Tag Archives: Company Legal & Law Matters

Microsoft accuses the New York Times of doom-mongering in OpenAI lawsuit

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Microsoft has filed a motion seeking to dismiss key parts of a lawsuit The New York Times filed against the company and Open AI, accusing them of copyright infringement. If you'll recall, The Times sued both companies for using its published articles to train their GPT large language models (LLMs) without permission and compensation. In its filing, the company has accused The Times of pushing "doomsday futurology" by claiming that AI technologies pose a threat to independent journalism. It follows OpenAI's court filing from late February that's also seeking to dismiss some important elements on the case. 

Like OpenAI before it, Microsoft accused The Times of crafting "unrealistic prompts" in an effort to "coax the GPT-based tools" to spit out responses matching its content. It also compared the media organization's lawsuit to Hollywood studios' efforts to " stop a groundbreaking new technology:" The VCR. Instead of destroying Hollywood, Microsoft explained, the VCR helped the entertainment industry flourish by opening up revenue streams. LLMs are a breakthrough in artificial intelligence, it continued, and Microsoft collaborated with OpenAI to "help bring their extraordinary power to the public" because it "firmly believes in LLMs' capacity to improve the way people live and work."

The company is asking the court to dismiss three claims, including one saying it's liable for end-user copyright infringement through the use of GPT-based tools and another that says it violates the Digital Millennium Copyright Act. Microsoft also wants the court to dismiss the element of the case wherein The Times accused it of misappropriating time-sensitive breaking news and consumer purchasing recommendations. As an example, The Times argued in its lawsuit that it will lose revenue if users ask ChatGPT to research articles on Wirecutter, which the news company owns, because potential buyers will no longer click on its referral links. But that's "mere speculation about what The Times apparently fears might happen," and it didn't give a single real-world example in its complaint, Microsoft said.

"Microsoft doesn't dispute that it worked with OpenAI to copy millions of The Times's works without its permission to build its tools," Ian Crosby, lead counsel for The Times, told the publication." Instead, it oddly compares L.L.M.s to the VCR even though VCR makers never argued that it was necessary to engage in massive copyright infringement to build their products."

OpenAI and Microsoft are facing more lawsuits related to the content used to train the former's LLMs other than this particular one. Nonfiction writers and fiction authors, including Michael Chabon, George R.R. Martin, John Grisham and Jodi Picoult, accused the companies of stealing their work for AI training. More recently, The Intercept, Raw Story and AlterNet filed separate lawsuits against the company, because ChatGPT allegedly reproduces their content "verbatim or nearly verbatim" while removing proper attribution. 

This article originally appeared on Engadget at https://www.engadget.com/microsoft-accuses-the-new-york-times-of-doom-mongering-in-openai-lawsuit-133025748.html?src=rss

Microsoft accuses the New York Times of doom-mongering in OpenAI lawsuit

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Microsoft has filed a motion seeking to dismiss key parts of a lawsuit The New York Times filed against the company and Open AI, accusing them of copyright infringement. If you'll recall, The Times sued both companies for using its published articles to train their GPT large language models (LLMs) without permission and compensation. In its filing, the company has accused The Times of pushing "doomsday futurology" by claiming that AI technologies pose a threat to independent journalism. It follows OpenAI's court filing from late February that's also seeking to dismiss some important elements on the case. 

Like OpenAI before it, Microsoft accused The Times of crafting "unrealistic prompts" in an effort to "coax the GPT-based tools" to spit out responses matching its content. It also compared the media organization's lawsuit to Hollywood studios' efforts to " stop a groundbreaking new technology:" The VCR. Instead of destroying Hollywood, Microsoft explained, the VCR helped the entertainment industry flourish by opening up revenue streams. LLMs are a breakthrough in artificial intelligence, it continued, and Microsoft collaborated with OpenAI to "help bring their extraordinary power to the public" because it "firmly believes in LLMs' capacity to improve the way people live and work."

The company is asking the court to dismiss three claims, including one saying it's liable for end-user copyright infringement through the use of GPT-based tools and another that says it violates the Digital Millennium Copyright Act. Microsoft also wants the court to dismiss the element of the case wherein The Times accused it of misappropriating time-sensitive breaking news and consumer purchasing recommendations. As an example, The Times argued in its lawsuit that it will lose revenue if users ask ChatGPT to research articles on Wirecutter, which the news company owns, because potential buyers will no longer click on its referral links. But that's "mere speculation about what The Times apparently fears might happen," and it didn't give a single real-world example in its complaint, Microsoft said.

"Microsoft doesn't dispute that it worked with OpenAI to copy millions of The Times's works without its permission to build its tools," Ian Crosby, lead counsel for The Times, told the publication." Instead, it oddly compares L.L.M.s to the VCR even though VCR makers never argued that it was necessary to engage in massive copyright infringement to build their products."

OpenAI and Microsoft are facing more lawsuits related to the content used to train the former's LLMs other than this particular one. Nonfiction writers and fiction authors, including Michael Chabon, George R.R. Martin, John Grisham and Jodi Picoult, accused the companies of stealing their work for AI training. More recently, The Intercept, Raw Story and AlterNet filed separate lawsuits against the company, because ChatGPT allegedly reproduces their content "verbatim or nearly verbatim" while removing proper attribution. 

This article originally appeared on Engadget at https://www.engadget.com/microsoft-accuses-the-new-york-times-of-doom-mongering-in-openai-lawsuit-133025748.html?src=rss

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

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

Posted on by

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

Posted on by

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