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By Ina Fried
Posted on ZDNet News: Mar 11, 2005 8:35:00 PM

Apple Computer has the right to subpoena the electronic records of a Web site that published items about an unreleased product, a judge ruled Friday.

The judge said that Apple can go ahead and obtain records from Nfox, the e-mail service provider to Mac enthusiast site PowerPage. In the ruling (click here to download the Word document), Santa Clara County Superior Court Judge James P. Kleinberg ruled that Apple's interests in protecting its trade secrets outweighed the public interest in the information.

"Unlike the whistleblower who discloses a health, safety or welfare hazard affecting all, or the government employee who reveals mismanagement or worse by our public officials, (the enthusiast sites) are doing nothing more than feeding the public's insatiable desire for information," Kleinberg wrote.

News.context

What's new:
A judge ruled that Apple has the right to subpoena electronic records of Web sites that published items about unreleased product.

Bottom line:
California's trade secrets law protects against the publication of private information, the judge ruled, in a decision that will likely be viewed with dismay by traditional media outlets, which themselves often publish confidential information about corporate plans.

More stories on this topic

Apple has been seeking the right to subpoena the Mac sites to learn the identities of the worker or workers who leaked information about Asteroid, an unreleased music product. In the case, filed late last year, Apple is not suing the Mac sites themselves, but rather those who leaked the information. In another case, Apple is suing another enthusiast site, Think Secret, alleging that it infringed on Apple's trade secret in soliciting inside information.

In the ruling, the judge largely brushed off the question of whether the publishers were journalists and therefore protected from facing contempt charges for refusing to divulge sources under California's shield law. "Defining what is a 'journalist' has become more complicated as the variety of media has expanded," he said. "But even if the movants are journalists, this is not the equivalent of a free pass."

That aspect of the decision will likely be viewed with dismay by traditional media outlets, which themselves often publish confidential information about corporate plans.

Apple info 'stolen property'
California's trade secrets law protects against the publication of private information, Kleinberg said. Although longstanding law forbids courts from preventing the publication of information, publishers are still subject to the consequences of their actions afterward, he said.

The information about Apple's unreleased products "is stolen property, just as any physical item, such as a laptop computer containing the same information on its hard drive (or not) would be," the judge wrote. "The bottom line is there is no exception or exemption in either the (Uniform Trade Secrets Act) or the Penal Code for journalists--however defined--or anyone else."

"An interested public is not the same as the public interest."
--Judge James P. Kleinberg

The judge delayed the enforcement of the ruling for seven days to provide time for an appeal. An attorney for the Electronic Frontier Foundation, which is representing two of the sites being sued, said he would ask a higher court to overturn the ruling.

"Case law shows that subpoenaing a journalist must be a last resort," said EFF attorney Kurt Opsahl. "Apple did not use this as a last resort, but did only a perfunctory investigation before going on to subpoena the journalists."

An Apple representative had no immediate comment on the ruling.

Kleinberg acknowledged the intense interest of Mac fans in knowing about products, but said that does not mean there is a need that outweighs Apple's right to protect its information.

"The public has had, and continues to have, a profound interest in gossip about Apple," the judge ruled. "Therefore, it is not surprising that hundreds of thousands of 'hits' on a Web site about Apple have and will happen. But an interested public is not the same as the public interest."

In making the ruling, the judge said that, on the face of things, Apple had laid out a case that the information the sites reported could amount to trade secrets. He said that the posting by PowerPage publisher Jason O'Grady was taken directly from a confidential Apple slide presentation.

"The posting by Mr. O'Grady contained an exact copy of a detailed drawing of 'Asteroid' created by Apple," Kleinberg wrote. "The drawing was taken from a confidential set of slides clearly labeled 'Apple Need-to-Know Confidential.' In addition, technical specifications were copied verbatim from the confidential slide set and posted on the online site."

The judge was careful to note that his ruling did not extend to the merits of Apple's underlying case.

"The order of this court does not go beyond the questions necessary to determine this motion seeking a protective order against that single subpoena, and it cannot and should not be read or interpreted more broadly," the judge said. "The court makes no finding as to the ultimate merits of Apple's claims, or any defenses to those claims. Those issues remain for another day."

Apple Computer has the right to subpoena the electronic records of a Web site that published items about an unreleased product, a judge ruled Friday.

The judge said that Apple can go ahead and obtain records from Nfox, the e-mail service provider to Mac enthusiast site PowerPage. In the ruling (click here to download the Word document), Santa Clara County Superior Court Judge James P. Kleinberg ruled that Apple's interests in protecting its trade secrets outweighed the public interest in the information.

"Unlike the whistleblower who discloses a health, safety or welfare hazard affecting all, or the government employee who reveals mismanagement or worse by our public officials, (the enthusiast sites) are doing nothing more than feeding the public's insatiable desire for information," Kleinberg wrote.

News.context

What's new:
A judge ruled that Apple has the right to subpoena electronic records of Web sites that published items about unreleased product.

Bottom line:
California's trade secrets law protects against the publication of private information, the judge ruled, in a decision that will likely be viewed with dismay by traditional media outlets, which themselves often publish confidential information about corporate plans.

More stories on this topic

Apple has been seeking the right to subpoena the Mac sites to learn the identities of the worker or workers who leaked information about Asteroid, an unreleased music product. In the case, filed late last year, Apple is not suing the Mac sites themselves, but rather those who leaked the information. In another case, Apple is suing another enthusiast site, Think Secret, alleging that it infringed on Apple's trade secret in soliciting inside information.

In the ruling, the judge largely brushed off the question of whether the publishers were journalists and therefore protected from facing contempt charges for refusing to divulge sources under California's shield law. "Defining what is a 'journalist' has become more complicated as the variety of media has expanded," he said. "But even if the movants are journalists, this is not the equivalent of a free pass."

That aspect of the decision will likely be viewed with dismay by traditional media outlets, which themselves often publish confidential information about corporate plans.

Apple info 'stolen property'
California's trade secrets law protects against the publication of private information, Kleinberg said. Although longstanding law forbids courts from preventing the publication of information, publishers are still subject to the consequences of their actions afterward, he said.

The information about Apple's unreleased products "is stolen property, just as any physical item, such as a laptop computer containing the same information on its hard drive (or not) would be," the judge wrote. "The bottom line is there is no exception or exemption in either the (Uniform Trade Secrets Act) or the Penal Code for journalists--however defined--or anyone else."

"An interested public is not the same as the public interest."
--Judge James P. Kleinberg

The judge delayed the enforcement of the ruling for seven days to provide time for an appeal. An attorney for the Electronic Frontier Foundation, which is representing two of the sites being sued, said he would ask a higher court to overturn the ruling.

"Case law shows that subpoenaing a journalist must be a last resort," said EFF attorney Kurt Opsahl. "Apple did not use this as a last resort, but did only a perfunctory investigation before going on to subpoena the journalists."

An Apple representative had no immediate comment on the ruling.

Kleinberg acknowledged the intense interest of Mac fans in knowing about products, but said that does not mean there is a need that outweighs Apple's right to protect its information.

"The public has had, and continues to have, a profound interest in gossip about Apple," the judge ruled. "Therefore, it is not surprising that hundreds of thousands of 'hits' on a Web site about Apple have and will happen. But an interested public is not the same as the public interest."

In making the ruling, the judge said that, on the face of things, Apple had laid out a case that the information the sites reported could amount to trade secrets. He said that the posting by PowerPage publisher Jason O'Grady was taken directly from a confidential Apple slide presentation.

"The posting by Mr. O'Grady contained an exact copy of a detailed drawing of 'Asteroid' created by Apple," Kleinberg wrote. "The drawing was taken from a confidential set of slides clearly labeled 'Apple Need-to-Know Confidential.' In addition, technical specifications were copied verbatim from the confidential slide set and posted on the online site."

The judge was careful to note that his ruling did not extend to the merits of Apple's underlying case.

"The order of this court does not go beyond the questions necessary to determine this motion seeking a protective order against that single subpoena, and it cannot and should not be read or interpreted more broadly," the judge said. "The court makes no finding as to the ultimate merits of Apple's claims, or any defenses to those claims. Those issues remain for another day."

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  • Most Recent of 114 Talkback(s)
I'm a happy Apple user, and I'm glad Apple won
These so-called journalists didn't act in the public interest, only in self-interest.
Sell a story a couple of weeks early, and make a few bucks, to hell if it causes financial damage to Apple by r... (Read the rest)
Posted by: hipparchus2000 Posted on: 03/15/05 You are currently: a Guest | | Terms of Use
Who's big brother now?  d_jedi | 03/11/05
Got the Money Got the Ruling  kdaulton | 03/11/05
When paranoiacs win ? people lose.  Vily Clay | 03/11/05
Wow, mac zealots are amazing!  NonZealot | 03/11/05
Try to think when you read - Apple was included in the package. (NT)  Vily Clay | 03/11/05
Word of the Day: Corporation  nucrash | 03/11/05
Corporation are above the law/president/Congress/..  Vily Clay | 03/11/05
You also forgot  osreinstall | 03/11/05
osreinstall, I?m still waiting when you?ll learn to talk for a reason. (NT)  Vily Clay | 03/11/05
Feelings are mutual - NT  osreinstall | 03/11/05
osreinstall, is there a hope that ...  Vily Clay | 03/11/05
Tell it to someone that cares  osreinstall | 03/11/05
It?s hard to find somebody who cares about your problem with thinking. (NT)  Vily Clay | 03/11/05
You forget...  rapson | 03/11/05
You're calling Vily a "mac zealot"?  tic swayback | 03/11/05
Tic, you forgot who skyrocketed Apple stock - Viy. happy (NT)  Vily Clay | 03/11/05
That still doesn't make you a Mac Zealot  tic swayback | 03/11/05
Working against greedy corporation No 1 & 2 = a double agent. Right? (NT)  Vily Clay | 03/11/05
Hard to say  tic swayback | 03/11/05
Did you hear the words ? ?opposite physiology? = ...  Vily Clay | 03/11/05
RE: You're calling Vily a "mac zealot"?  JakAttak | 03/14/05
I? also curious - if I am a Mac zealot ? who is a Mac hater? (NT)  Vily Clay | 03/14/05
This is REALLY SCARY!  BitTwiddler | 03/11/05
I wouldn't go that far  tic swayback | 03/11/05
Privacy shouldn't protect criminals  openMind | 03/11/05
openMind, I am curious ? can you justify The Police State? (NT)  Vily Clay | 03/11/05
Vily, I am curious - do you recognize ANY moral principles? (NT)  native alien | 03/11/05
You did not specify the meaning ?moral? ? Stalin?s moral? (NT)  Vily Clay | 03/11/05
Police State?  openMind | 03/11/05
Extremely ?honest? government wants a one-way street society: ...  Vily Clay | 03/11/05
NDAs are not criminal law  voska | 03/11/05
Stolen property  j.m.galvin | 03/12/05
Re: Privacy shouldn't protect criminals  none none | 03/11/05
Forget the NDA as a contract.  The King's Servant | 03/14/05
Missed something?  mabricen | 03/14/05
This is BS Really  Hayvern | 03/15/05
It's not about the internet, it's about the nature of the information  tic swayback | 03/15/05
IT ISN'T THEFT!!!!!  NonZealot | 03/11/05
Kidding, right?  rapson | 03/11/05
It isn't "theft"  tic swayback | 03/11/05
Yes...  native alien | 03/11/05
Judge supports my stance  NonZealot | 03/11/05
In that case  emcee_z | 03/11/05
More semantics  tic swayback | 03/11/05
yes , it could have been lost  twinkler@... | 03/11/05
Any specific information can be secret . . .  openMind | 03/11/05
you haven''t proved anyone did reveal it  twinkler@... | 03/11/05
How can you ever find that out?  tic swayback | 03/11/05
Why should they need to know  twinkler@... | 03/11/05
Defeats the purpose  tic swayback | 03/13/05
The need for privacy  voska | 03/14/05
But where's the responsibility?  tic swayback | 03/14/05
Proof?  openMind | 03/11/05
Its about confidentiality  osreinstall | 03/11/05
Re: Its about confidentiality  none none | 03/11/05
I think you missed the point  osreinstall | 03/11/05
Wow!  NonZealot | 03/11/05
What law did they break?  voska | 03/11/05
Actually it can be a felony  j.m.galvin | 03/12/05
Wheres the justice department?  johnnyu | 03/14/05
Re: Any specific information can be secret . . .  none none | 03/11/05
I totally agree, it isn't theft  voska | 03/11/05
if you are the reporter - you make the call  JasonL31 | 03/11/05
Devil's Advocate POV  nucrash | 03/11/05
This isn't about the Mini  tic swayback | 03/11/05
As previously noted, illegal disclosure of trade secrets is a crime  realitycheck101 | 03/11/05
In Stalin?s time everything was a secret, in Jobs? time - too.  Vily Clay | 03/11/05
Sure its a crime  emcee_z | 03/11/05
First of all learn how to spell  openMind | 03/11/05
Good point - knowing grammar replaces thinking. What else? (NT)  Vily Clay | 03/11/05
My point exactly  emcee_z | 03/12/05
it wasn't a trade secret  twinkler@... | 03/11/05
Perhaps it was  openMind | 03/11/05
But no one may have disclosed it  twinkler@... | 03/11/05
As I mentioned above. . .  openMind | 03/11/05
An interesting, but sadly not definitive ruling  tic swayback | 03/11/05
I think this was indirectly done  openMind | 03/11/05
Excellent decision, excellent jurisprudence  mlindl | 03/11/05
Let's cut through all the "right to know" BS...  native alien | 03/11/05
that's nonesense  twinkler@... | 03/11/05
Right to privacy versus obstructing justice  tic swayback | 03/11/05
a criminal invetsigatiuon is different than civil  twinkler@... | 03/11/05
sorry tic - about the go grow up  twinkler@... | 03/11/05
Thanks that was confusing  tic swayback | 03/13/05
Are you suggesting?  T25 | 03/11/05
no Im not  twinkler@... | 03/11/05
Trade Secret or not doesn't matter  openMind | 03/11/05
bad analogy (nt)  JasonL31 | 03/11/05
Actually yes he would  twinkler@... | 03/12/05
Absolutely right  mlindl | 03/11/05
grow up  twinkler@... | 03/11/05
Sure  openMind | 03/11/05
the onus to prove is on the plaintiff  twinkler@... | 03/12/05
How much proof is needed?  tic swayback | 03/14/05
again you are assuming there was a leak  twinkler@... | 03/14/05
Where do you draw the line?  tic swayback | 03/14/05
Didn't the article say?  T25 | 03/11/05
techniacl specifications are no considered trade secrets  twinkler@... | 03/11/05
I would think  T25 | 03/11/05
The Trade Secret Act is quite specific  twinkler@... | 03/11/05
It doesn't matter  openMind | 03/11/05
Oh well, guess the fansites can take their sites down  FilledOut | 03/11/05
Apple need bad press like a hole in the head  twinkler@... | 03/11/05
Please reinforce this message by censoring it!!  diek_z | 03/11/05
Yeah Right  osreinstall | 03/11/05
apple attacks it's followers  JasonL31 | 03/11/05
Well...  Qbt | 03/12/05
Seriously Peter...I think you should consider theropy.  Laff | 03/12/05
Actually no.  seosamh_z | 03/14/05
One man's poison  tic swayback | 03/14/05
Does Apple has luxury to kill its members?  Wagadonga | 03/14/05
well its kind of funny  toxicfreak | 03/15/05
Will Nick be moving out of the US as well?  tic swayback | 03/15/05
I'm a happy Apple user, and I'm glad Apple won  hipparchus2000 | 03/15/05

What do you think?

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