Friday, April 30, 2010

iPhone 4G Debacle



If you haven't been keeping up with the technology news lately, Gizmodo is currently embroiled in a rapidly evolving legal probe involving Apple, California police, as well as media rights and ethics advocates over the blog site's acquisition and examination of a reputed iPhone 4G prototype apparently lost by an Apple employee in a bar in Redwood City, Calif. But Gizmodo is loudly defending its innocence and its journalistic ethics in the face of what could become a painful and expensive legal contest.

Technology blog Gizmodo is in a difficult position. The site's editor, Jason Chen, recently had his home searched and electronics equipment seized to see if he committed a crime at any point over the past few weeks when he paid $5,000 for a lost iPhone 4G.

Chen says he's innocent, and Gizmodo's legal counsel has publicly said that Chen was acting well within journalistic standards. The legal counsel says he cannot be charged with any crime for acquiring the iPhone 4G.

But determining exactly what happened and whether laws or journalistic ethics were violated might be more difficult than it seems on face value. Gizmodo has been forthright about its contention that it acted within its rights as a news service in sharing information about the Apple iPhone prototype with the public. If its account is true, it appears that Gizmodo tried to perform journalistic due diligence before it started the process of acquiring the iPhone 4G and posting details about the device on its site.

That doesn't mean that Gizmodo was necessarily entirely right in this scenario. It doesn't mean that law enforcement has made the right moves either. It seems that there is adequate blame to go around. And it's incumbent upon us as the spectators to be as informed as possible before we pass judgment.

So, here are 10 key facts to know about the whole Gizmodo iPhone 4G debacle:


1. An Apple employee lost it.
Although some have said that Apple secretly leaked the iPhone 4G to Gizmodo, it reportedly didn't happen that way. An Apple employee (Gray Powell) lost the iPhone 4G in a bar, which was eventually recovered by another patron (reportedly: Brian Hogan). After unsuccessful attempts at getting the iPhone back into Apple's hands, the person offered it up to Gizmodo. According to Gizmodo, the person held onto the iPhone for weeks before giving it to the tech blog. That's an important factor in all of this. Considering the person tried to give the device back to Apple, some fault might need to be placed on the hardware company for not performing its own due diligence.

2. Gizmodo chucks out $5,000
Gizmodo reported recently that it paid $5,000 for the lost iPhone. That figure might not mean much to some, but under California law, that puts the transaction into felony territory. Definitely not a good thing for Gizmodo. But it also speaks to whether or not Gizmodo should have paid for the product and if it acted ethically by doing so. It's difficult to say what any publication or editor would do in a similar situation, but I would have shelled out $10,000 if needed.

3. Apple had ample time to recover it
As I mentioned earlier, Apple had about three weeks to find and retrieve the lost iPhone, according to Gizmodo. The tech blog said that Hogan, who recovered the iPhone from the bar, attempted to contact the company to no avail. Rather than hold on to it, Hogan decided to sell it off for a handsome sum. It makes sense. But it also begs the question of whether or not Apple truly cares. Steve Jobs has a proven track record of being secretive and unbending in his distaste for those who leak company secrets. If he was really that upset about what was lost, wouldn't he have attempted to more proactively seek it out?

4. No telling if the iPhone 4G truly exists
Try as it might to say that the phone it found is in fact the iPhone 4G, Gizmodo, like the rest of us, cannot confirm it. Apple has yet to say whether or not the lost device was actually the new version of the iPhone, and it's entirely possible that the device is one of many prototypes the company is working on. As appealing as it might be to seemingly look at the next version of the iPhone that Apple doesn't want us to see, there's no way to know if it's what we'll be using in the coming months. Gizmodo did recover an iPhone prototype, but not necessarily the iPhone 4G.

5. Apple finally got it back
After the news broke that Gizmodo had acquired the iPhone and it discussed its features, Apple's legal counsel sent a memo to Gizmodo requesting the device back. The tech blog used that request as proof that it was in fact an authentic Apple product. Upon receiving the iPhone, Apple has said nothing about the device and has yet to confirm it was really the iPhone 4G. Nonetheless, the iPhone is back in Apple's hands, and we won't learn anymore about it until Apple finally confirms its existence.

6. Chen could be charged with a felony
Until Apple recovered the iPhone, it was all fun and games for Gizmodo and those who wanted to learn more about the new iPhone. But it quickly turned serious when reports started surfacing claiming Chen could be charged with a felony because of the way he acquired the device. Since then, his home has been searched and computers and other electronics have been seized by local police in an attempt to determine if a crime was actually committed. For his part, Chen says he's innocent. But whether or not the district attorney agrees remains to be seen.

7. Chen could be covered under media shield laws
Chen might have a valid defense if he is in fact charged with a crime. Gizmodo's chief legal counsel sent a letter to local police, saying that Chen is a journalist and thus, under California (and federal) law, a warrant cannot be issued to search his home and seize property that could have been used for the purposes of a news story. Court decisions in the past provide Gizmodo and Chen with the precedent they need to show that online journalists are, in fact, covered under the same protections as traditional journalists. Assuming the district attorney interprets the laws the same way Gizmodo's legal counsel does, Chen might not be charged with a crime.

8. Apple stays mum
As the drama continues at Gizmodo, Cupertino has been silent. Jobs, his execs and even his PR team have been tight-lipped on whether or not they have any opinion about what's happening to Chen or Gizmodo. It's rather typical from Apple. The company has imposed its will by acquiring the lost iPhone, and now that its work is done, it has decided to say nothing about the issues Gizmodo is facing. Depending on where the law enforcement effort goes, though, at least one Apple employee—Gary Powell—might need to chime in.

9. Gizmodo maintains it's journalistic standards
Some journalists have contended that Chen's decision to buy the iPhone for $5,000 breaks journalistic ethics and standards that have been in place for years. They contend that from an ethical perspective, Chen shouldn't have paid for the story and instead should have reported on the news that the iPhone was lost. Gizmodo and Chen don't agree. They contend that they were doing what they were supposed to do: inform the public on Apple's upcoming products. Either side of the debate can make a valid argument, but it's tough to say which is right.

10. It should blow over
In the end, the chances of Chen being charged with a crime and Apple taking issue with Gizmodo seem relatively slight. Gizmodo could potentially have its trump card, thanks to journalistic protection. And Apple, realizing that Gizmodo was only doing its job, likely won't press the issue more than it already has. In a couple weeks, Gizmodo's ordeal with the iPhone 4G will blow over and the story will be just another interesting saga to discuss in end-of-the-year roundups by tech sites. But it's certainly fun to watch while it lasts.

Monday, April 12, 2010

Obama finally "Right"


When I first saw the headline, "Obama expands offshore drilling" last week, I said to myself, "this has got to be an April Fools joke!"

But it wasn't. Sure enough, in one fell swoop, the president has apparently reversed decades of so-called national energy policy by opening up vast areas of "East Coast waters and other protected areas in Alaska and the Gulf of Mexico to drilling...widening the politically explosive hunt for more homegrown oil and gas."

Not I said "apparently." The details of this seemingly seismic shift in national energy and national security remain to be sorted out. Nevertheless, it marks a bold initiative that could gradually move our oil addicted nation towards some degree of oil independence. If it strengthens our economy and our national security, that would of course be a good thing.

President Obama's announcement, made in a speech at Andrews Air Force Base in Maryland, drew immediate wrath from militant environmentalists supporters, who perceive him as backpedaling on an issue near and dear to their hearts. For example, his "support for exploratory drilling in the Chuckchi and Beaufort seas north of Alaska" outraged the Center for Biological Diversity.

Calling it a "threat to polar bears," the organization's spokesperson bitterly complained this this is "Short of sending Sarah Palin back to Alaska to personally club polar bears to death, The Obama Administration could not have come up with a more efficient extinction plan for the polar bear." Hyperbole aside, that was a predictable response, given the source.

Meanwhile, President Obama's proposed drilling plan received some support from leading Republicans. Senate Republican leader Mitch McConnell of Kentucky said, "It was a step in the right direction." Republican Sen. Lindsey Graham of S.C., who has been a critical negotiator with the White House on national energy policy, said he listened "with great interest" to what the president had to say.

I'm no energy expert...but then again, neither is President Obama. Still, I think his stab at a new oil strategy has some merit. Sure, his detractors across the political and ideological spectrum will pummel him for being "politically motivated." They'll say he has one eye on the congressional elections this year and the other on the presidential election of 2012.

What else is new? Show me a politician who is not politically motivated, and I'll show you an oxymoron. If political motivation can steer us toward a more viable national energy policy that strengthens our overall national security, then hell, drill on.