and that Apple's employees know that now, and Apple will handle the next leak differently. The next leak, Apple will find out, and his colleagues will hang the guilty one by the balls. The sequence will be: There is a leak. Apple asks anyone to testify under oath whether they are the leak. If there is no result, Apple will phone the judge what other steps they should take, just in case. If there is still no result, there will be a subpoena and it will be granted by the court.

  4. whoo eff by tomstdenis · · Score: 3, Insightful

    this is why I support them. /me proudly wears my eff hat....

    --
    Someday, I'll have a real sig.
  5. Re:as usual by tomstdenis · · Score: 2, Insightful

    Well that's one way to look at it, the other is Apple loses 700k. Maybe they'll think twice before trampling the rights of others next time.

    Tom

    --
    Someday, I'll have a real sig.
  6. Implications? by Smidge204 · · Score: 2, Interesting

    'Subpoenaing journalist sources is not an acceptable means of discovery.'

    This sounds like it has some pretty big implications on freedom of the press, making it easier for journalists to keep their sources confidential (important if you want to keep your sources!)
    =Smidge=

  7. Who said they were a Good Guy(TM) by fistfullast33l · · Score: 4, Interesting

    Does it seem like every day, Apple is seeming less like the good guy?

    Um, who ever said they ever were a good guy in this matter? They never licensed their technology to outside companies, it took people kicking and screaming for them to even allow third party hardware before the 1990's. Try finding a non-Apple printer for a Mac before 1990 - doesn't exist. Apple has always protected their financials (see: iPhone and Verizon deal) and their IP/Technology. It's not a bad thing, it's just how they've always done business. You could argue that the reason the PC gained such a market share over Apple is because IBM didn't engage in litigation as much and allowed the third party market to flourish. Ironically, it's that loose control over the PC that's allowed it to gain the nasty reputation for the Wild West that is has now and that Apple capitalizes on with its newer commercials.

    1. Re:Who said they were a Good Guy(TM) by Anonymous Coward · · Score: 2, Funny

      Ironically, it's that loose control over the PC that's allowed it to gain the nasty reputation for the Wild West that is has now and that Apple capitalizes on with its newer commercials.

      I think this is the first time I've seen "loose" be used correctly on slashdot! Congratulations!
  8. Re:The fees... by sokoban · · Score: 5, Funny

    700k...

    Isn't that what an iPhone is going for these days? Seriously, $640k should be enough for anybody.
    --
    09 F9 11 02 9D 74 E3 5B D8 41 56 C5 63 56 88 C0 is the magic number.
  9. Re:as usual by tomstdenis · · Score: 2, Insightful

    Shareholders don't like lawsuits. If you repeat 700k enough times it starts to sting. What's worse, there could be other troubles for Apple if the government decides they're an unlawful business (e.g. rampantly violating the civil rights of others).

    That and now they get to continue reporting on every little detail of Apple ... oh wait ... how is that bad anyways?

    Tom

    --
    Someday, I'll have a real sig.
  10. Also, it *can* be a crime. by ivan256 · · Score: 3, Informative

    There are five ways that stealing/revealing a trade secret can be considered a federal crime under US Code Title 18 Part 1, instead of merely a civil matter.

    Trade Secret law is not based on NDAs. It is a distinct section of US intellectual property law.

    1. Re:Also, it *can* be a crime. by phoenixwade · · Score: 2, Interesting

      I'm not sure that this situation is covered as a theft of trade secrets. No one was trying to convert a trade secret. This was a news item that covered a trade secret Apple wanted to be kept secret. I would think the only violation would be the NDA, and a civil, not a criminal, matter. However, IANAL, etc,etc,ad nausium.

      --
      A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort.
  11. You're wrong. by ivan256 · · Score: 2, Informative

    That just plain isn't true, and I don't know what made people start thinking that all of a sudden.

  12. Re:Parent comment "Wrong", not "Insightful" by RxScram · · Score: 3, Funny

    ...and some have gone to jail for ... hundreds of years. Wow! Those are some OLD journalists... gives a whole new meaning to life in prison.
  13. Depends how you see it by sacrilicious · · Score: 4, Interesting
    Bill Gates has done a LOT more "good guy" stuff than just about anyone else in his position ever has. How many billionaire CEO's have ever given as much to legitimate charities as Bill Gates? How many others have decided to give their entire $multi-billion fortune away when they die to a charitable foundation? Guys like Gates and Warren Buffet deserve at least a little "good guy" cred for that.

    There are numerous ways to skin the related math. Comparing myself to Bill Gates, Gates wins hands down in terms of total amount donated, or percentage of holdings donated. On the other hand, I slaughter him with regard to scarcity of personal holdings remaining after all donations.

    There's humor in my point above, but seriousness too. Bill Gates has not had to live without anything purchasable that he's wanted, whereas I've had to live without quite a lot of things that by varying degrees are "essential". Doesn't make me a better person than Gates, but conversely his pain-free, involved-as-he-wants-to-be actions don't make him a better person than me.

    This line of thought applies when comparing Gates to other execs as well. How many of these execs have as much money as Gates to start with? How much did they have left when their donations were tallied up? How much in excess of some arbitrary standard of living/possessing did those amounts clock in at? All these questions are fundamentally aimed at discerning how much was really "given" in a way that cost the giver something, vs simply rearranged. If a corporate exec donates a billion dollars and keeps ten million for a lengthy retirement, how does that compare to a starving child who gives away a piece of bread and dies as a consequence? Who gets more "good guy" karma points?

    --
    - First they ignore you, then they laugh at you, then ???, then profit.
  14. Re:They weren't like that... by Jerry+Coffin · · Score: 2, Informative

    The fact that there weren't any Apple ][ clones was due more to the big diversity in personal computer models at the time than any trade secret.

    Please see the site exclusively devoted to Apple II clones. Virtually all of these (a couple hundred or so) were put out of business by Apple suing them.

    Don't get me wrong: I think in most of these cases, Apple had a perfect right to sue. Many of these didn't even make an attempt at being legal or legitimate at all, just using outright copies of the Apple II ROMs and selling them. AFAIK, the only company that did legal Apple II clones was VTech, who did the (in retrospect) obvious thing: they went to Microsoft and took out a license to AppleSoft, just like Apple had in the first place. Other than that, most were just taking an Apple II, copying its ROM and putting it into a machine similar to a real Apple II. Apple successfully took nearly all of these (e.g. the Pineapple, most of the Franklins) off the market via lawsuits.

    Apple also sued nearly everybody over supposedly copying their GUI -- in nearly every case, it was pretty obvious that the real source was Xerox, but Apple's motto seemed to be "it's our's; we stole it first." This forced changes (mostly minor) in GEM, and (IIRC) Tandy's GUI system (sorry, I don't remember its name).

    --
    The universe is a figment of its own imagination.
  15. hooray for lawyer bashing by caitsith01 · · Score: 4, Insightful
    IAAL. If you don't like it, you have a few options other than bitching about lawyers:
    1. educate yourself about the law and represent yourself if you think it's such a low-value service
    2. act politically to get the laws simplified
    3. act politically to develop mechanisms to resolve disputes in a non-litigious manner
    4. act politically to get the state to provide substantially more assistance for litigants who aren't wealthy
    5. go back to stabbing each other with pointed sticks to resolve disputes (this might be quite effective for class actions)
    6. modify human behaviour so that people no longer fight with each other

    Note that if you consider these options unfeasible, 1 is caused by your own lack of ability, time or skill, 2, 3 and 4 are political problems which are in your own hands as much as they're in anyone's, and 5 and 6 are wired into us by evolution (or God/magical pixies if you're from the bible belt).

    Otherwise perhaps you should consider that litigation is an extremely complex, difficult and time consuming activity requiring a very high level of expertise to conduct with any degree of competence. Large law firms do not make vastly more money than collectives of doctors, engineering consultancies, other groups of professionals, or large corporations.

    In my view there is a tendency to regard lawyers as a rip-off simply because of the nature of the service, fighting it out to establish one's rights in circumstances which are frequently viewed as unfair or unnecessary, rather than the much more palatable "help me doctor, I'm sick/dying" or "help me, engineer, I need to build X".

    The lawyers didn't create your dispute. You and the other litigant did.
    --
    Read Pynchon.
    1. Re:hooray for lawyer bashing by AlHunt · · Score: 2, Insightful

      Interesting that you take such exception to my comment. I could run a tally of outrageous fees charged by your profession, but I'll simply refer you to overlawyered.com where they do a great job.

      I might also suggest we return to the Roman system where advocates couldn't charge fees but could only receive gifts after the fact. Until Claudius came along and screwed things up. Or a "loser pays" system would certainly free up the courts.

      I don't dislike lawyers. Had dinner with a lawyer last week, in fact. I dislike what your profession has become and so should you.

      --
      1 in 4 Maine children in struggle with hunger.
    2. Re:hooray for lawyer bashing by AlHunt · · Score: 2, Insightful

      I don't know about anybody else, but I tend to think that doctors are overpaid too.
      $175.00 for a "first time", 20 minute visit to the doctors office. $100, thereafter.
      Essentially, $300/hr to see a PA.

      The $75?
      It's for "seting up a new patient". A handful of papers (most of which *I* filled out) and a file folder, for $75. Gimme a break ...
      --
      1 in 4 Maine children in struggle with hunger.
    3. Re:hooray for lawyer bashing by bataras · · Score: 2, Insightful

      >> perhaps you should consider that litigation is an extremely complex, difficult and time consuming activity requiring a very high level of expertise to conduct with any degree of competence.

      please. so is engineering. yet engineers don't charge their clients 300$/hr. Yeah, maybe an engineer at IBM is billed out to other large corps at near that much. But an individual engineer working face to face with an individual client damn sure doesn't ask 300$/hr. Yet I've sat personally with lawyers and been told effectively "you must personally pay me 300$/hr".

      >> The lawyers didn't create your dispute. You and the other litigant did.

      That's it. Screw the "I went to school, and gosh, lawyering is 'hard work'" theme. The fact is you have a client who's in trouble and has no choice but to pay up.

      So add #7 to the list tongue in cheek...

      7. act politically to get LOTS of lawyers to come to the US on H1B visas and make lawyering charges roughly similar to other professions with the equivalent of a masters degree: 50$/hr give or take.

  16. Justice? What about trade secrets? by unassimilatible · · Score: 2, Insightful
    In California, there is a trade secrets law, which some Apple employee under NDA obviously violated for these Web sites to find out. Apparently your idea of justice allows a reporter to willfully assist in breaking this law, with impunity. I realize that /. seems to think that there should be no patent or copyright, but not even trade secrets? This from the tinfoil hat types who don't want the government listening in on their conversations and tracking their phone calls and library books? I guess privacy and secrecy isn't so important if you are Apple Computer, DRM Enemy #1.

    As an AAPL stockholder, I'd prefer to let Steve Jobs decide the timing of announcing new products, not some Web site trying to sell banner ads, claiming free speech.

    Funny how the same /. crowd that though it was OK to have bloggers register with the US Government now become First Amendment absolutists when the law negatively impacts the intellectual property of the patent holder on AAC.

    Now, go ahead and mod down that with which you disagree...

    --
    Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
    1. Re:Justice? What about trade secrets? by gordgekko · · Score: 2, Insightful

      As an AAPL [google.com] stockholder, I'd prefer to let Steve Jobs decide the timing of announcing new products, not some Web site trying to sell banner ads, claiming free speech.
      It's good to know you value freedom of speech as cheaply as Apple's stock price.
      --
      You want to know who isn't running Firefox 2.x? They spell it "definately" and "rediculous".
  17. Steve Jobs considered dangerous :) by suv4x4 · · Score: 2, Interesting

    I've always said Jobs is dangerous. We gotta be happy that things now are as they are (Mac has a mere 2-3% market share, and as for consumer products like iPod - let it thrive, no much harm done, it's just a fancy nice mp3 player).

    Bill Gates' original vision was to spread computers into every home, and make hardware a commodity platform, make the real product the software that makes this hardware useful.

    Job's vision is more sinister though: this guy believes in perception, in hype, in marketing, and in easy to use and swallow products fed to the masses. A control freak.

    Isn't it crazy how much work they've put on the iPhone (and deliver a nice, albeit expensive product), only in the end to cripple it by not allowing to tap its power with custom software? This is pure Jobs right there.

    And you can be sure Apple's strange behavior towards rumor sites is coming straight from Jobs.

    And there's a site that said the product was a Apple hoax deliberately created to catch where the leaks are coming from. Possible, but we have a real world example of what possibly really happened:

    Did you know that months before Microsft announced the Tablet PC platform Apple was getting ready to release their own Tablet Mac? Well, just because they couldn't be first to the market and grab that "mindshare", Jobs scrapped the project. I bet he's now waiting for the Tablet PC idea to die and be forgotten, before he tries again.