The Apple rumor site, ThinkSecret.com, has settled its nearly 3-year long lawsuit with Apple and will shut-down as a condition of the confidential settlement. Although it may seem that Apple has bullied this blogger into submission, I believe this is actually a victory for ThinkSecret publisher, Nick Ciarelli, specifically, and all bloggers collectively.
In early 2005, Apple sued Ciarelli for posting Apple trade secrets and for encouraging and inducing employees to provide product information in breach of nondisclosure agreements. To Apple’s chagrin, Ciarelli filled a counter suit and ignored the mountains of “cease and desist” letters that followed.
The intent of Apple’s lawsuit was to pressure Ciarelli into revealing his sources and when he balked, he essentially called Apple’s bluff. Why else was there a settlement? If Apple had the legal high-ground, they certainly could’ve induced Ciarelli to reveal the sources of the leaked information or the court would’ve likely held him in contempt. It didn’t go that far because after the counter suit was filed, Apple stopped litigating, and Ciarelli never revealed the sources of his stories. Ciarelli leaves with his integrity intact and this is a boon for online journalists’ First Amendment rights.
Many are speculating over the terms of the settlement and think Ciarelli received a large sum of money to close the ThinkSecret doors, but that’s immaterial. The key to the issue of victory or defeat is the impetus to shut-down the website.
Indeed, Mr. Ciarelli, now a senior at Harvard, told the WSJ that he is shutting down the site because he has other career interests. He’s a senior at Harvard and suggests he was ready to quit anyway. If this is the case, he may have simply agreed to something he was planning on doing anyway. He leaves a winner.
Incidentally, Apple co-founder Steve Wozniak urged Apple to call off the dogs, arguing that it hurt the company’s reputation. Apple has never sued a professional news organization for publishing similar stories containing purported “trade secrets.” So why go after “little guy” Ciarelli and ThinkSecret? Because the “little guy” doesn’t have a legal department.
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