
"We concluded it is a very gray area, they do have a potential claim and this was not the case with which we were going to push the envelope."
Misdemeanor charges were filed against two men however. Brian Hogen and Sage Wallower found and sold the prototype device after it was left at a bar by an Apple employee. Hogan was charged with misappropriation of lost property, as was Wallower who was also charged with possession of stolen property.
After Gizmodo posted images of the prototype iPhone, Chen's home was raided and his computer was seized. The raid was highly criticized in the media, as the state law prohibits the seizure of unpublished notes from journalists.