Apple Sues Over Online News Scoops

Nicholas M. Ciarelli was not even old enough to shave when he started getting under Apple Computer Inc.’s skin.

As a 13-year-old middle school student, the New Woodstock, N.Y., native built a website in 1998 and began publishing insider news and rumors about Apple using the alias Nick dePlume.

But after a series of letters warning the website, ThinkSecret.com, to stop publishing proprietary information, Apple decided enough was enough. When Ciarelli scored yet another scoop in late December by predicting the arrival of a new software package and a sub-$500 computer rolled out this week, the computer maker filed a lawsuit accusing him of misappropriating trade secrets.

Ciarelli, now a 19-year-old Harvard University freshman, is part of a legion of Internet news gatherers whose influence is expanding as concern grows in some quarters about their accountability and journalistic standards.

With the easy anonymity offered by online posting of tips and digital photographs, websites run by product buffs have caused headaches and generated valuable buzz for companies in many industries, including automobile and cellphone manufacturers, by leaking product information.

Ciarelli said he chose a pseudonym because he doubted people would take a teenager seriously. He was unmasked as ThinkSecret’s editor by the Harvard Crimson newspaper.

“I talk to sources, follow up on leads and get details confirmed,” Ciarelli said. “I believe that like other reporters I am protected by the 1st Amendment.”

Cupertino, Calif.-based Apple sees things differently. “Defendants’ knowing misappropriation and disclosure of Apple’s trade secrets constitutes a violation of California law and has caused irreparable harm to Apple,” states its suit filed in Santa Clara County Superior Court.

A spokesman for the company declined to comment on the case beyond a written statement: “Apple’s DNA is innovation, and the protection of our trade secrets is crucial to our success.”