Yesterday, we reported that Apple had taken the unusual step of both suing and filing-to-dismiss its own lawsuit against the Fei Lam, the teenager who sold Steve Wozniak along with hundreds of others their own white iPhone 4 conversion kits.
That was weird enough. Even weirder? This is the first Fei Lam himself has heard about the case being settled.
In an interesting interview with Fast Company, Fei — who used contacts in China to launch his own business, WhiteiPhone4Now.com, and made as much as $8,000 a day before Apple’s lawyers C&Ded him — says that while he will be meeting with Apple’s laywers in NYC soon, he not only hasn’t settled… he can’t even afford a lawyer to defend himself with.
Q: When did you first find out about the lawsuit? Did Apple call or send a letter?
A: I came back from school today and saw your email. Lol.Q: So have your parents mostly been handling the case then?
A: I told Apple’s lawyer that I’m sick and to meet when I get better. That was last week. I’m been handling the whole thingQ: So you have not settled?
A: I think that will be decided in the meeting.>
It’s a bit hard to parse what to think of all this. On one hand, it seems pretty bogus for Apple to be sending a team of lawyers into a meeting with a teenage kid who can’t afford representation, but on the other hand, it looks like Apple’s not really interested in taking this very far. After all, they’ve already filed motion to dismiss. My guess is they are just trying to make a public wrist-slap of the whole thing, and otherwise, let Fei get on with his life. But should proceedings really have even gotten this far to begin with?
John Brownlee is a writer for Fast Company, and a contributing writer here at CoM. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.
56 responses to “Teen Who Sold Woz His White iPhone Can’t Afford A Laywer To Defend Himself From Apple”
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Come on apple, you’re a great company and you make good products, but to sue a kid who can’t even afford a lawyer? That’s a bit low you know.
He made $8000 a day selling the units…What happened to that money? I’m not defending what Apple is doing, I am just curious as to where the money went that he received for selling the products.
I don’t care that he is a teenage kid. He allegedly made upwards of $100,000 doing something he knew he shouldn’t. Now it’s time to deal with the consequences. Perhaps if he were a bit older, he may have weighed that in the beginning before pursuing this business venture. But really, where did that $100,000 go? What parent lets their child spend $100,000? Mine certainly would not have.
Haha. I’m sure he’ll find something else to sell.
“a kid who can’t even afford a lawyer”
According to the article, he was making as much as $8,000 a day not that long ago.
And they filed the lawsuit then filed for dismissal, which suggests to me that they don’t have a whole lot of interest in getting too much from him. I suspect that they had to file in order to maintain their trademark rights so that they would be able to pursue more serious offenders later on. Trademark rights in the U.S. are set up in a way that if you do not go after those who infringe on your rights, you lose your protection under the law.
Apple – and every other company – has a right to defend it’s products and intellectual property. The kid was wrong in what he did. The supplier of the product he was reselling was wrong (and should be pursued as well). Apple should definitely make a public show in this case – especially if it is NOT going to pursue this in court. A message is being sent AND mercy/leniency is being provided.
Why Apple to so load of pride?
I am really starting to hate Apple because they believe they got the pan by the handled but for
sure they are not.
And at he other hand why we are still buying their products when Apple does not support or US economy? That is Anti-American.
I will not be buying more Apple product that have been manufactured in China, nothing against China.
First clue your doing something illegal…Your making $8000 a day!
I would not worry about Apple now that they have filed a motion to dismiss!
But does the IRS know about this guy and all of the income he made? Did he mention the income on his tax filing? Did he even file? Where is the money dude?
IRS, where are you????
Since Woz bought one of these iPhones, he should pay for this kid’s defense. Honestly, WTF is up with Woz these days? If he was just a lowly Apple employee instead of a co-founder, he would get his ass canned over some of the dumb things he says in public. The least he could have done was not say who sold him the phone. Apple still would have went after this kid, but at least one of its co-founders wouldn’t have been complicit in committing the offense!
Meh. Screw the IRS! It’s ran by a tax cheat. They have no right to come after this kid unless they go after the Sec. of Treasury himself.
That’s a good point. He made a lot of money selling something that he didn’t have a right to profit from. Where is all the money?
So… making a lot of money in one day is illegal? What about business owners who close on a large deal? I know a lot of freelance web designers, and application developers who have made thousands of dollars in one day. How is that illegal?
Then, go buy products from a computer/electronics maker who doesn’t build their products in China. There aren’t many. I know of no computer makers who don’t make their products outside of the US. Foxconn builds computers for Sony, Dell, and others, in addition to Apple. Where else are you going to go? Also, imagine what the cost of a run of the mill PC would be if it was made in the US by unionized labor. Imagine the cost of a Mac made by unionized labor. Now, you understand why they’re made in China.
What exactly did this kid do that was illegal? Does Apple own their product forever, even after they’ve sold them, and get to tell you what you are allowed to do with them?
Too bad for Fei Lam, he lives in
US. Other people who did continue selling the conversion kits was not even
sued. Although Apple has all the right to take legal actions, it is good to
know that they have reached a settlement. Kids as smart as Fei Lam should be
guided for them to reach their maximum potentials.
If his parents were smart, they stuck it in a college savings account which you aren’t allowed to pull money out of it without heavy penalties.
You also can’t use the money which you earned to defend yourself, as you actually have to return it if/when you loose.
If you’re using the money you earned from illegal operations and then have to return ALL of it, then you’re deeper in the hole than when you started.
Kid hacks Microsoft, Microsoft hires him to train him to be better.
Kid makes a small conversion kit for Apple, Apple sues him to death.
Ya that makes good PR Apple… Keep up the good work destroying people that love you.
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There are bits of this that are bogus. This kid is what 16-17?? Unless he is emancipated then his parents legally have to be involved. They would have been served any papers.
And he is smart enough to figure out how to buy possibly stolen goods from another country but he can’t find a lawyer hungry enough to make a name for himself by taking on Apple pro bono?? Highly doubt that
It has nothing to do with the phone you bought. It’s the kits. They came from the factories in China and were likely taken without authorization to be sold to the kid and others. IE, stolen merchandise.
Not to mention that he was marketing using Apple, iphone etc all of which are trademarked terms and he didn’t have permission
Then you won’t be buying anything Apple (or pretty much any other computer company) for a while. In fact not only do they all manufacture in China, they are all pretty much at Foxconn
Yes. but at the same time he is a minor and nailing him to the wall in court only creates bad PR for Apple. So likely what they will do is sit down with him, explain the laws in question and point out that he essentially confessed that he did it. They will make him via his parents sign a deal that he has to turn off all proceeds (not profits but gross sales) to Apple and set up a schedule of payments. And if it is found that he lied about the amount the deal is void and he will be taken to court. Also he will have to sign that he will not resume selling or giving away the kits or any other unauthorized product or service for any Apple product ever again. Or the deal is off and he will be sued.
According to the kid. But ya know, kids lie. Like how when everyone was treating him like a hero he was talking $8k a day, over $130k etc. Now he’s all “they made that up, I haven’t made anywhere close to that”
According to many posts on here, being young gives you the right to get away with illegal profiting. Being a big business means you should never protect your products if the perpetrator is under a certain age? Being young somehow doesn’t make one responsible for your actions? I guess we could all scam as much money before a certain age and get away with it in their fanciful world. Business will not become nor remain successful if we follow the advice of certain individuals.
Doing $8k/day in sales is not the same as taking home $8k/day. Many salespeople do way more in sales and still make around the median income.
If they do find out somehow and audit his accounts he’ll be paying about 30k back to Uncle Sam if he was considered self-employed. (This is about what me and my wife have to pay each year back to the govt.)
Also even if he was selling $8k/day worth of product he had to be fronting the money to get that product. Wonder how much he paid per kit himself then turn around and resale for $280. I don’t think some random guy at a factory would take a risk for just some chump change from a kid. His parents had to of known about it, maybe even involved in it but are denying they knew anything and using his young age to try and get away free and clear.