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Patents

Lenovo Seeks Halt of Asus Laptop Sales Over Alleged Patent Infringement (arstechnica.com) 20

Lenovo has filed a lawsuit against Asus, claiming that the company's laptops infringe on four of their patents. "Lenovo is seeking damages and for Asus to stop selling Zenbook laptops and other allegedly infringing products in the U.S.," reports Ars Technica. From the report: The lawsuit [PDF] centers on four patents. The first, entitled "Methods and apparatus for transmitting in resource blocks" was issued in 2021 and relates to minimizing the delay experienced during an uplink package transmission by reducing the number of steps for a wireless device to upload data. Lenovo's lawsuit, which uses Asus' Zenbook Pro 14 OLED (UX6404) as an example of an allegedly infringing product, also claims Asus is selling laptops that violate the wireless wake-on-LAN power management patent issued to Lenovo in 2010.

Another patent Lenovo is suing over was issued in 2010 and entitled "Touchpad diagonal scrolling." It allows users to "initiate a diagonal scroll at any location on a touchpad by using two fingers," the lawsuit says. Finally, Lenovo is upset about Asus' purported infringing of its "Dual shaft hinge with angle timing shaft mechanism" patent rewarded in 2014. Lenovo describes it as a hinge block enabling 2-in-1 laptops to go from clamshell mode to tablet mode. For this accused patent infringement, Lenovo's lawsuit points to Asus' Zenbook Flip 14 UX461, which Asus advertises as having a 360-degree "ErgoLift" hinge that "lifts and tilts the keyboard into the perfect typing position when the display is rotated into laptop mode."

As noted by The Register today, in a letter to the ITC dated November 15 [PDF], Lenovo said it wants Asus to "cease and desist from marketing, advertising, distributing, offering for sale, selling, or otherwise transferring, including the movement or shipment of inventory" products that infringe upon the four patents in question. In a further dig, Lenovo added that a limited exclusion order wouldn't harm US consumers or competition, due to Asus' smaller market share. According to the IDC, Asus represented about 7.1 percent of the PC market (which includes laptops and desktops) in Q3 2023. Lenovo led at 23.5 percent.

The Courts

Robocar Tech Biz Sues Nvidia, Claims Stolen Code Shared In Teams Meeting Blunder (theregister.com) 25

Dan Robinson reports via The Register: Nvidia is facing legal action in the U.S. for theft of trade secrets from a German automotive company, which alleges its ex-employee made an epic blunder of showing something he shouldn't have when minimizing a Powerpoint slide at a joint Microsoft Teams meeting both companies were attending. The automotive firm, Valeo Schalter und Sensoren, claims the flashing of its source code for the assisted parking app on the call is evidence to support its accusations that the ex-staffer stole the IP before leaving to join Nvidia. The two tech companies were both on the call as they were each suppliers on contract for a parking and driving assistance project with a major automotive OEM that was not named in the suit. Under the terms of the contract with the OEM, the suit states, engineers from both Valeo and Nvidia had to schedule collaboration meetings so that "Nvidia employees could ask Valeo employees questions about Valeo's ultrasonic hardware and data associated with the hardware."

The complaint [PDF], filed by Valeo in the US District Court for Northern California, goes on to allege misappropriation of trade secrets by Nvidia, through which the company claims the GPU-maker attempted to take a shortcut into the automotive marketplace by using its stolen software. Nvidia is a relative newcomer to the automotive market, introducing its Nvidia Drive platform at the CES trade show in 2015. Valeo says that it only discovered the theft during a conference call on March 8, 2022 between its engineers and those of Nvidia to collaborate on work for an automotive OEM, a customer of both companies. Valeo develops automotive hardware such as cameras and sensors, in addition to software to processes the data from the hardware. The court filing states that Valeo previously provided the OEM in question with both hardware and software for its autonomous vehicle technology, but in this instance, it asked Valeo to provide ultrasonic hardware only. For the software side, the OEM instead chose Nvidia. One of the Nvidia engineers on the call, named as Mohammad Moniruzzaman, was a former employee of Valeo, and during the call, made using Microsoft's Teams software, he shared his screen in order to give a presentation containing questions for the Valeo participants.

Yet also visible on his screen after the presentation finished - or so the complaint alleges - was a window of source code, which the Valeo participants recognized as belonging to their company. According to the filing, one of the Valeo engineers succeeded in capturing a screenshot as evidence. According to Valeo, the source code file names that were allegedly visible in the screenshot were identical to those used in its source code, and it also claims the source code appeared to be identical to proprietary code maintained in Valeo's repositories. The company says in the suit that it then conducted a comprehensive internal forensic IT audit, and alleges it discovered that Moniruzzaman had copied four repositories containing the code for Valeo's parking and driving assistance software, prior to leaving the company in May 2021. [...] The claim is that Valeo's source code and documentation has been used in the development of Nvidia's software, and this provided the GPU giant and its engineers with a shortcut in the development of its parking assistance code, saving Nvidia perhaps hundreds of millions of dollars in development costs.

According to the court filing, Nvidia said it removed Moniruzzaman's additions to its code. However, those additions underwent "a peer review process of 10-30 iterations of feedback loops" before the code was fully merged into Nvidia's database. Valeo contends that this process of extensive edits by others means it is not realistic that Nvidia could have fully remove Moniruzzaman's contributions. Valeo claims it has suffered competitive harm as a result of Nvidia's action and as a result is seeking damages, to be determined at trial, as well as an injunction prohibiting Nvidia or its employees from using or disclosing Valeo's trade secrets. A date for jury trial has yet to be announced.

Bitcoin

Massive Cryptocurrency Rig Discovered Under Polish Court's Floor, Stealing Power (arstechnica.com) 20

According to Polish news channel TVN24, a secret cryptomining rig was found under the floors of a Polish court, stealing thousands of Polish Zlotys worth of energy per month (the equivalent of roughly $250 per 1,000 Zlotys). "It's currently unknown how long the rig was running because the illegal operation went undetected, partly because the computers used were connected to the Internet through their own modems rather than through the court's network," reports Ars Technica. From the report: While no one has been charged yet with any crimes, the court seemingly has suspects. Within two weeks of finding the rig, the court terminated a contract with a company responsible for IT maintenance in the building, TVN24 reported. Before the contract ended, the company fired two employees that it said were responsible for maintenance in the parts of the building where the cryptomine was hidden. Poland's top law enforcement officials, the Internal Security Agency, have been called in to investigate. The Warsaw District Prosecutor's Office has hired IT experts to help determine exactly how much electricity was stolen from Poland's Supreme Administrative Court in Warsaw, TVN24 reported.

The Supreme Administrative Court is the last resort for sensitive business and tax disputes, but no records seem to have been compromised. Judge Sylwester Marciniak -- the chairman of the Judicial Information Department of the Supreme Administrative Court -- told TVN24 that the discovery of the cryptomine "did not result in any threat to the security of data stored" in the court.

The Courts

Sarah Silverman Hits Stumbling Block in AI Copyright Infringement Lawsuit Against Meta (hollywoodreporter.com) 93

Winston Cho writes via The Hollywood Reporter: A federal judge has dismissed most of Sarah Silverman's lawsuit against Meta over the unauthorized use of authors' copyrighted books to train its generative artificial intelligence model, marking the second ruling from a court siding with AI firms on novel intellectual property questions presented in the legal battle. U.S. District Judge Vince Chhabria on Monday offered a full-throated denial of one of the authors' core theories that Meta's AI system is itself an infringing derivative work made possible only by information extracted from copyrighted material. "This is nonsensical," he wrote in the order. "There is no way to understand the LLaMA models themselves as a recasting or adaptation of any of the plaintiffs' books."

Another of Silverman's arguments that every result produced by Meta's AI tools constitutes copyright infringement was dismissed because she didn't offer evidence that any of the outputs "could be understood as recasting, transforming, or adapting the plaintiffs' books." Chhabria gave her lawyers a chance to replead the claim, along with five others that weren't allowed to advance. Notably, Meta didn't move to dismiss the allegation that the copying of books for purposes of training its AI model rises to the level of copyright infringement.
In July, Silverman and two authors filed a class action lawsuit against Meta and OpenAI for allegedly using their content without permission to train AI language models.
United States

Binance Founder Changpeng Zhao Agrees To Step Down, Plead Guilty (wsj.com) 42

The chief executive of Binance, the largest global cryptocurrency exchange, plans to step down and plead guilty to violating criminal U.S. anti-money laundering requirements, in a deal that may preserve the company's ability to continue operating, WSJ reported Tuesday, citing people familiar with the matter. From the report: Changpeng Zhao is scheduled to appear in Seattle federal court Tuesday afternoon and enter his plea, the people said. Binance, which Zhao owns, will also plead guilty to a criminal charge and agree to pay fines totaling $4.3 billion, which includes amounts to settle civil allegations made by regulators, the people said. The deal would end long-running investigations of Binance. [...] The deal would allow Zhao to retain his majority ownership of Binance, although he won't be able to have an executive role at the company. He would face sentencing at a later date.
Android

Epic Games' Sweeney Takes Aim at Android's 'Fake Open Platform' (bloomberg.com) 28

Epic Games Chief Executive Officer Tim Sweeney testified that Google's Android operating system is a "fake open platform" in a high-stakes antitrust lawsuit over claims that the technology giant thwarts app market competition. From a report: Sweeney, who founded the company that makes the blockbuster Fortnite, took the witness stand Monday in San Francisco federal court to reinforce his claims that Google Play policies are unlawful and allow Alphabet to maintain a monopoly in the Android mobile-app distribution market. The court fight started in 2020 when Epic marketed Fortnite on Android and sidestepped the Google Play billing system and the 30% revenue cut it was taking from app developers.

"We very much wanted to avoid that and do business directly with our customers," Sweeney told jurors. Google denies abusing its market power. The jury trial started two weeks ago and is expected to wrap up in early December. If Epic prevails, Google could be forced to allow competing app marketplaces and payment methods on its app store, threatening billions of dollars in revenue generated by Google Play. Sweeney previously testified in a 2021 trial in a similar antitrust suit targeting Apple's App Store policies as unfair and self-serving. Epic mostly lost that fight, which was decided by a federal judge in Oakland, California, after a trial. An appeals court upheld the judge's ruling and Epic is now asking the US Supreme Court to review it.

Google

A Secret Google Deal Let Spotify Completely Bypass Android's App Store Fees (theverge.com) 22

An anonymous reader quotes a report from The Verge: Music streaming service Spotify struck a seemingly unique and highly generous deal with Google for Android-based payments, according to new testimony in the Epic v. Google trial. On the stand, Google head of global partnerships Don Harrison confirmed Spotify paid a 0 percent commission when users chose to buy subscriptions through Spotify's own system. If the users picked Google as their payment processor, Spotify handed over 4 percent -- dramatically less than Google's more common 15 percent fee. Google fought to keep the Spotify numbers private during its antitrust fight with Epic, saying they could damage negotiations with other app developers who might want more generous rates.

Google's User Choice Billing program, launched in 2022, is typically described as shaving about 4 percent off Google's Play Store commission if developers use their own payment system, bringing down Google's 15 percent subscription service fee to more like 11 percent. That often ends up saving developers little or no money since they must foot the cost of payment processing themselves. And in court, Google has focused on benefits like greater flexibility rather than cost savings. [...] Harrison says Spotify's "unprecedented" popularity was great enough to justify a "bespoke" deal. "If we don't have Spotify working properly across Play services and core services, people will not buy Android phones," Harrison testified. As part of the deal, both parties also agreed to commit $50 million apiece to a "success fund."

Google acknowledged Harrison's testimony in a statement to The Verge. "A small number of developers that invest more directly in Android and Play may have different service fees as part of a broader partnership that includes substantial financial investments and product integrations across different form factors," says spokesperson Dan Jackson. "These key investment partnerships allow us to bring more users to Android and Play by continuously improving the experience for all users and create new opportunities for all developers." Google would not name other developers that have gotten the company to agree to more generous rates. During the trial, we learned that Google offered Netflix a special discounted rate of just 10 percent, but Netflix refused. Netflix no longer offers an in-app purchase option on Android and no longer pays Google anything to distribute its app as a result.

The Almighty Buck

Venmo, Cash App Users Sue Apple Over Peer-To-Peer Payment Fees (reuters.com) 24

An anonymous reader quotes a report from Reuters: Apple has been sued by Venmo and Cash App customers in a proposed class action claiming the iPhone maker abused its market power to curb competition for mobile peer-to-peer payments, causing consumers to pay "rapidly inflating prices." Four consumers in New York, Hawaii, South Carolina and Georgia filed the lawsuit (PDF) on Friday in San Jose, California, federal court. They alleged Apple violated U.S. antitrust law through its agreements with PayPal's Venmo and Block's Cash App.

Apple's agreements limit "feature competition" within peer-to-peer payment apps, including prohibiting existing or new platforms from using "decentralized cryptocurrency technology," the complaint said. The lawsuit seeks an injunction that could force Apple to divest or segregate its Apple Cash business.

China

In World's Largest Disinformation Campaign Online, China Is Harassing Americans (cnn.com) 208

"The Chinese government has built up the world's largest known online disinformation operation," reports CNN, "and is using it to harass US residents, politicians, and businesses."

CNN reports that disinformation operation is even "at times threatening its targets with violence, a CNN review of court documents and public disclosures by social media companies has found." The onslaught of attacks — often of a vile and deeply personal nature — is part of a well-organized, increasingly brazen Chinese government intimidation campaign targeting people in the United States, documents show. The U.S. State Department says the tactics are part of a broader multi-billion-dollar effort to shape the world's information environment and silence critics of Beijing that has expanded under President Xi Jinping... Victims face a barrage of tens of thousands of social media posts that call them traitors, dogs, and racist and homophobic slurs.

They say it's all part of an effort to drive them into a state of constant fear and paranoia. Often, these victims don't know where to turn. Some have spoken to law enforcement, including the FBI — but little has been done. While tech and social media companies have shut down thousands of accounts targeting these victims, they're outpaced by a slew of new accounts emerging virtually every day. Known as "Spamouflage" or "Dragonbridge," the network's hundreds of thousands of accounts spread across every major social media platform have not only harassed Americans who have criticized the Chinese Communist Party, but have also sought to discredit U.S. politicians, disparage American companies at odds with China's interests and hijack online conversations around the globe that could portray the CCP in a negative light.

Some numbers from the article:
  • Meta "announced in August it had taken down a cluster of nearly 8,000 accounts attributed to this group in the second quarter of 2023 alone."
  • YouTube owner Google "told CNN it had shut down more than 100,000 associated accounts in recent years."
  • X "has blocked hundreds of thousands of China 'state-backed' or "state-linked" accounts, according to company blogs."

Canada

Canada Court Overturns Government Ruling That Some Plastics Are Toxic (reuters.com) 35

A court in Canada struck down a regulation classifying some plastic products as toxic, "a ruling that could hurt a push by Ottawa to ban single-use plastic items like bags, straws and forks." From the report: A ban on manufacturing and importing "harmful" single-use plastics came into effect last December after the federal government formally drew up a order that added them to a list of toxic items. But the Federal Court in Ottawa overturned that decision, calling the listing "unreasonable and unconstitutional." The case was brought by plastics manufacturers such as Dow Inc as well as Imperial Oil.

The office of Environment Minister Stephen Guilbeault said it was considering an appeal. "We strongly believe in taking action to tackle this crisis and keep millions of garbage bags worth of trash off our beaches, out of our waters, and away from nature," spokeswoman Kaitlin Power said in a statement.

United States

Almost No One Pays a 6% Real-Estate Commission - Except Americans (wsj.com) 144

The way we buy and sell homes in the U.S. isn't normal -- at least not compared with the rest of the world. From a report: The commission on a home sale here is typically around 5% to 6%, usually split between the seller's and buyer's agents. In most countries, the commissions are substantially smaller. The U.S. is home to as many as three million agents. By most estimates, no other country is even a close second.

Though it is unclear how much a court decision on commissions last month will upend American real estate, if at all, the ruling opens up the possibility of forever changing how agents are paid for their work. And looking at home sales around the world offers a window into what could be in store. One reason commissions here remain high is the use of buyer agents, said Ryan Tomasello, managing director at investment bank Keefe, Bruyette & Woods. Home sellers pay the commission -- typically between 5% and 6% of a home's selling price -- which is usually split between the seller's and buyer's agent. Buyer agents aren't nearly as common in other parts of the world, said Tomasello.

[...] In the pre-internet days, a buyer agent's main job was to screen and filter listings for hopeful home buyers. Today, much of that early house hunting can be done online. So the role of the buyer agent has shifted more to providing advice and support, as well as recommendations for home inspectors, lenders and lawyers. A good buyer agent will know how to make a strong offer and may push to lower the home price. In most countries, buyer agents are much less of a factor.

Google

Google Paid $8 Billion To Make Its Apps Default On Samsung Phones 32

Lauren Irwin reports via The Hill: Google agreed to pay $8 billion over four years to Samsung to make its apps default on Samsung phones, according to information presented by Epic Games in court. James Kolotouros, vice president for partnerships at Google, testified Monday in a San Francisco trial, saying that the company and Samsung were to share app store revenue to ensure Android mobile devices came with Google Play preinstalled. Epic, the company that makes the popular video game "Fortnite," sued Google in 2020, alleging the company's app marketplace violates antitrust laws.

Epic is trying to show that Google executives have discouraged third-party app stores on Samsung devices so it wouldn't cut into the profit of Google Play, Bloomberg reported. According to Kolotouros's testimony, half or more of Google Play revenue comes from Samsung devices. The trial targets the app store that distributes apps for the company's Android software, which powers virtually all the world's smartphones that aren't made by Apple.

Epic alleges Google has created an illegal monopoly on Android apps so it can boost its profits through commissions, ranging from 15 to 30 percent on purchases made within an app. Google argues it was doing so to compete with Apple and its app store, an argument attacked by Epic attorney Lauren Moskowitz. Earlier in the trial, Google's attorney said the company can't be a monopoly because it faces competition from companies such as Apple.
Further reading: Apple Gets 36% of Google Revenue in Search Deal, Witness Says
The Courts

Social Media Giants Must Face Child Safety Lawsuits, Judge Rules (theverge.com) 53

Emma Roth reports via The Verge: Meta, ByteDance, Alphabet, and Snap must proceed with a lawsuit alleging their social platforms have adverse mental health effects on children, a federal court ruled on Tuesday. US District Judge Yvonne Gonzalez Rogers rejected the social media giants' motion to dismiss the dozens of lawsuits accusing the companies of running platforms "addictive" to kids. School districts across the US have filed suit against Meta, ByteDance, Alphabet, and Snap, alleging the companies cause physical and emotional harm to children. Meanwhile, 42 states sued Meta last month over claims Facebook and Instagram "profoundly altered the psychological and social realities of a generation of young Americans." This order addresses the individual suits and "over 140 actions" taken against the companies.

Tuesday's ruling states that the First Amendment and Section 230, which says online platforms shouldn't be treated as the publishers of third-party content, don't shield Facebook, Instagram, YouTube, TikTok, and Snapchat from all liability in this case. Judge Gonzalez Rogers notes many of the claims laid out by the plaintiffs don't "constitute free speech or expression," as they have to do with alleged "defects" on the platforms themselves. That includes having insufficient parental controls, no "robust" age verification systems, and a difficult account deletion process.

"Addressing these defects would not require that defendants change how or what speech they disseminate," Judge Gonzalez Rogers writes. "For example, parental notifications could plausibly empower parents to limit their children's access to the platform or discuss platform use with them." However, Judge Gonzalez Rogers still threw out some of the other "defects" identified by the plaintiffs because they're protected under Section 230, such as offering a beginning and end to a feed, recommending children's accounts to adults, the use of "addictive" algorithms, and not putting limits on the amount of time spent on the platforms.

Crime

Person Linked To Scam Asks FBI for His Seized Cryptocurrency Back (404media.co) 46

A person linked to a scam that tricked an elderly victim into transferring more than $100,000 formally requested the FBI give back his seized cryptocurrency, claiming in a petition to the agency that he is a part-time crypto investor and not doing anything illegal, according to a recently filed court record. From a report: 404 Media also reached the person by email and they largely repeated the same story. The request is an unusual sight, and, to be frank, probably not going to work. In the court record, authorities allege that the frozen funds are linked to a scam of a victim in the U.S. The document says authorities seized just under 18,500 Tether, valued at around $18,500, in July with a federal search warrant.

"Hello Sir/Ma'am, My name is Vishal Gautam," the request starts. "The funds which you have on hold that is a very big amount of money for me and my family, I request you to please release it from your custody. Thank You & Regards." The message says that Gautam lives in India and as well as investing in cryptocurrency, he is a "full-time Health Insurance" worker. "In the month of July 2023 suddenly my crypto from Binance got disappeared, I don't know how it happened but then I got to know that the FBI has put hold on my assets," the message continues. "I am not into something illegal and never will be, I will not do any such thing that can harm your country or your people in any manner." U.S. authorities, meanwhile, allege that the seized cash is connected to a fraud scheme that targeted a senior citizen in Knoxville, Iowa. In February, this victim opened an email on her iPad that claimed it had been compromised, and that she needed to contact the sender for assistance, according to the court record.

Google

Apple Gets 36% of Google Revenue in Search Deal, Witness Says (bloomberg.com) 17

Google pays Apple 36% of the revenue it earns from search advertising made through the Safari browser, the main economics expert for the Alphabet unit said Monday. From a report: Kevin Murphy, a University of Chicago professor, disclosed the number during his testimony in Google's defense at the Justice Department's antitrust trial in Washington. John Schmidtlein, Google's main litigator, visibly cringed when Murphy said the number, which was supposed to remain confidential.

Both Google and Apple had objected to revealing details publicly about their agreement. In a court filing last week, Google argued that revealing additional information about the deal "would unreasonably undermine Google's competitive standing in relation to both competitors and other counterparties."

Australia

Optus Loses Court Bid To Keep Report Into Cause of 2022 Cyber-Attack a Secret (theguardian.com) 27

Wednesday nearly half of Australia was left without internet or phone service after the country's second largest telecommunications company experienced a service outage affecting 10 million people.

But that's not Optus's only problem, according to this report from the Guardian: Optus has lost a bid in the federal court to keep secret a report on the cause of the 2022 cyber-attack — which resulted in the personal information of about 10 million customers being exposed — after a judge rejected the telco's legal privilege claim. After the hack, the company announced in October last year that it had recruited consultancy firm Deloitte to conduct a forensic assessment of what had led to the cyber-attack. Since then, the company has also faced an investigation by the Office of the Australian Information Commissioner, and a class action case in the federal court. As part of the class action case, law firm Slater and Gordon, acting for the applicants, had sought access to the Deloitte report that was never made public...

It came as the embattled CEO faces pressure over the company's handling of a 14-hour outage on Wednesday, that took phone and internet services offline for 10 million customers, delayed trains, disconnected call centres and hospital phone lines. The company has not announced any independent report into the incident, but it is now subject to two government investigations and a Senate inquiry.

AI

Former President Obama Warns 'Disruptive' AI May Require Rethinking Jobs and the Economy (theverge.com) 151

This week the Verge's podcast Decoder interviewed former U.S. president Barack Obama for a discussion on "AI, free speech, and the future of the internet."

Obama warns that future copyright questions are just part of a larger issue. "If AI turns out to be as pervasive and as powerful as it's proponents expect — and I have to say the more I look into it, I think it is going to be that disruptive — we are going to have to think about not just intellectual property; we are going to have to think about jobs and the economy differently."

Specific issues may include the length of the work week and the fact that health insurance coverage is currently tied to employment — but it goes far beyond that: The broader question is going to be what happens when 10% of existing jobs now definitively can be done by some large language model or other variant of AI? And are we going to have to reexamine how we educate our kids and what jobs are going to be available...?

The truth of the matter is that during my presidency, there was I think a little bit of naivete, where people would say, you know, "The answer to lifting people out of poverty and making sure they have high enough wages is we're going to retrain them and we're going to educate them, and they should all become coders, because that's the future." Well, if AI's coding better than all but the very best coders? If ChatGPT can generate a research memo better than the third-, fourth-year associate — maybe not the partner, who's got a particular expertise or judgment? — now what are you telling young people coming up?

While Obama believes in the transformative potential of AI, "we have to be maybe a little more intentional about how our democracies interact with what is primarily being generated out of the private sector. What rules of the road are we setting up, and how can we make sure that we maximize the good and maybe minimize some of the bad?"

AI's impact will be a global problem, Obama believes, which may require "cross-border frameworks and standards and norms". (He expressed a hope that governments can educate the public on the idea that AI is "a tool, not a buddy".) During the 44-minute interview Obama predicted AI will ultimately force a "much more robust" public conversation about rules needed for social media — and that at least some of that pressure could come from how consumers interact with companies. (Obama also argues there will still be a market for products that don't just show you what you want to see.)

"One of Obama's worries is that the government needs insight and expertise to properly regulate AI," writes the Verge's editor-in-chief in an article about the interview, "and you'll hear him make a pitch for why people with that expertise should take a tour of duty in the government to make sure we get these things right." You'll hear me get excited about a case called Red Lion Broadcasting v. FCC, a 1969 Supreme Court decision that said the government could impose something called the Fairness Doctrine on radio and television broadcasters because the public owns the airwaves and can thus impose requirements on how they're used. There's no similar framework for cable TV or the internet, which don't use public airwaves, and that makes them much harder, if not impossible, to regulate. Obama says he disagrees with the idea that social networks are something called "common carriers" that have to distribute all information equally.
Obama also applauded last month's newly-issued Executive Order from the White House, a hundred-page document which Obama calls important as "the beginning of building out a framework." We don't know all the problems that are going to arise out of this. We don't know all the promising potential of AI, but we're starting to put together the foundations for what we hope will be a smart framework for dealing with it... In talking to the companies themselves, they will acknowledge that their safety protocols and their testing regimens may not be where they need to be yet. I think it's entirely appropriate for us to plant a flag and say, "All right, frontier companies, you need to disclose what your safety protocols are to make sure that we don't have rogue programs going off and hacking into our financial system," for example. Tell us what tests you're using. Make sure that we have some independent verification that right now this stuff is working.

But that framework can't be a fixed framework. These models are developing so quickly that oversight and any regulatory framework is going to have to be flexible, and it's going to have to be nimble.

The Courts

Apple Will Pay $25 Million In DOJ Discrimination Settlement (cnbc.com) 19

schwit1 shares a report from CNBC: Apple will pay $25 million in back pay and civil penalties to settle a matter over the company's hiring practices under the Immigration and Nationality Act, the Department of Justice announced Thursday. Apple has agreed to pay $6.75 million in civil penalties and establish an $18.25 million fund for back pay to eligible discrimination victims, the DOJ said in a release.

Apple was accused of not advertising positions that it wanted to fill through a federal program called Permanent Labor Certification Program or PERM, which allows U.S. companies to recruit workers who can become permanent U.S. residents after completing a number of requirements. The DOJ said that it believed that Apple followed procedures that were designed to favor current Apple employees holding temporary visas who wanted to become permanent employees. In particular, Apple was accused of not advertising positions on its external website and erecting hurdles such as requiring mailed paper applications, which the DOJ alleges means that some applicants to Apple jobs were not properly considered under federal law.

"These less effective recruitment procedures deterred U.S. applicants from applying and nearly always resulted in zero or very few mailed applications that Apple considered for PERM-related job positions, which allowed Apple to fill the positions with temporary visa holders," according to the settlement agreement between Apple and DOJ. Apple contests the accusation, according to the agreement, and says that it believes it was following the appropriate Department of Labor regulations. Apple also contests that any failures were the result of inadvertent errors and not discrimination, according to the agreement.

Google

Google Only Improves Products Under Pressure, US Argues (bloomberg.com) 29

Google -- under fire in court for allegedly resting on its laurels thanks to its 90% market dominance -- only made an effort to beef up the quality of its search engine in the European Union after being hit by a record antitrust fine, according to internal documents revealed in the US Justice Department's monopolization case against the tech giant. From a report: The Justice Department is arguing at a trial in Washington that Google's failure to improve its products -- unless put under pressure -- proves that it's illegally maintaining its monopoly. Alphabet's Google planned to improve its European search results only after a record 2018 European antitrust fine, according to the documents, which revealed that Google executives discussed a plan dubbed "Go Big in Europe."

The plan aimed to improve results in France and Germany in 2019 and 2020 with changes such as adding post-game soccer video highlights, more local content and news, pronunciation practice for different languages and more information on local television options available for streaming. The catalyst was a 2018 EU antitrust order that forced Google to offer a choice screen giving Android phone users five search engine options to choose from, according to US antitrust enforcers trying the case.

Google

Google Offered Epic $147 Million To Launch Fortnite on the Play Store (theverge.com) 21

Google has confirmed in court that Epic was offered a $147 million deal to launch its hit game Fortnite on Android's Google Play Store. From a report: The deal, which Google's VP of Play partnerships, Purnima Kochikar, says was approved and presented to Epic but not accepted, would have seen the money dispensed over a three-year period of "incremental funding" (ending in 2021) to the games publisher. It was meant to stem a potential "contagion" of popular apps bypassing Android's official store and, with it, Google's lucrative in-app purchase fees.

Epic launched Fortnite on Android in 2018 directly through its website, avoiding the Play Store. That allowed it to sell Fortnite's in-game currency, V-Bucks, without paying the commission required of Play Store apps. It relented in 2020, saying that "scary, repetitive security pop-ups" and other factors had put it at a severe disadvantage. But in an antitrust lawsuit filed later that year -- and currently being argued before a jury -- it alleged its initial decision had thrown Google into a panic. It cited internal documents claiming Google feared a "contagion risk" if other game developers (including Blizzard, Valve, Sony, and Nintendo) followed Epic's lead, and it claimed Google attempted to forestall it by offering special benefits or even buying Epic.

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