Police in San Francisco said a mugger was arrested after stealing an iPhone while it was being used to demonstrate new GPS tracking software.

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David Kahn, chief executive officer of Covia Labs, said he gave his iPhone to an intern to walk around the block while he was demonstrating the real-time GPS tracking software Monday to potential clients at K/F Communications, the San Jose Mercury News reported Thursday.

"We kind of noticed while that was happening, boy, she was really starting to move pretty fast and she wasn't heading back toward the place," he said. "Moments later she comes bursting into the office and said she'd just been mugged."

Kahn said he used the software to track the thief's movements while the intern called 911.

"It was pretty exciting to realize what was going on and wondering if he had noticed," Kahn said. "Obviously if he had turned off the phone, that would have been it."

Police said they recovered the phone and arrested Horatio Toure, 31, on suspicion of grand theft and possession of stolen property about 9 minutes after the incident.