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Thu, Aug 21, 2008 - 10:49 PM EDT  —  AAPL: 174.29 (-1.55, -0.88%)  |  NASDAQ: 2380.38 (-8.70, -0.36%)

Apple sues anonymous people over leak of unreleased Apple product info on Web
Friday, December 17, 2004 - 05:46 PM EDT

"Apple Computer Inc. is suing anonymous people who leaked details about new products by posting information on the Internet, court documents showed on Friday. Apple's complaint, filed with the Santa Clara County California Superior Court, comes only weeks ahead of the Macworld conference in San Francisco, the annual show where CEO Steve Jobs unveils the latest Apple products," Duncan Martell reports for Reuters.

"Apple is notoriously secretive about its product plans, while many fan sites routinely discuss what may be in store, including posting pictures of real products and hoaxes. The complaint alleges that 'an unidentified individual, acting alone or in concert with others, has recently misappropriated and disseminated through Web sites confidential information about an unreleased Apple product,'" Martell reports. "Apple said in the seven-page civil complaint, filed on Dec. 13, that it did not know the 'true names or capacities, whether individual, associate, corporate or otherwise,' of the defendants. Once they have been discovered, the Cupertino, California-based company said it would amend the complaint."

"In recent weeks, the Web sites have been buzzing with speculation that Apple will introduce a smaller, cheaper version of its market-leading iPod digital music player that uses flash memory, rather than the hard disk drives of the standard iPods," Martell reports. "inancial analysts Andy Neff of Bear Stearns and Charlie Wolf of Needham & Co. have also published notes in recent weeks mentioning flash iPods. 'To succeed, Apple must develop innovative products and bring those products to market in advance of its competitors,' the company said in its complaint. 'If Apple competitors were aware of Apple's future production information, those competitors could benefit economically from that knowledge by directing their product development or marketing to frustrate Apple's plans.'"

Full article here.

MacDailyNews Take: And now, the speculation begins as to which product picture and/or information was actually correct about which Apple product. Is it the rumored "Apple iPod - Sirius Satellite radio deal," the "Apple currently mass producing new 5GB iPod mini players for early 2005 debut" one, the "Apple's 'iPod flash' revealed (with image) rumor, or something else entirely?

Related MacDailyNews article:
Apple Computer files lawsuit against ex-contractor for revealing Power Mac G4 - December 10, 2002

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Reader Feedback: ( = registered)

Dec 17, 04 - 07:11 pm Comment from: rageous

Something else entirely.

Dec 17, 04 - 07:14 pm Comment from: snowman

What about the iPhone. Oh, also, first post wink

Dec 17, 04 - 07:15 pm Comment from: snowman

rats ! cool grin rageous got it first.

Dec 17, 04 - 07:30 pm Comment from: Chad

stupid bastard

Dec 17, 04 - 07:41 pm Comment from: Foul Mouthed Ass

I love Apple...but this is just god damn ridiculous.

I mean come on.

What possible damages could they be suing them for?

These leaks only serve to help Apple. Imagine if every anonymous person who leaked stories from Capitol Hill were sued? There would be no one left.

I agree with Chad. Stupid Bastards.

Foul Mouthed Ass

Dec 17, 04 - 08:03 pm Comment from: Andy C.

If the person to leaked the information or photos had signed a NDA, which would be the case for any employee, contractor or vendor who was allowed access to Apple's IP, and they violated that NDA, then Apple has every right to sue them and no one should feel it was a bad move on Apple's part.

If there are no consequences to violating a NDA, then what would deter people from breaking their agreement? Apple does this every once in a while to set an example to deter others from thinking about violating their NDA.

Have at them Apple!

One other point, this gets Apple free publicity which I would say does more good than harm. It adds to the aura of mystery that surrounds Apple and makes people talk about what could be so important that Apple felt it needed to sue somebody to keep the secret.

Dec 17, 04 - 08:12 pm Comment from: Shinbot

No matter what it is...once announced it will takes Apple months and months and months and months to be finally available....if ever.

3Ghz Power mac anyone?

Dec 17, 04 - 08:13 pm Comment from: iYann

Foul Mouthed Ass,

This is not just affecting Apple because the competitors will copy them. But sales can go down if a better product is rumored. If they announce a 5 GB iPod mini, a lot of people will prefer to wait for it instead of buying a 4 GB now. And they'll be stuck with the old stock.

Andy C., I agree.

Dec 17, 04 - 08:40 pm Comment from: fandango

Wuh oh. As much as I enjoy hearing/reading about rumored future products, I understand Apple's point. Understand this: most of the other computer (and computer-related stuff) manufacturers WANT APPLE TO FAIL!

They want Apple to go away as a company because Apple is a constant reminder as to how badly Windoze blows. Apple puts them in an embarrasing light because Apple products show people that there is a better, more reliable, safer way to enjoy computer tech. Plus, Apple's stuff is just way cooler.

If too many people start using Apple stuff, then that means (usually) that people aren't going to use their Windoze stuff. That means less money for Billy and the boys. They are pissed that Apple has hit a home-run with the iPod.

Apple HAS to protect its product secrets because practically everyone else in the computer industry is gunning for them. In order for Apple to be in a position where they can "out-innovate" their competition, they have to be able to develope, and bring to market, products that will take years for their competition to copy. As I've said before, the computer industry's (M$, Dell, et al) best R&D;department is Apple Computer. They will almost always copy their stuff.

As much as I enjoy hearing about the cool new toys that may be coming out of Cupertino, I would much rather have Apple to continue to be successful as a company. In order for that to happen, they can't have people giving away their secrets.

As a long-time Mac user and Apple advocate, I have just one request: If you are leaking info about upcoming or soon-to-be-released products, then please don't do it. Just keep your mouth shut and let us find out about it whenever Apple gets ready to announce it. I want Apple to continue to be successful as a company more than I want to know about whatever new widget is "in development".

The Mac community gains nothing by people publicizing Apple's plans.

'nuff said.

Dec 17, 04 - 08:52 pm Comment from: Chadwick

pure marketing. plain and simple.

Dec 17, 04 - 09:04 pm Comment from: Mr.Incredible

Andy C clarified some important points in his posting above. Signing a Non-Disclosure Agreement (NDA) is pretty serious stuff. And if the unnamed induhviduals in question are Apple employees or vendors, they have every reason to fear.

While some may say that rumors are good for Apple, it may not be without costs. Any publicly held company is on the hook when leaks having to do with material news potentially affect the company's stock price. Or, if rumors cause Wall Street analysts to project the company's stock price at a level that is either unreal, or based on patently false information, the company could be liable to a very large stockholder lawsuit. That's not funny, especially when many millions of dollars are on the line.

Given Apple's tremendous stock price acceleration in the past few quarters (thanks, Apple!), the company has to be concerned that its stock valuation leaves little room for error. I've seen publicly held companies get bitch-slapped by Wall Street because they could not meet the inflated projections that The Street placed on their stock. The result: a nasty drop in the stock price, and as a result, the company's valuation. That can hurt a lot of people.

I love hearing rumors as much as the next schmuck. But I don't mind happy surprises either. Frankly, it's more fun to have Steve pull a huge surprise on all of us instead of knowing the end of the movie in advance. Those trusted with confidential information, and those spreading false information that could materially impact the stock price of a company must understand the liability they have, and the liability they create. Apple might sound like the grinch to some of you, but I frankly don't see any alternative. It's called risk management.

Dec 17, 04 - 09:04 pm Comment from: mac dood

the details of the NDAs and Apple's love of secrecy aside... ahhh, I dunno.... I think its mach ado about mostly nuthin'..

Dont get me wrong.... in this particular case ... the people involved may have broken their ND agreements.. but, in general... most of the mac community seems to love the fact that this or that website has the "exclusive" photos of the "next gen" Apple "whatsamajig"....

And what always happens when they publish said photos ??

Regular posters in forums such as this, devote considerable space either denouncing the photos or hoping they are real !!

Most of the time... we Mac Heads arent sure either way... and we're never sure till that magic day when we all fire up our QuickTime players to watch His Steveness walk across the Mac World Expo stage !

Speculation (in this case) seems to always breed much anticipation !!

Ahhh ... the pre-MWSF days.... such a wonderful time of the year !

wink

Dec 17, 04 - 09:10 pm Comment from: shouko

i know what it is but i wonder i should tell...

alright.. you all heard about media center... well.... think about what apple could do..

also, no pb g5 for sure, not until june at least.

finally tiger - beginning of february

Dec 17, 04 - 09:28 pm Comment from: MacSmiley

I'd rather wait for SJ to announce products (or leak as they see fit, the way they did with the G5 iMac), than have some spoiler steal the thunder from our unique events.

What's there to ooh and ahh about if you already know what's coming. Rumors are one thing. Posting pictures on the Internet of actual product is a horse of a different color.

"Understand this: most of the other computer (and computer-related stuff) manufacturers WANT APPLE TO FAIL!" says fandango, and he's right.

It's better for competitors to get wind of the new products when they're officially announced, so they don't know what hit 'em. But to leak Apple's chosen secrets will make us wonder what hit US !!

Dec 17, 04 - 09:37 pm Comment from: Michael Cavallaro

It is http://www.mymac.com/ that Apple is going to sue. If you look at the site it has to do with Tiger and screenshots. There is a copy of the letter apple sent them also.

Dec 17, 04 - 09:38 pm Comment from: Michael Cavallaro

Sorry that isnt the right address its http://www.macnet2.com/index.php

Dec 17, 04 - 10:33 pm Comment from: The Unreal Steve Ballmer

You would never, ever see that from a company like mine.

We love our devel ... customers.

Dec 18, 04 - 12:44 am Comment from: Viridian

The fact that Apple has unleashed the sharks with such a nebulous complaint suggests to me that someone violated a non-disclosure agreement. If that is indeed the case then the guilty parties should be sued. While we may make jokes about Apple's notorious secrecy, the fact is that Apple's position as an innovator necessitates it. Industrial espionage is a serious threat to their viability.

Dec 18, 04 - 01:19 am Comment from: Uncle Fester

I know! I know!

Apple sued VA Tech for announcing the Dual 2.3 GHz xServes!

No? Oh well. It was a fair shot.

Dec 18, 04 - 03:34 am Comment from: Solar Flare

What none of you realise is the the ONLY way Apple can stay ahead of the competition is to be secret about unreleased new products.

Everyone, including M$ are gunning for a large slice of 'APPLE's Music Pie' and leaked information could lead to competitors taking the advantage over APPLE in potentially new money making markets.

Apart from the fact that insider trading could be responsible for this too - This info may have been leaked by someone wanting to boost APPLE's share price so that they can make a massive profit on their APPLE stock!

In the UK, this is totally ilegal and if anyone was caught doing this would mean they would get 10 years+ in prison.

Dec 18, 04 - 04:20 am Comment from: Sol

I love reading the rumour sites because of all the Mac-related speculation but sometimes the site's writers do spoil new Mac announcements with their unrealistic expectations. MOSR is a good example because when Apple was releasing upgraded G4 PowerMacs they were telling readers how dissapointed they were by the lack of faster RAM, processors, motherboards, hard drives etc. Nevermind that those computers were better than any PC at the time; rumour sites made anything with a Motorola processor seem like a let down on Apple's part.

Dec 18, 04 - 06:44 am Comment from: Justin Time

This is all BS on the part of Apple.

The real truth is Apple has no new Computer related products. Developement of Apple computers came to a stop about 6+ months ago. The reason the huge problem with IBM processors.

One says speculation on new products hurst current sales. B.S.
Apple canīt meet demand for its current products.

Apple seems to be shifting away from emphasis on its computers. What if IBM canīt bring out faster chips in the next year, two years, ever? How will this effect Apple. Must it morph quickly into a Sony type company bringing out home entertainment products to make up the short fall in computers?

Dec 18, 04 - 09:08 am Comment from: Solar Flare

re: justin time.

WHAT ALOAD OF CRAP!!

APPLE's core business strategy is to make products and software that enhance owning a Mac.

The ipod was developed to maximise the digital hub concept that Apple invented over 10 years ago - when windows pcs were still using serial connectors and floppy disk drives - let alone USB!

Apple see the Mac as the centre of the digital hub - e.g. every device will sync/connect through it.

Because Apple make the OS, the hardware and the software, the true digital hub idea of total compatibility and seamless integration with OS, hardware and software will NEVER be fulfilled on a windows OS pc - not unless Microsoft go against their company strategy (which is something that will never happen as all M$ are concerned about is bleeding it's 'customers' for every penny they can get out of them.

This is what happens when a company is run by sales people and accountants, as opposed to Apple, who's sole strategy is to create products that people will want to use and which are easy to use and that make peoples life easier!.

My money is on APPLE for the future development of IT.

Microsoft will go the way of every other dictator - The Roman Empire, Adolf Hitler etc - all these examples had their day.

And im affraid Microsofts Empire has had it's day, if Microsoft don't do something special with Longhorn that is at least as good as OS X Panther, then they will be finished as a company.

Having invested $10billion in Longhorn and currently having nothing to show for it apart from an updated GUI on top of DOS - Microsoft cannot afford to cock this up!

On another note - society can only move forward if companies like APPLE or Phillips exist - without innovation, forward thinking, thinking out of the box and just plain asking 'what if we try this idea?' we would still be living in caves and using spears.

Microsoft is NOT an innovator - they are a follower and have invented nothing of any relevance to people

Apple invented the mouse, the pc, firewire, digital music etc etc.

Long may APPLE put what people want first and not the balance sheet!

THIS is why people are loyal to APPLE!

Dec 18, 04 - 09:09 am Comment from: Anonymous Less is More

One word for ya: "iSegway." You read it here first. So sue me.

Dec 18, 04 - 09:16 am Comment from: Solar Flare

Isegway?... Is this the home server???

Dec 18, 04 - 11:17 am Comment from: retro cat

I just knew I shouldn't of leaked the story about 10.3.7 being released this week.

Now I gotta deal with Apple legal.

Dec 18, 04 - 11:39 am Comment from: Trendy Shoes

The real leak involved Apple's new iCum device which attaches to your genitals and enables users to download powerful orgasmic software off the company's special server (available only to .Mac subscribers). I was a Beta tester for a while but I couldn't get any work done and nearly lost my job.

Dec 18, 04 - 11:41 am Comment from: Less is More

Remote iSegway -- make it roll to wherever you are.

Dec 18, 04 - 11:44 am Comment from: Gandalf

MacNet2 was visciously slamming Apple a couple of years ago saying nearly all their kit is defective. The site owner had a long list of stuff that had broken (in particular he had a powerbook with a broken screen), and had a bad rep with AppleCare. The most logical conclusion was that he was clumsy or he had a bad effect on electronics (like people who can't wear watches).

It seemed to me that the guy was a couple of bits short of a byte, possibly schizophrenic, certainly too unstable to want to be associated with.

Dec 18, 04 - 12:01 pm Comment from: solid

Rumors come with the territory if you follow Apple. You just have to take it all with a grain of salt.

If Apple wants to police their NDA's fine, sue their guilty arses off. Otherwise, they should just ignore these rumor websites, and they will draw less attention to them. For crying out loud, the so called stock anal-ists spread more rumors than just about anyone else. Is Apple going to sue them as well?

Dec 18, 04 - 01:12 pm Comment from: retro cat

THE SMART MONEY:

Is on this is not about a product leak at all, but rather Think Secret's leak that Apple was expecting to sell 4MM iPods this quarter.

Wall Street caught on to this, and cranked up Apple's quarterly numbers removing their ability to surprise the street and drive up the stock. Plus, there seems to be a lot of rough sales data being leaked recently, e.g. iPod photo not selling well, blue iPod sold out, etc.

I think this is what Apple is after. Product rumors are highly unreliable as Apple often changes their plans at the last minute. But sales numbers are leaking and impacting wall street expectations, so I think that's why Apple is showing it's teeth.

Dec 18, 04 - 01:15 pm Comment from: se7en

Im against apple on this 1..

Dec 18, 04 - 01:35 pm Comment from: Dobbie

I thought it might be this Asteroid thingy.

http://www.appleinsider.com/article.php?id=756

Although, I haven't seen any other site pick up on this and the rumor was a couple of months back.

Dobbie

Dec 18, 04 - 03:16 pm Comment from: Mike

Michael Carvallaro:

The Macnet2 letter was addressed to John Manzione, the site's owner. They know who he is. He is therefore not 'unknown'.

Nice try though.

Dec 20, 04 - 11:36 am Comment from: Muddy Mudskipper

Wow. To think something like like this could happen in this day and age of information. Why, it's beyond me.

Dec 21, 04 - 08:32 am Comment from: Dobbie

Now that was a lucky guess. Looks like I hit the nail on the head.

http://www.engadget.com/entry/1234000873021451/

So by deduction it's Appleinsider that are going to get the unfriendly end of Apple Legal's red hot poker.

Dobbie

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