The 'lost iPhone' scandal: Did Gizmodo break the law?

Gadget site Gizmodo could land in hot water after purchasing an allegedly "stolen" iPhone prototype and publishing pictures of it

Did tech blog Gizmodo step out of bounds?

California laws are very specific about how lost or stolen property should be handled — and purchasing it for journalistic use is not among the sanctioned options. So commentators are questioning whether tech blog Gizmodo crossed a line when it bought an iPhone prototype reportedly left behind in a Silicon Valley bar by an Apple engineer and published a series of articles about it. Thus far, Gawker Media — parent company of Gizmodo — has denied any wrongdoing, but will it face legal trouble for purchasing the misplaced gadget?

Gizmodo broke the law: "Put simply," says Jeff Bercovici in Daily Finance, "Gawker Media brazenly, publicly flouted the law." It "subsidize[d] a crime" by purchasing the "technically stolen" merchandise — presumably from the unnamed party who found it in the bar. If Steve Jobs sues, "he will have justice on his side."

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