Tag Archives: Company Legal & Law Matters

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

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

Amazon accused of using AI to ‘replicate the voices’ of actors in Road House remake

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Amazon is being sued by the writer of the original 1989 Patrick Swayze version of the film Road House over alleged copyright infringement in the movie's remake, The Los Angeles Times has reported. Screenwriter R. Lance Hill accuses Amazon and MGM Studios of using AI to clone actors' voices in the new production in order to finish it before the copyright expired. 

Hill said he filed a petition with the US Copyright Office in November 2021 to reclaim the rights to his original screenplay, which forms the basis of the new film. At that point, the rights were owned by Amazon Studios, as part of its acquisition of MGM, but were set to expire in November 2023. Hill alleges that once that happened, the rights would revert back to him. 

According to the lawsuit, Amazon Studios rushed ahead with the project anyway in order to finish it before the copyright deadline. Since it was stymied by the actor's strike, Hill alleges Amazon used AI to “replicate the voices” of the actors who worked in the 2024 remake. Such use violated the terms of the deal struck between the union and major studios including Amazon. 

The claim is complicated by the fact that Hill signed a "work-made-for-hire" deal with the original producer, United Artists. That effectively means that the studio hiring the writer would be both the owner and copyright holder of the work. Hill, however, dismissed that as "boilerplate" typically used in contracts. 

The lawsuit seeks to block the release of the film, set to bow at SXSW on March 8th before (controversially) heading direct to streaming on Prime Video on March 21. 

Amazon denies the claims, with a spokesperson telling The Verge that "the studio expressly instructed the filmmakers to NOT use AI in this movie." It added that if AI was utilized, it was only done in early versions of the films. Later on, filmmakers were told to remove any "AI or non-SAG AFTRA actors" for the final version. It added that other allegations are "categorically false" and that it believes its copyright on the original Road House has yet to expire. 

This article originally appeared on Engadget at https://www.engadget.com/amazon-accused-of-using-ai-to-replicate-the-voices-of-actors-in-road-house-remake-054408057.html?src=rss

Amazon accused of using AI to ‘replicate the voices’ of actors in Road House remake

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Amazon is being sued by the writer of the original 1989 Patrick Swayze version of the film Road House over alleged copyright infringement in the movie's remake, The Los Angeles Times has reported. Screenwriter R. Lance Hill accuses Amazon and MGM Studios of using AI to clone actors' voices in the new production in order to finish it before the copyright expired. 

Hill said he filed a petition with the US Copyright Office in November 2021 to reclaim the rights to his original screenplay, which forms the basis of the new film. At that point, the rights were owned by Amazon Studios, as part of its acquisition of MGM, but were set to expire in November 2023. Hill alleges that once that happened, the rights would revert back to him. 

According to the lawsuit, Amazon Studios rushed ahead with the project anyway in order to finish it before the copyright deadline. Since it was stymied by the actor's strike, Hill alleges Amazon used AI to “replicate the voices” of the actors who worked in the 2024 remake. Such use violated the terms of the deal struck between the union and major studios including Amazon. 

The claim is complicated by the fact that Hill signed a "work-made-for-hire" deal with the original producer, United Artists. That effectively means that the studio hiring the writer would be both the owner and copyright holder of the work. Hill, however, dismissed that as "boilerplate" typically used in contracts. 

The lawsuit seeks to block the release of the film, set to bow at SXSW on March 8th before (controversially) heading direct to streaming on Prime Video on March 21. 

Amazon denies the claims, with a spokesperson telling The Verge that "the studio expressly instructed the filmmakers to NOT use AI in this movie." It added that if AI was utilized, it was only done in early versions of the films. Later on, filmmakers were told to remove any "AI or non-SAG AFTRA actors" for the final version. It added that other allegations are "categorically false" and that it believes its copyright on the original Road House has yet to expire. 

This article originally appeared on Engadget at https://www.engadget.com/amazon-accused-of-using-ai-to-replicate-the-voices-of-actors-in-road-house-remake-054408057.html?src=rss

Amazon to pay $1.9 million to settle claims of human rights abuses of contract workers

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Amazon will pay out $1.9 million to more than 700 migrant workers to settle claims of human rights abuses following exploitative labor contracts, as reported by CNBC. The impacted laborers were working at two of the company’s warehouses in Saudi Arabia.

Amazon acknowledged the issue in a blog post, saying it hired a third-party labor rights expert to investigate warehouse conditions. The organization found numerous violations of Amazon’s supply chain standards, including “substandard living accommodations, contract and wage irregularities and delays in the resolution of worker complaints.”

This follows an Amnesty International report from last October that detailed various alleged human rights abuses experience by those contracted to work in Amazon facilities in the region, and noted that many of the impacted laborers were “highly likely to be victims of human trafficking.” The report also suggested that Amazon was aware of the high risk for labor abuse when operating in Saudi Arabia but still “failed to take sufficient action to prevent such abuses.”

Simultaneous reports by the International Consortium of Investigative Journalists and the Arab Reporters for Investigative Journalism offered detailed accounts of the conditions that these laborers allegedly suffered under, according to NBC News. The investigations found that workers had to pay illegal recruitment fees of up to $2,040 to get hired. This forced the migrant workers, many of whom were from Nepal, to take out loans with high interest rates.

Investigators also learned that these workers were living in squalid conditions, with one laborer saying he was living “in a crowded room with seven other men, jammed with bunk beds infested with bed bugs.” The water was said to be salty and undrinkable. Amnesty International echoed these findings, saying that the accommodations were “lacking even the most basic facilities.”

The combination of the exorbitant hiring fees, along with the associated loans, amounted to “human trafficking for the purpose of labor exploitation as defined by international law and standards,” Amnesty alleged in its report. 

Amazon has stated that it has “remediated the most serious concerns” involving the two Saudi warehouses, including an upgrade to housing accommodations. “Our goal is for all of our vendors to have management systems in place that ensure safe and healthy working conditions; this includes responsible recruitment practices,” the company wrote.

It’s worth noting that though that $1.9 million number seems high, it breaks down to around $2,700 per employee. Amazon made $576 billion in 2023, which comes out to more than $1.5 billion each day.

Amazon doesn’t have a great track record when it comes to labor. It’s regularly accused of breaking labor laws, particularly at its many product warehouses. The company is also rabidly anti-union, as many of these complaints involve attempts to stop workers from unionizing. Amazon faces multiple ongoing federal probes into its safety practices, and it has been fined by federal safety regulators for exposing warehouse workers to unnecessary risks.

However, the company remains defiant in its efforts to chip away at worker’s rights. Amazon recently filed a legal document that claims the National Labor Relations Board (NLRB) is unconstitutional, joining Elon Musk’s SpaceX and grocery giant Trader Joe’s. The NLRB is an independent arm of the federal government that enforces US labor law and has been operating since 1935.

This article originally appeared on Engadget at https://www.engadget.com/amazon-to-pay-19-million-to-settle-claims-of-human-rights-abuses-of-contract-workers-192237377.html?src=rss

Appeals court overturns $1 billion copyright lawsuit against Cox

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An appeals court has blocked a $1 billion copyright verdict from 2019 against US internet service provider Cox Communications and ordered a retrial, Arts Technica has reported. A three-judge panel ruled unanimously that Cox didn't profit directly from its users' piracy, rebutting claims from Sony, Universal and Warner. 

The judges did affirm the original jury's finding of willful contributory infringement from the trial, first announced back in 2018. To that effect, they ordered a new damages trial that may reduce the size of the award.

"We reverse the vicarious liability verdict and remand for a new trial on damages because Cox did not profit from its subscribers' acts of infringement, a legal prerequisite for vicarious liability," the panel wrote. It added that "no reasonable jury could find that Cox received a direct financial benefit from its subscribers' infringement of Plaintiffs' copyrights." 

Cox allegedly refused to take "reasonable measures" to fight piracy, according to the original allegations. Internet providers are supposed to terminate the accounts of offending users, but the ISP only conducted temporary disconnections and warned some users more than 100 times. The labels claimed it even instituted a cap on accepted copyright complaints and cut back on anti-piracy staffers.

However, the judges said that Sony offered no causal connection between infringement and higher revenues for Cox. "No evidence suggest that customers chose Cox's Internet service, as opposed to a competitor's, because of any knowledge or expectation about Cox's lenient response to infringement." 

Under the US Digital Millennium Copyright Act (DMCA) and EU rules, ISPs enjoy "safe harbor" protections that shield them from liability for user actions. However, that only holds if they comply with specific requirements and address copyright violations promptly — and in this case, Cox didn't do that, the judges said. 

"The jury saw evidence that Cox knew of specific instances of repeat copyright infringement occurring on its network, that Cox traced those instances to specific users, and that Cox chose to continue providing monthly Internet access to those users... because it wanted to avoid losing revenue," the ruling states. The case is now headed back to a US District court.

This article originally appeared on Engadget at https://www.engadget.com/appeals-court-overturns-1-billion-copyright-lawsuit-against-cox-130810427.html?src=rss

Members of ransomware gang Lockbit arrested by law enforcement

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International law enforcement, led by the UK’s National Crime Agency, have disrupted ransomware gang Lockbit's operation. The group behind notable hacks against aircraft manufacturer Boeing, chip giant Taiwan Semiconductor Manufacturing Company, sandwich chain Subway and thousands more had its site taken offline on Monday while authorities arrested major players behind the gang. "This site if now under the control of law enforcement," the website reads. According to malware repository Vx-underground, law enforcement took down at least 22 Lockbit-affiliated Tor sites.

"Through our close collaboration, we have hacked the hackers; taken control of their infrastructure, seized their source code, and obtained keys that will help victims decrypt their systems," National Crime Agency Director General, Graeme Biggar, said in a statement. “As of today, LockBit are locked out. We have damaged the capability and most notably, the credibility of a group that depended on secrecy and anonymity."

Lockbit admitted defeat, too. In a statement to Vx-underground, the group said "FBI pwned me." Operation Cronos, the name law enforcement used for their efforts, also resulted in the seizure of source code and other useful data related to Lockbit's operations. At the same time, authorities in Poland, Ukraine and the US arrested key members of the ransomware operation. There are sanctions out for two more Lockbit affiliates in Russia.

There's more good news for Lockbit victims, too: The operation obtained keys from Lockbit to create a decryption tool for victims to get their data back, according to US Attorney General Merrick Garland. The free decryptors can be found via the No More Ransom project. 

Since 2019 when Lockbit first entered the scene, it's squeezed victims for more than $120 million in ransomware payments, according to acting assistant AG Nicole Argentieri.

This article originally appeared on Engadget at https://www.engadget.com/members-of-ransomware-gang-lockbit-arrested-by-law-enforcement-144245076.html?src=rss

The EU opens a wide-ranging probe into TikTok

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TikTok is in the EU's crosshairs over potential Digital Services Act (DSA) breaches around the safety of minors and other matters. The formal proceedings will focus on addictive algorithms, the "rabbit hole effect," age verification issues and default privacy settings. The European Commission is also probing ad transparency and data access for researchers, it said in a press release. 

The probe is focusing on the privacy and safety of minors. The Commission will look at the potentially negative aspects of TikTok's design and algorithms, including addictive behavior and "rabbit hole effects" that can lead to harmful content. The assessment aims to "counter potential risks for the exercise of the fundamental right to the person's physical and mental well-being [and] the respect of the rights of the child," the EC wrote. 

As part of that, it's also examining TikTok's age verification tools that are supposed to prevent access by minors to inappropriate content. At the same time, it will force the social media site to ensure high levels of privacy, safety and security for minors with regard to default privacy settings — much as it did for Meta's Instagram and Facebook.

Europe is also looking into TikTok compliance with DSA obligations to "provide a searchable and reliable repository for advertisements." At the same time, it's investigating suspected shortcomings in researcher access to TikTok's publicly accessible data, as required by the DSA. 

After the proceedings open, The Commission will continue to gather evidence. The procedure allows it to take further enforcement steps including interim measures and non-compliance decisions.

TikTok (and parent ByteDance) was already forced to make large changes for EU users to meet the DSA by giving users the choice to not let algorithms power their For You Page (FYP). It also introduced new harmful content reporting options and dropped personalized ads for EU users aged 13 to 17. 

The EU is already investigating TikTok, along with Meta, to determine what they've done to mitigate illegal content and misinformation related to the ongoing violence in the Middle East. In 2022, Meta was hit with a $414 million fine for requiring personalized ads. It's rumored to be introducing a paid tier as a way to allow users to get rid of personalized ads — and TikTok may also be working on such a scheme. Civil rights groups are urging the EU to reject these plans, labelling them "pay for privacy."

This article originally appeared on Engadget at https://www.engadget.com/the-eu-opens-a-wide-ranging-probe-into-tiktok-132036506.html?src=rss