Tag Archives: Company Legal & Law Matters

xAI’s trade secret lawsuit against OpenAI has been dismissed

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OpenAI has successfully convinced the court to dismiss the lawsuit filed by Elon Musk’s xAI, accusing the company of stealing its trade secrets. In her decision, US District Judge Rita F. Lin wrote that xAI’s complaint “does not point to any misconduct by OpenAI” and instead attributes all listed misconducts to its eight former employees who “ left for OpenAI at around the same time.”

Lin said that xAI accused two of its former employees of stealing its source code before leaving at a time when they were already speaking to an OpenAI recruiter. However, the company didn’t say if the recruiter told those former employees to do so. xAI’s lawsuit also accuses two other former employees of keeping their work chats on their devices even after leaving, another of refusing to provide certifications related to confidential information after his departure, and another of unsuccessfully trying to access xAI hiring and datacenter optimization information when he was already working for OpenAI.

“Notably absent are allegations about the conduct of OpenAI itself,” the judge noted. xAI didn’t include any information that directly accuses OpenAI of making those employees steal its trade secrets. It also didn’t include allegations that those former employees used any stolen trade secrets after they were already working for OpenAI. To be precise, OpenAI’s motion for dismissal was granted with leave to amend, so the lawsuit may not be completely over just yet. That means xAI can still file an amended complaint addressing what the judge wrote in her decision until March 17, 2026.

OpenAI and xAI have a longstanding feud, and this is just one of the several lawsuits between the two companies. In fact, Musk has an ongoing complaint against OpenAI and Microsoft, accusing the former of violating its nonprofit status. Musk, who was an early funder of OpenAI, is now asking the company for $79 billion to $134 billion in damages from “wrongful gains.”

This article originally appeared on Engadget at https://www.engadget.com/ai/xais-trade-secret-lawsuit-against-openai-has-been-dismissed-101912599.html?src=rss

West Virginia is suing Apple alleging negligence over CSAM materials

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The office of the Attorney General for West Virginia announced Thursday that it has filed a lawsuit against Apple alleging that the company had "knowingly" allowed its iCloud platform "to be used as a vehicle for distributing and storing child sexual abuse material." The state alleges this went on for years but drew no action from the tech giant "under the guise of user privacy."

In the lawsuit, the state repeatedly cites a text from Apple executive Eric Friedman, in which he calls iCloud "the greatest platform for distributing child porn" in a conversation with another Apple executive. These messages were first uncovered by The Verge in 2021 within discovery documents for the Epic Games v. Apple trial. In the conversation, Friedman says while some other platforms prioritize safety over privacy, Apple's priorities "are the inverse."

The state further alleges that detection technology to help root out and report CSAM exists, but that Apple chooses not to implement it. Apple indeed considered scanning iCloud Photos for CSAM in 2021, but abandoned these plans after pushback stemming from privacy concerns.

In 2024 Apple was sued by a group of over 2,500 victims of child sexual abuse, citing nearly identical claims and alleging that Apple's failure to implement these features led to the victims' harm as images of them circulated through the company's servers. At the time Apple told Engadget, “child sexual abuse material is abhorrent and we are committed to fighting the ways predators put children at risk. We are urgently and actively innovating to combat these crimes without compromising the security and privacy of all our users."

The case in West Virginia would mark the first time a governmental body is bringing such an action against the iPhone maker. The state says it is seeking injunctive relief that would compel Apple to implement effective CSAM detection measures as well as damages. We have reached out to Apple for comment on the suit and will update if we hear back.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/west-virginia-is-suing-apple-alleging-negligence-over-csam-materials-164647648.html?src=rss

Federal court rules that OpenAI must stop using the term ‘Cameo’

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Cameo, the platform where celebrities sell short, personalized videos, has scored a preliminary win in a trademark lawsuit against OpenAI. A California judge has ruled that the AI company's video generation tool Sora cannot use the term 'cameo' or any variation likely to cause confusion. A temporary restraining order in the case was originally granted in November of last year.

The suit was first brought in response to a feature available within the Sora app at launch called 'Cameo' that allowed users to add any likeness to videos they generated. Cameo claimed the use of the term in this setting was likely to cause confusion and could dilute their brand. OpenAI then carried on with the feature despite the suit.

U.S. District Judge Eumi Lee ruled on Saturday that Cameo's lawsuit was likely to succeed and granted a preliminary injunction, blocking OpenAI from continuing to use the name. An OpenAI spokesperson responded to the ruling saying, "We disagree with the complaint's assertion that anyone can claim exclusive ownership over the word ‘cameo,’ and we look forward to continuing to make our case," according to Reuters.

This is just the latest in a string of intellectual property cases against AI companies that have accelerated as video generation capabilities have improved across the board. Rights holders of all kinds from authors and music publishers to major movie studios have taken the likes of OpenAI, Anthropic, Perplexity and others to court, seeking to protect their IP.

This article originally appeared on Engadget at https://www.engadget.com/ai/federal-court-rules-that-openai-must-stop-using-the-term-cameo-124559072.html?src=rss

Europe probes Shein’s addictive app design and illegal product sales

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The European Commission (EC) has opened an investigation into low-cost fast fashion retailer Shein. EC officials are concerned about the sale of illegal products, including child sexual abuse material, as well as the potentially addictive design of its shopping experience. The Commission found fellow low-cost retailer Temu in violation of the Digital Services Act after a similar investigation last year.

The probe is being opened under the Digital Services Act, a set of EU rules governing online services. The Commission will examine how Shein drives engagement with shoppers, including using a points and rewards system, and whether the company is properly mitigating the risk of addiction via these and other features.

Algorithmic recommendation systems are another point of contention, and the Commission will ask Shein to disclose how it suggests products to users. It also says that the company must offer users a system that is not based on profiling.

The Singapore-based company has faced a great deal of scrutiny in past years on a number of fronts, including its labor practices, materials sourcing, data practices and IP infringement. Last year the Texas Attorney General opened a probe into the company's safety and labor practices amid allegations that Shein uses forced labor as well as toxic or hazardous materials.

Addictive design has been a recent priority for European regulators, with the Commission demanding that TikTok make changes to its platform after a similar probe concluded earlier this month. Algorithms have also been in focus, with the Commission recently launching a probe into how exactly X's recommendation algorithm works.

The regulatory body will now continue collecting evidence in the matter, and holds the authority within the EU to levy fines and demand changes should the platform wish to continue operations in the region.

This article originally appeared on Engadget at https://www.engadget.com/general/europe-probes-sheins-addictive-app-design-and-illegal-product-sales-125322191.html?src=rss

ByteDance promises to tighten up its new AI video generator after viral Cruise vs. Pitt clip

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ByteDance released Seedance 2.0 less than a week ago and enraged artists everywhere with a viral clip AI-generated clip of Tom Cruise and Brad Pitt fighting. Unsurprisingly, the AI video-making tool has reportedly already received multiple cease-and-desist letters around copyright infringement. Now, it appears ByteDance is going to curb the new media generator's use of prohibited content. 

In a statement to the BBC, ByteDance said, "We are taking steps to strengthen current safeguards as we work to prevent the unauthorised use of intellectual property and likeness by users." It added that the company "respects intellectual property rights and we have heard the concerns regarding Seedance 2.0." However, when pressed for more information on exactly how they would do this, ByteDance didn't respond. 

ByteDance's vague pledge follows a cease-and-desist letter from the Walt Disney Company on Friday. Disney claimed that Seedance 2.0 uses "a pirated library of Disney's copyrighted characters from Star Wars, Marvel, and other Disney franchises, as if Disney's coveted intellectual property were free public domain clip art." Disney included example videos that included its copyrighted characters, such as Spider-Man and Darth Vader. 

Paramount Skydance has also reportedly issued a cease-and-desist letter to ByteDance to stop Seedance 2.0 from using its materials, according to the BBC. 

This article originally appeared on Engadget at https://www.engadget.com/ai/bytedance-promises-to-tighten-up-its-new-ai-video-generator-after-viral-cruise-vs-pitt-clip-112941384.html?src=rss

Disney accuses ByteDance of ‘virtual smash-and-grab’ when using copyrighted works to train its AI

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Disney is going after another generative AI tool, accusing ByteDance and its recently released Seedance 2.0 of using its copyrighted material without permission. As first reported on by Axios, the Walt Disney Company sent a cease-and-desist letter to ByteDance, claiming the Chinese company developed its Seedance tool "with a pirated library of Disney's copyrighted characters from Star Wars, Marvel, and other Disney franchises, as if Disney's coveted intellectual property were free public domain clip art."

The letter, which was obtained by Axios, included examples of Seedance videos featuring copyrighted Disney characters, including Spider-Man, Darth Vader, Peter Griffin and more. Even though ByteDance just released Seedance 2.0 on Thursday, it's already earned praise, but also indignation from Hollywood studios, when it comes to its AI-generating capabilities.

With the strong early momentum, Seedance has already found itself in hot water with one of the largest media companies in the world. However, it's not the first time that Disney has threatened legal action against an AI company, since Character.AI received a cease-and-desist letter for the same offense in September. A few months later, Disney even accused Google of copyright infringement when training its AI models. On the other hand, Disney partnered with OpenAI in a three-year licensing agreement that allows the AI giant to generate images and videos using that highly sought-after intellectual property.

This article originally appeared on Engadget at https://www.engadget.com/ai/disney-accuses-bytedance-of-virtual-smash-and-grab-when-using-copyrighted-works-to-train-its-ai-191116136.html?src=rss

Homeland Security has reportedly sent out hundreds of subpoenas to identify ICE critics online

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The Department of Homeland Security (DHS) has reportedly been asking tech companies for information on accounts posting anti-ICE sentiments. According to The New York Times, DHS has sent hundreds of administrative subpoenas to Google, Reddit, Discord and Meta over the past few months. Homeland Security asked the companies for names, email addresses, telephone numbers and any other identifying detail for accounts that have criticized the US Immigration and Customs Enforcement agency or have reported the location of its agents. Google, Meta and Reddit have complied with some of the requests

Administrative subpoenas are different from warrants and are issued by the DHS. The Times says they were rarely used in the past and were mostly sent to companies for the investigation of serious crimes, such as child trafficking. Apparently, though, the government has ramped up its use in the past year. “It’s a whole other level of frequency and lack of accountability,” Steve Loney, a senior supervising attorney for ACLU, told the publication.

Companies can choose whether to comply with the authorities or not, and some of them give the subject of a subpoena up to 14 days to fight it in court. Google told The Times that its review process for government requests is “ designed to protect user privacy while meeting [its] legal obligations” and that it informs users when their accounts have been subpoenaed unless it has been legally ordered not to or in exceptional circumstances. “We review every legal demand and push back against those that are overbroad,” the company said.

Some of the accounts that were subpoenaed belong to users posting ICE activity in Montgomery County, Pennsylvania on Facebook and Instagram in English and Spanish. The DHS asked Meta for their names and details on September 11, and the users were notified about it on October 3. They were told that if Meta didn’t receive documentation that they were fighting the subpoena in court within 10 days, Meta will give Homeland Security the information it was asking for. The ACLU filed a motion for the users in court, arguing that the DHS is using administrative subpoenas as a tool to suppress speech of people it didn’t agree with.

In late January, Meta started blocking links to ICE List, a website that lists thousands of ICE and Border Patrol agents’ names. A few days ago, House Judiciary Committee member Jamie Raskin (D-MD) also asked Apple and Google to turn over all their communication with the US Department of Justice to investigate the removal of ICE-tracking apps from their respective app stores.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/homeland-security-has-reportedly-sent-out-hundreds-of-subpoenas-to-identify-ice-critics-online-135245457.html?src=rss

EU reportedly opens another probe into Google’s ads pricing

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The European Commission has opened a new probe into Google, this time focused on the company's massive online advertising business, Bloomberg reports. European Union regulators have already fined Google billions for violating the Digital Markets Act, and being found guilty of anticompetitive behavior in online advertising could add to that total.

While the Commission has yet to announce a formal investigation, Bloomberg writes that it has started contacting Google's customers and competitors for information about its dominance across multiple online advertising markets. Regulators are particularly concerned that Google could be "artificially increasing the clearing price" of ad auctions "to the detriment of advertisers." If the company is found to be violating the EU's competition rules, Google could be fined 10 percent of its global annual sales.

Google's approach to advertising to minors was reportedly already under investigation by the EU as of December 2024, and besides fines, regulators have ordered the company to open up Android to competing AI assistants and share search data with rivals. In the US, there's also precedent for finding Google's approach to online advertising anticompetitive.

A US federal judge found that Google is a monopolist in online advertising in April 2025, the conclusion of a legal battle that started with a Department of Justice lawsuit accusing the company of dominating the ad market and using its control to charge more and keep a larger portion of ad sales. The DOJ ultimately wants Google to sell its ad tech business, but a final decision hasn't been reached as to how the company's anticompetitive behavior should be remedied.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/eu-reportedly-opens-another-probe-into-googles-ads-pricing-194435095.html?src=rss

Uber ordered to pay $8.5 million to passenger who accused a driver of rape

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Uber must pay a passenger who accused one of its drivers of rape $8.5 million, a federal jury in Phoenix has ordered. The jury found Uber liable for its driver’s misconduct, determining that the driver was an agent of the company. Part of Uber’s defense was that it’s not responsible for what its drivers do, as they are independent contractors. This decision is for but one of the 3,000 similar cases against Uber that have been consolidated in federal court. It was a bellwether trial meant to determine the possible outcomes of the other cases, as well as the possible settlements. As The Guardian explains, the results for this case could be used as a precedent for all the other pending lawsuits if the verdict is upheld by the appeals court.

The case chosen for the bellwether trial was filed by Jaylynn Dean, who said she was raped by her Uber driver in 2023. Dean said she was intoxicated when she ordered an Uber to take her back home from her boyfriend’s apartment after celebrating passing a test for her flight attendant training. The driver allegedly stopped at a dark parking lot and raped her in the backseat.

Uber argued that the driver had no criminal history, had completed training and had excellent passenger feedback. The company’s camp also presented its safety measures, including the development of a machine-learning tool that can assess the risk of potential rides. But Dean’s lawyers showed evidence during the trial that she was tagged as high risk for a serious safety incident just before her ride arrived and that she wasn’t notified about it. They also presented documents suggesting that Uber resisted introducing in-car cameras, because it would slow down growth. “Women know it’s a dangerous world. We know about the risk of sexual assault,” Dean’s layer said in her closing arguments. “They made us believe that this was a place that was safe from that.“

Despite the jury holding Uber liable for the incident, it determined that the company wasn’t negligent when it comes to safety practices and its app’s safety systems were not faulty. “This verdict affirms that Uber acted responsibly and has invested meaningfully in rider safety,” an Uber spokesperson told The New York Times. He also said that Uber plans to appeal the jury’s decision. In addition to the 3,000 lawsuits consolidated in federal court, Uber is also facing 500 similar cases in California state court. Last year, a California jury found that the company was not liable for a sexual assault that the plaintiff alleged her driver had committed back in 2016.

This article originally appeared on Engadget at https://www.engadget.com/transportation/uber-ordered-to-pay-85-million-to-passenger-who-accused-a-driver-of-rape-141800931.html?src=rss

DOJ and states appeal Google monopoly ruling to push for harsher penalties against the company

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Google might have been officially ruled to have a monopoly, but we're still a long way from figuring out exactly what that determination will change at the tech company. Today, the US Department of Justice filed notice of a plan to cross-appeal the decision last fall that Google would not be required to sell off the its Chrome browser. The agency's Antitrust Division posted about the action on X. According to Bloomberg, a group of states is also joining the appeal filing. 

At the time of the 2025 ruling, the Justice Department had pushed for a Chrome sale to be part of the outcome. Judge Amit Mehta denied the request from the agency. "Plaintiffs overreached in seeking forced divesture of these key assets, which Google did not use to effect any illegal restraints," Mehta's decision stated. However, he did set other restrictions on Google's business activities, such as an end to exclusive deals for distributing some services and a requirement to share select search data with competitors.

Google has already filed its own appeal over this part of its ongoing antitrust battle. Of course, the tech giant is hoping to get off the hook with fewer penalties rather than the heavier ones the DOJ is seeking.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/doj-and-states-appeal-google-monopoly-ruling-to-push-for-harsher-penalties-against-the-company-235115249.html?src=rss