First there are plenty of legal avenues that Apple will use to their full extent. Like they might get expert witnesses to testify that following the court order would put national security in danger (Michael Hayden might be willing to testify, since that's what he said in public anyway, and you won't find any expert witness with more expertise).So what would happen if Apples refuses to obey the court order? I guess Apple would be in contempt of court, but does anyone go to jail? Would Apple be subject to civil money penalties?
Second, Apple can't do what is impossible. There are only a few employees at Apple who could do this job. It would be interesting what happens if these engineers refuse to do it. Apple can't force them. (Your employer can't force you to do anything. They can fire you if you refuse, but they can't force you. But in this case, Apple doesn't want to fire them, so Apple won't fire them. That would be an interesting situation).
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You are totally misguided. Read a bit beyond the headlines. First, Apple is certainly not required to obey a district judge as long as they can appeal that judgement. The public good? People who actually know what they are talking about have gone on record to say that breaking the iPhone encryption will be damaging national security. You are confusing "what the FBI wants" with "public good". FBI wants to solve a case, they want this phone cracked. NSA is to look after national security, and their ex-chief has stated that cracking the phone is damaging national security. (And NSA does _not_ look after privacy or the benefits of the industry which benefit everyone - so he stated that he doesn't take this into consideration, but if he did, it would be a "slam dunk" against breaking the encryption).Cook is plunging deeper into the delusion that Apple is above the government, common sense and the public good. It wont be long now and he will be history. I hope he wont take Apple with him.
Now, certainly we should not allow terrorists into our country. In fact if we find one we should throw them in Gitmo. Period.
Here's what a very right wing UK newspaper had to say about Gitmo, showing the photo of someone being held there, beard and all, with "terrorist" written all over him (except that totally innocent people wear the exact same kind of beard because it's fashion in some parts of the world): "This man may be a dangerous terrorist. This man may be totally innocent. We don't know, because the USA refuses to take him to court".
Apart from being undemocratic, and a demonstration that the USA doesn't care about the law but only about power, that kind of thing is what drives some people into the arms of terrorists. The UK has plenty of experience with terrorism from the IRA in Northern Ireland (also supported financially by many fine US citizens, so be careful with any statements what should happen to countries that support terrorists). And the goal was never to catch terrorists _now_, the goal was to do whatever possible to make sure that in 25 years time, nobody wants to become a terrorist. And that worked.
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