Although terms of the settlement are confidential, Ciarelli said he did not have to cough up his sources for the stories that prompted the lawsuit, as Apple wanted.
Growing up in upstate New York, Ciarelli worked on Think Secret under the pseudonym NickdePlume before and after school -- and even during cross-country family trips. His first big scoop came in 2001 when he reported that Apple would unveil a music player -- several weeks before the iPod was first shown to the world.
Apple regularly sent him letters asking that he stop publishing rumors. But it didn't sue him until January 2005, shortly after Think Secret reported that Apple planned to introduce a $499 Mac Mini computer and the iLife '05 software suite at the then-upcoming Macworld.
He was unmasked shortly thereafter by a story in the Harvard Crimson, the university's student newspaper of which Ciarelli is now an executive editor.
Apple also challenged two other sites, AppleInsider and O'Grady's PowerPage, seeking to force them to disclose their sources. But it lost; a state appellate court ruled that the 1st Amendment made no distinction between online and traditional journalists, giving the next-generation reporters protection under California's shield law that provides legal protection for confidential sources.
Lawyers for the Electronic Frontier Foundation successfully countersued Apple for the bloggers' legal fees.
But the Think Secret case dragged on uneventfully for more than three years. Ciarelli kept reporting rumors, and Apple kept sending him "cease and desist" letters, said his lawyer, Terry Gross.
"Apple was acting like a bully," Gross said. "Apple knew it didn't have a case."
Kurt Opsahl, a senior staff attorney with the foundation who advised Ciarelli, said Apple faced losing the case and had to find a way to delicately extract itself.
"I hope Apple learns a lesson from this -- it's not wise to sue the fans, and if you do they'll fight back," Opsahl said.
Apple spokesman Steve Dowling declined to comment other than to say the company was pleased.
Brian Lam, editor of Gizmodo, a technology blog, said Apple appeared to be letting up after years of fighting rumors and refusing to acknowledge publications that printed them. The media landscape has changed, blogs have gained credibility and mainstream outlets publish more rumors, he said.
Ciarelli isn't sure what he will do next -- maybe start a business or pursue journalism.
"I didn't enjoy being sued by Apple," Ciarelli said. "But I've always been an enthusiastic fan of Apple products. I still am."
michelle.quinn@latimes.com
