4 ms·
Very nice recap of the important points of the affidavit. A couple other items of note: The detective's summary relates the facts concisely in terms of the cr
by grellas 16y ago
Very nice recap of the important points of the affidavit.
A couple other items of note:
The detective's summary relates the facts concisely in terms of the crimes believed to have been committed, as follows:
"Suspect Brian Hogan found or stole a prototype iPhone 4G that was accidentally left at a restaurant by Apple employee Robert 'Gray' Powell. Hogan identified the owner of the phone as Apple Engineer Gray Powell through the contents of the phone and through Internet searches. Rather than return the prototype phone to Powell and/or Apple, Hogan subsequently sold the iPhone [to] Jason Chen in Fremont for $5000. Upon receiving the stolen property, Chen disassembled the iPhone, thereby causing it to be damaged. Chen created copies of the iPhone prototype in the form of digital images and video, which were subsequently published on the Internet based magazine Gizmodo.com."
California Penal Code 499c(b)provides: "Every person is guilty of theft who, with intent to deprive or withhold the control of a trade secret from its owner, or with an intent to appropriate a trade secret to his or her own use or to the use of another, does any of the following . . . (3) Having unlawfully obtained access to the article, without
authority makes or causes to be made a copy of any article
representing a trade secret." ["Copy" is defined in 499c(a)(7) to mean "any facsimile, replica, photograph or other reproduction of an article, and any note, drawing or sketch made of or from an article."] Violation of 499c(b)(3) is a felony.
The real damage here consists of revealing Apple's trade secrets to the world, and it was apparently done deliberately for direct financial gain (even if that gain did take the form of hits to the Gizmodo site).
The investigation is being led by the San Mateo County REACT unit, which often works in cooperative investigations between the local D.A.'s office and the U.S. Attorney's office. So far, we have not seen any involvement publicly of the U.S. Attorney's office in this case. That does not mean, though, that they are not involved. If the economic harm stemming from trade secret thefts is significant (as it appears to be here), the Economic Espionage Act of 1996 might also be used as a basis for prosecution under federal law. It provides in relevant part as follows: "Whoever, with intent to convert a trade secret, that is related to or included in a product that is produced for . . . interstate . . . commerce, to the economic benefit of anyone other than the owner thereof, and intending or knowing that the offense will, injure any owner of that trade secret, knowingly . . . steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains such information . . . shall . . . be fined under this title [i.e., up to $5 million] or imprisoned not more than 10 years, or both."
A final note on how these sorts of matters tend to unravel for the malefactors. The recitals of probable cause that one or more crimes have been committed, as set forth in the affidavit, concern Jason Chen individually and not his employer (meaning that he personally will be charged in any indictment that is filed). Mr. Chen has retained his own separate criminal defense lawyer to defend himself (http://www.law.com/jsp/article.jsp?id=1202453303236 http://www.law.com/jsp/article.jsp?id=1202453303236). Prosecutors have broad discretion in such cases on how to fashion the charges brought and also concerning any plea deals struck. If the goal here is ultimately to get to Gizmodo/Gawker, who do you think will be the first to incriminate them?
- jhancock 16y agoDo these laws have any tests for determining if the owner of a "trade secret" is protecting the secret appropriately? I'm not looking for a defense of the clearly unethical and illegal behavior of Chen, Hogan, etc. I do worry that a person in a bar I'm drinking at may accidentally leave a trade secret lying around. I can't imagine Coke allowing an employee to take home the secret formula. Thanks for your analysis of the pertinent points of this case. Just one more thing I have to keep on my mental list of "things that can get you 5 to 10 in the 'Land of the Free'".
- grellas 16y agoIt is usually pretty easy for a trade secret owner to show that it is protecting its property by taking reasonable and prudent steps to assure that the information is kept confidential (e.g., by making everybody who deals with it sign NDAs, etc.). Accordingly, most proprietary developments of tech companies do fall within the protectable trade secret category unless the company explicitly makes the information public (e.g., by open sourcing it). I don't think there is any particular need to worry about stumbling upon trade secret information and incurring the risk of criminal prosecution. Anyone in such a position who has honest intentions can have a pretty good sense of what to do (report it, turn it in, etc.) and, if unsure, at least of what not to do (sell it for $$$, rip off serial numbers, photograph details and publish them on the web). Remember, each of the criminal statutes requires that someone act in relation to trade secrets "with intent to" do something wrong (convert them to his own use, harm the owner, etc.), and prosecutors must prove this "intent" element (what the lawyers call mens rea or "evil intent") beyond a reasonable doubt. Most of us will be quite safe, then, even if we do happen to stumble upon lost property at a bar.
- sound 16y agoYOU MAY DOWN VOTE ME but: First thing first: Gizmodo should have taken high road, and that email was certainly a mistake ... But it is also important to note that Steve Jobs called Gizmodo after the whole story was published (I guess so) this puts Gizmodo in very risky position if they don't give an CONVINCING explanation to their readers regarding whereabouts of iphone ... nobody will believe if they said that Steve Jobs called them and they returned the phone ... If I were Gizmodo, I wud have called Jobs before publishing anything and got myself in his good books and I guess Jobs would have certainly returned my favor in one or other way ... alternatively If he (Jobs) called me after details were published, even then I wud have returned the phone by being as humble as possible at the same time making sure that I dont loose face in front of my readers (again I guess Steve Jobs wouldn't have ignored my favor)...