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Legality of Gizmodo's Next-Generation iPhone Acquisition Examined

I can't see how some people are claiming that the guy who sold someone else's phone to a tech site tried to find the owner first, he didn't plain and simple, or should I say maybe he did but just thought he could get a bit of easy money instead of returning it.

Last time I found someone's mobile phone lying on the road near my flat I took it home, checked the contacts and found the name mum, a quick call saying I've found this phone where you're listed as mum and the owner was around my flat in the hour to pick it up, it's not that hard really, the guy who found this could have easily got it back to the owner if they'd tried.
 
kingtj said:
I keep seeing people posting this nonsense. "If you find a lost phone, give it to the bartender! Call the police and report it! Etc. etc."

I don't know what alternate reality you people live in? But in most cases I can think of? #1. I wouldn't trust most bartenders not to just promise you they'll "try to find out whose phone it was" and just take the thing home that night themselves.
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I have friends who own bars and restaurants, they employ pretty honest people. This happens all the time. The bartenders sometimes get a tip for returning the phone, glasses etc.. Very common

You should stop judging people by their profession.
 
troop231 said:
No, they are being quiet because this was a controlled leak.
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Since some people seem to think it was a "controlled" leak (meaning that it was a preconceived idea.) Don't you think that Apple would have wiped the phone BEFORE it was planted, instead of after the fact? :rolleyes:

Just my inquiring mind wanting to know. ;)
 
I think Gizmodo is in the fault here because they opened the phone and revealed all of the inside information, along with their lengthy review of the new hardware. They didn't know it was Apple's property...yeah I call bullcrap. They could have called Apple, said they had what they believed to be a prototype, and asked if one was missing. But instead they took a good long look at the phone, and revealed it to the internet. I hope legal action is brought against Giz, I can't stand them anyway.

If Steve Jobs didn't love money more than anything else, I wouldn't be surprised if he just didn't announce new hardware this WWDC. But he does love money, so there is no way he won't release a new phone.
 
I have to think that the guy who found the phone should have returned it. He was able to identify it's owner, and he quickly figured out the phone was a prototype, so why not show up at 1 Infinity Loop and give it back?

I bet that way, after signing a nice thick NDA, he could have probably gotten a little something from Apple for his trouble. Maybe a new MacBook Pro?

Instead, he's now involved in potential litigation AND a whole bunch of fanboys hate his guts. It's essentially a given that his name will come out eventually.

All that for $5000.

Doesn't seem worth it to me.
 
Here what I think happened.

Guy found phone on bar stool, waited a little bit, took it it home. Realized what he had and contacted Apple via AppleCare. They blew him off. Sent pictures to media outlets, probably said he would sell it to them, Gawker bought it. Gawker held on to it while they figured out if what they had was legal/legit. Once they got a go ahead from some lawyer, they published.

The thing that tells me it's theft is that it's very clear what you do when you find lost items, you turn them into the police. You don't call a help line, you don't send pictures to the media and you don't sell it. Turning it into the police is the only option, besides leaving it, you have. They have posted the relevant laws.

I think Gawker's lawyers are going to earn there retainers, but they are going to lose. In my opinion, if you have to ask, you know what your doing is wrong. But what do I know.
 
wrxdrunkie said:
What Gizmodo did is perfectly legal.

They bought an item, it ended up being Apples phone, they give the phone back and have no phone and they are out $5,000 dollars.
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I wouldn't say perfectly legal. I think this falls in a big old gray area. I could see it go wither way. First off if you as an individual buy a stereo system out of a large white van on the side of the road and that stereo system turns out to be 'HOT" then you could be charged with Receiving Stolen Property. The big question is would you be charged. Of course any reasonable person would be suspeicious buying something out of the back of a van, but some people simply plead ignorance. It is really up to the D.A. to determine whether the person reasonably believed that they were purchasing a legit item.

In this case Gizmodo certainly knew that this person offering up the phone was not the rightful owner, becasue the person admitted to finding it in a bar. Gizmodo took a chance that good publicity would be their salvation, and Apple as a public company wouldn't want to anger people who appreciate what Gizmodo did. Gizmodo could be held criminally liable, could be the choice word. It is more likely that they will not be charged with any crime. Now as for the idiot who sold the phone to Gizmodo, he is f**cked.
 
UTSA (Trade Secret Act)

(4) "Trade secret" means information, including a formula, pattern, compilation, program device, method, technique, or process, that: (i) derives independent economic value, actual or potential, from no being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

The last sentence makes it clear in my view that by taking an iPhone prototype to a restaurant, drinking lots of beer and leaving the iPhone prototype behind, anything that can be learned from the iPhone prototype without breaking other laws (by damaging it etc. ) loses its status as a trade secret.

splashnader said:
I wouldn't say perfectly legal. I think this falls in a big old gray area. I could see it go wither way. First off if you as an individual buy a stereo system out of a large white van on the side of the road and that stereo system turns out to be 'HOT" then you could be charged with Receiving Stolen Property. The big question is would you be charged. Of course any reasonable person would be suspeicious buying something out of the back of a van, but some people simply plead ignorance. It is really up to the D.A. to determine whether the person reasonably believed that they were purchasing a legit item.
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Let's say my brothers stereo system was stolen. I know exactly what it looks like. And I see someone selling a stereo system that looks absolutely exactly like my brother's for $20. Instead of calling the police or confronting the thieves and risking that they disappear, I buy the stolen goods for $20 and return them to my brother. I don't think there is any chance I would be charged. This situation is obviously difficult. I think $5000 was not paid for the phone itself, but for the chance of examining it - and Apple had at that point lost its trade secret protection. As long as Gizmodo can demonstrate that they always planned to return the phone, they should be in the clear.
 
I think they should be charged with damaging property.

They'll be able to legally obtain one and take it apart soon enough. Do we really need to know what's inside of it now? Come on. It's like children before Yule.
 
ct2k7 said:
Now put yourself in the shoes of Grey Powell. Are you still blaming yourself and not angry at anyone but yourself, even if your life is published?
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true. i agree that putting his name out was a little much, i don't think that should have been published. but i was merely speaking about people angry that someone found a lost phone and then sold it to a company that used it for a couple of weeks. no one took it from this guy, no one picked his pocket. he forgot it. he lost it. and there are consequences for being irresponsible.
 
I know I am in the minority here, but Im semi glad this happened. I almost pulled the trigger on the HTC EVO in fear the Apple might not bring anything worth while to the table. I love the looks and the features, and in the end will be staying with the next gen iPhone, may my 3g RIP some day soon.
 
tegedrex said:
I know I am in the minority here, but Im semi glad this happened. I almost pulled the trigger on the HTC EVO in fear the Apple might not bring anything worth while to the table. I love the looks and the features, and in the end will be staying with the next gen iPhone, may my 3g RIP some day soon.
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Why wouldn’t you wait until Apple legitimately announced the product publicly where you can get all the info you need and more before making that decision. Your fears can only be justified if Apple never announces it which makes the fears irrelevant.

Just wait until they announce it and make the same choice!
 
The truly repulsive thing

What really bothers me is the engineer's job is put in jeopardy so somebody can make $5000?! Is it worth that amount of money to seriously mangle this guys career?

Everybody knows what should have been done. Leave your name at the bar so if the phone's owner comes back you can return it.

It's all very simple. Gizmodo and the original seller are scum. What is even more stomach turning is after Gizmodo 1. Puts the engineers career further at risk by buying and exploiting their possession of the phone, and 2. Completely humiliates the engineer by printing his background and photo, goes and tries to "make things right" by asking Apple to "go easy" on the engineer. I guess Giz figured they had done enough damage on their own?

Pretty sick crap.
 
bshammy said:
It's all very simple. Gizmodo and the original seller are scum. What is even more stomach turning is after Gizmodo 1. Puts the engineers career further at risk by buying and exploiting their possession of the phone, and 2. Completely humiliates the engineer by printing his background and photo, goes and tries to "make things right" by asking Apple to "go easy" on the engineer. I guess Giz figured they had done enough damage on their own?
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Guess said engineer learned a lesson about drinking, eh? Serves him right.
 
Mindinversion said:
I'm confused:

Guy finds phone. Guy tries to return phone. Guy is blown off as a kook.

Guy contacts tech blog. Tech blog, not sure but fairly confident in item purchases said item.

Tech blog, not sure as to the authenticity of said item dissects said item to prove/disprove authenticity.

Tech blog realizes authenticity, realizes the amazing implications of item, and does their job. When asked to return said item by owner, tech blog complies.
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Here are some corrections.
Guy takes phone violating CA requiring him turn over such property to police.

Guy sells phone he doesn't own to tech blog. Tech blog, not sure who owner is, but sure its not them or the seller buys stolen property.

Tech blog, uses property they don't own to make money (known as conversion in legal circles)(illegal of course).

Tech blog realizes they committed numerous felonies say they didn't know it was stolen (there exact words) when asked to return said item by owner, which as we all know translates to "yeah we knew it was stolen"

There that should clear things up for you.
 
Fickle Mobs

Yes the guy who found the phone and didn't turn it over to the bar or police and chose to sell it to Gizmodo was wrong, wrong, wrong.

But I think a lot of the posters around here are talking out of both sides of their face. Since last weekend most have been drooling all over this information. Now they want those who provided them with that information prosecuted. Fickle mobs.

FWIW, I think this phone was a a controlled leak. In that case, Apple wouldn't sue. Remember Gray Powell will be under oath, and I'm sure the defense won't treat him easily.
 
iLunar said:
Serves him right hanging out at a bar on his birthday?
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Well in my opinion, yes. But either way, he shouldn't be hanging out at a bar with a prototype iPhone in his pocket, birthday or not. Dude made a major mistake and now he's paying for it. Gizmodo had every right to publish his name as news.
 
SirHaakon said:
Well in my opinion, yes. But either way, he shouldn't be hanging out at a bar with a prototype iPhone in his pocket, birthday or not. Dude made a major mistake and now he's paying for it. Gizmodo had every right to publish his name as news.
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They really didn't. They are simply covering their asses and reaching for the lowest common denominator. I find it really odd that you object to someone hanging out at a bar on his birthday over defamation of character.
 
pdjudd said:
Why wouldn’t you wait until Apple legitimately announced the product publicly where you can get all the info you need and more before making that decision. Your fears can only be justified if Apple never announces it which makes the fears irrelevant.

Just wait until they announce it and make the same choice!
Click to expand...

Apple's hype really does irritate me at time's, and waiting 8 more weeks to find out that the next update might only be a faster processor and compass would send me through the roof. Yes I know that these are options that are already out but Im sure the people waiting for the 3gs who had 2g's felt the pain of a horrible update. Prior to the leak, the iPhone was/is showing its age with a shell that is outdated, camera that's outdated, and lacks features most phone on the market come with today. And before anyone says you don't have to have an iPhone, I will say that the app store and software make this phone what it is.

Overall it sucks for the engineer involved, and they might have had the decency to leave him out of it. But I think that a link this huge finally broke out from them is great, I get tired of waiting for the next keynote or whatever, and maybe thats just my lack of patience. In the end however the next 8 weeks will go by much smoother for me at least.
 
Lost and Found

Plenty has been said about the person who found the iPhone and the exposure on the web of the device. I think the goon who lost the top secret device should receive just as much if not more blame for 'losing' it. Also, Apple loves 'controlled leaks' of its upcoming products. Perhaps this is another version of a 'leak'?
 
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