Apple vs. Journalism

I am trying to work through the odd series of events that led San Mateo police to raid the home of a Gizmodo blogger this week: Someone leaves a cell phone in a bar. It is a special secret cell phone. The person who finds the cell phone sells it to Gizmodo, a technology blog, which then writes a post apparently revealing proprietary details of one of Apple’s next products.

If those are the facts, I am a bit confused about why the home of the blogger, who reported on the cell phone, has been raided by the police. Apparently there is a California law that says anyone who accepts lost property knowing the owner and then “appropriates such property to his own use” is guilty of theft. But there are other laws that protect journalists from search warrants. I cannot figure out how one would argue that what the Gizmodo blogger did was anything but journalism. Maybe the thing that makes this a crime is that Gizmodo paid for the material, a practice common to journalism in Hollywood and London, but not seen as acceptable in Washington.

But I worry about the precedent. Imagine, say, that an RNC official leaves a PowerPoint with proprietary information in a hotel. Someone finds it, and sends it to me. I would be perfectly happy to appropriate such material for my own journalism. (Unless, I guess, Time Inc. lawyers explained that the law is not on my side.) Of course, this scenario is not hypothetical. Politico’s Ben Smith was given an embarrassing PowerPoint from the RNC a few months ago. It had been left in a hotel, picked up by a Democrat, and promptly published by Politico. The RNC did not cry foul to police, and a judge did not order Smith’s computers seized. Back in 2002, reporters came upon a CD-Rom that had been left behind in Lafayette Park. It contained proprietary White House information about political election planning, which was promptly published by the press. No one was arrested for picking up stuff in Lafayette Park.

I am a big Apple fan. My entire career has been typed into Apple computers. I listen to an iPod on the train. I buy Mad Men episodes in the iTunes store. My employer, TIME magazine, is a big seller on the new iPad. And I do not begrudge Apple its secrecy. But it is frankly somewhat disturbing to read this tale. The cell phone in question was not stolen. It was, according to all reports I have read, left in a bar. Did Apple encourage the raids on the home of a reporter who reported on something left behind in a bar? Journalists are, after all, some of Apple’s most devoted customers. Those who live by the app, can also die by the pen.

As Lucy Daiglish, the head of Reporters Committee for Freedom of the Press, told CNET, “This is such an incredibly clear violation of state and federal law it takes my breath away. The only thing left for the authorities to do is return everything immediately and issue one of hell of an apology.”

At minimum, I hope Apple and the San Mateo police department explain these actions soon.

UPDATE: CNET sheds some more light on this issue here, noting that journalist shield laws do not apply if the target of the investigation is the journalist, with quotes from lawyers suggesting that the fact that a reporter purchased the phone changes the legal questions in the case. Wired, meanwhile, is reporting on other legal arguments that claim the search warrant is invalid.

Also, in the comments, it was pointed out that I did not make clear Apple’s role in this criminal investigation. It is not clear that Apple supports either the prosecution of this case or the search warrant, though Apple is on the steering committee of the task force that carried out the raid, creating an uncomfortable proximity between the investigating authority and the aggrieved party. I have changed the text in the original post to make this more clear. Apple has not, so far, made a statement on the matter.

Related Topics: apple, left behind, Uncategorized
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  • gysgt213

    Michael. I have been aruging the same thing on Twitter for 2 days now. There are however, a lot of questions that are not answered yet, but to say the internets have not been kind to Gizmodo on this would be putting it kindly.
    .
    This story has gone from the Apple employee losing and leaving the phone on a bar stool to Gizmodo committing out and out theft. The other thing that stinks in all this is the fact that Apple sits on the steering committee of the task force charge with investigating computer crimes.
    .
    Now the raid itself conducted by the police has raised questions because of what they seized and it appears that police didn’t even follow the instructions of the warrant.

  • destor23

    It’s police over-reach at the behest of a huge corporation. Very dangerous.

  • gysgt213

    Should point out that Twitter hasn’t been kind to me either for arguing that Gizmodo was practicing journalism.

  • http://phd9.blogspot.com Paul Dirks

    This is another example of technology making people stupid. Anyone remember Steve Jackson Games?
    For some reason whenever technology and law enforcment mix, overreach inevitably follows.
    .
    PS: Apple has always sucked. That’s not news…..

  • m0mentom0ri

    From a journalist’s perspective, there are quite a few reason to be anti-Apple.
    .
    http://www.wired.com/epicenter/2010/04/apple-bans-satire/

  • kamaalfareed

    I guess I’m trying to work through something as well, Michael: Where is the evidence that Apple played any role in this raid whatsoever?

    I have seen a lot of this sort of “shame on Apple” narrative in the online press over this issue, and generally I would agree, except I can’t see any logical point where the actions of the sovereign California state police can be linked to big bad men in cloaks at Apple.

    I know members of the media, particularly Time Inc, have cast Steve Jobs as a sort of magical man-god, but to accept and suggest that he is wielding government police departments as his own private para-military is just a little bit absurd, don’t you think?

    I agree that the actions of the police were wrongheaded and disturbing, but maybe they caught wind of the situation and got involved because Gizmodo was giddily fanning the flames around their legally dubious scoop day after day?

  • m0mentom0ri

    “On Friday, members of the Rapid Enforcement Allied Computer Team (REACT) Task Force entered Chen’s home and seized four computers and two servers as evidence in a felony investigation.”
    .
    “Apple is one of the 25 companies that sit on REACT’s “steering committee.”"
    .
    http://news.yahoo.com/s/ynews/ynews_ts1795

  • sasquatch08

    Mr. Scherer,

    You lost me on this one.
    .
    What does the loss of Apple technology in California and then its “illegal” transfer to a blogger (who I assume to also be Californian) to use as you say appropriation of”such property to his own use” which I assume you take from a California State statute have to do with the loss of documents by the RNC.
    .
    Were said documents lost in California and then redistributed to another resident of California and then appropriated for their use?
    .
    If the loss and recovery and subsequent distribution of this information did not all take place in California then I’m not seeing where you’re going with this. You can’t apply state law to people who don’t live in California.
    .
    So did the loss and subsequent recovery of RNC information and its dissemination occur in California or Florida as the Politico article suggests?
    .
    Details please, as the devil is contained therein.

  • nibblybits

    I’m amazed that the public isn’t more outraged. That many are siding with a corporation using government authorities to kick in your door and seize your property. The dystopia is now, and it’s run by Steve Jobs, apparently.

  • kamaalfareed

    @ m0mentom0ri, I have seen that Apple is “one of the 25″ members of the steering committee. But obviously this proves nothing. Even if this committee was in direct control of the police force, a supposition which seems certainly false, the idea that Apple (again, “one of the 25″ members) could be personally responsible for using it to carry out a personal vendetta is farfetched and factually unsubstantiated.

    This is conspiracy theory plain and simple. I posted because I am surprised to see so many in the mainstream blithely engaged in it.

  • Aaron

    You blithely gloss over the fact that Gizmodo paid $5,000 for the phone and did not attempt to return it to Apple.

    How is that not trafficking in stolen goods? (That’s not a rhetorical question. I really want to know if you think Gawker didn’t traffic in stolen goods while reporting this story.)

    Michael, if you purchased methamphetamine while reporting on the meth epidemic, would you expect a judge to say the purchase was OK simply because you were reporting on it?

    Being a journalist does not put us above the law. I’m astounded you would argue otherwise.

    There were lots of ways Gizmodo could have reported this story without resorting to paying for stolen property. They could have watched as the finder disassembled it. They could have photographed it and called Apple to tell them about their missing phone. Instead, they paid $5,000 for something that wasn’t theirs, held on to it for a week, then waited for Apple to demand it back.

    Doing so crossed a bright line, and it’s shameful for other journalists to bend over backwards trying to defend an ethically and legally indefensible decision by Gawker.

  • square1

    I love how journalists only focus on the journalistic aspect of the case. As if it would be perfectly fine for the police to be hauling off servers from some random guy who picked up the phone.

  • http://twitter.com/michaelscherer Michael Scherer

    You make a good point, and I have clarified the original post above accordingly.

  • kamaalfareed

    And by “I have seen” I mean I have seen others cite this fact and was aware of it when I made my initial post.

  • Art Pepper

    Anyone remember Steve Jackson Games?
    .
    Shhh. The Illuminati are reading this board.

  • kamaalfareed

    Thanks for the update/clarification, Michael. Admirably done.

  • nibblybits

    “…carry out a personal vendetta is farfetched…”
    Because if you or I had left a phone in some bar, the police and DA would be quick to kick in the door of the perpetrator in possession and seize his goods. Can’t wait to test that out.

  • http://twitter.com/michaelscherer Michael Scherer

    I am not a legal authority here, and I did mention in the original post that the fact the phone was purchased may change the legal calculation. Again, not as a lawyer, it does seem to me that there is a difference between lost goods and stolen goods.
    .
    A few years back, there was a case in which an investigative reporter did an embarrassing story about Chiquita Banana. The journalist in that case got in a lot of trouble because it came out that he had participated in illegally tapping into the company voicemail system, which is obviously a crime. The reporter was effectively stealing the voice mails. Now if that same reporter had found transcripts of the voicemails left behind in a bar, I don’t see how that would be theft. The legal standard, it seems to me, would be very different.
    .
    Here is a good piece on the Chiquita story: http://www.ajr.org/article.asp?id=543

  • destor23

    fnord

  • m0mentom0ri

    A direct conspiracy theory isn’t needed for people to act badly. It may be REACT doesn’t want to bite that hand that feeds them and are acting aggressively on their own. It could be that a the technical experts are ex-Apple employees. Etc, etc.
    .
    Any proximity between corporate interests and law enforcement is cause for concern.

  • destor23

    It’s not trafficking in stolen goods because the phone wasn’t stolen, it was found. Now as I understand it under California law the finder of an expensive item is supposed to bring it to the police but I think it’s reasonable that after this guy called Apple numerous times and got nowehere with them that he decided to sell it.

    Gizmodo returned the phone, by the way and is out the 5 grand. Their only condition was that Apple acknowledge it was a real test phone, which Apple did.

    The worst you can say here is that the guy who found it ran afoul fo the California lost property law, as if most people would know the details of that anyway. He found the phone. He tried to give it back. it didn’t work anyway so he sold it. Big deal.

  • square1

    Your account appears to be incorrect. Based upon the earlier posts at Gizmodo, the person who took the phone fclaims that he tried to contact Apple to return it but nobody got back to him. Then, after Gizmodo paid for it, they contacted the engineer who lost it and offered to return it as long as Apple would confirm that it was theirs.
    .
    Several days before the raid, Apple was told that Chen had the phone and to arrange for a pickup.
    .
    It is unclear when Apple did receive the phone. Gismodo doesn’t make that clear. But based upon the fact that it wasn’t listed on the search warrant, the obviously had it back PRIOR to the raid.
    .
    Apple should have thanked Gizmodo for getting the phone back, said their prayers that it didn’t get sold to China, and tried to forget about the entire incident.

  • kamaalfareed

    Apple has made a serious public relations error by failing to make a public statement on this affair and distance themselves from this (possibly illegal) raid. Surely their as-yet unrepentant cult of secrecy has led them down this path.

  • m0mentom0ri

    Thank you, Mr. Scherer.

  • nibblybits

    Apparently, we are now criminalizing finding lost things. Goes along great with criminalizing being brown.
    .
    For Christ’s sake, don’t be brown *and* pick up that thing that someone dropped. The authorities will raid your house, seize your things, then deport you.

  • gysgt213

    I would not look for Apple to release any statement on this period. That’s just the way they have decided to run their company.
    .
    However, I think there are a lot of unanswered questions here that need to be answered.

  • Aaron

    Michael said: “The legal standard, it seems to me, would be very different.”

    Except it’s not different.

    California Penal Code section 485:

    “One who finds lost property under circumstances which give him knowledge of or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft.”

    Gizmodo admits it didn’t make any effort to return the phone to Apple. They made Apple’s lawyers send a written request after the articles ran, and after they’d already disassembled Apple’s property.

    What the original finder did or did not do isn’t pertinent, since Gizmodo clearly knew the phone wasn’t the seller’s property when it paid for it.

    (Ironically, the original “finder’s” attempt to call Apple tech support, if true, might provide a reasonable defense for that finder — but it doesn’t excuse Gizmodo paying for something it knew belonged to Apple, not the seller.)

    The bottom line for journalists: If someone hands you something that was “found” in a bar (or a hotel), give it back before you report on it.

  • sasquatch08

    Where did “being brown” come into this? Can’t you talk about ANYTHING without bring up el racismo?
    .
    Technically speaking picking up something on you find isn’t stealing. On the other hand finding something you found on the ground and then selling it for $5000 without even trying to find the owner or return it isn’t exactly ethical, and apparently, Aaron is correct, in California it’s illegal.

  • sasquatch08

    Where did “being brown” come into this? Can’t you talk about ANYTHING without bringing up el racismo?
    .
    Technically speaking picking up something on you find isn’t stealing. On the other hand finding something you found on the ground and then selling it for $5000 without even trying to find the owner or return it isn’t exactly ethical, and apparently, Aaron is correct, in California it’s illegal.

  • FlownOver

    I suspect there’ll be an iPad software update very soon, then good luck getting the iPad to download any articles with a Michael Scherer byline.

  • sasquatch08

    “But I worry about the precedent.”

    Upon fulling reading the article and researching the information contained therein, Michael Scherer has nothing to worry about. The RNC information he mentioned was lost and found at 500 Palm Avenue
    Boca Grande, FL 33921, not anywhere near California. California law doesn’t apply in Florida, so there’s no precedent to worry about unless California becomes the legal model for the whole country.
    .
    Nice looking straw man you’ve made yourself there though Michael.

  • dlraetz

    The more I read about Apple the less I want to buy their products.

  • FlownOver

    Funny – the more I use their products, the less I worry about how they protect their intellectual property.

  • kbanginmotown

    “Car Wars” …FTW.

  • http://dvdbar.wordpress.com dvdbar

    I have been a fan of Apple since the early eighties. I stood up for them when pc owners said that my computer was a toy. Of course, time has proved Apple to be no toy. But my enthusiasm for the perceived culture of Apple has diminished as I see Apple becoming more and more like the early Microsoft. When I finally turned in my old 1980 apple computer to buy my first IMac in 2000, I thought Mac had conquered the world.
    They were heroes of the technological global village.
    And I remember whenever my Mac was sick, I could take it to the Apple store -no appointments needed- and usually in less than five minutes, a technician would be looking at it. Now, I have to make an appointment and then twice I have had to wait an hour even with that appointment made. And I remember the ugrades for the packaged software being free. It seems like Apple is trying to control everything – something that did not seem to exist in the past. Sometimes, I imagine seeing a Darth Vader helmut slowly growing on the head of Apple Inc. Today , Apple as a business thrives, but the culture that once seemed to be its driving force, appears as if it’s being left behind.

  • mpitt76

    THIS GUY STOLE SOMEBODY’S PHONE!!! HE KNEW THE OWNER OF THE PHONE AND HE PURPOSEFULLY DIDN’T GIVE IT BACK TO THE PERSON WHO OWNED IT!!!! NOT ONLY THAT, HE TRIED TO PROFIT FROM IT!!!!

    How can anyone defend this guy. If someone loses something, you help them find it. Period.

  • paymastr

    This is not about Apple vs journalism, this is about a crime. California law is clear in that if something is found, efforts must be made to find the owner and if that fails it must be turned over to the police. The second it was sold it was considered stolen. Believe it or not, losers weepers finders keepers is not the law. When Gizmodo purchased it according to Gizmodos own story there was no question the person that sold it did not own it. When Gizmodo purchased it then, they purchased stolen property. As for the finder of the phone trying to return it to Apple, think about what he did, and what he didn’t do. He did not take any common sense steps to return it to the owner. He did not give it to the bartender, he did not leave his name and number with the bartender in case someone called looking for it. He had the facebook profile and email address of the person that lost it, he didn’t contact him. They did not bring it to Apple which is close by, They did not call Apple at a general number and ask for the person that lost it. And finally, they did not give it to the police, which again they were required to do.What he apparently did do is call a support line and talked to someone who would have no idea there was a prototype phone, much less that one was lost. This seems designed to fail, and to offer a cover that he tried to return it. You have to wonder if he was advised to do that by Gizmodo. After all, Gizmodo’s parent Gawker offered $100,000 if someone could get a hold of an iPad or information about it before it was released. They had to stop that because it is enticement to steal. So they are obviously not above something like that. This whole thing is very shady, but let the cops do their work and lets see what happens.

  • pabugeater

    Please read:

    http://lesposen.wordpress.com/2010/04/28/honda/

    It explains why Apple is right and Gizmodo is wrong.

  • 7207m
  • nibblybits

    Yo, Screamer, no one “stole” anything, despite what your Apple overlords contend. Someone found a box with a phone in it at a bar, tried to return it but the Apple rep refused, thinking it was a hoax. Gizmodo’s Jason Chen bought the phone, not knowing for sure whether it was a real prototype or a hoax, then like any decent journalist, reported on it, which is his JOB!
    .
    Only after the posts came out did Apple confirm that it was indeed their property and Chen returned it promptly. Many days later, Apple requested that local authorities investigate and like the lackeys they are, the authorities busted in Chen’s door and seized his belongings.
    .
    PS. There are plenty of people defending a reporter’s right to report and shield his sources, as part of his (and our) First Amendment rights.

  • nibblybits

    Sincere apologies for bringing up “el racismo” which seems to offend you so much. I guess as a white person, you have the luxury of not having to deal with it every single frigging day.
    .
    As for your dodgy grasp on the facts of this case — no one tried to return the item? uh, ok — those revised “facts” seem to obscure the point that Apple seems to control the local authorities in carrying out their corporate security agenda, even in cases in which it is purely the fault of an Apple employee. Sorry that you see no problem in this.

  • nibblybits

    Apple has now confirmed (as reported on MSNBC) that they ‘requested’ the investigation into Jason Chen. And the government was quick to comply.

  • http://hal1999.wordpress.com hal1999

    I don’t understand how the author of the article can think that selling and buying stolen property is OK. If you bought a gold rolex on the street would you be surprised when the police knock on your door. In the Gizmodo situation they bought stolen property and they knew that the phone was an apple prototype and therefore the property of Apple. In addition, by opening the phone, photographing it, and then posting the photos they essentially disseminated trade secrets to Apple’s competitors!

    The example you used of finding a CD with information is not the same at all because the disc has no intrinsic value. A better example would be finding a car unlocked with the keys and registration lying on the seat. Would it be OK to drive it away and take it apart? Would it be OK to sell it to someone else? Would it be OK to buy it from the person who found it even though you know to whom it really belongs?

    This incident has nothing to do with journalism. It has to do with buying and selling stolen property and the theft of trade secrets.

  • Mekhong Kurt

    Michael, I’m going to have to part with you here, although I’m a webmaster, blogger, and writer. (And an in-between member of the Foreign Correspondents Club in the country I live — need to renew.)

    I wouldn’t expect the average person to know the arcane details of the relevant California law. However, as others have pointed out, the guy who found it sure seems to have tried to build a cover story with no attempt to see the phone got back to its owner.

    Apparently Gizmodo and Gawker knew this (sordid) background, but bought the phone anyway. Had they bought it and promptly returned it to Apple, they would be in the clear.

    The Fourth Estate is not above the law. We’ve seen where it takes us when people start placing themselves above or outside the law (which I don’t think I have to explain).

    Now — is the California law wrong-headed? Well, that’s an entirely different question. I happen to think it’s not, but there’s plenty of room for reasonable debate.

    However — it is, and was, the law at the time. Unless Gizmodo-Gawker can literally make a federal case of this and get the law struck down as unconstitutional, I don’t see an exit from the arena of responsibility.

    Further, we’re not talking another Pentagon Papers or some such.

    It appears Apple requested the investigation. That’s reprehensible, given they had the prototype back.

    I imagine Gizmodo will come out of this okay, in the end, in the sense that they’re respected in the tech world, and there’s no reason they won’t continue to be. Gawker, however, may want to consider its staffing in its office of legal counsel! ;-)

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