A tentative ruling yesterday by Superior Court judge James Kleinberg is likely to have serious implications for the online publishing industry. In a preliminary ruling on a case filed by Apple Computer against three website publishers, the judge said Apple can force the three website publishers to surrender the names of their sources who disclosed confidential information about the company’s upcoming products.
Apple’s attorney George Riley, argued earlier in the trial that journalists, whether or not belonging to traditional media like press and broadcast were never entitled to the leaked information. Company trade secrets are vital to the survival of any company, and the lifeblood of the industry, he had said.
“That leaked information belongs to Apple'' he insisted, “and publishing it in a public forum would jeopardize Apple’s business as competitors would jump at the chance to copy the product ‘Asteroid’ and release it in the market before Apple.”
Apple’s argument was based on the premise that such a disclosure about an unreleased product was a ‘trade secret violation’. Apple demanded to know the source of their information for which it got subpoenas against the three seeking all documents related to the product and information about anyone who might have knowledge of the postings about the product.
‘Asteroid’ is Apple’s upcoming product, the details of which were published in the three websites.
Apple Insider and PowerPage, two of the three website publishers subpoenaed by Apple in December, are being represented by the Electronic Frontier Foundation, a San Francisco digital rights group. The third publisher -Think Secret were subpoenaed by Apple in January. Apple Insider and PowerPage are two sites that focus exclusively on Apple products.
By his preliminary ruling, judge Kleinberg had refused to extend to the Web sites the same protection that shields journalists from revealing their unidentified sources or surrendering unpublished material.
The Electronic Frontier Foundation argued their position that the web publishers are journalists and their sources are entitled to protection by the California Shield Law and the First Amendment of the U.S. Constitution. Both protect journalists from being forced to disclose their sources.
Apple’s attorney Riley countered by saying that free speech protection applied only to legitimate members of the press and not to website publishers. Freedom of the press was for the press, meaning the traditional media, he said.
The ruling for the case is expected next week and would determine whether those publishers will have to comply with the subpoena to turn over e-mail records and other documents relating to the leak.
Meanwhile sources reveal that Apple had scanned computer files, checked its e-mail servers and questioned its 30 or so Apple employees who had access to information about Asteroid.