Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Tech cops are investigating possible crimes over lost iPhone prototype

By | April 23, 2010, 2:08pm PDT

Summary: Was there a crime committed in the matter of the lost iPhone prototype? A technology crimes task force in Silicon Valley is investigating.

Police in Silicon Valley are trying to determine whether criminal charges should be filed over a lost iPhone prototype and the subsequent posting of details about it on a technology Web site that paid $5,000 for the device.

According to CNET, the investigation is being led by a crime task force that specializes in technology crimes but it’s unclear whether the target for these charges would be against Gizmodo, the site that posted the images, or the unnamed person who obtained and later sold the device to the site. (Techmeme)

After details of the device - including video clips and still images of the devices inner-workings - were posted to the site, Apple’s lawyers contacted Gizmodo, asking the site to return the device. The site reportedly complied and has since returned the device.

But whether criminal charges are appropriate is hardly a black-and-white issue. From the CNET post:

California law dating back to 1872, any person who finds lost property and knows who the owner is likely to be but “appropriates such property to his own use” is guilty of theft. If the value of the property exceeds $400, more serious charges of grand theft can be filed. In addition, a second state law says that any person who knowingly receives property that has been obtained illegally can be imprisoned for up to one year.

Any prosecution would be complicated because of the First Amendment’s guarantee of freedom of the press: the U.S. Supreme Court ruled in 2001 that confidential information leaked to a news organization could be legally broadcast, although that case did not deal with physical property and the radio station did not pay its source.

Here are a couple of wildcards:

  • Gizmodo - or parent company Gawker Media - did not “find” the lost property.
  • The authenticity of the device was still not 100 percent when Gizmodo purchased the device so, therefore, it’s unclear if Apple was the actual owner. Add to that argument that the person who sold it to Gizmodo reportedly tried to contact Apple about the found device but was brushed off by the company - on more than one occasion.
  • Neither Gizmodo nor anyone else who handled that device obtained it illegally. No one actually stole it from Gray Powell, the software engineer who accidentally left it in a bar weeks earlier.
  • Gizmodo can throw a lot of wrenches into this by forcing First Amendment protections into the arguments.
  • Using the same protections, I can’t imagine that Gizmodo would cough up the name or any other details about the person who profited from the sale of the device. Sell out a source - especially such a major source - and you lose journalistic credibility forever.

As Greg Sandoval, who authored the CNET piece, points out, a lost iPhone prototype may seem like a trivial matter but this represents a major blow to Apple’s extreme secrecy, as well as the powerful marketing style of building up anticipation for new products. Just look at how much attention Apple’s news conferences get.
Now that the cat is out of the bag, Apple will have to really step up its efforts to make sure that its release of a new iPhone isn’t a marketing flop.

Steve Jobs just may need to pull a “One More Thing” surprise out of his hat when he announces the iPhone, rumored to be as early as June. Without it, the launch of the device could risks being labeled a “Ho-Hum” event.

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Sam has been a technology and business blogger for more than 18 years.

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Sam Diaz

Sam Diaz has nothing to disclose.

Biography

Sam Diaz

Sam has been a technology and business blogger, reporter and editor at ZDNet, the Washington Post, San Jose Mercury News and Fresno Bee for more than 18 years. He's a member of the National Association of Hispanic Journalists and a graduate of California State University, Fresno.

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Sounds like Silicon Valley police can afford to make some job cuts
Johnny Vegas 26th Apr 2010
They must be over staffed and collecting too much in taxes. If they can waste tax payers money on investigating this extremely unimportant crap post free return of the property to apple upon request then obviously they have room to make cuts to help the state budget crisis. I'd be looking very directly at who's working this case and who made this decisiion for targeted job cuts and budget savings...
0 Votes
+ -
I'm sure that the new security measures going forward
John Zern Updated - 23rd Apr 2010
will include handcuffing prototype iPhones and iPods to the engineers wrists! happy

But you're right, this thing better cook your breakfast, because right now there really doesn't seem to be any real excitement revolving around the features themselves, as opposed to the actuall losing of the phone and the accompanying story itself.
0 Votes
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Thank you for.....
Economister 23rd Apr 2010
a balanced analysis of this case. Earlier blog(s) were a bit off the wall IMHO.
0 Votes
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Stupid As Stupid gets
javajunkie@... Updated - 23rd Apr 2010
Hey Apple stop wasting taxpayer money because you are too stupid to keep track of what you should be keeping track of.

Why are us taxpayers and the Gov. responsible to protect you from your own stupidity.

Somewhere out there a lady was raped --RAPED-- and her rape kit may lie untested because you are too stupid Apple to keep your phones where they belong.

Why, with limited resources, does a task force have to deal with this?????????????

California likes to kiss Job's rear end while some rapists tiptoes through the valley.

--written on a sweet 27" imac
0 Votes
+ -
Right, because we all know
frgough 24th Apr 2010
that stealing something that doesn't belong to you, selling it to a
company for $$$ that then takes it apart and profits off their purchase of
said stolen goods should all just be ignored because it might take tax
dollars to prosecute the little criminals.
0 Votes
+ -
Bzzzzzzt. Wrong !!!
Basic Logic 24th Apr 2010
It was not stolen. Get your facts correct before you post.
0 Votes
+ -
Even if the owner doesn't respond?
CrunchyFerrett 23rd Apr 2010
Maybe I'm just crazy, but I don't think it can still be
considered theft if the suspected owner won't respond to
attempts to return the property.

If I recall the article correctly, the original "finder"
of the device attempted to contact Apple through a listed
telephone number, and no response was ever received.
0 Votes
+ -
Complete facts
frgough 24th Apr 2010
The "finder" made one call to Apple. He did not call the police. He did
not leave his phone number where he could be contacted in case the
original owner showed up claiming the device. Heck, he didn't even leave
it with the bar tender telling him "someone left this."

No. He contacted Gizmodo and sold it for $$$.

Sounds like classic theft to me.
0 Votes
+ -
Just part of the "cover up". iPhone 4G is
vaporware and
the leak of this prototype is meant to slow down
the
Android train. Any Apple zealot who believes
otherwise
is an idiot. Oops, that was a redundant
statement!!!
0 Votes
+ -
man, you really got issues
banned from zdnet again and again Updated - 25th Apr 2010
how can somebody hate a company so much? what's your problem, what
did they do to you?

and by the way, sure, apple voluntarily likes to lose one billion in sales
this quarter with people holding off their iphone purchase to wait for the
new one to "slow the android train". you probably really believe that.
0 Votes
+ -
The law is the law
hill60 Updated - 24th Apr 2010
Receiving stolen property is a crime.

Finding something and not taking steps to locate the owner OR
handing it in to the owner of the premises or the police so that they
can locate the owner is stealing.

The idiots at Gizmodo VERY PUBLICLY AND OPENLY committed
a crime.

They may as well have put the handcuffs on themselves.

It's like a crack addict walking into a police station and asking an
officer for a light for a crack pipe.

It's an easy arrest, almost a watertight open and shut case to
prosecute.

You put all that web based evidence before a judge and a conviction is
almost a certainty.

As it's a criminal charge Apple has no say in it at all.
0 Votes
+ -
BS!
Linux Geek 24th Apr 2010
if I found an iPhone that does not work do I have to return it to Apple?
I've got no ideea how a prototype is different by an existing iPhone by the way, because I won't buy prorietary gagets.
You DO realize there's some proprietary technology in those phones as well. Right?
They must be over staffed and collecting too much in taxes. If they can waste tax payers money on investigating this extremely unimportant crap post free return of the property to apple upon request then obviously they have room to make cuts to help the state budget crisis. I'd be looking very directly at who's working this case and who made this decisiion for targeted job cuts and budget savings...

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