Tag Archives: Company Legal & Law Matters

Discord leaker Jack Teixeira gets 15-year sentence for sharing classified documents

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Massachusetts Air National Guard member Jack Teixeira received a 15-year sentence in federal prison for leaking classified military documents on Discord in a Boston federal court, according to The Washington Post.

Teixeira appeared before the court earlier today and asked the judge for leniency. He also issued a statement apologizing for “all of the harm that I’ve caused, to my friends, family and those overseas.”

Defense attorney Michael Bachrach also claimed that Teixeira was subjected to bullying in high school and his military unit as an adjudicating factor for his actions. Judge Indira Talwani didn’t buy the defense’s bullying claims stating that the Air Force has already disciplined 15 other members connected to Teixeira for not taking more actions “that might have stopped him from doing this.”

Teixeira shared classified military documents as far back as late 2022 on a Discord server dedicated to the pixelated sandbox game Minecraft. The leak included information about the Ukrainian and Russian troop movements and military equipment used in the war in Ukraine and Russia's attempts to obtain more weapons from Egypt and Turkey. The documents eventually found their way to other Discord servers as well as 4chan and Telegram.

FBI officials arrested Teixeira at his home in April of last year. Teixeira originally agreed to a plea deal with federal prosecutors in March that included a 16-year prison sentence for pleading guilty to six counts of willful retention and transmission of national defense information and violating the Espionage Act. If he stuck with his not guilty plea and received a guilty verdict, Teixeira faced a much steeper maximum prison term of 60 years.

This article originally appeared on Engadget at https://www.engadget.com/cybersecurity/discord-leaker-jack-teixeira-gets-15-year-sentence-for-sharing-classified-documents-231319586.html?src=rss

NetEase executives and workers were reportedly arrested amid a corruption investigation

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The ex-head of NetEase's esports division and NetEase Games' former general manager are said to have been arrested on money laundering and bribery charges. Alongside ex-executives Xiang Liang and Jin Yuchen, several other people who worked at the company were reportedly arrested over alleged corruption.

As noted by Game Developer, Chinese outlet Leifeng reported that the former employees in question allegedly laundered in the region of 800 million to 1 billion yuan ($111 million to $139 million). NetEase confirmed to Bloomberg Law only that police were investigating possible corruption. The company is said to have dismissed nine staff members for alleged bribery.

Several external individuals were also implicated, according to Yicai Global. The outlet noted that, per an internal memo, NetEase will refuse to do business with 27 companies that have been connected to the alleged fraud and corruption.

NetEase is behind the likes of Diablo Immortal and Naraka: Bladepoint (the latter of which averages more than 109,000 players on Steam at any given time). It has two free-to-play shooters on the way based on major franchises, namely Marvel Rivals and Destiny: Rising.

White collar crimes aren't quite a rarity in the games industry. Sonic the Hedgehog co-creator Yuji Naka was last year handed a suspended prison sentence and ordered to pay just over $1.1 million after admitting to insider trading.

This article originally appeared on Engadget at https://www.engadget.com/gaming/netease-executives-and-workers-were-reportedly-arrested-amid-a-corruption-investigation-180055502.html?src=rss

NetEase executives and workers were reportedly arrested amid a corruption investigation

Posted on by

The ex-head of NetEase's esports division and NetEase Games' former general manager are said to have been arrested on money laundering and bribery charges. Alongside ex-executives Xiang Liang and Jin Yuchen, several other people who worked at the company were reportedly arrested over alleged corruption.

As noted by Game Developer, Chinese outlet Leifeng reported that the former employees in question allegedly laundered in the region of 800 million to 1 billion yuan ($111 million to $139 million). NetEase confirmed to Bloomberg Law only that police were investigating possible corruption. The company is said to have dismissed nine staff members for alleged bribery.

Several external individuals were also implicated, according to Yicai Global. The outlet noted that, per an internal memo, NetEase will refuse to do business with 27 companies that have been connected to the alleged fraud and corruption.

NetEase is behind the likes of Diablo Immortal and Naraka: Bladepoint (the latter of which averages more than 109,000 players on Steam at any given time). It has two free-to-play shooters on the way based on major franchises, namely Marvel Rivals and Destiny: Rising.

White collar crimes aren't quite a rarity in the games industry. Sonic the Hedgehog co-creator Yuji Naka was last year handed a suspended prison sentence and ordered to pay just over $1.1 million after admitting to insider trading.

This article originally appeared on Engadget at https://www.engadget.com/gaming/netease-executives-and-workers-were-reportedly-arrested-amid-a-corruption-investigation-180055502.html?src=rss

Nintendo Palworld lawsuit seeks $65,700 in damages

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Nintendo and the Pokémon Company are seeking approximately $65,700 in compensation from their lawsuit against Palworld developer Pocketpair. In a press release the studio issued on Friday, it said Nintendo and the Pokémon Company want ¥5 million each (plus late fees), for a total of ¥10 million or $65,700 in damages.

At first glance, that's a paltry amount of money to demand for copying one of the most successful gaming properties ever, particularly when you consider Tropic Haze, the creator of the now defunct Yuzu Switch emulator, agreed to pay $2.4 million to settle its recent case with Nintendo. While Nintendo and the Pokémon Company may have well wanted to sue for more, their legal approach may have limited their options somewhat.

As you might recall, when the two sued Pocketpair in September, they didn’t accuse it of copyright infringement. Instead, they went for patent infringement. On Friday, Pocketpair listed the three patents Nintendo and the Pokémon Company are accusing the studio of infringing. Per Bloomberg, they relate to gameplay elements found in most Pokémon games. For example, one covers the franchise’s signature battling mechanics, while another relates to how players can ride monsters.

Pokémon games have featured those mechanics since the start, but here’s the thing: all three patents were filed and granted to Nintendo and the Pokémon Company after Pocketpair released Palworld to early access on January 19, 2024. The earliest patent, for instance, was granted to Nintendo and the Pokémon Company on May 22, 2024, or nearly four months after Palworld first hit Steam and Xbox Game Pass.

According to Pocketpair, the two companies seek “compensation for a portion of the damages incurred between the date of registration of the patents and the date of filing of this lawsuit.” Put another way, it's a small window of time the suit targets. 

I’m not a lawyer, so I won’t comment on Nintendo’s strategy of attempting to enforce patents that were issued after Palworld was already on the market. However, I think it’s worth mentioning that Pocketpair CEO Takuro Mizobe had said before the game's release that Palworld had “cleared legal reviews,” suggesting the studio had looked at Nintendo's patent portfolio for possible points of conflict. In any case, the Tokyo District Court is scheduled to hear opening remarks from each side next week.

This article originally appeared on Engadget at https://www.engadget.com/gaming/nintendo/nintendo-palworld-lawsuit-seeks-65700-in-damages-163051523.html?src=rss

Nintendo Palworld lawsuit seeks $65,700 in damages

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Nintendo and the Pokémon Company are seeking approximately $65,700 in compensation from their lawsuit against Palworld developer Pocketpair. In a press release the studio issued on Friday, it said Nintendo and the Pokémon Company want ¥5 million each (plus late fees), for a total of ¥10 million or $65,700 in damages.

At first glance, that's a paltry amount of money to demand for copying one of the most successful gaming properties ever, particularly when you consider Tropic Haze, the creator of the now defunct Yuzu Switch emulator, agreed to pay $2.4 million to settle its recent case with Nintendo. While Nintendo and the Pokémon Company may have well wanted to sue for more, their legal approach may have limited their options somewhat.

As you might recall, when the two sued Pocketpair in September, they didn’t accuse it of copyright infringement. Instead, they went for patent infringement. On Friday, Pocketpair listed the three patents Nintendo and the Pokémon Company are accusing the studio of infringing. Per Bloomberg, they relate to gameplay elements found in most Pokémon games. For example, one covers the franchise’s signature battling mechanics, while another relates to how players can ride monsters.

Pokémon games have featured those mechanics since the start, but here’s the thing: all three patents were filed and granted to Nintendo and the Pokémon Company after Pocketpair released Palworld to early access on January 19, 2024. The earliest patent, for instance, was granted to Nintendo and the Pokémon Company on May 22, 2024, or nearly four months after Palworld first hit Steam and Xbox Game Pass.

According to Pocketpair, the two companies seek “compensation for a portion of the damages incurred between the date of registration of the patents and the date of filing of this lawsuit.” Put another way, it's a small window of time the suit targets. 

I’m not a lawyer, so I won’t comment on Nintendo’s strategy of attempting to enforce patents that were issued after Palworld was already on the market. However, I think it’s worth mentioning that Pocketpair CEO Takuro Mizobe had said before the game's release that Palworld had “cleared legal reviews,” suggesting the studio had looked at Nintendo's patent portfolio for possible points of conflict. In any case, the Tokyo District Court is scheduled to hear opening remarks from each side next week.

This article originally appeared on Engadget at https://www.engadget.com/gaming/nintendo/nintendo-palworld-lawsuit-seeks-65700-in-damages-163051523.html?src=rss

Researcher’s ‘unfollow everything’ lawsuit against Meta gets dismissed

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A lawsuit from a researcher who tried to develop a browser extension for Facebook called “Unfollow Everything 2.0" has been dismissed for now, The New York Times reported. Ethan Zuckerman from the Knight First Amendment Institute at Columbia University attempted to use the Section 230 tech shield law in a novel way to force Meta to allow him to develop the tool that would wipe a Facebook user's feed clean. 

For background, Zuckerman was inspired by a 2021 project called "Unfollow Everything" that would have allowed people to use Facebook without the News Feed, or curate it to only show posts from specific people. However, Facebook sued the UK man who created that extension and permanently disabled his account. 

To avoid a similar fate, Zuckerman turned to Section 230 of the 1996 Communications Decency Act. While that's mostly designed as a shield to protect tech platforms from illegal user activity, there's a separate clause protecting developers of third-party tools "that allow people to... block content they consider objectionable." He asked the court to recognize that clause and allow him to create the Unfollow Everything 2.0 browser extension without repercussions from Meta.

However, the court granted Meta's filing to dismiss the lawsuit, adding that the researcher could file it at a later date. "We’re disappointed the court believes Professor Zuckerman needs to code the tool before the court resolves the case," Zuckerman's lawyer said. "We continue to believe that Section 230 protects user-empowering tools, and look forward to the court considering that argument at a later time." A Meta spokesperson said the lawsuit was "baseless." 

Meta has shut down researchers before, disabling the Facebook accounts of an NYU team trying to study political ad targeting in 2021. Conversely, in 2022 Meta helped itself to 48 million science papers to train an AI system called Galactica, which was shut down after just two days for spewing misinformation. 

This article originally appeared on Engadget at https://www.engadget.com/social-media/researchers-unfollow-everything-lawsuit-against-meta-gets-dismissed-133051131.html?src=rss

Researcher’s ‘unfollow everything’ lawsuit against Meta gets dismissed

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A lawsuit from a researcher who tried to develop a browser extension for Facebook called “Unfollow Everything 2.0" has been dismissed for now, The New York Times reported. Ethan Zuckerman from the Knight First Amendment Institute at Columbia University attempted to use the Section 230 tech shield law in a novel way to force Meta to allow him to develop the tool that would wipe a Facebook user's feed clean. 

For background, Zuckerman was inspired by a 2021 project called "Unfollow Everything" that would have allowed people to use Facebook without the News Feed, or curate it to only show posts from specific people. However, Facebook sued the UK man who created that extension and permanently disabled his account. 

To avoid a similar fate, Zuckerman turned to Section 230 of the 1996 Communications Decency Act. While that's mostly designed as a shield to protect tech platforms from illegal user activity, there's a separate clause protecting developers of third-party tools "that allow people to... block content they consider objectionable." He asked the court to recognize that clause and allow him to create the Unfollow Everything 2.0 browser extension without repercussions from Meta.

However, the court granted Meta's filing to dismiss the lawsuit, adding that the researcher could file it at a later date. "We’re disappointed the court believes Professor Zuckerman needs to code the tool before the court resolves the case," Zuckerman's lawyer said. "We continue to believe that Section 230 protects user-empowering tools, and look forward to the court considering that argument at a later time." A Meta spokesperson said the lawsuit was "baseless." 

Meta has shut down researchers before, disabling the Facebook accounts of an NYU team trying to study political ad targeting in 2021. Conversely, in 2022 Meta helped itself to 48 million science papers to train an AI system called Galactica, which was shut down after just two days for spewing misinformation. 

This article originally appeared on Engadget at https://www.engadget.com/social-media/researchers-unfollow-everything-lawsuit-against-meta-gets-dismissed-133051131.html?src=rss

OpenAI wins first round against Raw Story and AlterNet copyright case

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OpenAI is facing multiple lawsuits over its use of several publications' and books' content to train its large language models without explicit permission or proper compensation. A judge has just dismissed one of them. New York federal judge Colleen McMahon has dismissed the lawsuit filed by Raw Story and AlterNet, which accused the company of using their materials for AI training without consent. As VentureBeat notes, though, their complaint didn't argue that OpenAI infringed on their copyright like other publications' lawsuits do. Instead, it focused on the DMCA provision that protects "copyright management information."

The publications argued that OpenAI removed the author names, titles and other metadata identifying their copyright from the articles it used to train its LLMs. McMahon explained that the plaintiffs failed to show that they suffered "a cognizable injury" from those actions and that the harm they had cited was "not the type of harm that has been elevated" to warrant a lawsuit. The judge also said that "the likelihood that ChatGPT would output plagiarized content from one of [their] articles seems remote." She added that the plaintiffs are truly seeking redress for the use of their articles "to develop ChatGPT without compensation" and not for the removal of their copyright management information. 

Raw Story and AlterNet don't intend to back down, based on what their lawyer told Reuters. Matt Topic, their attorney, said they're "certain [they] can address the concerns the court identified through an amended complaint."

This article originally appeared on Engadget at https://www.engadget.com/ai/openai-wins-first-round-against-raw-story-and-alternet-copyright-case-130027681.html?src=rss

OpenAI wins first round against Raw Story and AlterNet copyright case

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OpenAI is facing multiple lawsuits over its use of several publications' and books' content to train its large language models without explicit permission or proper compensation. A judge has just dismissed one of them. New York federal judge Colleen McMahon has dismissed the lawsuit filed by Raw Story and AlterNet, which accused the company of using their materials for AI training without consent. As VentureBeat notes, though, their complaint didn't argue that OpenAI infringed on their copyright like other publications' lawsuits do. Instead, it focused on the DMCA provision that protects "copyright management information."

The publications argued that OpenAI removed the author names, titles and other metadata identifying their copyright from the articles it used to train its LLMs. McMahon explained that the plaintiffs failed to show that they suffered "a cognizable injury" from those actions and that the harm they had cited was "not the type of harm that has been elevated" to warrant a lawsuit. The judge also said that "the likelihood that ChatGPT would output plagiarized content from one of [their] articles seems remote." She added that the plaintiffs are truly seeking redress for the use of their articles "to develop ChatGPT without compensation" and not for the removal of their copyright management information. 

Raw Story and AlterNet don't intend to back down, based on what their lawyer told Reuters. Matt Topic, their attorney, said they're "certain [they] can address the concerns the court identified through an amended complaint."

This article originally appeared on Engadget at https://www.engadget.com/ai/openai-wins-first-round-against-raw-story-and-alternet-copyright-case-130027681.html?src=rss

The name YouTube Shorts isn’t a trademark infringement, UK court rules

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Be prepared, you might never read another article using the word "shorts" so many times again. Ready? A UK high court has ruled Google is free to use the word shorts (here we go!) for YouTube's platform Shorts. A British short films television channel called Shorts International, sued Google last year, arguing the name Shorts infringed on its existing trademark for the word, you guessed it, shorts. 

The court disagreed. "None of Google’s uses of signs including the word “shorts” gives rise to a likelihood of confusion as to origin," Judge Michael Tappin stated in his ruling. "While the similarities between Google’s signs and SIL’s trade marks will give rise to a link in the minds of the limited group of UK consumers amongst whom SIL’s trade marks have a reputation, Google’s uses of signs including the word “shorts” will not cause damage to the distinctive character or repute of SIL’s trade marks." 

YouTube Shorts launched in 2020 in response to the popularity of other short video platforms like TikTok. It reached over 1.5 billion monthly users two years later and can now show videos up to three minutes long — still pretty short (that's 12 short(s) for you).

This article originally appeared on Engadget at https://www.engadget.com/big-tech/the-name-youtube-shorts-isnt-a-trademark-infringement-uk-court-rules-150258393.html?src=rss