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Ruling on Fate of Protective Order in Trade Secret Case Due Next Week

First on TMO - Ruling on Fate of Protective Order in Trade Secret Case Due Next Week

by , 4:15 PM EST, March 4th, 2005

SAN JOSE, Calif. -- Lawyers representing Apple Computer said Friday they have exhausted all resources in finding who leaked confidential information about an unreleased Apple product, as lawyers for three Web sites argued the Mac maker shouldn't be able to use facts found in the discovery process to force journalists into revealing their sources. Despite already making a tentative ruling in favor of Apple, the judge overseeing the case said he would making a final decision on a request for a protective order stopping Apple from obtaining information on reporter sources probably by the middle of next week.

Before Santa Clara County Superior Court Judge James Kleinberg, Apple legal counsel George Riley said Apple had interviewed all possible sources to find who leaked information to AppleInsider.com, ThinkSecret.com and PowerPage.org regarding stories about an un-announced audio hardware product code named "Asteroid" or "Q97".

"We have discussed this matter with all Apple employees and we've searched all our own servers (for information)," Mr. Riley told the court. "We have exhausted all practical means."

Attorneys from the Electronic Frontier Foundation (EFF), representing the three news organizations, argued Apple had not used all possible means in finding out the sources for the leak and should not be allowed access to information on the servers of the Web sites.

"Apple has not exhausted all other options as required (by law)," EFF attorney Kurt Opsahl told Judge Kleinberg.

"Apple says they have interviewed employees to find out who the source of the leaks might be," EFF counsel Kevin Bankston told The Mac Observer. "But it appears all they have done is conduct informal interviews. There is a long line of cases holding that actual depositions are required before they come after journalists. It is reasonable to expect that they should do discovery against those people before they can get to our journalists."

In questioning, Judge Kleinberg asked both sides where is the public interest in knowing the leaked information about an Apple product and gave an indication that the media doesn't have the right to publish information obtained from someone who has broken the law.

"Theft and use of trade secrets is a crime," said Judge Kleinberg. "Isn't there a balance...between trade secrets and protections of journalists?"

EFF lawyers argued the public does a fairly good job in defining its own interests, along with the fact that PowerPage.org has a sizable audience of over 300,000 readers -- more than subscriptions of Macworld magazine, according to the EFF attorney. Lawyers also noted that a number of mainstream news organizations had picked up on the lawsuit story.

"These facts show a clear interest by the public in Apple's products," Mr. Bankston told the court.

Mr. Riley argued that the public had no interest in the leaked information, and that only Apple's competitors could gain from the knowledge of the leaked product.

"(The three Web sites) were merely fencing stolen information," Mr. Riley suggested. "We're vitally concerned about the precedent this would set. We didn't bring this case lightly."

At the end of the 30 minute hearing, Judge Kleinberg said he would not make a final decision today, but would take his tentative decision along with today's hearing and issue a final written ruling as soon as possible, probably by Wednesday.

On Thursday, Judge Kleinberg tentatively ruled in Apple's favor, saying he would not approve a protective order stopping Apple from obtaining information on reporter sources. The earlier ruling is standard procedure in such civil cases to prevent unnecessary oral arguments, as often the losing side decides not to fight the preliminary decision.

Mr. Opsahl has previously said that if the court decision did not go in its favor, the EFF would seek a writ from the Calif. Court of Appeals that would protect the journalists from disclosing information about their sources.

EFF lawyers argue that while the Uniform Trade Secrets Act holds those who receive trade secrets liable if they knowingly disseminate confidential information, Web sites and their journalists are protected by the California Constitution, the California Evidence Code, and the First Amendment and that the case threatens the basic freedoms of the press. The subpoenas should not be permitted because Internet journalists deserve the full protection of traditional print and broadcast journalists, the brief said.

In December, Apple filed a seven-page "John Doe" lawsuit and requested the owners of three Web 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."

On February 16, Apple agreed to not serve subpoenas on the three sites seeking information on who allegedly leaked product secrets until the court held Thursday's hearing on the matter.

Misha Sakellaropoulo contributed to this story.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: Oh dear (typo)

"by Bryan Chaffin and Brad Gibson
SAN JOSE, CALIF. -- Lawyers representing Apple Computer and three Web sites argued Friday over weather journalists should be protected from revealing their sources about an unreleased Apple product."

Close Name:Guest
Subject: ThinkSecret is right - Apple is picking on the little guys

The same sort of information that ThinkSecret publishes is also published by sites like

- eWeek.com (the descendant of PC Week and MacWeek, which included the infamous Mac the Knife column and commonly pre-announced Apple products with frightening accuracy), which currently carries MacWeek alumni like Matthew Rothenberg as well as the Spencer F. Katt rumor column,

- CNET's news.com.com, which commonly publishes rumor and speculation,

- InfoWorld.com, which carries the Robert X. Cringely column,

- etc., etc..

In fact, rumors and insider information about Apple have been published routinely as long as the company has existed! Consider publications like BYTE (e.g. Sol Libes' rumor column) and the various Apple ][ magazines!

The difference is that these sites and print magazines are (or were) backed by companies with deep pockets - companies that Apple thinks it would not be able to crush the way it intends to crush ThinkSecret.

Close Name:Guest
Subject: the difference is...

the difference is, Think Secret didn't have RUMORS, it had the actual product plans, and they reported them. It's basically an issue of selling/providing STOLEN property. Mags like eWeek, INFOWorld, etc... don't divulge internal documents. They know better. I'm with Apple on this one... Rumors are fine, even FUN... but the buck has to stop at the real thing.

Close Name:Guest
Subject: Agree with Apple

I agree with Apple and as it is stated by one of the guest posts here. This is not an issue of freedom of speech, it is about trafficking stolen goods. Most likely the people that have release this information to the sites had signed an NDA with Apple. Releasing the information would violate that agreement. I think that Apple has the right to discover who gave the sites the information. From that knowledge it can be determined if an agreement was violated or not. Maybe the person who gave them the information just happened to be sitting at a table next to some loose mouth Apple employees, in which case he would not have violated any agreement and there would be no case. And just in case you have not ept up on your constitution, it says that we are guaranteed the "pursuit" of happiness not the acheivment of happiness.

Close Name:Guest
Subject:

Quote
Guest wrote:
Maybe the person who gave them the information just happened to be sitting at a table next to some loose mouth Apple employees, in which case he would not have violated any agreement and there would be no case.


Maybe br more likely these sites actively solicted the NDA information. Just look at the extent they have gone to make it easy for people to send annonymous emails, faxes, and phone calls to them. They actively gather and then publicly share info they know is confidential. That's their only business.

Close Name:Guest
Subject: Reporter and blogger bias

What frustrates me about the reporting on this case is that it has been the providence of people with an inherent bias. To reporters and bloggers it is all about free speech. In fact, there is much more to this case, but how many news stories and blogs even mention NDAs and trade secrets. Talk about unfair and unbalanced. At least guys like Dan Gilmore could go through the motions of being responsible journalists. There have been many news stories about how this is a threat to the First Amendment. How many news stories have pointed out that a ruling against Apple would destroy NDAs as we know them and effectively damage innovation? And the comparison to the Pentagon Papers case makes me throw up. It's about time we start holding these reporters and bloggers accountable for their shoddy and biased reporting. Write letters; give them hell.

Close Name:Guest
Subject: You don't know what you're talking about

ThinkSecret reports exactly the same type of information (unannounced Apple product specifications and pricing) that was printed in MacWeek in the 90's.

The difference is that MacWeek was a print publication backed by Ziff-Davis, and ThinkSecret is just a web site made by a college freshman.

Close Name:algr Posts: 296 Joined: 07 Aug 2003
Subject: Thomas Paine's "Common Sense" = Blog

edit: fixed description of "Common Sense"

Thomas Paine's "Common Sense" was hardly "traditional media" It was the 18th century's equivalent of a blog. And it was originally published anonymously, for fear of prosecution.

If blogs don't have first amendment protection, then who does? Only large corporations?

Quote
It's basically an issue of selling/providing STOLEN property.


If news becomes "property" that is owned by the subject in question then we have totally redefined freedom out of existence. [/b]

Close Name:Guest
Subject: Can I post your credit card info on the internet?

If someone gives me all your credit card info. I can post all this info on the internet and be covered under the freedom of the press. Isn't this the same thing.

Close Name:Guest
Subject: Bizarre nonsense

"If news becomes "property" that is owned by the subject in question then we have totally redefined freedom out of existence."

It's not the news that is the property in question, it is the commercially sensitive and confidential trade secrets of a company.

Close Name:Guest
Subject: Not the same thing

Comparing Thomas Paine to Think Secret is rather bizzare. The first amendment was written to protect the ability of the people to speak freely about politics, religion, and government. It was not designed to protect someone actively soliciting protected, confidential information to post for amusement purposes. Ultimately that is what all of these tech related blogs and magazines really are: entertainment.

Close Name:Guest
Subject:

Quote
Guest wrote:
And just in case you have not ept up on your constitution, it says that we are guaranteed the "pursuit" of happiness not the acheivment of happiness.


Actually, in case you have not kept up with your historical documents, that phrase appears in the Declaration of Independence, not the Constitution. But I pick nits!

Close Name:Guest
Subject: Forbes: "Is Apple the new Microsoft?"

More bad publicity for Apple, from the anti-corporate communists at forbes.com:

http://www.forbes.com/technology/personaltech/2005/03/04/cx_ld_0304aapl.html

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