China

China-Netherlands Chip Fight Turns Into Corporate Civil War 43

The bitter standoff between Dutch chipmaker Nexperia -- which supplies basic chips crucial to 49% of European automakers, over 85% of medical device companies, and the entire defense industry -- and its Chinese parent company Wingtech escalated on Friday when both Wingtech and Nexperia's Chinese unit accused the Dutch business of secretly building a supply chain that would cut China out entirely. The accusations came one day after Nexperia's Dutch headquarters published an open letter claiming it had repeatedly tried and failed to contact its Chinese unit.

Nexperia China demanded the Dutch side halt its overseas expansion plans, specifically a $300 million investment in a Malaysian plant, and alleged an internal company target to source 90% of production outside China by mid-2026. The Chinese unit also accused its European counterparts of deleting employee email accounts and cutting off access to IT systems. The dispute traces back to September when the Dutch government invoked a Cold War-era law to seize control of Nexperia on economic security grounds.

An Amsterdam court subsequently stripped Wingtech of its ownership rights. Beijing retaliated by halting exports of finished Nexperia chips on October 4, triggering warnings of production shutdowns from automakers including Nissan and Bosch. Export curbs were relaxed in early November, and the Dutch government suspended its intervention last week following talks, but the court ruling remains in force. Wingtech warned that supply disruptions could return if the control issue remains unresolved.
The Courts

Apple Asks Indian Court to Block Antitrust Law Allowing $38 Billion Fine 35

Apple is challenging a new Indian antitrust law that would let regulators calculate penalties based on global revenue -- a change that could expose the company to a fine of roughly $38 billion in its dispute with Tinder owner Match. The 2022 antitrust case centers on accusations that Apple abused its power by forcing developers to use its in-app purchase system. MacRumors reports: Last year, India passed a law that allows the Competition Commission of India (CCI) to use global turnover when calculating penalties imposed on companies for abusing market dominance. Apple can be fined up to 10 percent, which would result in a penalty of around $38 billion. Apple said that using global turnover would result in a fine that's "manifestly arbitrary, unconstitutional, grossly disproportionate, and unjust."

Apple is asking India's Delhi High Court to declare the law illegal, suggesting that penalties should be based on the Indian revenue of the specific unit that violates antitrust law. [...] Apple said in today's filing that the CCI used the new penalty law on November 10 in an unrelated case, fining a company for a violation that happened 10 years ago. Apple said it had "no choice but to bring this constitutional challenge now" to avoid having retrospective penalties applied against it, too. Match has argued that a high fine based on global turnover would discourage companies from repeating antitrust violations. Apple's plea will be heard on December 3.
AI

OpenAI Says Dead Teen Violated TOS When He Used ChatGPT To Plan Suicide 125

An anonymous reader quotes a report from Ars Technica: Facing five lawsuits alleging wrongful deaths, OpenAI lobbed its first defense Tuesday, denying in a court filing that ChatGPT caused a teen's suicide and instead arguing the teen violated terms that prohibit discussing suicide or self-harm with the chatbot. The earliest look at OpenAI's strategy to overcome the string of lawsuits came in a case where parents of 16-year-old Adam Raine accused OpenAI of relaxing safety guardrails that allowed ChatGPT to become the teen's "suicide coach." OpenAI deliberately designed the version their son used, ChatGPT 4o, to encourage and validate his suicidal ideation in its quest to build the world's most engaging chatbot, parents argued.

But in a blog, OpenAI claimed that parents selectively chose disturbing chat logs while supposedly ignoring "the full picture" revealed by the teen's chat history. Digging through the logs, OpenAI claimed the teen told ChatGPT that he'd begun experiencing suicidal ideation at age 11, long before he used the chatbot. "A full reading of his chat history shows that his death, while devastating, was not caused by ChatGPT," OpenAI's filing argued. [...] All the logs that OpenAI referenced in its filing are sealed, making it impossible to verify the broader context the AI firm claims the logs provide. In its blog, OpenAI said it was limiting the amount of "sensitive evidence" made available to the public, due to its intention to handle mental health-related cases with "care, transparency, and respect."
The Raine family's lead lawyer called OpenAI's response "disturbing."

"They abjectly ignore all of the damning facts we have put forward: how GPT-4o was rushed to market without full testing. That OpenAI twice changed its Model Spec to require ChatGPT to engage in self-harm discussions. That ChatGPT counseled Adam away from telling his parents about his suicidal ideation and actively helped him plan a 'beautiful suicide.' And OpenAI and Sam Altman have no explanation for the last hours of Adam's life, when ChatGPT gave him a pep talk and then offered to write a suicide note."

OpenAI is leaning on its usage policies to defend against this case, emphasizing that "ChatGPT users acknowledge their use of ChatGPT is 'at your sole risk'" and that Raine should never have been allowed to use the chatbot without parental consent.
AI

Warner Music Group Partners With Suno To Offer AI Likenesses of Its Artists 31

Warner Music Group has reached a licensing deal with Suno that will let users create AI-generated music using the voices and likenesses of artists who opt in. WMG says participating artists will have "full control" over how their likeness and music are used. "These will be new creation experiences from artists who do opt in, which will open up new revenue streams for them and allow you to interact with them in new ways," Suno says, adding that users will be able to "build around" an artist's sounds "and ensure they get compensated." WMG is also dropping its previous lawsuit accusing Suno of scraping copyrighted material.

"Along with the licensing agreement, Suno is planning to use licensed music from WMG to build next-gen music generation models that it claims will surpass its flagship v5 model," adds The Verge. "It will also start requiring users to have a paid account to download songs starting next year, with each tier providing a specific number of downloads each month."

Further reading: First 'AI Music Creator' Signed by Record Label. More Ahead, or Just a Copyright Quandry?
Electronic Frontier Foundation

Court Ends Dragnet Electricity Surveillance Program in Sacramento (eff.org) 52

A California judge has shut down a decade-long surveillance program in which Sacramento's utility provider shared granular smart-meter data on 650,000 residents with police to hunt for cannabis grows. The EFF reports: The Sacramento County Superior Court ruled that the surveillance program run by the Sacramento Municipal Utility District (SMUD) and police violated a state privacy statute, which bars the disclosure of residents' electrical usage data with narrow exceptions. For more than a decade, SMUD coordinated with the Sacramento Police Department and other law enforcement agencies to sift through the granular smart meter data of residents without suspicion to find evidence of cannabis growing. EFF and its co-counsel represent three petitioners in the case: the Asian American Liberation Network, Khurshid Khoja, and Alfonso Nguyen. They argued that the program created a host of privacy harms -- including criminalizing innocent people, creating menacing encounters with law enforcement, and disproportionately harming the Asian community.

The court ruled that the challenged surveillance program was not part of any traditional law enforcement investigation. Investigations happen when police try to solve particular crimes and identify particular suspects. The dragnet that turned all 650,000 SMUD customers into suspects was not an investigation. "[T]he process of making regular requests for all customer information in numerous city zip codes, in the hopes of identifying evidence that could possibly be evidence of illegal activity, without any report or other evidence to suggest that such a crime may have occurred, is not an ongoing investigation," the court ruled, finding that SMUD violated its "obligations of confidentiality" under a data privacy statute. [...]

In creating and running the dragnet surveillance program, according to the court, SMUD and police "developed a relationship beyond that of utility provider and law enforcement." Multiple times a year, the police asked SMUD to search its entire database of 650,000 customers to identify people who used a large amount of monthly electricity and to analyze granular 1-hour electrical usage data to identify residents with certain electricity "consumption patterns." SMUD passed on more than 33,000 tips about supposedly "high" usage households to police. [...] Going forward, public utilities throughout California should understand that they cannot disclose customers' electricity data to law enforcement without any "evidence to support a suspicion" that a particular crime occurred.

The Courts

SEC Dismisses Case Against SolarWinds, Top Security Officer (reuters.com) 16

The SEC has officially dismissed its high-profile case against SolarWinds and its CISO that was tied to a Russia-linked cyberattack involving the software company. Reuters reports: The landmark case, which SEC brought in late 2023, rattled the cybersecurity community and later faced scrutiny from a judge who dismissed many of the charges. The SEC had said SolarWinds and its chief information security officer had violated U.S. securities laws by concealing vulnerabilities in connection with the high-profile 2020 Sunburst cyber attack. The SEC, SolarWinds and CISO Timothy Brown filed a motion on Thursday to dismiss the case with prejudice, according to a joint stipulation posted on the agency's website. A SolarWinds spokesperson said the firm is "clearly delighted" with the dismissal.

"We hope this resolution eases the concerns many CISOs have voiced about this case and the potential chilling effect it threatened to impose on their work," the spokesperson said.
China

Tech Company CTO and Others Indicted For Exporting Nvidia Chips To China (arstechnica.com) 11

An anonymous reader quotes a report from Ars Technica: The US crackdown on chip exports to China has continued with the arrests of four people accused of a conspiracy to illegally export Nvidia chips. Two US citizens and two nationals of the People's Republic of China (PRC), all of whom live in the US, were charged in an indictment (PDF) unsealed on Wednesday in US District Court for the Middle District of Florida. The indictment alleges a scheme to send Nvidia "GPUs to China by falsifying paperwork, creating fake contracts, and misleading US authorities," John Eisenberg, assistant attorney general for the Justice Department's National Security Division, said in a press release yesterday.

The four arrestees are Hon Ning Ho (aka Mathew Ho), a US citizen who was born in Hong Kong and lives in Tampa, Florida; Brian Curtis Raymond, a US citizen who lives in Huntsville, Alabama; Cham Li (aka Tony Li), a PRC national who lives in San Leandro, California; and Jing Chen (aka Harry Chen), a PRC national who lives in Tampa on an F-1 non-immigrant student visa. The suspects face a raft of charges for conspiracy to violate the Export Control Reform Act of 2018, smuggling, and money laundering. They could serve many decades in prison if convicted and given the maximum sentences and forfeit their financial gains. The indictment says that Chinese companies paid the conspirators nearly $3.9 million.
One of the suspects was briefly the CTO of Corvex, a Virginia-based AI cloud computing company that is planning to go public. Corvex told CNBC yesterday that it "had no part in the activities cited in the Department of Justice's indictment," and that "the person in question is not an employee of Corvex. Previously a consultant to the company, he was transitioning into an employee role but that offer has been rescinded."
The Courts

Proctorio Settles Curious Lawsuit With Librarian Who Shared Public YouTube Videos (arstechnica.com) 20

Canadian librarian Ian Linkletter has ended a five-year legal battle with ed-tech firm Proctorio after being sued for sharing public YouTube help videos that exposed how the company's remote-proctoring AI works. Ars Technica reports: ... Together, the videos, the help center screenshot, and another screenshot showing course material describing how Proctorio works were enough for Proctorio to take Linkletter to court. The ed tech company promptly filed a lawsuit and obtained a temporary injunction by spuriously claiming that Linkletter shared private YouTube videos containing confidential information. Because the YouTube videos -- which were public but "unlisted" when Linkletter shared them -- had been removed, Linkletter did not have to delete the seven tweets that initially caught Proctorio's attention, but the injunction required that he remove two tweets, including the screenshots.

In the five years since, the legal fight dragged on, with no end in sight until last week, as Canadian courts tangled with copyright allegations that tested a recently passed law intended to shield Canadian rights to free expression, the Protection of Public Participation Act. To fund his defense, Linkletter said in a blog announcing the settlement that he invested his life savings "ten times over." Additionally, about 900 GoFundMe supporters and thousands of members of the Association of Administrative and Professional Staff at UBC contributed tens of thousands more. For the last year of the battle, a law firm, Norton Rose Fulbright, agreed to represent him on a pro bono basis, which Linkletter said âoewas a huge relief to me, as it meant I could defend myself all the way if Proctorio chose to proceed with the litigation."

The terms of the settlement remain confidential, but both Linkletter and Proctorio confirmed that no money was exchanged. For Proctorio, the settlement made permanent the injunction that restricted Linkletter from posting the company's help center or instructional materials. But it doesn't stop Linkletter from remaining the company's biggest critic, as "there are no other restrictions on my freedom of expression," Linkletter's blog noted. "I've won my life back!" Linkletter wrote, while reassuring his supporters that he's "fine" with how things ended. "It doesn't take much imagination to understand why Proctorio is a nightmare for students," Linkletter wrote. "I can say everything that matters about Proctorio using public information."

Piracy

Tokyo Court Finds Cloudflare Liable For Manga Piracy in Long-Running Lawsuit (torrentfreak.com) 23

A Tokyo court ruled that Cloudflare is liable for aiding manga piracy after failing to act on infringement notices and continuing to cache and serve content for major piracy sites, awarding about $3.2 million in damages. TorrentFreak says the decision sets a significant precedent in Japan, suggesting CDN providers can face direct liability when they don't verify customers or respond adequately to large-scale copyright abuse. From the report: After a wait of more than three and a half years, the Tokyo District Court rendered its decision this morning. In a statement provided to TorrentFreak by the publishers, they declare "Victory Against Cloudflare" after the Court determined that Cloudflare is indeed liable for the pirate sites' activities. In a statement provided to TorrentFreak, the publishers explain that they alerted Cloudflare to the massive scale of the infringement, involving over 4,000 works and 300 million monthly visits, but their requests to stop distribution were ignored.

"We requested that the company take measures such as stopping the distribution of pirated content from servers under its management. However, Cloudflare continued to provide services to the manga piracy sites even after receiving notices from the plaintiffs," the group says. The publishers add that Cloudflare continued to provide services even after receiving information disclosure orders from U.S. courts, leaving them with "no choice but to file this lawsuit."

"The judgment recognized that Cloudflare's failure to take timely and appropriate action despite receiving infringement notices from the plaintiffs, and its negligent continuation of pirated content distribution, constituted aiding and abetting copyright infringement, and that Cloudflare bears liability for damages to the plaintiffs," they write. "The judgment, in that regard, attached importance to the fact that Cloudflare, without conducting any identity verification procedures, had enabled a massive manga piracy site to operate "under circumstances where strong anonymity was secured,' as a basis for recognizing the company's liability."

The publishers believe that the judgment clarifies the conditions under which a company such as Cloudflare incurs liability for copyright infringement. Failure to carry out identity verification appears at the top of the publishers' list, followed by a lack of timely and appropriate action in response to infringement notices sent by rightsholders. "We believe this is an important decision given the current situation where piracy site operators often hide their identities and repeatedly conduct large-scale distribution using CDN services from overseas. We hope that this judgment will be a step toward ensuring proper use of CDN services. We will continue our efforts to protect the rights of works, creators, and related parties, while aiming for further expansion of legitimate content," the publishers conclude.
Cloudflare plans to appeal the verdict.
Businesses

Netgear Accused by Rival of China Smear To Fan Security Fear (msn.com) 34

An anonymous reader shares a report: California-based TP-Link says it may take a sales hit of more than $1 billion because of erroneous reports that the networking company's technology has been "infiltrated" by Beijing. In a lawsuit, TP-Link claims its competitor, Netgear, orchestrated a smear by planting false claims with journalists and internet influencers with the goal of scaring off customers.

Closely held TP-Link, which makes wireless routers, alleges in a complaint filed Monday that Netgear's campaign "threatens injury to well over a billion dollars in sales" and violates a 2024 settlement of a patent fight. That accord, in which TP-Link agreed to pay Netgear $135 million, includes a provision that the public company promises not to disparage its rival, according to the suit in Delaware federal court.

The suit comes as TP-Link faces growing scrutiny in Washington over national-security issues. US lawmakers from both parties have expressed concern that TP-Link's wireless equipment could be exploited by Chinese hackers following a series of attacks on its routers.

Privacy

IRS Accessed Massive Database of Americans Flights Without a Warrant (404media.co) 67

An anonymous reader shares a report: The IRS accessed a database of hundreds of millions of travel records, which show when and where a specific person flew and the credit card they used, without obtaining a warrant, according to a letter signed by a bipartisan group of lawmakers and shared with 404 Media. The country's major airlines, including Delta, United Airlines, American Airlines, and Southwest, funnel customer records to a data broker they co-own called the Airlines Reporting Corporation (ARC), which then sells access to peoples' travel data to government agencies.

The IRS case in the letter is the clearest example yet of how agencies are searching the massive trove of travel data without a search warrant, court order, or similar legal mechanism. Instead, because the data is being sold commercially, agencies are able to simply buy access. In the letter addressed to nine major airlines, the lawmakers urge them to shut down the data selling program. Update: after this piece was published, ARC said it already planned to shut down the program.

"Disclosures made by the IRS to Senator Wyden confirm that it did not follow federal law and its own policies in purchasing airline data from ARC," the letter reads. The letter says the IRS "confirmed that it did not conduct a legal review to determine if the purchase of Americans' travel data requires a warrant."

The Courts

NetChoice Sues Virginia To Block Its One-Hour Social Media Limit For Kids (theverge.com) 30

NetChoice is suing Virginia to block a new law that limits kids under 16 to one hour of daily social media use unless parents approve more time, arguing the rule violates the First Amendment and introduces serious privacy risks through mandatory age-verification. The Verge reports: In addition to restricting access to legal speech, NetChoice alleges that Virginia's incoming law (SB 854) will require platforms to verify user ages in ways that would pose privacy and security risks. The law requires platforms to use "commercially reasonable methods," which it says include a screen that prompts the user to enter a birth date. However, NetChoice argues that Virginia could go beyond this requirement, citing a post from Governor Youngkin on X, stating "platforms must verify age," potentially referring to stricter methods, like having users submit a government ID or other personal information.

NetChoice, which is backed by tech giants like Meta, Google, Amazon, Reddit, and Discord, alleges that the law puts a burden on minors' ability to engage or consume speech online. "The First Amendment prohibits the government from placing these types of restrictions on accessing lawful and valuable speech, just in the same way that the government can't tell you how long you could spend reading a book, watching a television program, or consuming a documentary," Paul Taske, the co-director of the Netchoice Litigation Center, tells The Verge.

"Virginia must leave the parenting decisions where they belong: with parents," Taske says. "By asserting that authority for itself, Virginia not only violates its citizens' rights to free speech but also exposes them to increased risk of privacy and security breaches."

Crime

Google Begins Aggresively Using the Law To Stop Text Message Scams (bgr.com) 18

"Google is going to court to help put an end to, or at least limit, the prevalence of phishing scams over text message," reports BGR: Google said it's bringing suit against Lighthouse, an impressively large operation that allegedly provides tools customers can buy to set up their own specialized phishing scams. All told, Google estimates that Lighthouse-affiliated scams in the U.S. have stolen anywhere between 12.7 million and 115 million credit cards. "Bad actors built Lighthouse as a phishing-as-a-service kit to generate and deploy massive SMS phishing attacks," Google notes. "These attacks exploit established brands like E-Z Pass to steal people's financial information."

Google's legal action is comprehensive and is intent on completely dismantling Lighthouse's operations. The search giant is bringing claims under RICO, the Lanham Act, and the Computer Fraud and Abuse Act (CFAA). RICO, which often comes up in movies and television shows, allows authorities to treat Lighthouse's phishing operation as a broad criminal enterprise as opposed to isolated scams. By using RICO, Google also expands the list of individuals who can be found liable, whether it be the people who started Lighthouse, the people who run it, or even unaffiliated customers who used the company's services. The Lanham Act, for those unaware, targets malicious actors who misappropriate well-known company trademarks in order to confuse consumers. This Lanham Act comes into play because many phishing scams masquerade as legitimate messages from companies like Amazon and FedEx. The Computer Fraud and Abuse Act, meanwhile, is relevant because scammers typically use stolen credentials to gain unauthorized access to financial systems, something the CFAA is designed to target...

The fact that Google is invoking all three of the acts above underscores how serious the company is about putting a stop to SMS-based scams. By using all three, Google's legal attack is more potent and also expands the range of available remedies to include civil damages and criminal penalties. In short, Google isn't merely trying to win a legal case; it's aiming to emphatically and permanently stop Lighthouse in its tracks.

Getting even more aggressive, Google says it's also working with the U.S. Congress to pass new anti-scammer legislation, and endorsed these three new bipartisan bills:
  • The Scam Compound Accountability and Mobilization (SCAM) Act "would develop a national strategy to counter scam compounds, enhance sanctions and support survivors of human trafficking within these compounds."
  • The Foreign Robocall Elimination Act "would establish a taskforce focused on how to best block foreign-originated illegal robocalls before they ever reach American consumers."
  • The Guarding Unprotected Aging Retirees from Deception (GUARD) Act "would empower state and local law enforcement by enabling them to utilize federal grant funding to investigate financial fraud and scams specifically targeting retirees. "

Thanks to Slashdot reader anderzole for sharing the article.


Crime

Five People Plead Quilty To Helping North Koreans Infiltrate US Companies (techcrunch.com) 31

"Within the past year, stories have been posted on Slashdot about people helping North Koreans get remote IT jobs at U.S. corporations, companies knowingly assisting them, how not to hire a North Korean for a remote IT job, and how a simple question tripped up a North Korean applying for a remote IT job," writes longtime Slashdot reader smooth wombat. "The FBI is even warning companies that North Koreans working remotely can steal source code and extort money from the company -- money that goes to fund the North Korean government. Now, five more people have plead guilty to knowingly helping North Koreans infiltrate U.S. companies as remote IT workers." TechCrunch reports: The five people are accused of working as "facilitators" who helped North Koreans get jobs by providing their own real identities, or false and stolen identities of more than a dozen U.S. nationals. The facilitators also hosted company-provided laptops in their homes across the U.S. to make it look like the North Korean workers lived locally, according to the DOJ press release. These actions affected 136 U.S. companies and netted Kim Jong Un's regime $2.2 million in revenue, said the DOJ. Three of the people -- U.S. nationals Audricus Phagnasay, Jason Salazar, and Alexander Paul Travis -- each pleaded guilty to one count of wire fraud conspiracy.

Prosecutors accused the three of helping North Koreans posing as legitimate IT workers, whom they knew worked outside of the United States, to use their own identities to obtain employment, helped them remotely access their company-issued laptops set up in their homes, and also helped the North Koreans pass vetting procedures, such as drug tests. The fourth U.S. national who pleaded guilty is Erick Ntekereze Prince, who ran a company called Taggcar, which supplied to U.S. companies allegedly "certified" IT workers but whom he knew worked outside of the country and were using stolen or fake identities. Prince also hosted laptops with remote access software at several residences in Florida, and earned more than $89,000 for his work, the DOJ said.

Another participant in the scheme who pleaded guilty to one count of wire fraud conspiracy and another count of aggravated identity theft is Ukrainian national Oleksandr Didenko, who prosecutors accuse of stealing U.S. citizens' identities and selling them to North Koreans so they could get jobs at more than 40 U.S. companies. According to the press release, Didenko earned hundreds of thousands of dollars for this service. Didenko agreed to forfeit $1.4 million as part of his guilty plea. The DOJ also announced that it had frozen and seized more than $15 million in cryptocurrency stolen in 2023 by North Korean hackers from several crypto platforms.

The Courts

OpenAI Fights Order To Turn Over Millions of ChatGPT Conversations (reuters.com) 69

An anonymous reader quotes a report from Reuters: OpenAI asked a federal judge in New York on Wednesday to reverse an order that required it to turn over 20 million anonymized ChatGPT chat logs amid a copyright infringement lawsuit by the New York Times and other news outlets, saying it would expose users' private conversations. The artificial intelligence company argued that turning over the logs would disclose confidential user information and that "99.99%" of the transcripts have nothing to do with the copyright infringement allegations in the case.

"To be clear: anyone in the world who has used ChatGPT in the past three years must now face the possibility that their personal conversations will be handed over to The Times to sift through at will in a speculative fishing expedition," the company said in a court filing (PDF). The news outlets argued that the logs were necessary to determine whether ChatGPT reproduced their copyrighted content and to rebut OpenAI's assertion that they "hacked" the chatbot's responses to manufacture evidence. The lawsuit claims OpenAI misused their articles to train ChatGPT to respond to user prompts.

Magistrate Judge Ona Wang said in her order to produce the chats that users' privacy would be protected by the company's "exhaustive de-identification" and other safeguards. OpenAI has a Friday deadline to produce the transcripts.

The Courts

OpenAI Used Song Lyrics In Violation of Copyright Laws, German Court Says (reuters.com) 66

A Munich court ruled that OpenAI violated German copyright law by training its models on lyrics from nine songs and allowing ChatGPT to reproduce them. OpenAI now faces damages as it considers an appeal. Reuters reports: The regional court in Munich found that the company trained its AI on protected content from nine German songs, including Groenemeyer's hits "Maenner" and "Bochum." The case was brought by German music rights society GEMA, whose members include composers, lyricists and publishers, in another sign of artists around the world fighting back against data scraping by AI.

Presiding judge Elke Schwager ordered OpenAI to pay damages for the use of copyrighted material, without disclosing a figure. GEMA legal advisor Kai Welp said GEMA hoped discussions could now take place with OpenAI on how copyright holders can be remunerated. OpenAI had argued that its language models did not store or copy specific training data but, rather, reflected what they had learned based on the entire training data set.

Since the output would only be generated as a result of user inputs known as prompts, it was not the defendants, but the respective user who would be liable for it, OpenAI had argued. However, the court found that both the memorization in the language models and the reproduction of the song lyrics in the chatbot's outputs constitute infringements of copyright exploitation rights, according to a statement on the ruling.

Businesses

Visa and Mastercard Near Deal With Merchants That Would Change Rewards Landscape (msn.com) 159

Visa and Mastercard are nearing a settlement with merchants that aims to end a 20-year-old legal dispute by lowering fees stores pay and giving them more power to reject certain credit cards, WSJ reports, citing people familiar with the matter. From the report: Under terms being discussed, Visa and Mastercard would lower credit-card interchange fees, which are often between 2% and 2.5%, by an average of around 0.1 percentage point over several years, the people said. They would also loosen rules that require merchants that accept one of a network's credit cards to accept all of them.

A deal could be announced soon, the people said, and would require court approval to take effect. If an agreement is finalized, consumers could see big changes at the register. Merchants that accept one kind of Visa credit card wouldn't have to accept all Visa credit cards, for example. Under the current talks, credit-card acceptance would be divided into several categories including rewards credit cards, credit cards with no rewards programs, and commercial cards, the people familiar with the matter said.

Some stores might turn away rewards cards, which charge them higher fees and in recent years have become very popular with consumers. But stores that reject those cards would face the risk of declining sales.

AI

'AI Slop' in Court Filings: Lawyers Keep Citing Fake AI-Hallucinated Cases (indianexpress.com) 135

"According to court filings and interviews with lawyers and scholars, the legal profession in recent months has increasingly become a hotbed for AI blunders," reports the New York Times: Earlier this year, a lawyer filed a motion in a Texas bankruptcy court that cited a 1985 case called Brasher v. Stewart. Only the case doesn't exist. Artificial intelligence had concocted that citation, along with 31 others. A judge blasted the lawyer in an opinion, referring him to the state bar's disciplinary committee and mandating six hours of A.I. training.

That filing was spotted by Robert Freund, a Los Angeles-based lawyer, who fed it to an online database that tracks legal A.I. misuse globally. Mr. Freund is part of a growing network of lawyers who track down A.I. abuses committed by their peers, collecting the most egregious examples and posting them online. The group hopes that by tracking down the A.I. slop, it can help draw attention to the problem and put an end to it... [C]ourts are starting to map out punishments of small fines and other discipline. The problem, though, keeps getting worse. That's why Damien Charlotin, a lawyer and researcher in France, started an online database in April to track it.

Initially he found three or four examples a month. Now he often receives that many in a day. Many lawyers... have helped him document 509 cases so far. They use legal tools like LexisNexis for notifications on keywords like "artificial intelligence," "fabricated cases" and "nonexistent cases." Some of the filings include fake quotes from real cases, or cite real cases that are irrelevant to their arguments. The legal vigilantes uncover them by finding judges' opinions scolding lawyers...

Court-ordered penalties "are not having a deterrent effect," said Freund, who has publicly flagged more than four dozen examples this year. "The proof is that it continues to happen."

Windows

Bank of America Faces Lawsuit Over Alleged Unpaid Time for Windows Bootup, Logins, and Security Token Requests (hcamag.com) 181

A former Business Analyst reportedly filed a class action lawsuit claiming that for years, hundreds of remote employees at Bank of America first had to boot up complex computer systems before their paid work began, reports Human Resources Director magazine: Tava Martin, who worked both remotely and at the company's Jacksonville facility, says the financial institution required her and fellow hourly workers to log into multiple security systems, download spreadsheets, and connect to virtual private networks — all before the clock started ticking on their workday. The process wasn't quick. According to the filing in the United States District Court for the Western District of North Carolina, employees needed 15 to 30 minutes each morning just to get their systems running. When technical problems occurred, it took even longer...

Workers turned on their computers, waited for Windows to load, grabbed their cell phones to request a security token for the company's VPN, waited for that token to arrive, logged into the network, opened required web applications with separate passwords, and downloaded the Excel files they needed for the day. Only then could they start taking calls from business customers about regulatory reporting requirements...

The unpaid work didn't stop at startup. During unpaid lunch breaks, many systems would automatically disconnect or otherwise lose connection, forcing employees to repeat portions of the login process — approximately three to five minutes of uncompensated time on most days, sometimes longer when a complete reboot was required. After shifts ended, workers had to log out of all programs and shut down their computers securely, adding another two to three minutes.

Thanks to Slashdot reader Joe_Dragon for sharing the article.
The Courts

Texas Sues Roblox For Allegedly Failing To Protect Children On Its Platform (theverge.com) 45

Texas is suing Roblox, alleging the company misled parents about safety, ignored online-protection laws, and allowed an environment where predators could target children. Texas AG Ken Paxton said the online game platform is "putting pixel pedophiles and profits over the safety of Texas children," alleging that it is "flagrantly ignoring state and federal online safety laws while deceiving parents about the dangers of its platform." The Verge reports: The lawsuit's examples focus on instances of children who have been abused by predators they met via Roblox, and the activities of groups like 764 which have used online platforms to identify and blackmail victims into sexually explicit acts or self harm. According to the suit, Roblox's parental controls push only began after a number of lawsuits, and a report released last fall by the short seller Hindenburg that said its "in-game research revealed an X-rated pedophile hellscape, exposing children to grooming, pornography, violent content and extremely abusive speech." Eric Porterfield, Senior Director of Policy Communications at Roblox, said in a statement: "We are disappointed that, rather than working collaboratively with Roblox on this industry-wide challenge and seeking real solutions, the AG has chosen to file a lawsuit based on misrepresentations and sensationalized claims." He added, "We have introduced over 145 safety measures on the platform this year alone."

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