Apple's hopes that its own internal investigation into the working practices of the Chinese companies who manufacture their iPods would bring to an end allegations of sweat shop operations might not be fulfilled as a libel suit in China rumbles on.
The firm accused of running iPod sweat shops, Hon Hai Precision Company, is suing journalists from the China Business News after they printed similar allegations to those made in the UK press (one of which led to the Apple investigation). The Hon Hai lawsuit originally sought $3.77 million in damages - a phenomenal amount by Chinese standards - the claimants also requested the defendants' assets be frozen. But after China Business News confirmed they would stand by their journalists, and with some in the West accusing Hon Hai of being anti-freedom of speech, and with Apple getting nervous about the further bad press any court case would create, the tech firm has now dropped its claim to a symbolic one yaun, and has also given permission for the defendants' assets to be unfrozen.
Whether a quiet deal can now be reached in which China Business News retracts its allegations, or whether Hon Hai will have to risk the PR damage of going through with its action, remains to be seen. Though Apple has confirmed to the Associated Press that it is "working behind the scenes to help resolve this issue".