All Things Digital

When Daily Variety broke the news that Pixar had hired writers for the pitch that became the 2007 release ‘Ratatouille,’ Steve Jobs tracked the reporter down at the Sundance Film Festival, demanding to know her sources and threatening to fire the film’s writers. He called her on the private line of a rented condo–a number she had not given out to anyone. She still doesn’t know how he found it.”
–Daily Variety, June 18, 2006

Apple’s long-running war with the Fourth Estate–well, the Black Bag ops portion of it, anyway–has finally claimed its first victim. Think Secret, a Mac rumor site Apple sued for misappropriation of trade secrets back in 2005 after it pre-announced the Mac mini and the iLife ’05 software suite, has agreed to cease publication as part of its settlement with the company. “Apple and Think Secret have settled their lawsuit, reaching an agreement that results in a positive solution for both sides,” Think Secret said in a statement. “As part of the confidential settlement, no sources were revealed and Think Secret will no longer be published.”

A bit of an about-face for Think Secret and its 21-year-old publisher Nicholas Ciarelli, who up until this point had fought the suit tooth-and-nail, painting it as an effort to chill free speech and Apple as the tech industry’s version of the Nixon-era White House for filing it. “Apple’s lawsuit is an affront to the First Amendment and an attempt to use Apple’s economic power to intimidate small journalists,” Think Secret said in a 2005 Anti-SLAPP filing. “If a publication such as the New York Times had published such information, it would be called good journalism; Apple never would have considered a lawsuit.”

Probably not. And it would never consider a suit against analyst Gene Munster, who’s essentially Piper Jaffray’s version of Think Secret. So why settle? We may never know, though in his statement, Ciarelli seemed to suggest he simply wanted to get on with his life without the specter of Apple legal hanging over him. “I’m pleased to have reached this amicable settlement,” he said. “[I] will now be able to move forward with my college studies and broader journalistic pursuits.”

UPDATE: The Think Secret camp describes the settlement as a loss for Apple. “It’s clear that Apple filed the lawsuit with such fanfare, but then stopped the entire litigation because they thought they were going to lose, and that they’d end up paying [Nick] a lot of money for it,” Ciarelli’s lawyer, Terry Gross of Gross & Belsky LLP, told Computerworld. “This shows that lawsuits like Apple’s can be stopped dead. … Other companies are going to realize that if they try something like this, there will be an uproar, and groups like EFF will do what it takes [to represent defendants]. … I would have loved for Apple to go forward on this. Apple would have caved, which they should have in the beginning.”

Given the recent monomania over Apple’s iPhone, it’s sometimes easy to forget that the company also has a thriving personal-computer business that’s tearing market share from the hands of rival computer-makers.

But while Apple may have taken the “computer” out of its name, it definitely hasn’t taken the computer out of the company. According to market researcher IDC, sales of Apple machines rose to 1.76 million units during its third quarter of the year, up 33% from the same period a year ago.

And they’re sure to rise in the fourth quarter as well, thanks to a batch of new products the company debuted today. At an event at its corporate headquarters, Apple uncrated a sleek new aluminum-and-glass iMac desktop (with all-new Bluetooth 2.0 keyboard) and a faster Mac mini as well as significant upgrades to its iLife (revamped iMovie) and iWork (new spreadsheet program) software suites and .Mac service (10 GB of storage plus new photo-sharing features).

Interestingly, Apple’s selling its new iMacs at prices lower than those of their predecessors, and while those prices are still higher than those of low-end Windows PCs, the company says they compare favorably to more high-quality PCs. “Our goal is to make the best personal computers in the world and make products we are proud to sell and recommend to our family and friends,” Apple CEO Steve Jobs said at Apple’s event today. “We want to do that at the lowest prices we can. But there’s some stuff in our industry that we wouldn’t be proud to ship. And we just can’t do it. We can’t ship junk. There are thresholds we can’t cross because of who we are. And we think that there’s a very significant slice of the [market] that wants that, too. You’ll find that our products are not premium priced. You price out our competitors’ products, and add features that actually make them useful, and they’re the same or actually more expensive. We don’t offer stripped-down, lousy products.”