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TMO Exclusive - Apple Subpoenas Mac Rumor Sites Over Audio Product

by , 7:40 PM EST, December 20th, 2004

A California Superior Court has granted a request by Apple Computer to serve subpoenas on three Mac rumor Web sites seeking information on who leaked facts about an un-announced audio hardware product code named "Asteroid" or "Q97", court documents obtained Monday by The Mac Observer showed.

Apple's seven-page civil complaint, filed with the Santa Clara County, Calif. Superior Court, names AppleInsider.com, PowerPage.org, and ThinkSecret.com and requested the owners of all three sites produce all "documents relating to the identity of any individual or individuals who have knowledge regarding the source of posts on its site disclosing information about the Product." The order was granted on December 14, documents showed.

The request stated a person or persons "has misappropriated Apple's trade secrets regarding future product information, and those trade secrets have appeared on three websites." Having failed to identify who leaked the information regarding "Asteroid", Apple requested the subpoenas in an effort to find the culprit.

In its request to serve the subpoenas, Apple contends PowerPage.com published information on "Asteroid" or "Q97" on November 19, 22, 23, and 26, 2004 and requested documents, images and communications be turned over to help identify the person or persons who leaked details of the un-announced product. The application also asked evidence be turned over from owners of AppleInsider.com after it reported news of the un-announced product on November 23 and from ThinkSecret.com, who Apple contends reported similar news on November 24 through an affiliated message board of AppleNova.com.

Names of individuals who might possess information regarding those who alledgedly leaked the product information include "Jason O. Grady," "Kasper Jade," "Paul Scates," and "Bob Borries".

When contacted for reaction, representatives of Think Secret.com and AppleInsider.com declined to comment to TMO. A spokesperson for PowerPage.org was not immediately available for comment.

Apple did not name any of the three Mac news sites as defendants in its lawsuit.

AppleInsider.com reported on November 23 details of a product identified as "Asteroid" under the headline "Apple developing FireWire audio interface for GarageBand". The story contended Apple would soon announce "a new audio interface for GarageBand users" that would allow for direct recording of audio "using any Mac and Apple’s GarageBand music studio application," and included an artist rendering of the device.

A check by TMO found no stories related to "Asteroid" on the ThinkSecret.com Web site, but instead references to the product on message postings at AppleNova.com a Mac discussion site that ThinkSecret.com links to and is not owned or maintained by ThinkSecret.com.

As first reported by TMO last Friday, Apple filed suit December 13 alleging in a complaint that "an unidentified individual, acting alone or in concert with others, has recently misappropriated and disseminated through Web sites confidential information about an unreleased Apple product."

Speculation quickly spread that the lawsuit pertained to un-announced products such as the much talked about rumors of a flash-based iPod. Apple's reference to the product identified as "Asteroid" apparently put to rest those continuing rumors.

Further details of lawsuit revealed

Apple's seven-page complaint, obtained by TMO, reveals Apple is seeking unspecified monetary damages in excess of US$25,000 as well as punitive damages. "The amount of such damages cannot be determined at this time but will be proven in trial," the complaint read.

Under California law, Apple has 60 days to identify each defendant in the lawsuit and must meet with their legal counsel at least 30 calendar days before a court conference, scheduled for April 19, 2005.

Once defendants are named, the company is requesting a jury trial, compensatory damages, exemplary damages, a preliminary injunction stopping the defendants from leaking further product information, and an injunction permanently restraining the misappropriation of further product details.

The complaint hinted that the person who leaked the confidential product information might be an Apple employee and possibly more than one person. The document explains in great detail the exact language of an Apple contract each employee must sign agreeing to keep all proprietary information confidential during their employment. It also details steps Apple has taken to secure its facilities worldwide.

The complaint explains that Apple believes whoever leaked the "Asteroid" product information is continuing to leak facts of other products. "By reason of that ongoing misappropriation, Apple will suffer severe and irreparable harm and damage, which damage will be difficult to ascertain, and Apple will be without an adequate remedy at law," the complaint stated.

"To succeed, Apple must develop innovative products and bring those products to market in advance of its competitors," the complaint goes on to state. "If Apple competitors were aware of Apple's future production information, those competitors could benefit economically from that knowledge by directing their product development or marketing to frustrate Apple's plans."

"Apple's DNA is innovation and the protection of our trade secrets is crucial to our success.," Apple said in a statement given to TMO.

Observer Comments

Show: Subjects Only | Full Comments
View Name:RealityCheck -   Troll Posts: 392 Joined: 06 May 2004
Subject: Apple Needs Secrecy To Snow The Mac iLemmings
Close Name:jimothy Posts: 567 Joined: 04 Jun 2004
Subject: So much for flash credibility

So I guess all the online media outlets--from Mac-centric websites to News.com.com.com.com.com.com...--that claimed or implied that this law suit adds credibility to rumors of a flash-based iPod are mistaken yet again.

Close Name:kenaustus Posts: 601 Joined: 27 Jun 2003
Subject: Apple doesn't need tobuild interest

We, the iLemmings, do it for them, and we have a pretty good time guessing what Apple will come out with next. Hell, even YOU read TMO!

Now name us a web site (not dozens - just one) that is dedicated to Dull. Don't count company sites . . . actually that's about all you can identify.

It's possible that a product may have a problem in production ramp ups, or be pulled from being released at the last minute. Look up some history and you'll see that IBM pulled some mystery computer the day before it was to be announced and shortly released the System 34, followed by the System 38, then 36. It ain't out until the fat lady sings.

There is also a need to keep some products under wraps before introduction as it can give the competition time to work on catching up. This is especially important to Apple, with their emphasis on innovation.

That's why companies have NDAs and other confidentiality agreements, but surely you understand that . . .

View Name:Guest
Subject:
View Name:Guest
Subject:
View Name:Guest
Subject: no free speech?
Close Name:Steve W Posts: 482 Joined: 22 Nov 2002
Subject:

Quote
Guest wrote:
What about confidential sources?

It's not possible that the media web sites can keep their sources secret?

If I were the web site owners, I'd tell Apple to go pound sand in its corporate butt. This side of Apple Computer has always been its dark side, IMHO. I understand their need to keep mum about their product plans, but they do go overboard on occasion. This is one of those occasions.

As for the courts, I suspect they'll side with Apple. Free speech, it seems, doesn't extend to the commercial world.

View Name:Guest
Subject: Putting the Genie back in the bottle...
Close Name:bweels -   TMO Forum Mod Posts: 4783 Joined: 24 Jan 2002
Subject:

Quote
Steve W wrote:
Free speech, it seems, doesn't extend to the commercial world.

On the other hand, all Apple employees willingly sign a contract laying out the terms of their employment. Nobody holds a gun to their head - they are free to take it or leave it. If they take it, a contract is a contract. No one should be surprised that legal action is taken on matters important to Apple when the terms of the contract are violated by an employee.

That being said, Apple CAN come across as the big bad bully in the way they've gone about the handling of some of these cases.

Close Name:JackAlbright Posts: 1 Joined: 21 Dec 2004
Subject: I hope Apple Wins This One

Leaking confidential informatation does not fall under any free-speech protection, as far as I'm concerned. People who leak this info are just attention seekers. As for confidential sources, if they are Apple employees, as now seems likely, then they are violating the agreement that they themselves signed.

Close Name:bweels -   TMO Forum Mod Posts: 4783 Joined: 24 Jan 2002
Subject: Re: Putting the Genie back in the bottle...

Quote
Anonymous wrote:
On the other hand, it will be intersting to see if various organizations which continually support "First Amendment"/Free Press issues become involved as this is clearly such an issue. If Apple does not want this sort of information to see the light of day it is their responsibility to improve their security.

That's preposterous. See my previous post. It is the responsibility of the employee (or a non-employee under an NDA) to stick to the legally binding terms of the contract agreed upon as the conditions required for employment (or access to information).

Close Name:Intruder -   TMO Mac Specialist Posts: 2837 Joined: 07 Jul 2004
Subject: freedom of speech et al

There is a difference between 1st amendment rights (read the 1st amendment to see what it is there to protect, which is primarily from persecution in the event of speaking out against the government in spoken word or print), the press's ability to protect a source for information in the public interest and the release and publication of information regarding a commercial product not yet released. The latter can be considered industrial espionage and a violation of a legally binding non-disclosure agreement by the employee that allegedly released the information.

Protecting the development and release of a product and keeping it secret from competitors is the life-blood of commercial industry. So no, where trade secrets and future products are concerned, free speech most certainly does NOT extend to the commercial world. And you sign papers attesting to that fact.

View Name:Guest
Subject: Commercial Reality
View Name:Guest
Subject: NDA for Employees Too
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: I Think Some of You are Confused

The websites are not defendants. This is not a free speech issue.

Free speech of the leaker? Not if it's trade secrets.

Apple's not a bully here, they're just defending themselves. I'm surprised they've let so many leaks go (G5 iMac).

View Name:Guest
Subject: Free Speech is at play
Close Name:Biff Posts: 1479 Joined: 08 Apr 2004
Subject:

Quote
jimothy wrote:
So I guess all the online media outlets--from Mac-centric websites to News.com.com.com.com.com.com...--that claimed or implied that this law suit adds credibility to rumors of a flash-based iPod are mistaken yet again.
Well it could also simply mean the "leak" about the flash iPod would have be intentional. Man you sure seem pissed off about a flash iPod. Whats your deal?

As for the Garageband interface product, I sure hope its alot better than the piece o' crap they showed in the AI article. Who needs something with just 2 XLR inputs on it and nothing else? If the real product doesn't at LEAST have one 1/4" input for guitars then its useless.

View Name:Guest
Subject: Apple in Alpha dog mode to distract......
Close Name:Billy K Posts: 297 Joined: 06 May 2004
Subject: Agree with Reginald

"Asteroid" is hardly a big deal. Products like this have been around for years...decades even. This is a warning shot.

iPhone? PDA (Newton II+)? Apple Media Center (Ouch! That hurts to say.) Maybe it's the mythical "Headless iMac."

View Name:Guest
Subject:
View Name:Guest
Subject: Can't handle the heat...get out of the kitchen
Close Name:John@was Posts: 14 Joined: 24 Jun 2004
Subject:

Quote
Guest wrote:
On the other hand, it will be intersting to see if various organizations which continually support "First Amendment"/Free Press issues become involved as this is clearly such an issue. If Apple does not want this sort of information to see the light of day it is their responsibility to improve their security.

So, I suppose if a reporter gets an exclusive interview with the person who robbed your house, you'd be OK with what you understand to be 1st Ammendment/Free Press issues? And I suppose if you didn't want your house robbed, it's your responsibility to improve your security?

jsh

Close Name:Mace Posts: 9015 Joined: 07 Aug 2003
Subject:

Protecting product secret means protecting your company's profitability and utimately lead to protecting your own job and prosperity.

Poor souls. Don't they understand this?

View Name:Guest
Subject: There are two issues here...
Close Name:Steve W Posts: 482 Joined: 22 Nov 2002
Subject: Re: There are two issues here...

Quote
DaMacGuy wrote:
There is Apple's claim against a possible employee who broke a contract.

There is Apple's request, via a subpeona, for information about that possible employee.

Thank you! I was beginning to wonder if I'd read the same article as everyone else.

At this point, Apple doesn't know from whom or where the information came. It may be someone who works directly for Apple, it may be someone who works for a subcontractor, it might be someone who's noticed certain activities and made an educated guess. Apple doesn't know. Since they don't know, they want a court to make the website editors and owners do that work for them. The website editors and owners didn't sign NdAs and Apple has no legal control over them, hence my comment "If I were the web site owners, I'd tell Apple to go pound sand in its corporate butt." That's the free speech to which I was referring.

View Name:Guest
Subject:
View Name:Guest
Subject: Free speech?
View Name:Guest
Subject: Product Secret
Close Name:AFCdtLoeb Posts: 2533 Joined: 20 Jul 2004
Subject:

About the only time an NDA can be violated is if public intrest or health is at stake. Like an unsafe airframe on a passenger jet or some company dumping cyanide into a river, issues like that are viable grounds to bypass an NDA, but thats about all I can think of.

View Name:Guest
Subject: You got to protect your intellectual property!
Close Name:Nom Posts: 58 Joined: 07 Jul 2004
Subject:

The other issue at stake here is patent protection. If someone in Apple created an "invention" and someone else leaked that invention before the patent process was complete, it is possible that it could invalidate the patent. By prosecuting, Apple demonstrates that it is taking steps to protect the information and that the information was not "released".

Whatever your feelings on patents (my own are ambivalent), Apple is playing the patent game and needs to be seen to protect their patents.

That said, Apple has a history of being rather paranoid about releasing information before they are ready to. It's hardly surprising that they are trying to track down whoever leaked this stuff.

Close Name:gslusher Posts: 2001 Joined: 13 Nov 2002
Subject: Free speech?

Quote
Guest wrote:
On the other hand, it will be intersting to see if various organizations which continually support "First Amendment"/Free Press issues become involved as this is clearly such an issue.


Bull puckey. Conflating industrial espionage with "free speech" is preposterous. BTW, if you note, Apple is trying to go after the source(s), not the website owners. It's the same principle as protecting classified information. The SCOTUS decisions about the Pentagon Papers confirmed the principle that journalists and the media cannot be prosecuted for revealing classified information -- but the government employees or former employees who leaked the information can.

View Name:Guest
Subject: Under duress
Close Name:Steve W Posts: 482 Joined: 22 Nov 2002
Subject:

Quote
gslusher wrote:
BTW, if you note, Apple is trying to go after the source(s), not the website owners. It's the same principle as protecting classified information. The SCOTUS decisions about the Pentagon Papers confirmed the principle that journalists and the media cannot be prosecuted for revealing classified information -- but the government employees or former employees who leaked the information can.

The problem is that Apple is attempting to coerce the website owners, via subpoena, to hand over the identity of their sources. The website owners could be ruled in contempt of court and wind up in jail if they decline to do so. Granted that it's not prosecution, per se, but it is harassment and that's what is objectionable about this affair.

View Name:Guest
Subject: Simple solution: Misinformation campaign.
View Name:Guest
Subject: as a share holder
View Name:Guest
Subject:
View Name:Guest
Subject: