Criminal Charges in the Case of the Lost iPhone?

According to the New York Times, authorities in San Mateo County in California are considering whether to file criminal charges against the person who sold the prototype iPhone to Gizmodo.com, and possibly against Gizmodo as well.

The San Mateo district attorney could act by early next week, according to people involved in the investigation. The office has the option of filing felony charges.

According to California law, if property doesn’t exceed $950, a case will be classified as a misdemeanor, but since the technology blog Gizmodo paid $5,000 for the device, a felony charge would be possible...

...According to people familiar with the investigation, who would not speak on the record because of the potential legal case, charges would most likely be filed against the person or people who sold the prototype iPhone and possibly the buyer.

John Gruber of Daring Fireball has a lengthy analysis of how the authorities might have grounds for a criminal case.