Does everyone remember the high school kid from New York named Fei Lam that was selling white iPhone 4 conversion kits online? Apple co-founder Steve Wozniak was actually one of his customers. Details surrounding how he actually got his hands on the parts are shady at best. The teen said he kind of knew someone who knew someone at Foxconn, and he ordered the parts through that connection.
The kit basically consisted of a few cell phone accessories like replacement backs and a few screws, and instructions on how to swap out the parts.
Well, Apple got wind of it after a short while, and hired a private investigator to intimidate the kid into shutting down his website, claiming he was trafficking stolen property.
The kid decided he wasn't going to be intimidated and kept the website, pocketing a boatload of cash. Most assumed that was that and life moved on. But Apple decided that the kid made a little too much cash selling what they deemed to be unlicensed iPhone parts and recently filed a lawsuit against him demanding an injunction against him selling any more conversion kits.
The lawsuit has already been settled out of court, but a few details have been revealed. Anyone who visited the website knows that Lam was selling the kits for about $300. Apparently he sold enough kits to pocket $130,000.
The lawsuit also named Lam's parents, saying they willfully encouraged him to set up the website and profit from deceptive advertising. Most likely, they were named on the suit because Lam was a minor when he set up the website.
With the suit settled out of court, the saga is most likely over and done with. We'll probably never know what the final terms are, but after legal fees and the terms of the suit it seems unlikely that the Lams kept too much of the $130 grand.
Posted by David Yi, Social Media and SEO Assistant at Wireless Emporium