Tag Archives: Company Legal & Law Matters

The Apple Watch ban is here: Why Apple is no longer selling the Watch Series 9 and Watch Ultra

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You can't buy the Apple Watch Series 9 and the Ultra 2 from Apple's online store anymore — and as of December 24, they're no longer available from the company's retail outlets. Here's why.

Why is there an Apple Watch ban?

Apple has pulled the watch models from its website after the United States International Trade Commission (ITC) ordered the company to stop selling them in the US.

The ITC issued the Apple Watch ban after siding with Masimo, a medical technology company, which sued Apple in 2021 for allegedly infringing on five patents related to light-based blood oxygen monitoring. In October, the ITC upheld a judge's ruling from earlier this year that the Apple Watch did violate Masimo's patents. Both the affected models come with the feature, but older models with the capability are not included in the sales ban. Apple started offering blood oxygen monitoring with the Watch Series 6. 

The ITC had upheld a judge’s previous ruling from earlier this year that Apple did violate Masimo’s patents. Apple is appealing the decision and tried to convince the commission to put a pause on the ban until it’s done. However, the ITC has denied the request, meaning the ban is pushing through unless the president himself steps in and vetoes the order. The US Trade Representative is reviewing the ITC’s decision, as well, and could choose to disapprove it due to policy reasons.

Masimo originally sued Apple in 2020 for allegedly stealing trade secrets. It alleged that Apple hired several Masimo employees and used their knowledge of Masimo's products to develop the Apple Watch's blood oxygen monitoring capabilities. That case is still ongoing.

What is Apple doing about it?

Apple previously told Engadget that it’s pulling the watch models from its websites on December 21 and from its retail outlets on December 24 as a preemptive measure. The import ban took effect on December 26, following the Presidential Review Period, which also ended December 25 without veto.

"Apple’s teams work tirelessly to create products and services that empower users with industry-leading health, wellness, and safety features," the company said earlier this month. "Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers." The company added that it will "continue to take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as soon as possible.”

In 2022, Apple itself filed two patent infringement lawsuits against Masimo that accuse it of releasing a smartwatch that copies its watches’ features. If neither the president nor the US Trade Representative overturns the ban, however, the company may have to wait for the results of its appeal. 

Apple could also come to an agreement with Masimo, which most likely means money will be changing hands. The company's CEO has said he is open to a financial settlement, but told Bloomberg that Apple has not tried to negotiate an agreement. Bloomberg also reports that Apple is working on a software update that it believes will resolve the ITC dispute.

How can I buy an Apple Watch now?

You can still get the brand’s older watches, or the Apple SE, which doesn’t have a blood oxygen monitor. If you’re looking to buy either of the affected models this holiday season, they will still be available from third-party retailers. 

With the Apple Watch import ban now in effect, retailers will only be able to sell through their existing stock. So your best bet for buying these models would be a reputable retailer like Amazon, Best Buy, Target or Walmart. If they're out of stock, you'll just have to wait for this mess to get sorted out — or take it as an excuse to vacation in Mexico or Canada.

This article originally appeared on Engadget at https://www.engadget.com/the-apple-watch-ban-is-here-why-apple-is-no-longer-selling-the-watch-series-9-and-watch-ultra-203706971.html?src=rss

Teen GTA 6 hacker sentenced to an indefinite hospitalization after mental health assessment

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A London judge has sentenced the teenage hacker who infiltrated Rockstar Games, leaking Grand Theft Auto VI footage, to an indefinite hospitalization, as reported by The BBC. The 18-year-old, Arion Kurtaj, breached Rockstar’s servers from a Travelodge hotel while under police custody, using only an Amazon Fire TV Stick, smartphone, keyboard and mouse. (He was promptly re-arrested.) Kurtaj was a central member of the Lasus$ international hacking group.

Doctors declared Kurtaj unfit to stand trial because he has acute autism. Following the judgment, the jury was instructed to determine if he committed the alleged crimes, not whether he had criminal intent. Following a mental health assessment suggesting he “continued to express the intent to return to cybercrime,” the judge decided he remained too high a risk to the public. The court also heard accounts of Kurtaj’s allegedly violent behavior while in custody, including reports of injury and property damage. And so Kurtaj will now be committed to a hospital prison.

Despite Rockstar's claim that the hack cost it $5 million and thousands of hours of staff time, Kurtaj’s attorneys argued the success of the GTA 6 trailer, which racked up 128 million views in its first four days, meant his hack didn’t cause serious harm.

A second Lapsus$ member was found guilty in the same trial, but the 17-year-old’s name wasn’t made public because they’re a minor. The unnamed hacker was accused of working with Kurtaj and other Lapsus$ members to infiltrate Nvidia and phone company BT/EE, stealing data and demanding a $4 million ransom. The minor was sentenced to an 18-month youth rehabilitation order under “intense supervision,” including a ban on VPN use.

The two accomplices are the first Lapsus$ members to be convicted. Authorities believe other “digital bandits” in the group (suspected to be primarily teenagers in the UK and Brazil) are still at large. It isn’t clear what kind of payoff the hackers got from the ransom requests, if any, as none of the affected companies have admitted to ponying up.

This article originally appeared on Engadget at https://www.engadget.com/gta-6-hacker-is-sentenced-to-an-indefinite-hospitalization-194251395.html?src=rss

Teen GTA 6 hacker sentenced to an indefinite hospitalization after mental health assessment

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A London judge has sentenced the teenage hacker who infiltrated Rockstar Games, leaking Grand Theft Auto VI footage, to an indefinite hospitalization, as reported by The BBC. The 18-year-old, Arion Kurtaj, breached Rockstar’s servers from a Travelodge hotel while under police custody, using only an Amazon Fire TV Stick, smartphone, keyboard and mouse. (He was promptly re-arrested.) Kurtaj was a central member of the Lasus$ international hacking group.

Doctors declared Kurtaj unfit to stand trial because he has acute autism. Following the judgment, the jury was instructed to determine if he committed the alleged crimes, not whether he had criminal intent. Following a mental health assessment suggesting he “continued to express the intent to return to cybercrime,” the judge decided he remained too high a risk to the public. The court also heard accounts of Kurtaj’s allegedly violent behavior while in custody, including reports of injury and property damage. And so Kurtaj will now be committed to a hospital prison.

Despite Rockstar's claim that the hack cost it $5 million and thousands of hours of staff time, Kurtaj’s attorneys argued the success of the GTA 6 trailer, which racked up 128 million views in its first four days, meant his hack didn’t cause serious harm.

A second Lapsus$ member was found guilty in the same trial, but the 17-year-old’s name wasn’t made public because they’re a minor. The unnamed hacker was accused of working with Kurtaj and other Lapsus$ members to infiltrate Nvidia and phone company BT/EE, stealing data and demanding a $4 million ransom. The minor was sentenced to an 18-month youth rehabilitation order under “intense supervision,” including a ban on VPN use.

The two accomplices are the first Lapsus$ members to be convicted. Authorities believe other “digital bandits” in the group (suspected to be primarily teenagers in the UK and Brazil) are still at large. It isn’t clear what kind of payoff the hackers got from the ransom requests, if any, as none of the affected companies have admitted to ponying up.

This article originally appeared on Engadget at https://www.engadget.com/gta-6-hacker-is-sentenced-to-an-indefinite-hospitalization-194251395.html?src=rss

Apple denied request to pause Apple Watch sales ban amid patent dispute

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Following the patent dispute over the blood oxygen sensor on the Apple Watch Series 9 and Apple Watch Ultra 2, the International Trade Commission (ITC) sided with medical technology company Masimo, and ordered to halt all sales of said wearables in the US — conveniently just in time for the holidays. Apple has since filed a motion to pause this ban until its appeal is done, but earlier today, the ITC denied this request, meaning the Apple Watch ban is going ahead, unless the President decides to veto.

"A Presidential Review Period is in progress regarding an order from the US International Trade Commission on a technical intellectual property dispute pertaining to Apple Watch devices containing the Blood Oxygen feature," Apple told Engadget in an earlier statement. "While the review period will not end until December 25, Apple is preemptively taking steps to comply should the ruling stand."

The Apple Watch models affected will stop being sold on Apple.com on December 21, then on December 24 at Apple's retail stores, and then until stocks run out for third-party retailers like Amazon and Best Buy — which could be pretty fast given the import ban on December 26. Other models like the Apple Watch SE that don't contain a blood oxygen sensor will continue to be sold.

Masimo filed its lawsuit against Apple in 2021 over alleged violations of patents related to light-based blood-oxygen monitoring. The case originally targeted the Apple Watch Series 6, but despite the sales ban, you can continue to use the blood oxygen feature on that and other previously purchased Apple Watch models. In retaliation, Apple filed two patent infringement suits against Masimo in October 2022, claiming that the latter's own smartwatch copied Apple Watch features.

This article originally appeared on Engadget at https://www.engadget.com/itc-denies-motion-to-pause-us-apple-watch-ban-until-appeal-is-over-041608763.html?src=rss

UK Supreme Court rules AI can’t be a patent inventor, ‘must be a natural person’

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AI may or may not take people's jobs in years to come, but in the meantime, there's one thing they cannot obtain: patents. Dr. Stephen Thaler has spent years trying to get patents for two inventions created by his AI "creativity machine" DABUS. Now, the United Kingdom's Supreme Court has rejected his appeal to approve these patents when listing DABUS as the inventor, Reuters reports. 

The court's rationale stems from a provision in UK patent law that states, "an inventor must be a natural person." The ruling stipulated that the appeal was unconcerned with whether this should change in the future. "The judgment establishes that UK patent law is currently wholly unsuitable for protecting inventions generated autonomously by AI machines," Thaler's lawyers said in a statement. 

Thaler first attempt to register the patents — for a food container and a flashing light — was in 2018, as owner of the machine that invented them. However, the UK's Intellectual Property Office said he must list an actual human being on the application, and when he refused, it withdrew his application. Thaler fought the decision in the High Court and then the Court of Appeal, with Lady Justice Elisabeth Laing stating, "Only a person can have rights. A machine cannot." 

Thaler, an American, also submitted the two products to the United States Patent and Trademark Office, which rejected his application. Plus, he previously sued the US Copyright Office (USCO) for not awarding him the copyright for a piece of art DABUS created. The case reached the US District Court of Columbia, with Judge Beryl Howell's ruling explaining, "Human authorship is a bedrock requirement of copyright." Thaler has argued that this provision is unconstitutional, but the US Supreme Court declined to hear his case, ending any further chances to argue his stance. While the UK and US have rejected Thaler's petitions, he has succeeded in countries such as Australia and South Africa. 

This article originally appeared on Engadget at https://www.engadget.com/uk-supreme-court-rules-ai-cant-be-a-patent-inventor-must-be-a-natural-person-131207359.html?src=rss

NLRB finds that eBay and subsidiary TCGPlayer engaged in union-busting practices

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The National Labor Relations Board (NLRB) has found that eBay has violated the rights of unionized workers at TCGPlayer, a trading card marketplace owned by the company. This comes in response to charges filed by the Communications Workers of America back in March of this year. eBay has allegedly refused to recognize TCGPlayer’s worker union and it delayed participating in any bargaining practices and it has also refused to divulge any information with the group that the union is legally entitled to.

As part of its examination of the issue, the NLRB said that because eBay and TCGPlayer broke the law, the company must face legal consequences for its union-busting practices. The union, which officially formed in March following numerous anti-union actions from eBay and TCGPlayer, was denied representation during disciplinary investigations. The NLRB also found that eBay was changing working conditions and benefits without engaging in bargaining with the group. On top of that, eBay is said to have even enforced rules that would punish any workers’ elections to unionize.

While the NLRB lays out evidence of eBay’s union-busting practices, it did not officially issue a decision on the matter. The agency is still waiting on the company’s response to the issue. “Now that the board has come to a decision on eBay’s illegal practices, we hope the company will see the light, obey labor law and engage in good faith bargaining practices so that workers can secure a strong union contract,” Dennis Trainor, Communications Workers of America District 1 Vice-President, said in a statement. eBay could not be reached for comment.

This article originally appeared on Engadget at https://www.engadget.com/nlrb-finds-that-ebay-and-subsidiary-tcgplayer-engaged-in-union-busting-practices-205337429.html?src=rss

Apple is reportedly scrambling to update Apple Watch software to avoid a looming ban

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Apple is scrambling to make software updates to Apple Watch algorithms that measure blood oxygen levels to avoid an impending ban on the smartwatch in the US over a patent dispute, Bloomberg reported. Changing how the Watch measures oxygen saturation, Apple believes, could help keep the Watch on shelves during the busy holiday shopping season.

The blood oxygen sensor, which was first introduced with the Apple Watch 6 in 2020, is at the heart of a patent dispute between Apple and Masimo, another California-based company that sued Apple in 2021. Masimo claimed that Apple’s sensor violated two patents related to light-based blood-oxygen monitoring that it owned. In October, the International Trade Commission (ITC) upheld a ruling, stating that Apple did, in fact, violate Masimo’s patents.

The case then went to the White House for a 60-day Presidential Review period, which ends next week. If President Biden doesn’t veto the ITC’s decision, Apple will be banned from selling the Apple Watch 9 and Apple Watch Ultra 2, which include blood oxygen sensing. Apple is complying preemptively with the ban and will stop selling both Apple Watch models on its website on December 21 and in retail stores on December 24 in case the veto doesn’t happen.

One way Apple could keep selling the watch is to settle with Masimo, but the company’s last-minute race to make software changes to the Watch suggests that it doesn’t plan to do so. The company told Bloomberg that it plans to submit its software workaround to the ITC for approval. Masimo’s CEO Joe Kiani, told Bloomberg that he would be open to settling with Apple, but the company hasn’t called him yet. “It takes two to tango,” he said.

He also doesn’t think that a software update to the Apple Watch would resolve the situation. “I don’t think that could work — it shouldn’t — because our patents are not about the software,” Kiani said. “They are about the hardware with the software.”

Overhauling Apple Watch hardware would, of course, be a lot more challenging for Apple than tweaking its software. Even if the ITC approves any potential hardware changes, manufacturing and shipping modified versions of the two Watch models could take upwards of three months, a person familiar with how Apple operates told the publication.

Apple and Masimo have a complicated history. Apple reportedly discussed acquiring the company in 2013 and hiring Kiani to work on the medical features on its smartwatch. That deal never went through. Instead, Kiani claimed that Apple hired more than 20 Masimo engineers, doubled some of their salaries, and made them develop the same kind of medical technology they were working on at Masimo at Apple. “This is not an accidental infringement — this is a deliberate taking of our intellectual property,” Kiani told Bloomberg.

Engadget has reached out to Apple for comment on Kiani’s statements. The company has previously called the ITC’s ruling “erroneous” and plans to appeal the decision to the Federal Circuit.

It’s not clear whether Apple will get immediate relief. The silver lining for the company is that the ban only applies to Apple Watch sales through the company’s own channels — its website and its retail stores — in the US. You should still be able to buy the Apple Watch through other retailers like Best Buy, Walmart and Target.

This article originally appeared on Engadget at https://www.engadget.com/apple-is-reportedly-scrambling-to-update-apple-watch-software-to-avoid-a-potential-ban-202710009.html?src=rss

Google’s multi-state lawsuit settlement will cost it $700 million

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On top of fighting (and losing to) Epic Games over Play Store antitrust concerns, Google has been fighting a similar lawsuit filed by 36 states and the District of Columbia in 2021. A settlement for that suit was announced in September, but a judge still had to confirm the terms. Now, Google has announced that it will pay a $700 million fine and make what amounts to fairly minor changes to the Play Store. 

Of that sum, Google will distribute $630 million to consumers who may have overpaid for apps or in-app purchases on Google Play (after taxes, lawyers’ fees, etc.). That covers around 102 million people, according to The Washington Post. It will also pay $70 million into a "fund that will be used by the states," according to Google's blog. 

The other major change is that Google must allow developers to steer consumers toward sideloading to avoid Google's Play Store fees on subscriptions and the like. It'll do that via updated "language that informs users about these potential risks of downloading apps directly from the web for the first time." However, these actions will be time limited to seven years for the sideloading and five years for the updated language, according to settlement's wording spotted by The Verge. 

Google will also include language stating that "OEMs can continue to provide users with options out of the box to use Play or another app store." Starting with Android 14, third-party stores will be allowed to handle future app updates, including automatic installs. It's also expanding user choice billing that will allow Android apps and games to offer their own payment system in the US. "Developers are also able to show different pricing options within the app when a user makes a digital purchase," Google states. 

The company will only be required to make these changes for five or six years maximum (seven years for alternate means to download apps). In other words, it could feasibly cut off access to sideloading or third-party app stores after that point, or make it harder for the average consumer to find the option. 

Another big thing missing is exterior payment links. "Google is not required to allow developers to include links that take a User outside an app distributed through Google Play to make a purchase," the settlement agreement reads. 

The settlement sum represents a miniscule portion of Google's turnover and the other terms are relatively minor changes over what it already does. It also doesn't include Epic Games, which won its own lawsuit against Google earlier this month (Google has vowed to appeal). A court still needs to formally approve the states' settlement.  

Google also argued at its Epic trial that consumers were able to get games by sideloading and other means, but that failed to sway the jury. When the settlement with the states was announced in September, Epic CEO Tim Sweeny said that if it "left the Google tax in place" his company would fight on. "Consumers only benefit if antitrust enforcement not only opens up markets, but also restores price competition," he said at the time.

This article originally appeared on Engadget at https://www.engadget.com/googles-multi-state-lawsuit-settlement-will-cost-it-700-million-103512109.html?src=rss

Nikola founder Trevor Milton sentenced to four years in prison

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Trevor Milton, the disgraced founder of Nikola, was just sentenced to four years in prison on three counts of fraud. 

In October 2022, a jury found Milton guilty of one count of securities fraud and two counts of wire fraud. Milton faced up to 60 years in prison. Prosecutors asked the judge for an 11-year prison sentence and a $5 million fine, according to The New York Times, while the defense argued for probation. 

After announcing the sentence at a federal court hearing in New York City, U.S. District Judge Edgar Ramos spoke directly to Milton. "As difficult as it may be for you or your family to hear, I believe the jury got it right," Ramos said, as transcribed Reuters.

Milton addressed the court before sentencing was handed down, saying "I did not intend to harm anyone and I did not commit those crimes levied against me." He also spoke at length about his rural upbringing and recited biblical verse. 

Prosecutors claimed that Milton pumped up the value of the company's stock by lying to investors about "nearly all aspects" of Nikola's business. Among other things, Milton claimed his company had a fully functional electric truck. The company released a video that made it appear as though a Nikola One prototype was able to move by itself. However, an indictment alleged that the truck was actually rolling down a hill and that Milton was involved in the video's creation.

In addition, Milton was accused of lying about Nikola having billions of dollars worth of pre-order reservations and that it was producing hydrogen fuel at four times less than market rates. Prosecutors also said Milton falsely claimed Nikola had developed "game-changing" battery tech.

Nikola is still in business and it plans to resume deliveries of its battery electric truck in early 2024 following a recall over battery issues that cost around $61.8 million to resolve. In the nine months to September 30, Nikola produced 96 trucks and shipped 79.

The company's stock price has dropped by 99 percent since 2020 and investors are said to have lost more than $660 million. Milton sold around $100 million of his Nikola stock in 2020 and spent most of that on luxury goods such as a plane and real estate, according to the Times. It's likely that Milton will appeal this conviction, as he's already asked Ramos for a new trial following the jury's guilty verdict.

This article originally appeared on Engadget at https://www.engadget.com/nikola-founder-trevor-milton-sentenced-to-four-years-in-prison-192432136.html?src=rss

Apple Watch Series 9 and Ultra 2 sales paused in the US due to a patent dispute

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If you're planning to buy an Apple Watch Series 9 or Apple Watch Ultra 2, you may want to act quickly. Apple says it will soon halt sales of both devices in the US due to a International Trade Commission (ITC) ban, which is related to a patent dispute over the wearables' blood oxygen sensor. Sales will be suspended online this week and at Apple retail locations after December 24.

"A Presidential Review Period is in progress regarding an order from the US International Trade Commission on a technical intellectual property dispute pertaining to Apple Watch devices containing the Blood Oxygen feature," Apple told Engadget in a statement. "While the review period will not end until December 25, Apple is preemptively taking steps to comply should the ruling stand. This includes pausing sales of the Apple Watch Series 9 and Apple Watch Ultra 2 from Apple.com starting December 21, and from Apple retail locations after December 24."

The Apple Watch SE will remain available for purchase as it doesn't have a blood oxygen sensor. Previously purchased Apple Watch units that include the blood oxygen feature are unaffected (the Apple Watch Series 6 was the company's first device to offer blood-oxygen monitoring). The Apple Watch Series 9 and Watch Ultra 2 will still be available to buy outside of the US.

Medical tech company Masimo sued Apple in 2021 over alleged violations of patents related to light-based blood-oxygen monitoring. In October, the ITC upheld a judge's ruling from earlier this year that the Apple Watch did violate Masimo's patents. 

The ITC's order blocks all Apple Watch Series 9 and Ultra 2 imports to the US after December 25. Other retailers, such as Amazon and Best Buy, can continue to sell the devices for the time being, as 9to5 Mac first reported.

Following the ITC's decision, the case went to the White House for a 60-day Presidential Review Period. Although President Biden has one more week to decide whether to veto the ITC ruling, Apple has opted to preemptively comply with the commission's decision. 

Apple plans to lodge an appeal with the Federal Circuit. It can also reach a settlement with Masimo or issue software updates that nullify patent infringements (likely by deactivating blood oxygen features). Apple will provide more information on the situation after the Presidential Review Period expires on December 25.

The US Trade Representative will also review the ITC's order. It has the option to disapprove of the ITC’s action due to policy reasons.

"Apple’s teams work tirelessly to create products and services that empower users with industry-leading health, wellness, and safety features," the company said. "Apple strongly disagrees with the order and is pursuing a range of legal and technical options to ensure that Apple Watch is available to customers. Should the order stand, Apple will continue to take all measures to return Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the US as soon as possible.”

Masimo has released its own smartwatch that Apple claims is an Apple Watch knockoff. Apple filed two patent infringement suits of its own against Masimo in October 2022, asserting that it copied patented Apple Watch features.

This article originally appeared on Engadget at https://www.engadget.com/apple-will-pause-watch-series-9-and-ultra-2-sales-in-the-us-due-to-a-patent-dispute-142051903.html?src=rss