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Week in review: Breaking Gizmodo-gate

Criminal investigation into iPhone prototype saga revs up, while Steve Jobs slams Adobe's Flash. Also: HP takes Palm in hand.

How did the iPhone prototype end up in Gizmodo hands? That's what the police would like to know.

The saga of how Gizmodo got that device exploded this week into a criminal investigation with many questions arising about journalists' rights and responsibilities.

In an investigation that appears to stem from the gadget blog's purchase of a lost Apple iPhone prototype, deputies from the sheriff's office in San Mateo County, Calif., last Friday obtained a warrant andsearched Gizmodo editor Jason Chen's Fremont, Calif., home, seizing his computers and servers. The warrant said a felony crime was being investigated.

Hours before the raid, CNET was the first to report on the criminal investigation into the circumstances surrounding the iPhone prototype and Gizmodo's acquisition of it, including that Apple had contacted local police.

However, the criminal probe is expected to broaden, a law enforcement source with knowledge of the investigation told CNET. One reason for an expanded investigation is obvious: law enforcement wants to learn who found the so-called 4G prototype and offered it for sale. California law makes it a crime for someone to find lost property but not return it.

Since then, two people have been identified as allegedly being involved in the device's sale. Brian J. Hogan, a 21-year-old resident of Redwood City, Calif., is the person who found the iPhone and was paid by Gizmodo, according to a story published on Thursday by Wired.com. Hogan, however, had help in finding a buyer for the phone. CNET has learned that Sage Robert Wallower, a 27-year-old University of California at Berkeley student, contacted technology sites about what is believed to be Apple's next-generation iPhone.
•  Prosecutors defend Gizmodo search in iPhone probe
•  Journalist shield law may not halt iPhone probe

More headlines

Jobs: Why Apple banned Flash from the iPhone

In an unusual move, Steve Jobs lays out the technical arguments for Apple's refusal to let Flash on the iPhone and suggests Adobe focus on HTML.
•  Text of Steve Jobs' letter
•  Next Android to support Flash
•  Adobe 'shifting focus' from Apple

HP buying Palm for $1.2 billion

Hewlett-Packard says it will purchase the PDA and smartphone pioneer for $5.70 per share, a premium of 23 percent, in a deal expected to close by the end of July.
•  With Palm, HP reboots mobile strategy
•  Is Motorola next in line to be acquired?

Google takes diplomatic route on Net neutrality

In D.C., Google reiterates support for Net neutrality regulation, but stays out of debate on reclassifying broadband to give FCC more authority.

Wozniak comes to defense of Apple engineers

It's safe to say that Steve Wozniak feels a kinship with Apple engineers. Last week, he spoke on behalf of two that have run afoul of Apple's security rules.

Visa targets online marketing 'scam'

Congress wanted credit card companies to do more to protect consumers from mysterious charges. Visa creates system to help ensure people know what they're buying.
•  Another Blippy credit card found in Google
•  Blippy responds to credit card leak

McAfee to compensate home users for bad update

Home users affected by McAfee's virus update fiasco last week may be entitled to compensation, according to the company. But no word yet on whether that also applies to business customers.

Israel lifts ban on iPad imports

Apple's tablet computer will be allowed in the country after a ban led to confiscation of the device at airports.
•  iPad users on Windows targeted with malware
•  iPad ban rumors nixed at Cornell, Princeton, GWU
•  How to get home movies onto the iPad

Greenpeace lauds Cisco on climate, chides Google

Cisco gets high marks for emissions reporting and smart grid push while Google, despite renewable energy efforts, gets pressure to disclose more.

Also of note
•  Sony delivers floppy disk's last rites
•  Ex-SF tech convicted of hijacking city network
•  Boy Scouts to get video game awards