Apple demands Gizmodo return leaked iPhone prototype

An Apple engineer lost his iPhone at a bar, but this was not just any phone. It was the 4G version to be released later this year.

The new prototype made it to the hands of a Gizmodo Tech blogger, and now Apple wants it back.

Gizmodo is reporting they paid $5,000 for the iPhone after Gray Powell, a North Carolina State University graduate, lost it.

Powell had been celebrating his birthday March 18th when he left the prototype at Gourmet Haus Staudt, a German beer garden in San Francisco, Gizmodo is reporting.

Apple general counsel Bruce Sewell sent a letter to Brian Lam, editorial director for Gizmodo's corporate parent, Gawker Media.

Lam told The New York Times Gizmodo was going to comply with Apple's request.

According to PCWorld the Apple iPhone 4G is expected to be released as early as May.

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