Tag Archives: Company Legal & Law Matters

Twitter’s former CEO and other execs are suing Elon Musk and X for $128 million in unpaid severance

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A group of former Twitter executives, including former CEO Parag Agrawal, are suing Elon Musk and X over millions of dollars in unpaid severance benefits. The claims date back to the chaotic circumstances surrounding Musk’s takeover of the company in October 2022.

When Musk took control of the company, his first move was to fire Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde and general counsel Sean Edgett. According to the lawsuit, Musk had “special ire” for the group because of the role they played in the months-long court battle that forced Musk to follow through with the acquisition after he attempted to back out of the deal. According to the lawsuit, Agrawal is entitled to $57.4 million in severance benefits, Segal is entitled to $44.5 million, Gadde $20 million and Edgett $6.8 million, for a total of about $128 million.

The lawsuit cites Musk biographer Walter Isaacson’s account of the events, which explains that Musk rushed to close the Twitter deal a day early so he could fire the executives “for cause” just before their final stock options were set to vest. According to Isaacson, Musk bragged that the legal maneuver saved him about $200 million. 

“Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him,” the lawsuit states,“Because Musk decided he didn’t want to pay Plaintiffs’ severance benefits, he simply fired them without reason, then made up fake cause and appointed employees of his various companies to uphold his decision.”

X didn’t respond to a request for comment on the lawsuit. Of note, it’s not the first time former Twitter employees have sued the company for failing to pay severance benefits. A separate lawsuit claimed Twitter owed former workers more than $500 million in unpaid severance. Agrawal, Segal and Gadde also previously sued the company over unpaid legal bills as a result of shareholder lawsuits and other investigations that resulted from Musk’s takeover,

This article originally appeared on Engadget at https://www.engadget.com/twitters-former-ceo-and-other-execs-are-suing-elon-musk-and-x-for-128-million-in-unpaid-severance-231428042.html?src=rss

National Guardsman who leaked US defense secrets on Discord agrees to 16-year plea deal

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Jack Teixeira, the Massachusetts Air National Guardsman accused of leaking classified defense secrets on Discord, has pled guilty. The New York Times reports the 22-year-old withdrew his not-guilty plea on Monday, trading a guilty admission for up to around 16 years in prison. Had he gone to trial and lost, he could have faced up to 60 years.

In a Boston federal court, Teixeira pleaded guilty to six counts of “willful retention and transmission of national defense information” under the Espionage Act. Federal authorities arrested the airman at his mother’s house last April.

The Air National Guardsman is accused of sharing classified documents on a Minecraft-focused Discord server in late 2022. The posted files included volumes of information about the war in Ukraine (including details about military equipment and Russian and Ukrainian troop movements), as well as Russia’s attempts to stockpile more weapons from Egypt and Turkey. The content eventually landed on 4chan, Telegram and other Discord servers.

The leaked docs also contained a report about the hacking of an unnamed American company by “a foreign adversary” and details about a plot to assault US troops serving abroad. 

The government said it didn’t find evidence of deliberate espionage motives, nor did it accuse Teixeira of acting as a whistleblower in the mold of Edward Snowden. Instead, prosecutors concluded he wanted to gain status with his online friends. The New York Times reports that a senior federal law enforcement official, speaking anonymously to the paper, said the DOJ wouldn’t have agreed to the reduced sentencing if it had uncovered more malicious motives.

The judge presiding over the case, Indira Talwani, scheduled a hearing in September to finalize her endorsement of the deal. The sentencing guidelines range from 11 to more than 16 years in prison. His lawyer, Michael K. Bachrach, told reporters Teixeira’s immaturity played a pivotal role while promising he would push for the lowest sentence. “He is very much a kid,” the attorney reportedly said. “We will be able to establish why his youth played a substantial role.”

A NYT investigation of more than 9,500 of Teixeira’s messages, published last May, revealed an obsession with “weapons, mass shootings, shadowy conspiracy theories — and proving he was in the right, and in the know.”

This article originally appeared on Engadget at https://www.engadget.com/national-guardsman-who-leaked-us-defense-secrets-on-discord-agrees-to-16-year-plea-deal-215721722.html?src=rss

National Guardsman who leaked US defense secrets on Discord agrees to 16-year plea deal

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Jack Teixeira, the Massachusetts Air National Guardsman accused of leaking classified defense secrets on Discord, has pled guilty. The New York Times reports the 22-year-old withdrew his not-guilty plea on Monday, trading a guilty admission for up to around 16 years in prison. Had he gone to trial and lost, he could have faced up to 60 years.

In a Boston federal court, Teixeira pleaded guilty to six counts of “willful retention and transmission of national defense information” under the Espionage Act. Federal authorities arrested the airman at his mother’s house last April.

The Air National Guardsman is accused of sharing classified documents on a Minecraft-focused Discord server in late 2022. The posted files included volumes of information about the war in Ukraine (including details about military equipment and Russian and Ukrainian troop movements), as well as Russia’s attempts to stockpile more weapons from Egypt and Turkey. The content eventually landed on 4chan, Telegram and other Discord servers.

The leaked docs also contained a report about the hacking of an unnamed American company by “a foreign adversary” and details about a plot to assault US troops serving abroad. 

The government said it didn’t find evidence of deliberate espionage motives, nor did it accuse Teixeira of acting as a whistleblower in the mold of Edward Snowden. Instead, prosecutors concluded he wanted to gain status with his online friends. The New York Times reports that a senior federal law enforcement official, speaking anonymously to the paper, said the DOJ wouldn’t have agreed to the reduced sentencing if it had uncovered more malicious motives.

The judge presiding over the case, Indira Talwani, scheduled a hearing in September to finalize her endorsement of the deal. The sentencing guidelines range from 11 to more than 16 years in prison. His lawyer, Michael K. Bachrach, told reporters Teixeira’s immaturity played a pivotal role while promising he would push for the lowest sentence. “He is very much a kid,” the attorney reportedly said. “We will be able to establish why his youth played a substantial role.”

A NYT investigation of more than 9,500 of Teixeira’s messages, published last May, revealed an obsession with “weapons, mass shootings, shadowy conspiracy theories — and proving he was in the right, and in the know.”

This article originally appeared on Engadget at https://www.engadget.com/national-guardsman-who-leaked-us-defense-secrets-on-discord-agrees-to-16-year-plea-deal-215721722.html?src=rss

Makers of Switch emulator Yuzu quickly settle with Nintendo for $2.4 million

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Tropic Haze, the popular Yuzu Nintendo Switch emulator developer, appears to have agreed to settle Nintendo’s lawsuit against it. Less than a week after Nintendo filed the legal action, accusing the emulator’s creators of “piracy at a colossal scale,” a joint final judgment and permanent injunction filed Tuesday says Tropic Haze has agreed to pay the Mario maker $2.4 million, along with a long list of concessions.

Nintendo’s lawsuit claimed Tropic Haze violated the anti-circumvention and anti-trafficking provisions of the Digital Millennium Copyright Act (DMCA). “Without Yuzu’s decryption of Nintendo’s encryption, unauthorized copies of games could not be played on PCs or Android devices,” the company wrote in its complaint. It described Yuzu as “software primarily designed to circumvent technological measures.”

Yuzu launched in 2018 as free, open-source software for Windows, Linux and Android. It could run countless copyrighted Switch games — including console sellers like The Legend of Zelda: Breath of the Wild and Tears of the Kingdom, Super Mario Odyssey and Super Mario Wonder. Reddit threads comparing Switch emulators praised Yuzu’s performance compared to rivals like Ryujinx. Yuzu introduces various bugs across different titles, but it can typically handle games at higher resolutions than the Switch, often with better frame rates, so long as your hardware is powerful enough.

Screenshot from the Yuzu emulator website showing a still from Zelda: Breath of the Wild with a blueprint-style sketch of the Nintendo Switch framing it. Dark gray background.
A screenshot from Yuzu’s website, showing The Legend of Zelda: Breath of the Wild
Tropic Haze / Nintendo

As part of an Exhibit A attached to the proposed joint settlement, Tropic Haze agreed to a series of accommodations. In addition to paying Nintendo $2.4 million, it must permanently refrain from “engaging in activities related to offering, marketing, distributing, or trafficking in Yuzu emulator or any similar software that circumvents Nintendo’s technical protection measures.”

Tropic Haze must also delete all circumvention devices, tools and Nintendo cryptographic keys used in the emulator and turn over all circumvention devices and modified Nintendo hardware. It even has to surrender the emulator’s web domain (including any variants or successors) to Nintendo. (The website is still live now, perhaps waiting for the judgment’s final a-okay.) Not abiding by the settlement’s agreements could land Tropic Haze in contempt of court, including punitive, coercive and monetary actions.

Although piracy is the top motive for many emulator users, the software can double as crucial tools for video game preservation — making rapid legal surrenders like Tropic Haze’s potentially problematic. Without emulators, Nintendo and other copyright holders could make games obsolete for future generations as older hardware eventually becomes more difficult to find.

Nintendo’s legal team is, of course, no stranger to aggressively enforcing copyrighted material. In recent years, the company went after Switch piracy websites, sued ROM-sharing website RomUniverse for $2 million and helped send hacker Gary Bowser to prison. Although it was Valve’s doing, Nintendo’s reputation indirectly got the Dolphin Wii and GameCube emulator blocked from Steam. It’s safe to say the Mario maker doesn’t share preservationists’ views on the crucial historical role emulators can play.

Despite the settlement, it appears unlikely the open-source Yuzu will disappear entirely. The emulator is still available on GitHub, where its entire codebase can be found.

This article originally appeared on Engadget at https://www.engadget.com/makers-of-switch-emulator-yuzu-quickly-settle-with-nintendo-for-24-million-203204698.html?src=rss

Makers of Switch emulator Yuzu quickly settle with Nintendo for $2.4 million

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Tropic Haze, the popular Yuzu Nintendo Switch emulator developer, appears to have agreed to settle Nintendo’s lawsuit against it. Less than a week after Nintendo filed the legal action, accusing the emulator’s creators of “piracy at a colossal scale,” a joint final judgment and permanent injunction filed Tuesday says Tropic Haze has agreed to pay the Mario maker $2.4 million, along with a long list of concessions.

Nintendo’s lawsuit claimed Tropic Haze violated the anti-circumvention and anti-trafficking provisions of the Digital Millennium Copyright Act (DMCA). “Without Yuzu’s decryption of Nintendo’s encryption, unauthorized copies of games could not be played on PCs or Android devices,” the company wrote in its complaint. It described Yuzu as “software primarily designed to circumvent technological measures.”

Yuzu launched in 2018 as free, open-source software for Windows, Linux and Android. It could run countless copyrighted Switch games — including console sellers like The Legend of Zelda: Breath of the Wild and Tears of the Kingdom, Super Mario Odyssey and Super Mario Wonder. Reddit threads comparing Switch emulators praised Yuzu’s performance compared to rivals like Ryujinx. Yuzu introduces various bugs across different titles, but it can typically handle games at higher resolutions than the Switch, often with better frame rates, so long as your hardware is powerful enough.

Screenshot from the Yuzu emulator website showing a still from Zelda: Breath of the Wild with a blueprint-style sketch of the Nintendo Switch framing it. Dark gray background.
A screenshot from Yuzu’s website, showing The Legend of Zelda: Breath of the Wild
Tropic Haze / Nintendo

As part of an Exhibit A attached to the proposed joint settlement, Tropic Haze agreed to a series of accommodations. In addition to paying Nintendo $2.4 million, it must permanently refrain from “engaging in activities related to offering, marketing, distributing, or trafficking in Yuzu emulator or any similar software that circumvents Nintendo’s technical protection measures.”

Tropic Haze must also delete all circumvention devices, tools and Nintendo cryptographic keys used in the emulator and turn over all circumvention devices and modified Nintendo hardware. It even has to surrender the emulator’s web domain (including any variants or successors) to Nintendo. (The website is still live now, perhaps waiting for the judgment’s final a-okay.) Not abiding by the settlement’s agreements could land Tropic Haze in contempt of court, including punitive, coercive and monetary actions.

Although piracy is the top motive for many emulator users, the software can double as crucial tools for video game preservation — making rapid legal surrenders like Tropic Haze’s potentially problematic. Without emulators, Nintendo and other copyright holders could make games obsolete for future generations as older hardware eventually becomes more difficult to find.

Nintendo’s legal team is, of course, no stranger to aggressively enforcing copyrighted material. In recent years, the company went after Switch piracy websites, sued ROM-sharing website RomUniverse for $2 million and helped send hacker Gary Bowser to prison. Although it was Valve’s doing, Nintendo’s reputation indirectly got the Dolphin Wii and GameCube emulator blocked from Steam. It’s safe to say the Mario maker doesn’t share preservationists’ views on the crucial historical role emulators can play.

Despite the settlement, it appears unlikely the open-source Yuzu will disappear entirely. The emulator is still available on GitHub, where its entire codebase can be found.

This article originally appeared on Engadget at https://www.engadget.com/makers-of-switch-emulator-yuzu-quickly-settle-with-nintendo-for-24-million-203204698.html?src=rss

EU fines Apple nearly $2 billion for ‘blocking’ alternative music apps

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Following months of speculation, the European Commission has officially handed down its fine to Apple, and it's much higher than initially expected. Apple is on the hook to pay €1.8 billion ($1.95 billion) for restricting alternative music streaming apps on the App Store — the EU's first fine for Apple and its third-largest ever announced. It follows an investigation initially opened in 2020 following Spotify's filed complaint alleging Apple took steps to suppress the music service due to competition with iTunes and Apple Music. 

The Commission has announced "that Apple bans music streaming app developers from fully informing iOS users about alternative and cheaper music subscription services available outside of the app and from providing any instructions about how to subscribe to such offers." The practice, known as anti-steering, is illegal under EU antitrust laws. 

The investigation found that Apple banned app developers from telling users the price of any subscriptions on the internet or the difference in price between in-app and outside purchases. The company also prevented developers from including information about or links to alternative subscription purchasing pages on their websites or in emails. Apple has engaged in these practices for nearly 10 years and might have caused iOS users to pay more for music streaming subscriptions than necessary due to the fees it imposes (that developers then factor into their prices). The Commission found Apple's actions also "led to non-monetary harm," creating a more frustrating user experience. 

The news follows February rumors that Apple would be hit with a fine of €500 million ($542.6 million) due to its antitrust App Store policies — less than a third of the final number. The European Commission claims it set the fine at €1.8 billion to be "sufficiently deterrent" to prevent Apple repeating its actions. However, Apple plans to appeal the decision. 

This article originally appeared on Engadget at https://www.engadget.com/eu-fines-apple-nearly-2-billion-for-blocking-alternative-music-apps-134001372.html?src=rss

EU fines Apple nearly $2 billion for ‘blocking’ alternative music apps

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Following months of speculation, the European Commission has officially handed down its fine to Apple, and it's much higher than initially expected. Apple is on the hook to pay €1.8 billion ($1.95 billion) for restricting alternative music streaming apps on the App Store — the EU's first fine for Apple and its third-largest ever announced. It follows an investigation initially opened in 2020 following Spotify's filed complaint alleging Apple took steps to suppress the music service due to competition with iTunes and Apple Music. 

The Commission has announced "that Apple bans music streaming app developers from fully informing iOS users about alternative and cheaper music subscription services available outside of the app and from providing any instructions about how to subscribe to such offers." The practice, known as anti-steering, is illegal under EU antitrust laws. 

The investigation found that Apple banned app developers from telling users the price of any subscriptions on the internet or the difference in price between in-app and outside purchases. The company also prevented developers from including information about or links to alternative subscription purchasing pages on their websites or in emails. Apple has engaged in these practices for nearly 10 years and might have caused iOS users to pay more for music streaming subscriptions than necessary due to the fees it imposes (that developers then factor into their prices). The Commission found Apple's actions also "led to non-monetary harm," creating a more frustrating user experience. 

The news follows February rumors that Apple would be hit with a fine of €500 million ($542.6 million) due to its antitrust App Store policies — less than a third of the final number. The European Commission claims it set the fine at €1.8 billion to be "sufficiently deterrent" to prevent Apple repeating its actions. However, Apple plans to appeal the decision. 

This article originally appeared on Engadget at https://www.engadget.com/eu-fines-apple-nearly-2-billion-for-blocking-alternative-music-apps-134001372.html?src=rss

More news organizations sue OpenAI and Microsoft over copyright infringement

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Legal claims are starting to pile up against Microsoft and OpenAI, as three more news sites have sued the firms over copyright infringement, The Verge reported. The Intercept, Raw Story and AlterNet filed separate lawsuits accusing ChatGPT of reproducing news content "verbatim or nearly verbatim" while stripping out important attribution like the author's name.

The sites, all represented by the same law firm, said that if ChatGPT trained on copyright material, it "would have learned to communicate that information when providing responses." Raw Story and AlterNet added that OpenAI and Microsoft must have known that the chatbot would be less popular and generate lower revenue if "users believed that ChatGPT responses violated third-party copyrights." 

The news organizations note in the lawsuit that OpenAI offers an opt-out system for website owners, meaning that the company must be aware of potential copyright infringement. Microsoft and OpenAI have also said that they'll defend customers against legal claims around copyright infringement that might arise from using their products, and even pay for incurred costs.

Late last year, The New York Times sued OpenAI and Microsoft for copyright infringement, saying it "seeks to hold them responsible for the billions of dollars in statutory and actual damages". OpenAI asked a court to dismiss that claim, saying the NYT took advantage of a ChatGPT bug that made it recite articles word for word.

The companies also face lawsuits from multiple non-fiction authors accusing them of "massive and deliberate theft of copyrighted works," and by comedian Sarah Silverman over similar claims. 

This article originally appeared on Engadget at https://www.engadget.com/more-news-organizations-sue-openai-and-microsoft-over-copyright-infringement-061103178.html?src=rss

More news organizations sue OpenAI and Microsoft over copyright infringement

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Legal claims are starting to pile up against Microsoft and OpenAI, as three more news sites have sued the firms over copyright infringement, The Verge reported. The Intercept, Raw Story and AlterNet filed separate lawsuits accusing ChatGPT of reproducing news content "verbatim or nearly verbatim" while stripping out important attribution like the author's name.

The sites, all represented by the same law firm, said that if ChatGPT trained on copyright material, it "would have learned to communicate that information when providing responses." Raw Story and AlterNet added that OpenAI and Microsoft must have known that the chatbot would be less popular and generate lower revenue if "users believed that ChatGPT responses violated third-party copyrights." 

The news organizations note in the lawsuit that OpenAI offers an opt-out system for website owners, meaning that the company must be aware of potential copyright infringement. Microsoft and OpenAI have also said that they'll defend customers against legal claims around copyright infringement that might arise from using their products, and even pay for incurred costs.

Late last year, The New York Times sued OpenAI and Microsoft for copyright infringement, saying it "seeks to hold them responsible for the billions of dollars in statutory and actual damages". OpenAI asked a court to dismiss that claim, saying the NYT took advantage of a ChatGPT bug that made it recite articles word for word.

The companies also face lawsuits from multiple non-fiction authors accusing them of "massive and deliberate theft of copyrighted works," and by comedian Sarah Silverman over similar claims. 

This article originally appeared on Engadget at https://www.engadget.com/more-news-organizations-sue-openai-and-microsoft-over-copyright-infringement-061103178.html?src=rss

Nintendo lawsuit accuses Switch emulator creators of ‘piracy at a colossal scale’

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Nintendo has filed a lawsuit against the creators of a popular Switch emulator called Yuzu, which gives users a way to play games developed for the platform on their PCs and Android devices. In the lawsuit shared by Game File's Stephen Totilo, the company argued that Yuzu violates the anti-circumvention and anti-trafficking provisions of the Digital Millennium Copyright Act (DMCA). 

Nintendo explained that it protects its games with encryption and other security features meant to prevent people from playing pirated copies. Yuzu has the capability to defeat those security measures and to decrypt Nintendo games. "[W]ithout Yuzu's decryption of Nintendo's encryption, unauthorized copies of games could not be played on PCs or Android devices," the company wrote in its complaint. 

It's illegal to "circumvent technological measures put into place by copyright owners to protect against unlawful access to and copying of copyrighted works" under the DMCA, Nintendo continued. And distributing "software primarily designed to circumvent technological measures" also constitutes unlawful trafficking. The defendants are, thus, "facilitating piracy at a colossal scale," the lawsuit argued. This case could set a precedent for future lawsuits against emulators, which aren't illegal in and of them themselves. As Ars Technica notes, Nintendo's arguments are calling their very nature unlawful. 

To illustrate how much Yuzu has affected its business, Nintendo revealed in its complaint that The Legend of Zelda: Tears of the Kingdom was illegally distributed a week and a half before its official release. It was apparently downloaded over a million times from pirated websites, which specifically noted that people can play the game file through Yuzu. The company also mentioned that Yuzu's creators are making money from their emulator. They're getting around $30,000 a month from their Patreon supporters and have earned around $50,000 from the paid version of their software on Google Play, so far. 

Nintendo is asking the court to stop Yuzu's creators from promoting and distributing the software. It's also asking for an unspecified amount in "equitable relief and damages."

This article originally appeared on Engadget at https://www.engadget.com/nintendo-lawsuit-accuses-switch-emulator-creators-of-piracy-at-a-colossal-scale-093157736.html?src=rss