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Sat, Nov 07, 2009 - 01:18 PM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Stop the presses! Apple sues ThinkSecret over ‘Headless Mac,’ ‘iWork,’ and other rumors
Wednesday, January 05, 2005 - 02:55 PM EST

"In its latest lawsuit seeking to clamp down on leaks, Apple Computer has added credibility to several hot rumors, including plans to offer a cheaper Macintosh and its own line of office software," Ina Fried reports for CNET News. "Apple on Tuesday sued the publisher of Mac enthusiast site Think Secret and other unnamed individuals, alleging that recent postings on the site contain Apple trade secrets, according to court documents seen by CNET News.com."

"The suit, filed Tuesday in the Superior Court of Santa Clara County, Calif., aims to identify who is leaking the information and to get an injunction preventing further release of trade secrets. However, in filing the suit, Apple identifies specific articles that contain trade secrets, indicating that at least parts of those reports are on the mark," Fried reports. "In its suit, Apple specifically lists certain articles that contain confidential information, though it does not confirm which of the article's details are true. For example, when mentioning the report that Apple plans a 'G4-based iMac without display,' Apple says the article 'disclosed numerous confidential details regarding the technical capabilities of Apple's unreleased computer product as well as Apple's confidential marketing plans.'"

Fried reports, "Similar confirmation is offered regarding iWork, which Think Secret said on Dec. 31 would be a suite of office software combining the company's Keynote presentation program with a new document creation application called Pages... The suit illustrates the challenges Apple faces in trying to keep its products secret. In order to maintain trade secret protection, companies have to vigorously try to plug leaks. However, in trying to identify the leaks, Apple has at times lent credence to the rumors it wishes to squelch."

Much more in the full article here.

MacDailyNews Take: A great article with many details. Read the full article over at CNET. Apparently, according to Fried's report, Apple has gone to great lengths to try to stop the leaks through ThinkSecret, sending ThinkSecret a "a number of letters" through their lawyers in recent years, only to have ThinkSecret ignore Apple's demands, according to Apple, as reported by Fried ( better safe, than sorry wink ). Let's see if a rumormill currently running in Macworld Expo overdrive can be safely downshifted so quickly. Will Jobs' Macworld Expo Keynote Presentation please just hurry up and happen already?!

Related MacDailyNews articles:
IGG Software changes name of 'iWork' to 'iBiz' - clearing the way for Apple's iWork? - January 03, 2005
Enderle: Rumored $500 Apple Mac 'should be a media server, not a general purpose PC' - January 03, 2005
When fictional 'US$499 Headless iMac' doesn't materialize, the disappointment could hurt Apple - January 01, 2005
Rumored $500 'Headless Mac' could double Mac market share, boost share price - January 01, 2005
RUMOR: Apple to debut 'iWork '05' productivity suite at Macworld Expo - January 01, 2005
Analyst: Budget $499 Mac doesn't make sense for Apple Computer - December 31, 2004
Apple's rumored $500 'Headless Mac' more wishful thinking than fact? - December 31, 2004
Quick glances back at 2004 and ahead to 2005 - Happy New Year from MacDailyNews! - December 31, 2004
Apple's next great idea: gearing up to take a big bite out of the mass computer market - December 30, 2004
Rumored 'Headless iMac' would be radical departure from Apple's usual high margin strategy - December 30, 2004
Piper Jaffray: 'Headless iMac would appeal to many potential Windows to Mac switchers' - December 30, 2004
Headless iMac for $499? Please, Apple, let it be true! - December 29, 2004
RUMOR: Apple to debut $499 'headless iMac' at Macworld Expo on January 11 - December 29, 2004
Inexpensive 'Headless iMac' could hook Windows users who love their iPods on Mac OS X - December 29, 2004

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Jan 05, 05 - 06:06 pm Comment from: retro cat

Good for Apple.

It's their property. They should protect it.

All the Haters and the kiddies who think it is wrong, get a clue. You would do the same thing is you spent millions to develop IP and it was stolen.

Jan 05, 05 - 06:10 pm Comment from: max

This is getting almost as funny as RealMedia.

Jan 05, 05 - 06:33 pm Comment from: theloniusMac

I agree.
Good for Apple.
The rumor vultures are just plain sickening.

Apple keeps secrets because their business depends on innovation. If low life scum sucking sites like ThinkSecret keep publishing stuff and giving the nay saying pundits something to bitch at, as well as the competitors a leap at getting copies out, they're only hurting Apple.

Sue the bastards out of business.

Jan 05, 05 - 07:03 pm Comment from: Jake

How do we know that ThinkSecret isn't paying these people for violating their NDAs? If they are indeed doing that, then they would be engaging in criminal activity themselves. Just something to think about...

Jan 05, 05 - 07:05 pm Comment from: espy

Heh, with the spy game that's heating up at Apple, "C88" should've been named "MI5". smile

Jan 05, 05 - 07:33 pm Comment from: Viridian

theloniusMac,

Take a deep breath. While I do agree that Apple has every right to protect their intellectual property, this has nothing to do with leaks from rumor sites. Come on now, do you honestly believe that Apple's competitors would base their competitive strategies on the say-so of rumor sites? They're about as likely to ask Miss Cleo for investment advice.

Think Secret has no agreement with Apple to protect their trade secrets, and they're probably protected under the First Amendment anyway. They can rightfully claim that they were just reporting what they thought was speculation, unless they're actually caught with confidential documents belonging to Apple (I am not a lawyer; someone with more knowledge about this please enlighten us on this point).

Apple is far more concerned with getting the reallow-life scum sucker, the one who broke their NDA. Apple is thinking that if someone inside can leak information that they're contractually obligated to keep confidential, what's to stop them from passing that information to a competitor for an enormous sum of money, instead of just a rumor site for (presumably) free? How do they know that said employee hasn't already done so, and was just tossing some freebie crumbs to Think Secret?

Apple is trying to send the message that everyone, even rumor sites, should be prepared for legal pain if they deal with employees who leak confidential information, regardless of whether the suit actually has any legal merit, and I can't say I honestly blame them. But there is a world of difference between rumor-mongering and industrial espionage, and they could care less about Think Secret or any other rumor site leaking crumbs of information. They do care about competitors with very deep pockets, and traitors in their midst with access to specific and detailed technical information.

Jan 05, 05 - 07:39 pm Comment from: Viridian

"How do we know that ThinkSecret isn't paying these people for violating their NDAs? If they are indeed doing that, then they would be engaging in criminal activity themselves."

Excellent point Jake; I hadn't seen your post. And to reiterate the point I was trying to make in my above post, which do you think could offer the greater monetary temptation, an Internet rumor site, or a multi-billion dollar corporation? Apple is extremely concerned that someone inside could succumb to that temptation.

Jan 05, 05 - 07:41 pm Comment from: Mac & PC Guy

Consider this:

Customer buys some things Apple. Next day/week, Apple releases a newer version of the same product. It has new features, capabilities, better battery life, brighter screen, better design, etc.

As a customer:

- I would have appreciated a little heads up from anyone (especially Apple).
- I would adjust my buying decision accordingly to that information. Maybe it'll give me one more paycheck to save and purchase a higher model.
- I would feel like I was somehow cheated because the product I bought was on its way out. Apple generally does not offer any good discounts, so even with the discount, the purchase wouldn't have been a good-feeling deal.

---

What rumor sites do:

- give some info on what *may* happen in the short-term future.
- provide links to better-priced merchandise. Apple charges tax. Apple does not recognize all parts of the US as being American soil (ie. Guam, Puerto Rico, etc are not US and are not US citizens)
- give more accurate news when Apple wants to spin things (how many times has Apple pushed back ship dates? they'll take your order and then leave you hanging for a couple of months).

---

So... Apple doesn't come out clean in all of this. It's been acting like a benevolent monopolist for a while now.

Jan 05, 05 - 07:54 pm Comment from: MCCFR

Let's not get all sanctimonious about this!

On October 14th, the day after Apple announced its Q4 results, AAPL closed at 44.98. During this conference call, I believe one of the members of Apple's executive management team stated that they had no ambitions in the sub-$800 space of the market.

Despite this, AAPL has raised its value to 64.50 (a near 50% rise in three months), despite a) a shortage of product, b) no genuinely new laptop product for well over six months, c) only having, at best, 5% marketshare even if you take the most charitable view.

This rise has taken Apple to the status of the ultimate "bull" stock, trading at over 90 times earnings in what should be a shaky economy at best.

Anyone who is proud of the amount of money they've made turning Apple into a share based on future earnings prospects as opposed to historical earnings has no reason to whinge about ThinkSecret or any other rumour site. And anyone who thinks that a P/E of 90 is sustainable no matter what The Dark Lord unveils next Wednesday or what TS, AI or anyone else reports really needs to seek medical help.

As for whether TS broke the law: who knows? Isn't this a bit like revealing a grand jury investigation, in as much as it depends on who told you in the first place.

Jan 05, 05 - 07:58 pm Comment from: MadMac

Guys, the cnet article states that, Think Secret is supposed to have solicited information from people who had signed a NDA with Apple. There is a big difference between printing rumors and paying people to give up a companies secrets. If Think Secret was a country, their offending members would be deported for espionage. Since Apple is not a country (even if some of us think they should be) they have no choice but to sue. In this case, Think Secret if they are in fact guilty. deserves to get their ass sued off. shut eye

Jan 05, 05 - 08:05 pm Comment from: Sol

I doubt that Microsoft and Dell are going to release products based on rumours published on Think Secret. They usually wait for Apple to announce something and then they get to work copying it. Sometimes they play it safe and wait to see if Apple's product is selling.

Apple should sue the sources, not the rumour sites. Obviously Apple is hiring the wrong people if they can't be trusted to keep something secret and this is a failure on Apple's part, not Think Secret's.

Jan 05, 05 - 08:16 pm Comment from: twilightmoon

Ray
I'm sorry but all these lawsuits are changing my view of Apple from a bunch of geniuses who love technology to a greedy corporation who wants to shut down the freedom of others.

A company is not "greedy" for wanting to protect its trade secrets. Apple's bread and butter is it's ability to innovate, and part of innovation is being able to keep its products under wraps until they are ready to announce them.

Jan 05, 05 - 08:24 pm Comment from: Suicidal Gingerbread Man

Sol-- Um, I'll fill you in. They cannot sue the sources if they do not know who it is. They're sueing the rumour sites to get them to reveal their sources. I understand your confusion, its only been repeated a hundred times on this site so far.

Jan 05, 05 - 08:33 pm Comment from: Peter

"Customer buys some things Apple. Next day/week, Apple releases a newer version of the same product. [...] I would have appreciated a little heads up from anyone (especially Apple). I would adjust my buying decision accordingly to that information. I would feel like I was somehow cheated."

Fair enough.

Suppose I just bought a Windows Media Center from HP. Suddenly, there's a new one out there. Damn those folks from HP, they should have let me know so I would have put off buying one.

Very few companies let you know what's coming down the pike for just that reason. Consider how many iMac G4s Apple sold after officially saying that there'd be a new model out in just a few months. Not very many. Gee, with all this speculation about $500 Macs, how do you think the eMac is selling right now? Probably not all that well.

About the only reason a company tells you their future plans is to keep you from purchasing a competitor's product (eg, "We'll have a widget which is better than their widget in just a few months!").

Personal story: I replaced my PowerMac 8500/120 with a PowerMac G3 when they first came out. I bought the top-of-the-line 400MHz model. One reason I did this was that the rumor sites, as well as some other information I'd heard, said that there'd be no sign of the PowerMac G4 for at least a year. Seven months later, there's the PowerMac G4 (Yikes!). Was I upset? Nope. Why not? Because I buy a computer to do work and I got quite a bit of work done with the 400MHz G3. Certainly more than I would have if I'd used the 8500/120.

I buy the top-of-the-line at the time because that machine is sure to "last longer" than the bottom of the line. I've learned there will always be a better machine if you just wait, but waiting around can keep you from doing what you want in an absurd quest for the perfect machine.

Consider the PowerMac G5. I bought the dual 2 GHz G5 last fall. How's that for stupid?! Apple promised there'd be 3GHz machines in a year! More than a year later--no 3 GHz machines. Boy, would I have felt silly if I'd waited around.

Jan 05, 05 - 09:44 pm Comment from: Sol

You do not seriously expect me to respond to someone with the word 'Suicidal' in his name, do you? After all, I would not want to hurt your feelings.

Jan 05, 05 - 09:51 pm Comment from: jon

Cool. big surprise

Jan 05, 05 - 10:27 pm Comment from: TheNiceMike

This all sucks. I'd rather not hear anything and just get a big suprise from the expo keynotes presentation. All these rumors, lawsuits, and actions people are taking based on them isn't doing anyone any good. The problem starts with the people who violate the NDA's, and even more so with our own impatients.

Jan 05, 05 - 11:18 pm Comment from: zupchuck

I do agree with Apple enforcing thier IP and NDAs. If you want to be a rumor site, then you better be able to handle Apple's heat when you go too far. It's not just Apple that is effected, other companies who might be making accessories for the rumored device can be adversely effected, too.

That said, we all know (or should know) Apple is pretty predictable in it's announcement schedule. You take a risk and buy late in the year that something won't come out in January and be immediately available. The MacRumors site has a pretty good buying guide in gauging these things.

Jan 05, 05 - 11:51 pm Comment from: king_alvarez

LOL
Gotta laugh at how all the Mike's need to differentiate themselves so that they don't get mistaken for a different mike.

Jan 06, 05 - 12:17 am Comment from: MDN is Wrong!!!

Reverse phone lookup has revealed the number (425) 930-47xx to call Think Secret is located in Bellevue WA, about 5-6 miles from Microsoft headquarters in Redmond WA


MDN HAS BEEN AIDING AND SERVING MICROSOSFT BY QUOTING THINK SECRET. ENCOURAGING THE DOWNFALL OF APPLE!!!

Jan 06, 05 - 02:42 am Comment from: silas

People, I don't think you understand what it means for Apple to sue Thinksecret. It sounds all evil-empire, but it's not really like that. They're not suing for $$, and they're not trying to shut Thinksecret down. All Apple is doing is asking a judge to issue an order mandating that Thinksecret disclose the name(s) of the source of the confidential information. The judge will only issue the order if it is in the interest of justice -- which it probably is.

The argument: this rumor has gotten play all over the mainstream press. It's obvious to almost everyone that there is wishful thinking mixed into it (remember last year's rumored $99 iPod Mini?) and thus is misrepresenting what Apple is likely to introduce at MWSF. It's likely that on Jan. 12th the press will report on what Apple failed to introduce rather than on the strengths of what they did introduce; it's hard to quantify such things but it will undoubtedly mean harm to Apple, caused by Thinksecret in a roundabout way.

So is Apple asking Thinksecret to compensate them for that harm? No. It's just asking for the names of sources. Thinksecret is not a journalistic organization -- that information is not privileged. So the judge issues the order, and Thinksecret can either comply, or face penalties associated with being in contempt of court. I'll repeat that the penaltie will not be for harming Apple, but rather for violating an equitable order of a US court (I don't think any of us want to live in a society where people can ignore court orders).

I don't see the problem. Asking a judge to ask Thinksecret to disclose the source(s) is a lot less heavy-handed than some other tactics Apple might use to protect itself.

Consider this tidbit though: as some have mentioned, this lends some credence to the Q88 and iWork rumors -- why sue otherwise? But if my theory of harm set out above is correct, it means the real product will differ in some way, which means the rumors are not fully correct. I.e we will not, repeat NOT see a headless i/eMac at $499 next week.

Jan 06, 05 - 09:17 am Comment from: Analist

And the rumor wars continue anyway. ThinkSecret confirms iPodFlash at MW.

Apple stock soars.

Jan 10, 05 - 11:13 pm Comment from: sixhoursago

check out the post at 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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