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Police launch probe into lost iPhone sale

It sure seemed like this whole "lost iPhone" saga might be over, but maybe things are just getting interesting: CNET is reporting that Silicon Valley police have launched a probe into the sale of the prototype iPhone left at a bar in Redwood City to Gizmodo.com. Apple has reportedly spoken to police about the incident, and a computer crime task force is on the case, currently investigating whether there's enough evidence of wrongdoing to file charges. It's possible that there isn't, and this really is over, but if police find that laws were broken with the sale of the unreleased property, charges might be filed.

Jonathan Ballerano (via Daring Fireball) has a little more insight on Gizmodo's possible liability. If a case is brought against Gizmodo, says Ballerano, the question will be twofold: whether Apple took reasonable steps to protect their secret (as in, not leaving it in the hands of an engineer who might lose it at a bar), and whether Gizmodo had knowledge that the phone was a trade secret at the time. On the first point, Ballerano says that California law is relatively lenient, and given that Apple needs to field-test the phones, somehow, they could probably make a case for reasonable protection of their secret. On the second point, Ballerano believes that yes, Gizmodo willfully disclosed something they knew was a secret, and expects that if either a suit or a charge is brought, Gizmodo will pay.

But at this point, it's up to the police and Apple to decide how far they can pursue Gizmodo and on what grounds they might go after them. We'll have more legal analysis coming up about the case -- stay tuned.

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It sure seemed like this whole "lost iPhone" saga might be over, but maybe things are just getting interesting: CNET is reporting that...
 

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Izzy

The police investigate criminal matters, like receiving stolen property. Your blog really only discusses civil matters, like they were crimes. Two entirely different things.

April 24 2010 at 4:03 PM Report abuse rate up rate down Reply
Pete

I found it pretty sleazy that they named the poor guy that lost the phone, but never named the guy who found it and decided to sell it rather than turn it over to the restaurant management who was contacted numerous times to see if someone had turned it in.

April 23 2010 at 8:46 PM Report abuse rate up rate down Reply
Rego

A person, who knowingly or with reason to know, receives stolen property is as guilty as the thief-just guilty of a slightly different crime!

As a matter of fact some organizations or individuals are in the business of buying stolen property and a case could be made that they are promoting and encouraging thievery and require a greater punishment.

April 23 2010 at 8:15 PM Report abuse rate up rate down Reply
billclock

I think it is a foregone conclusion that Gizmodo knew exactly what it had--a valuable trade secret belonging to another but with special value in its own business. And so it didn't pause for a minute! The property of another than can profit me! Shall I use it to the owner's detriment and my benefit? That's a no-brainer for a anyone with no brains--or moral sense or understanding of law.
Cast closed.

April 23 2010 at 6:35 PM Report abuse rate up rate down Reply
PJ Warren

Good. I hope they shut them down.

April 23 2010 at 6:20 PM Report abuse rate up rate down Reply
Dan

How does (as reported) lack of a passcode translate into a reasonable effort by Apple to protect such valuable and unreleased intellectual property? Especially if you look at the iPad beta tester restrictions (card swipes to enter a locked room, blacked out windows, chained to a secure object, etc).

Methinks this is a 'kill the messenger' type of effort.

True, the person who originally found it really should've given it to the bar staff or given it to the police -- I've had done that, myself. But, uh... this whole thing... is a case of 'barn doors open, horses gone'. Apple got its IP back. Let bygones be bygones and move on.

April 23 2010 at 5:47 PM Report abuse rate up rate down Reply
1 reply to Dan's comment
Rego

And of course if someone ripped off your intellectual property (if you had any) or ripped off anything else of yours like a compromising photo or video that was published on the web- you would let bygones be bygones.

If that is your position I don't think you will have to worry about intellectual property any time soon!

April 23 2010 at 8:07 PM Report abuse rate up rate down Reply
supraopticus

I hope apple sues the pants off of giz. they say they didnt know if it was an apple prototype yet they paid $5000 for it? damn they are stupid. they made over 150000 in advertising revenue from this little story not to mention they revealed trade secrets. if I was steve I would make it apple's legal team's new job in life to make giz's life hell.

April 23 2010 at 5:43 PM Report abuse rate up rate down Reply
Buzz

If you lost your wallet, and someone found it, eventually trying to get you on the phone, but without success, could they legally sell your wallet to someone who would copy down all your credit card numbers, ss number and personal data in that wallet--and do that legally for both finder and buyer?

Someone explain to me how this is WAY different.

April 23 2010 at 5:39 PM Report abuse rate up rate down Reply
2 replies to Buzz's comment
billclock

You can't just keep found stuff on some demented theory that you had nothing to do with its loss. If it has some tangible or presumed value, you do not have to search out the owner yourself--although you could if it was an easy search, like a lost wallet with an address and phone number. But reason, morality, common sense, and the law requires you to turn it over to the police, or the bartender (if it was left in a bar--and let him take the next step). What you can't do is keep it, sell it, destroy it, eat it!
There is another alternative, of course--acceptable in law but not in morality, and that is to ignore it; not pick it up or touch it. Just leave it to the Gods.

April 23 2010 at 6:45 PM Report abuse rate up rate down Reply
iyaoyas

In California, you do have to make a reasonable effort to find the owner.

Cal. Penal Code section 485:
"One who finds lost property under circumstances which give him knowledge or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft."

But like you said, reason, morality, and common sense should place upon you the same burden the California Penal Code does.

April 24 2010 at 3:29 AM Report abuse rate up rate down Reply
aardivark

Gizmodo has always been the puerile snot-nosed younger brother of tech sites. I always thought that was just positioning that they chose for their website but their recent behavior vis-a-vis the stolen iPod makes me think they probably are a bunch of perpetual adolescents running that site.

April 23 2010 at 5:34 PM Report abuse rate up rate down Reply
1 reply to aardivark's comment
Murphy Mac

You're exactly right. I think they've staked out that market as what they want to go after, so nothing they do should be surprising.

Gizmodo at CES2008:
http://pogue.blogs.nytimes.com/2008/01/11/over-the-line-at-ces/

April 23 2010 at 7:09 PM Report abuse rate up rate down Reply
Saxena

It's like someone lost their wallet and whoever found it, sold to people who will take pictures of your credit cards, licence and post it over the Internet. Gizmodo, sorry but you will learn the hard way.

April 23 2010 at 5:22 PM Report abuse rate up rate down Reply
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