San Mateo, Calif. – Prosecutors have withdrawn a search
warrant on the Gizmodo reporter whose computers were seized in connection with
an investigation into a prototype iPhone 4 that was found in a Silicon Valley
bar, after the reporter agreed to provide materials sought by investigators.
Reporter Jason Chen, who is employed by Gizmodo parent Gawker Media, reportedly
paid $5,000 to a man who found a purportedly lost iPhone 4 prototype, and
published photos and details of the device online.

Apple (NASD:  AAPL) reported the device
stolen, and police launched an investigation into the matter that resulted in
the seizure of Chen’s computer equipment.

Gawker objected to the seizure,
saying it violated state and federal privacy laws regarding journalists.

deal struck between prosecutors and Chen’s attorney for return of Chen’s seized
equipment was approved by the court on Friday.

Police are still reportedly
investigating the possible theft of the iPhone prototype.


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(DMW previous coverage)