Gizmodo won't be charged in iPhone 4 prototype case

Bloggers with Gizmodo will escape prosecution surrounding the receipt of an iPhone 4 prototype last year, which the site paid for and ultimately reported on. Two other individuals will be charged however, as they allegedly were behind the sale of the device to the blog.

Brian Hogan, 22, of Redwood City, Calif. and Sage Wallower, 28, of Emeryville, Calif. both face one count of the misappropriation of lost property, with Wallower also charged with possession of stolen property. Their arraignment has been set for August 25 according to a statement from San Mateo County District Attorney Stephen Wagstaffe.

If convicted, the two could face up to one year in prison.

The prototyped iPhone 4 was mistakenly left by Apple engineer Gray Powell in a Redwood city bar last March. The device was then allegedly sold by Hogan and Wallower to Gizmodo for $5,000.

Apple did not respond to requests for comment, however Gizmodo said it was pleased by Wagstaffe's decision. "While we have always believed that we were acting fully within the law, it has inevitably been stressful for the editor concerned, Jason Chen, and we are glad that we can finally put this matter behind us," Gawker Media said in a published statement.

Neither man's lawyers were available for comment as of press time.