12:15 PM -- Police have raided the home of Gizmodo editor Jason Chen after the site paid $5,000 for, and wrote about, a prototype of a lost or stolen (depending on whom you ask) next-gen iPhone.

During the raid on Friday, California's Rapid Enforcement Allied Computer Team (REACT, geddit?), who, according to Chen, broke down his front door because he was out to dinner with his wife at the time they arrived, confiscated four computers and two servers.

Gizmodo returned the iPhone in question to Apple last week, but the office of San Mateo County district attorney Stephen Wagstaffe is still considering criminal charges. According to Wagstaffe, Apple prompted the investigation when it contacted authorities and "advised us there had been a theft."

Gizmodo parent Gawker Media is claiming the search and seizure was illegal since it confiscated property of a journalist, which is protected under the California Shield Law. Depending on how things proceed, these events could have a huge impact on the future of media and whether or not bloggers are treated as journalists under the law.

According to TechCrunch, Wagstaffe is now reevaluating "whether those shield laws do apply, and will not begin going through Chen’s possessions until they’ve reached a decision in the next few days."

— Erin Barker, Digital Content Reporter, Light Reading Cable