Tag Archives: Business

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

FuboTV accuses Disney, Fox and Warner Bros. of antitrust practices over joint streaming service

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FuboTV, a streaming platform dedicated to live sports, has filed an antitrust lawsuit against Disney, Fox and Warner Bros. Discovery, accusing the companies of staging "a years-long campaign" to hamper its business. The company's lawsuit comes shortly Disney-owned ESPN, Fox and Warner Bros. Discovery announced that they're launching a sports streaming service in the fall of 2024, which will give subscribers access to sporting events from the networks they own. FuboTV's complaint argued that the companies are stealing its playbook and that the launch of their joint venture will destroy competition and lead to price inflation for consumers. 

Further, FuboTV alleged that the launch of the defendants' streaming service is but "the latest coordinated step" in their "campaign to eliminate competition in the sports-first streaming market" and in their effort to block its business. The streaming service said the defendants charge it content licensing rates that are 30 to 50 percent higher than the rates they charge other distributors. They also allegedly force FuboTV to bundle "dozens of expensive non-sports channels" that "customers do not want" with their sports offerings as a condition of licensing their content. All these increase the costs FuboTV must pass onto its customers, the company explained. 

FuboTV also claimed that the companies in question have prevented it from being able to offer streaming products subscribers would like, including content available on Hulu. Plus, the defendants allegedly impose a limitation on how many subscribers can buy their content package, ensuring that FuboTV can't make a dent in the market. 

"Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice," FuboTV CEO David Gandler said in a statement. "By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market. This strategy ensures that consumers desiring a dedicated sports channel lineup are left with no alternative but to subscribe to the Defendants' joint venture."

Engadget has reached out to all three defendants: ESPN has declined to comment, while Fox and Warner Bros. Discovery have yet to get back to us. FuboTV is asking the court to prohibit the joint venture's launch or to impose restrictions, such as economic parity of licensing terms, on the defendants.

This article originally appeared on Engadget at https://www.engadget.com/fubotv-accuses-disney-fox-and-warner-bros-of-antitrust-practices-over-joint-streaming-service-064140676.html?src=rss

Walmart is buying smart TV maker Vizio for $2.3 billion

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Walmart is buying Smart TV manufacturer Vizio for $2.3 billion, the retail giant announced as part of its latest earnings report. While Walmart has long been one of the major sellers of Vizio TVs, the company says the acquisition "enables a profitable advertising business that is rapidly scaling" via the company's SmartCast OS. The deal is still subject to regulatory approval. 

Vizio sells solid mid-range TVs, most equipped with its SmartCast operating system that supports free ad-supported content. The company recently refreshed its lineup with a more intuitive user interface and faster startups and app switching. 

Walmart, meanwhile, prominently features the brand on its shelves (along with TCL), as anyone who has gone there lately has probably noticed. The retailer already has its own TV house brand, ONN, but those sets are very much on the low end, usually selling for under $500. 

More importantly, the companies plan to combine their respective ad businesses. Walmart already has a $2.7 billion ad business, but Vizio would increase its access to key consumer info like viewership data. It would also effectively give Walmart more eyeballs for its ads — for instance, companies that sell goods at Walmart could also run ads on Vizio TVs, all of which could be tracked by the retailer. 

"We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment," said Walmart VP Seth Dallaire. "Our technology will help bring a scaled, connected TV advertising platform to Walmart Connect," added Vizio CEO William Wang. 

The acquisition may also be a counter to Amazon's in-house Fire TV business, both in terms of television retailing and advertising, as The Wall Street Journal reported last week. Amazon has one of the largest ad businesses in the US behind Alphabet and Meta, and smart TVs help it gather personalized consumer data for targeted advertising. 

This article originally appeared on Engadget at https://www.engadget.com/walmart-is-buying-smart-tv-maker-vizio-for-23-billion-130725953.html?src=rss

The EU is reportedly set to hit Apple with a $539 million fine in antitrust probe

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Apple may be facing a fine of roughly $539 million (500 million euros) from the EU and a ban on its alleged anti-competitive App Store practices for music streaming services, according to FT. The publication, which cites five unnamed sources with knowledge of the matter, reports that the European Commission will announce its ruling early next month.

The probe stems from a 2019 antitrust complaint filed by Spotify and is focused on App Store rules that at the time prevented developers from directing customers to alternative subscription options outside the app, which could be cheaper as they wouldn’t have to compensate for Apple’s 30 percent fee. Apple later loosened these restrictions. According to FT, the Commission will say Apple broke EU antitrust law and created “unfair trading conditions” for its rivals with the App Store’s “anti-steering obligations.”

This article originally appeared on Engadget at https://www.engadget.com/the-eu-is-reportedly-set-to-hit-apple-with-a-539-million-fine-in-antitrust-probe-162106781.html?src=rss

Amazon, one of the world’s largest employers, has called the National Labor Relations Board ‘unconstitutional’

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Amazon, a company that employs more than 1.54 million people, has claimed that the National Labor Relations Board Relations Board (NLRB), the federal agency responsible for protecting the rights of workers, is unconstitutional. Amazon made the claim in a legal document filed on Thursday as part of a case in which prosecutors from the Board have accused the e-commerce giant of discrimination against workers at an Amazon warehouse in Staten Island who had voted to unionize, according to The New York Times.

Amazon is not the first company to challenge the Board’s constitutionality. Last month, Elon Musk’s SpaceX sued the NLRB after the agency accused the company of unlawfully firing eight employees and called the agency “unconstitutional” in the lawsuit. Weeks later, grocery chain Trader Joe’s, which the NLRB accused of union-busting, said that the NLRB’s structure and organization was “unconstitutional,” Bloomberg reported. And in separate lawsuits, two Starbucks baristas have independently challenged the agency’s structure as they sought to dissolve their unions.

Amazon’s claim is similar to the existing claims filed by SpaceX and Trader Joe’s. In the lawsuit, the company’s lawyers argued that “the structure of the N.L.R.B. violates the separation of powers” by “impeding the executive power provided for in Article II of the United States Constitution.” In addition, Amazon claimed that the NLRB’s hearings “can seek legal remedies beyond what’s allowed without a trial by jury.”

Seth Goldstein, a lawyer who represents unions in the Amazon and Trader Joe’s cases told Reuters that these challenges to the NLRB increase the chances of the issue reaching the Supreme Court. And they might cause employers to stop bargaining with unions in hope that courts will finally strip the federal agency of its powers, Goldstein said. Amazon has a contentious history with the NLRB, which said the company broke federal labor laws last year. 

This article originally appeared on Engadget at https://www.engadget.com/amazon-one-of-the-worlds-largest-employers-has-called-the-national-labor-relations-board-unconstitutional-011519013.html?src=rss

Amazon, one of the world’s largest employers, has called the National Labor Relations Board ‘unconstitutional’

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Amazon, a company that employs more than 1.54 million people, has claimed that the National Labor Relations Board Relations Board (NLRB), the federal agency responsible for protecting the rights of workers, is unconstitutional. Amazon made the claim in a legal document filed on Thursday as part of a case in which prosecutors from the Board have accused the e-commerce giant of discrimination against workers at an Amazon warehouse in Staten Island who had voted to unionize, according to The New York Times.

Amazon is not the first company to challenge the Board’s constitutionality. Last month, Elon Musk’s SpaceX sued the NLRB after the agency accused the company of unlawfully firing eight employees and called the agency “unconstitutional” in the lawsuit. Weeks later, grocery chain Trader Joe’s, which the NLRB accused of union-busting, said that the NLRB’s structure and organization was “unconstitutional,” Bloomberg reported. And in separate lawsuits, two Starbucks baristas have independently challenged the agency’s structure as they sought to dissolve their unions.

Amazon’s claim is similar to the existing claims filed by SpaceX and Trader Joe’s. In the lawsuit, the company’s lawyers argued that “the structure of the N.L.R.B. violates the separation of powers” by “impeding the executive power provided for in Article II of the United States Constitution.” In addition, Amazon claimed that the NLRB’s hearings “can seek legal remedies beyond what’s allowed without a trial by jury.”

Seth Goldstein, a lawyer who represents unions in the Amazon and Trader Joe’s cases told Reuters that these challenges to the NLRB increase the chances of the issue reaching the Supreme Court. And they might cause employers to stop bargaining with unions in hope that courts will finally strip the federal agency of its powers, Goldstein said. Amazon has a contentious history with the NLRB, which said the company broke federal labor laws last year. 

This article originally appeared on Engadget at https://www.engadget.com/amazon-one-of-the-worlds-largest-employers-has-called-the-national-labor-relations-board-unconstitutional-011519013.html?src=rss

New York City is suing social media companies for allegedly harming the mental health of children

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After designating social media as a "public health hazard" in late January, New York City is now suing Meta, Google, Snap and TikTok for "fueling nationwide youth mental health crisis." Specifically, these companies face three counts in the lawsuit: public nuisance, negligence and gross negligence. The Mayor Eric Adams administration accuses TikTok, Instagram, Facebook, Snapchat and YouTube of "endangering our children's mental health, promoting addiction, and encouraging unsafe behavior."

These are allegedly achieved by way of harmful algorithms, gambling-like mechanisms and manipulation through reciprocity — making the user "feel compelled to respond to one positive action with another positive action." The city believes that there is a correlation between the increase in social media usage and the decline in local youth mental health over "more than a decade."

In response, Google and Meta told CNBC that they have always worked with youth safety experts and provided parental control tools. ByteDance's TikTok also highlighted some of its specific tools to Axios, namely age-restricted features, parental controls and an automatic 60-minute time limit for users under 18. However, none of the tech companies acknowledged the problematic features listed by the Adams administration.

This lawsuit follows a recent Senate hearing on online child safety, in which the CEOs of all the aforementioned tech companies (except Google) were present. In his opening remarks, Senator Lindsey Graham told the tech execs that "you have blood on your hands" — a reference to online child exploitations and cyberbullying that unfortunately led to deaths. 

Through this case, the Adams administration wants these tech companies to pay up for the city's youth mental health services, which apparently cost more than $100 million each year. But ultimately, it's about forcing these tech giants to stop manipulating young users into addictive behavior, as well as to make policymakers place new federal laws that safeguard youth mental health on social platforms.

Before this New York City lawsuit, Meta already faces a similar case from 41 states back in October 2023, in which it was accused of misleading the public about the safety of its platform's "addictive" features. Meta, Snap, TikTok and Google were also sued in a multi-district litigation in 2022 for their addictive features that allegedly cause "emotional and physical harms, including death" to adolescents.

This article originally appeared on Engadget at https://www.engadget.com/new-york-city-is-suing-social-media-firms-for-allegedly-harming-the-mental-health-of-children-082524295.html?src=rss

The Morning After: United Airlines grounded its new Airbus fleet over ‘no smoking’ signs

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United Airlines had to ground its new Airbus A321neo planes, not due to a major safety issue, but because the light-up “no smoking” signs are automated.

A 1990 ruling mandates that the signs on aircraft must be manually operated by the crew. Airbus A321neo features software that automatically displays the signage during a flight, so the crew doesn’t switch it on and off. Bear in mind that smoking was fully banned from both domestic and international flights nearly 25 years ago.

Even more frustratingly, automated signage systems are not even new. Many air travel companies apply for exemptions with the Federal Aviation Authority (FAA) – which United did for its entire fleet back in 2020. However, the company's Airbus A321neo is so new that it doesn’t fall under that protection.

The federal agency has now permitted United to fly its fleet of A321neos, five in all, while evaluating those pesky signs.

– Mat Smith

The Flipper Zero digital multi-tool can now play games

It uses an external module powered by Raspberry Pi.

TMA
Flipper

The Flipper Zero digital multi-tool can interact (or hack) wireless devices and smart home systems, connecting through IR, NFC, RFID, Bluetooth and physical connections. Now, it can even play games, thanks to a partnership with Raspberry Pi. A new add-on can run games programmed in C, C++ and MicroPython. To suit the quirkiness of Flipper’s device, it even features sensors for hand-tracking. The Video Game Module can also output video to external displays.

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Nothing's next phone will debut on March 5

It will see a limited release in the US as part of a 'developer program.'

TMA
Engadget

Nothing says it will reveal its latest Phone 2a on March 5th. However, instead of an official release like the Phone 2, the device will be part of a "developer program in the US." The company didn't reveal any images of the device or pricing, but the company may use a simplified Phone 2 esthetic, given the naming convention. The Phone 2 had a unique design with a transparent Gorilla Glass back and 11 LED "Glyph" strips.

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Sarah Silverman’s copyright lawsuit against ChatGPT gets reduced

But the core accusation remains.

Sarah Silverman’s lawsuit against OpenAI will advance but some of her legal team’s claims have been dismissed. The comedian sued OpenAI and Meta in July 2023, claiming they trained their AI models on her books and other work without consent. US District Judge Araceli Martínez-Olguín threw out parts of the complaint on Monday, including negligence and unjust enrichment, but the principal claim remains; that OpenAI directly infringed on copyrighted material to train its AI models.

Continue reading.

This article originally appeared on Engadget at https://www.engadget.com/the-morning-after-united-airlines-grounded-its-new-airbus-fleet-over-no-smoking-signs-101534262.html?src=rss

Sarah Silverman’s copyright infringement suit against OpenAI will advance in pared-down form

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Sarah Silverman’s lawsuit against OpenAI will advance with some of her legal team’s claims dismissed. The comedian sued OpenAI and Meta in July 2023, claiming they trained their AI models on her books and other work without consent. Bloomberg reported on Tuesday that the unfair competition portion of the lawsuit will proceed. Judge Martínez-Olguín gave the plaintiffs until March 13 to amend the suit.

US District Judge Araceli Martínez-Olguín threw out portions of the complaint from Silverman’s legal team Monday, including negligence, unjust enrichment, DMCA violations and accusations of vicarious infringement. The case’s principal claim remains intact. It alleges OpenAI directly infringed on copyrighted material by training LLMs on millions of books without permission.

OpenAI’s motion to dismiss, filed in August, didn’t tackle the case’s core copyright claims. Although the suit will proceed, the judge suggested the federal Copyright Act may preempt the suit’s remaining claims. “As OpenAI does not raise preemption, the Court does not consider it,” Martínez-Olguín wrote.

The US court system has yet to determine whether training AI large language models on copyrighted work falls under the fair use doctrine. Last month, OpenAI admitted in a court filing that it would be “impossible to train today's leading AI models without using copyrighted materials.”

The result of Silverman’s OpenAI hearing is similar to one in San Francisco in November when Silverman’s claims against Meta were also slashed down to the core copyright infringement claims. In that session, US District Judge Vince Chhabria described some of the plaintiffs’ dismissed claims as “nonsensical.”

Other groups suing OpenAI for alleged copyright-related violations include The New York Times, a collection of nonfiction authors (a group that grew after the initial lawsuit) and The Author’s Guild. The latter filed its claim alongside authors George R.R. Martin (Game of Thrones) and John Grisham.

This article originally appeared on Engadget at https://www.engadget.com/sarah-silvermans-copyright-infringement-suit-against-openai-will-advance-in-pared-down-form-211456302.html?src=rss

United Airlines grounds Airbus A321neo fleet over antiquated no smoking sign law

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United Airlines briefly grounded its fleet of brand-new Airbus A321neo planes, according to a report by Gizmodo. This had nothing to do with safety, as was the case with that recent Boeing controversy. Rather, it was due to the aircraft running afoul of a 1990 regulation regarding “no smoking” signs.

The 1990 ruling mandates that “no smoking” signs found on aircraft must be manually operated by the crew. The newly-designed Airbus A321neo features software that automatically displays the signage during a flight, so the crew doesn’t switch it on and off. That’s pretty much it. Meanwhile, smoking itself was fully banned from both domestic and international flights nearly 25 years ago.

Automated signage systems are not new. Many air travel companies bypass the 1990 regulation by applying for an exemption with the Federal Aviation Authority. United filed for this exemption on behalf of its entire fleet back in 2020, which was granted. There’s just one problem. The company's Airbus A321neo is so new that it doesn’t fall under the protection of that exemption. These planes just started flying the friendly skies two months ago.

United is seeking permission from the FAA to add the Airbus A321neo to the pre-existing exemption. The federal agency has given United permission to fly its fleet of A321neos, five in all, while evaluating this request.

“As the FAA noted, this is not a safety of flight issue. Our five A321neos were briefly out of service on Monday while we worked through this issue with the FAA, resulting in a handful of delays but no cancellations as we swapped that flying to other aircraft types in an effort to minimize disruption for our customers,” United wrote in a statement.

There’s just one question left to ask. It costs around $130 million to manufacture just one A321neo aircraft, so United spent $650 million to make this fleet. That’s a whole lot of cheddar, so why didn’t it get this exemption stuff sorted before the company started booking flights?

This article originally appeared on Engadget at https://www.engadget.com/united-airlines-grounds-airbus-a321neo-fleet-over-antiquated-no-smoking-sign-law-173652417.html?src=rss