Cook to Apple shareholders: Fighting the feds 'doesn't scare us' - CNET

Apple's legal battle against the US is its biggest since former CEO Steve Jobs accused Microsoft of copying the Mac's graphical user interface in 1988. Cook says modifying iOS in a way that allows the FBI to access the phone's data would create a backdoor into to all iPhones. More important, Apple argues the order gives the govement "a dangerous power" over tech companies.

The FBI, led by Director James Comey, says its goal is to protect national security and argues the govement's request is limited to that single iPhone.

As usual, Apple didn't provide a video or audio stream of its annual meeting or a transcript of the event. Reporters aren't allowed in the auditorium with Apple's shareholders and executives, and are required to watch remotely via video in a separate room.

Apple's executives like the heads of retail and software, Angela Ahrendts and Craig Federighi, watched from the front rows. Board members such as former US Vice President Al Gore and Walt Disney CEO Bob Iger were also in attendance.

Each of Apple's eight board members was reelected with at least 93 percent of votes in favor. Apple investors also sided with the board of directors and voted against four shareholder proposals. Those proposals included a call for the company to reach a net-zero goal for greenhouse gas emissions by 2030, a push to increase the diversity of Apple's senior management team, and efforts to produce a report outlining how its does business in regions with human rights violations.

Cook also reiterated the company's recent tally of 11 million paying subscribers for its Apple Music service, and said the company has so far purchased 19 companies in the past five quarters.

Apple's shares have fallen nearly seven percent so far this year, though they've risen slightly since the company's fight with the govement became public. The shares closed at $96.76 on Thursday.

Showdown with the US Govement

Apple's decision to challenge the FBI's request and a February 16 court order has received mixed reactions. The top-ranking members of the Senate intelligence committee, Dianne Feinstein (Democrat from Califoia) and Richard Burr (Republican from North Carolina) chastised the company for fighting the FBI, which is relying on the 227-year-old All Writs Act to compel Apple to modify its technology.

And while Apple faced off against rival Microsoft in the user interface case, the two tech titans are now on the same side. Microsoft's Chief Legal Officer Brad Smith said at a congressional hearing Thursday that the world's biggest software maker "wholeheartedly" backs Cook in his fight over a February 16 court order requiring Apple to bypass the iPhone's security features. Microsoft will file an amicus brief next week, detailing its support.

Facebook, Twitter and Google also said they'll file an amicus brief backing Apple as well, as will the Electronic Frontier Foundation, a technology advocacy group.