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Apple As Big Brother

By Ed Foster, Section The Gripelog
Posted on Mon Jan 10, 2005 at 12:25:02 AM PDT

An army of drones marches into a theatre to the harangue of a giant, Big-Brotherish figure on a mammoth screen. Suddenly, a young woman sprints down the aisle and starts to hurl a sledgehammer toward the screen. Before she can release it though, she is surrounded and pummeled by a team of balding, briefcase-wielding men. "That's the Apple legal team in action, enforcing our intellectual property rights," chortles Big Brother Steve Jobs. "Welcome to Macworld, sweetheart."


During the Super Bowl broadcast 21 years ago Apple aired its famous commercial that concluded: "On January 24th, Apple Computer will introduce the Macintosh. And you'll see why 1984 won't be like 1984." Judging by a series of lawsuits it's brought against websites reporting Mac rumors, Apple wouldn't mind seeing 2005 being much more like the George Orwell vision.

In Apple's most recent lawsuit it accuses ThinkSecret of a dire crime: publishing the truth. Recent stories ThinkSecret.com ran about this week's Macworld product announcements were apparently accurate enough that Apple says they must have been based on sources who were violating their confidentiality agreements with Apple. Apple seeks to learn who those sources are in order to keep them from stealing more of Apple's trade secrets.

"By this action, Apple does not seek to discourage communication protected by the free-speech guarantees of the United States and California constitutions," Apple argues in the lawsuit. "These constitutionally protected freedoms, however, do not extend to defendants' unlawful practice of misappropriating and disseminating trade secrets acquired through the deliberate violation of known duties of confidentiality."

Having been in computer journalism a long time and dealt with a few sources with "known duties of confidentiality," I have some knowledge in this area. So let me just say that if our constitutionally protected freedoms don't extend any further than Apple suggests, the whole idea of a free press is in a lot of trouble.

Any company, be it an Apple or an Enron, wants to control what the press says about it and when it says it. If a publication is going to do more than re-print a company's press releases, it needs to have sources of information who actually know something. It's not the publication's job to determine whether a source is violating confidentiality agreements -- the publication's job is to determine if what the sources are saying is true and if it's information its readers should know.

So there's more at stake here than finding out that a sub-$500 Mac is coming before Steve Jobs tells us. Under the rules of engagement that Apple's lawsuit suggests, whistleblowers who have been sources for stories about tobacco, auto, or energy industries could never have come forward. And as 2005 gets underway, I think many of us fear that we are much closer to 1984 than we were in 1984.

< Is Microsoft Violating the Gator EULA? | Settling With Secret Terms >


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Apple As Big Brother | 19 comments (19 topical) | Post A Comment
Whistle blowers have laws to protect them.[ Reply to This ] (none / 0) (#1)
by Anonymous User on Mon Jan 10, 2005 at 10:53:47 AM PDT

The reason why i disagree is because there is a difference between a whistle blower and someone just sharing a confidential secret (possibly just for money). I wonder if you would feel the same way if it was your company, and one of your employees shared information about one of your products -- that ended up hurting the company (prehaps in a much bigger way than these rumors?). This is not a whistle blower thing, period. I agree with you to an extent that people should be able to communicate with the media freely without possibility of persecution. However Apple really does have a point here, this wasnt to protect the public or address a safety risk -- it was simply unvealing possible trade secrets. I dont think its a killer blow for apple at all, apple is a 'big boy' company and can handle this. However i question whether a smaller company which has specific technical secrets which are shared, and possibly immitated quickly could survive. Sorry, sometimes id prefer for companys in China and other countries not to have some of our companys technological secrets. Id pose the question, if someone from lockheed martin had been a 'whistle blower' and shared top secret military secrets you would undoubtedly view this differently, would you not? Sure this is an abstract comparison, but i could put any company in the place of lockheed martin with any secrets, military, technological, nuclear. It really doesnt matter, trade secrets should be protected, when you sign a confidentiality agreement, you should be confidential unless its for real whistle blower reasons (in which case you are protected). Mike

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Please tone down the wild hyperbole.[ Parent | Reply to This ] (none / 0) (#6)
by foxyshadis1 on Tue Jan 11, 2005 at 03:26:17 AM PDT

You're comparing grossly unequal things. This is equivalent to someone in Lockheed leaking that in two weeks Lockheed was unveiling a new jet that was a cut-down version of the F-10 and traveled Mach 3.

If this source had leaked detailed chip/chipset blueprints and source code, that would be equivalent to leaking operational secrets and blueprints to the russians or chinese. As it is, it's a minor offense of the type that happens all too routinely in the business world; the 'unnamed source' is a staple of business journalistic scoops. The worst that happens is a marginally deflated press release and wounded egos.

It's an HR problem and one that merits an internal investigation; thinksecret.com signed no NDAs nor secrecy pacts with Apple and has no obligation to turn over its sources. Conspiracy to breach a contract is not a crime, even if the act of breaching one can be punished. Corporations do not have police powers upon third parties and cannot charge them with obstructing justice, nor can anyone unless it was a criminal investigation, rather than a civil suit.

There's a difference between sleazy and illegal. It's still sleazy until they deprive a company of significant revenues by their acts. I'd like to see Apple prove that one.

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It could be illegal[ Parent | Reply to This ] (none / 0) (#8)
by AlanK on Wed Jan 12, 2005 at 06:36:14 AM PDT

It is a crime to induce or influence someone to knowingly break a lawful contract or agreement. It is called tortious interference. You can read a short explanation here: http://www.lectlaw.com/def2/t061.htm.

Apple is claiming that the website did so. There is an interesting question, however, of if the court will be willing to force the website to reveal their sources. Without knowing who disclosed the information, it is impossible to know for sure if there was a contract in place and if the website interfered with it.

Under certain circumstances, it might even be illegal if the source came forward without inducement from the website. In this case, Apple would have to show that the website knew or should have known that the information leaked was a trade secret under non-disclosure.

You are also incorrect that Apple would need to show that they were deprived of significant revenues. Trade secret laws allow for significant punative damages without the need for showing actual financial damages. The leak itself is considered damaging. There are many trade secrets in business that would not have any measurable financial impact, but would still threaten the ability for the business to do business.

By the way, there are specific limitations to trade secrets. Evidence of illegal acts is not protected, for example. Whistleblower laws protect employees who disclose information to proper government officials, not to the news media.

--Al--

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IANAL, obviously[ Parent | Reply to This ] (none / 0) (#11)
by foxyshadis1 on Wed Jan 12, 2005 at 11:42:43 PM PDT

Hmm, I see. So trade secret is similar to copyright in that effect.

I need to remember to recuse myself when I haven't researched the specifics.

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A tort is by definition not a crime[ Parent | Reply to This ] (none / 0) (#13)
by Anonymous User on Fri Jan 14, 2005 at 11:12:39 AM PDT

As the term itself should make sufficiently clear, tortious interference with a contract is a tort, not a crime.

Moreover, generally speaking merely being the passive recipient of information revealed in violation of a contractural obligation not to disclose isn't tortious interference with the NDA in question, nor is passing it on. If it were, then Apple could sue you for reading a news aricle revealing a trade secret and then mentioning it to someone else.

I'm appalled at the level of legal understanding in this country that leads people to think that freedom of the press can be jettisoned if it slightly interferes with some corporation's desire for secrecy.

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Legal "ignorance"[ Parent | Reply to This ] (none / 0) (#14)
by Anonymous User on Fri Jan 14, 2005 at 12:23:21 PM PDT

And the lawyers and lawmakers WANT it that way. The less the American people understand of the what the law really says, the more they like it. But what can you do to actually stop them?

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This is why we have judges[ Reply to This ] (none / 0) (#2)
by Anonymous User on Mon Jan 10, 2005 at 12:05:37 PM PDT

The media likes to use the slippery slope defense--that the same protections should apply to a person talking about unannounced products as a person who talks about illegal accounting practices.  To me, however, this is up to a judge to decide.

A "whistleblower" is one who reports on activities at a company or government entity which are illegal.  These people should be protected.  But Apple developing new products is hardly illegal and those who report it should have no expectation of being protected.

As I understand it--and I may be wrong--part of what judges decide in these cases is whether or not society benefits from the disclosure of the person's name.  For example, in a criminal trial, the right of the accused to know where evidence came from is more important than the whistleblower's privacy because the evidence cannot be used (and, possibly, any evidence that was generated from the whistleblower).  I'd have a hard time believing that there is any benefit to society when it comes to leaking new Apple products and whatever benefit that might come up is easily countered by Apple's argument.

While I recognize the slippery slope that the journalists comment about, I think you're blowing it out of proportion.  Again, there is a difference between new products coming from Apple and corporate malfeasance.  And I expect that judges will recognize this.

This is, frankly, one of those things that bothers me about "journalists."  They want to consider themselves to be "The Fourth Estate."  However, all of the other estates have checks and balances which make certain that no one group has too much power.  However, the press does not want to accept these checks--"our readers will decide."

In these cases, this is why we have judges who represent the people.  Journalists, contrary to what they claim, do not represent the people any more than a restaurant represents their patrons ("Our customers like botulism!").

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Re: This is why we have judges[ Parent | Reply to This ] (none / 0) (#3)
by Ed Foster on Mon Jan 10, 2005 at 05:29:46 PM PDT

Yes, every case is different, and you never know for sure what's going to happen until the final verdict is rendered. And journalists are hardly immune in cases like this, be they at Thinksecret.com or CBS. Any journalist who has dealt with situations like this is well aware that it's very easy to find yourself outside the scope of 1st Amendment protections if you're not careful.

There are a number of factors you would expect a judge would take into account in a case like this. Number one, is anything Apple's going to announce tomorrow really a trade secret today? Another is what harm is being done to Apple by the reporting of these rumors, whether they are true or not. Of course, I don't know who ThinkSecret.com's sources are, but I wouldn't be at all surprised if these leaks were authorized by some folks very high up the food chain at Apple -- folks who believe that the buzz created by these pre-Macworld rumors is very much to Apple's benefit. And if the rumors turn out not to be true, then how can they be trade secrets?

I'd like to think these lawsuits are just a harmless PR exercise that will go away after Macworld. But in the current judicial climate, I think it's possible that real harm has already been done just by the claims Apple has made and the subpoenas it's gotten ordered in these various actions over the last few months. That's why I think Apple's actions have to be taken seriously.

Ed Foster



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espionage[ Reply to This ] (none / 0) (#4)
by Anonymous User on Mon Jan 10, 2005 at 07:58:40 PM PDT

Think Secret actively encourages people to break NDAs. They've even offered compensation for accurate information. If Microsoft paid an Apple employee to reveal info, that would be considered corporate espionage, no? Why is this different?

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As I said above...[ Parent | Reply to This ] (none / 0) (#7)
by foxyshadis1 on Tue Jan 11, 2005 at 03:28:28 AM PDT

Thinksecret and Microsoft weren't the ones who signed the NDA; there's a difference between sleazy and illegal. It's still sleazy until they deprive a company of significant revenues by their acts. I'd like to see Apple prove that one.

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thinksecret lawsuit. true identity of Nick dePlume[ Reply to This ] (none / 0) (#5)
by Anonymous User on Mon Jan 10, 2005 at 08:08:44 PM PDT

check out the post on blackvortex about Apple's lawsuit against ThinkSecret and learn the true identity of Nick dePlume. http://blackvortex.net/newsread.php?newsid=15

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First amendment too important to lose over rumors[ Reply to This ] (none / 0) (#9)
by ScottEllsworth on Wed Jan 12, 2005 at 12:10:24 PM PDT

I cannot agree with the main thrust of this article.  Revealing proprietary information harms trust, and damages the company about whom the information is revealed.  It is also insulting to the people doing the work that has just been revealed.

Whistle-blowing has the same effects, but balances the harm with the good of revealing legal or ethical problems.

The first amendment should protect the second, but not the first, as the second serves the good it was created for.  Regrettably, you cannot legislate morality effectively, nor good sense, so we have to judge the results instead.  That means lawsuits.

Put another way, if you are going to reveal proprietary information, you should take a moment to consider whether what you are revealing is really in the public interest.  Telling the world what Apple is going to show at the keynote cannot do much good, and can do harm.

Telling the world of fraud, or flaws they knew of and decided to ship anyway still does harm, but has an associated good.

Since the recent spate of screenshot-equipped rumors and uploads of Tiger, Apple has released no new Tiger betas to developers, and has closed the seed discussion lists they tried out last year.  I suspect that they trust their developers less, and given that screenshots of every previous seed have shown up on the rumor sites in hours, along with detailed analysis of beta software, I cannot really blame them.  That lack of trust is problematic for developers, and inevitable if they have no legal recourse to even find, let alone prosecute, the leakers.  Companies need appropriate legal protection of their ability to ship what they want, when they want to, at least if we want them to trust non employees.  Not a wall of silence, just the ability to face their accusers like any other.

I must admit, I was very unhappy with one of your (Ed's) responses.  The original article had a point I disagreed with, but at least it was clearly a discussion.  The innuendo that "someone high up at Apple was behind the rumors" is yellow journalism, along the same lines as claiming that the Atlanta security guard who found the bomb at Olympics was a public figure, because he had done something that would be of public interest.  If you have proof of a high level Apple exec revealing this information, by all means reveal it.  That counts as whistle blowing, in that it damages the credibility of the lawsuit against the rumor sites, but just making the unsubstantiated claim hurts your credibility.

My point is not that a planned leak is impossible - it surely is possible.  My point is that journalists need to use the first amendment for its constitutional purpose - limitation of governmental power and revelation of corruption.  Reporting on legal and ethical violations with corporations surely fits that mandate as well.

If the first amendment starts looking like a shield behind which baseless accusations can hide, then it will cease to be societally useful, and it will go away.  That would not be good for any of us.

So, in summary, I support the first amendment, but the courts need to hear cases like this to determine where the line falls between whistle blower and scoundrel.
Scott Ellsworth - Java and database consulting for the life sciences - scott@alodar.nospamtome.com
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First Amendment[ Parent | Reply to This ] (none / 0) (#10)
by Anonymous User on Wed Jan 12, 2005 at 03:25:13 PM PDT

The First Amendment is TOO IMPORTANT to let corporations decide what speech is allowed! If the corps don't want info getting out, then DON'T SHARE IT WITH ANYONE! NDAs are toilet paper and should be treated as such.

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Re: First amendment too important to lose over rum[ Parent | Reply to This ] (none / 0) (#12)
by Ed Foster on Thu Jan 13, 2005 at 01:00:18 AM PDT

OK, imagine this scenario. Suppose someone I do not know writes me and claims to be a disgruntled ex-employee of Company X. And he or she gives me the source code for a product Company X will be introducing shortly and suggests I publish it. If I did so, and it turned out it really was Company X's source code, would I as a journalist face any legal consequences? Yes, I'm sure I would. Publishing Company X's source code is of no particular benefit to my readers and may cause Company X serious harm, so I would be asking for trouble. And no court would be likely to rule that First Amendement protections apply in such a case.

But change that scenario a little bit. Suppose the ex-employee is giving me that source code because he or she knows it contains a keyboard logger designed by Company X to steal the personal financial information of all users. And I check with other sources I happen to have and confirm that this really is Company X's source code and it really is Company X's intention to spy on its users with this keyboard logger. And I then publish as much of the source code as needed to prove the point.

In the first scenario, I really don't know whether the person who sent me the source code is in fact a disgruntled ex-employee who is presumably still covered by a confidentiality agreement with Company X, and I did not specifically solicit their information. In the second scenario, I am well aware that I am actually "inducing" multiple sources to break confidentiality agreements that I know they must have with Company X. Yet I'm sure you'd agree that in that case, the First Amendment has to trump trade secret, tort, contract and other laws to allow me to print that story, or we don't have a free press.



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Depends on what is posted[ Parent | Reply to This ] (none / 0) (#15)
by ScottEllsworth on Wed Jan 19, 2005 at 01:25:13 PM PDT

Given those two scenarios, I agree that the second seems to fit the intent of the first amendment, and that the first does not.

I believe, though the point can be argued, that the TS case falls more into the first camp than the second.

Many commentators are claiming that rumor sites implicitly need first amendment protection for things that feel to me much more like your first scenario.  That is what I was protesting previously.

Does that make my position clearer, if not necessarily more attractive?

Scott
Scott Ellsworth - Java and database consulting for the life sciences - scott@alodar.nospamtome.com
[ Parent | Reply to This ]



Re: Depends on what is posted[ Parent | Reply to This ] (none / 0) (#16)
by Ed Foster on Wed Jan 19, 2005 at 02:54:47 PM PDT

Yes, that makes it clearer. But I think the point people are making is that, if Apple has its way, there won't be any rumor sites. If a site can be compelled to identify anonymous sources on the suspicion those sources might be under some form of non-disclosure, then there will be no anonymous sources. So there won't be any rumor sites of any sort. And, by the way, ultimately there won't be any gripe sites either. -- Ed Foster

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Everyone seems to be missing the SCARY part[ Parent | Reply to This ] (none / 0) (#17)
by Anonymous User on Sat Jan 29, 2005 at 06:18:37 PM PDT

I don't why why everyone seems to be missing the scary part.Often what is legal or illegal is created in the mind.This will stop whistleblowers because the corps will say "See,You signed a NDA and if you talk to any one we'll just go to court like apple and make them tell us if you talked".That will be drummed into everyone that signs a NDA if apple wins.Then it won't matter what the corp does,People will be so scared of being "outed" as the snitch that no one will dare speak. And don't you love how quick the "fanboys" are to defend apple?Just DARE to write ANYTHING negative about apple or their king jobs and i PROMISE some one will have a defense IN THE VERY FIRST REPLY!!Hell,Even m$ can't get response times that quick!Why do you "fanboys" LOVE an over-priced under powered mac anyway?

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The 'Apple Image"[ Reply to This ] (none / 0) (#18)
by GentooPhile on Sun Jan 30, 2005 at 10:45:32 AM PDT

Everyone here looks at Apple as though they are being wronged somehow. Apple is simply a variant of MicroSloth, in that they have a MONOLITHIC series of products that NO ONE but an authorized Apple person is supposed to look inside of. There was a time when third parties attempted to produce Apple clone machines, but that soon stopped. (As an aside, just TRY and change the dead battery in a Shuffle or iPod) What a bunch of shit! All Apple wants is your money poured into their coffers, while the end user gets that 'Apple Intelligentsia' image written all over them when they pull out their 'cool' Apple machinery. What a load of CRAP! You want an MP3 player? Just build your own, or buy one from Staples, rather than buy a stupid iPod. At least when the batteries die in the MP3 player you get from Staples, you can replace them without having to bring it into an 'Authorized Apple Service Center', IF you can find one in your area. Or, ship it off and WAIT while they process your order. Apple just wants to polish their shiny image and keep the idiots who think having an Apple on their desktop shows they are more intelligent than the rest of mankind. I much prefer being able to change my own batteries and pick what video card I want in my machine, rather than being handed an underpowered piece of crap that needs 'special attention' and 'branded' software to run the damn thing. Stupid iPods, stupid Apple owners.

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dfsafd[ Reply to This ] (none / 0) (#19)
by samezhen on Thu Jul 10, 2008 at 06:56:27 PM PDT

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