A jury in San Francisco unanimously found (PDF) that Google violated California and federal antitrust laws through deals that stifled competition for its mobile app store. "The verdict delivers the first significant US courtroom loss for big tech in the years-long campaign by rivals, regulators, and prosecutors to tame the power of internet gatekeepers," reports Wired. From the report: The lawsuit next moves to a remedies phase, meaning a judge as soon as the coming weeks will hear arguments about and decide whether to order changes to Google's business practices. Users of devices powered by Google's Android operating system could find more app options to choose from, at lower prices, if Google is forced to allow downloads of rival app stores from Play or share a greater portion of sales with developers selling digital items inside their apps.

The ruling came in a case first filed in 2020 by Epic Games, known for its blockbuster game Fortnite and tools for developers, and argued before a jury since early November. The jury of nine -- a 10th juror dropped out early in the trial -- deliberated for three hours before reaching its verdict. They faced 11 questions such as defining product and geographic markets and whether Google engaged in anticompetitive conduct in those areas. Epic had accused Google of restricting smartphone makers, wireless carriers, and app developers from providing any competition to the Play store, which accounts for over 95 percent of all downloads onto Android phones in the US. Google had denied any wrongdoing, saying that its sole aim was to provide a safe and attractive experience to users, especially as it faced competition from Apple, its iPhone, and its App Store.

The Biden administration is threatening to cancel the patents of some costly medications to allow rivals to make their own more affordable versions. The Associated Press reports: Under a plan announced Thursday, the government would consider overriding the patent for high-priced drugs that have been developed with the help of taxpayer money and letting competitors make them in hopes of driving down the cost. In a 15-second video released to YouTube on Wednesday night, President Joe Biden promised the move would lower prices. "Today, we're taking a very important step toward ending price gouging so you don't have to pay more for the medicine you need," he said.

White House officials would not name drugs that might potentially be targeted. The government would consider seizing a patent if a drug is only available to a "narrow set of consumers," according to the proposal that will be open to public comment for 60 days. Drugmakers are almost certain to challenge the plan in court if it is enacted. [...] The White House also intends to focus more closely on private equity firms that purchase hospitals and health systems, then often whittle them down and sell quickly for a profit. The departments of Justice and Health and Human Services, and the Federal Trade Commission will work to share more data about health system ownership.

While only a minority of drugs on the market relied so heavily on taxpayer dollars, the threat of a government "march-in" on patents will make many pharmaceutical companies think twice, said Jing Luo, a professor of medicine at University of Pittsburgh. "If I was a drug company that was trying to license a product that had benefited heavily from taxpayer money, I'd be very careful about how to price that product," Luo said. "I wouldn't want anyone to take my product away from me."

Slash_Account_Dot writes: The FBI investigated a man who allegedly posed as a police officer in emails and phone calls to trick Verizon to hand over phone data belonging to a specific person that the suspect met on the dating section of porn site xHamster, according to a newly unsealed court record. Despite the relatively unconvincing cover story concocted by the suspect, including the use of a clearly non-government ProtonMail email address, Verizon handed over the victim's data to the alleged stalker, including their address and phone logs. The stalker then went on to threaten the victim and ended up driving to where he believed the victim lived while armed with a knife, according to the record.

The news is a massive failure by Verizon who did not verify that the data request was fraudulent, and the company potentially put someone's safety at risk. The news also highlights the now common use of fraudulent emergency data requests (EDRs) or search warrants in the digital underworld, where criminals pretend to be law enforcement officers, fabricate an urgent scenario such as a kidnapping, and then convince telecoms or tech companies to hand over data that should only be accessible through legitimate law enforcement requests. As 404 Media previously reported, some hackers are using compromised government email accounts for this purpose.

Amazon sued what it called an international ring of thieves who swiped millions of dollars in merchandise from the company through a series of refund scams that included buying products on Amazon and seeking refunds without returning the goods. From a report: An organization called REKK advertised its refund services on social media sites, including Reddit and Discord, and communicated with perpetrators on the messaging app Telegram, Amazon said in a lawsuit filed Thursday in US District Court in the state of Washington.

The lawsuit names REKK and nearly 30 people from the US, Canada, UK, Greece, Lithuania and the Netherlands as defendants in the scheme, which involved hacking into Amazon's internal systems and bribing Amazon employees to approve reimbursements. REKK charged customers, who wanted to get pricey items like MacBook Pro laptops and car tires without paying for them, a commission based on the value of the purchase. "The defendants' scheme tricks Amazon into processing refunds for products that are never returned; instead of returning the products as promised, defendants keep the product and the refund," Amazon said in its lawsuit.

The biggest UK mobile phone operators could face total damages of $4.15 billion following class-action claims that they allegedly charged 5 million existing customers "loyalty penalties" over a 16-year period. From a report: Claimant lawyers say they filed court documents at the Competition Appeals Tribunal against Vodafone, EE, Three UK and O2 last week. The claims accuse the phone companies of overcharging on as many as 28.2 million contracts by not reducing the amount customers had to pay after their minimum terms expired, despite them having effectively paid off their mobile devices.

The claim consists of individual lawsuits against each company, with damages sought of up to $1.76 billion from Vodafone, up to $1.38 billion from EE, up to $637.8 million from Three, and up to $322 million from O2. Claimant lawyers at Charles Lyndon, a law firm, estimate that up to 4.8 million people could be affected. If the case is successful, someone who held a contract with one of the mobile operators could receiveÂup to $2,293. The claims are on an "opt-out" basis, which means all qualifying customers will be automatically included in the claim unless they make a choice not to join.

Following a hack that potentially ensnared 6.9 million of its users, 23andMe has updated its terms of service to make it more difficult for you to take the DNA testing kit company to court, and you only have 30 days to opt out. From a report: In a filing with the US Securities and Exchange Commission last week, 23andMe said hackers accessed around 14,000 customer accounts earlier this year by trying login-password combinations exposed in unrelated breaches. It later said hackers had access to 6.9 million accounts due to the interconnected nature of its DNA Relatives feature.

23andMe has since updated its terms of service in a way that changes how the company resolves disputes with users. Customers were informed via email that "important updates were made to the Dispute Resolution and Arbitration section" on Nov. 30 "to include procedures that will encourage a prompt resolution of any disputes and to streamline arbitration proceedings where multiple similar claims are filed." Customers have 30 days to let the site know if they disagree with the terms. If they don't reach out via email to opt out, the company will consider their silence an agreement to the new terms.

U.S. antitrust regulators told a federal appeals court Wednesday that a federal judge got it wrong when she allowed Microsoft's $69 billion purchase of Activision to close. Reuters reports: Speaking for the Federal Trade Commission, lawyer Imad Abyad argued that the lower-court judge held the agency to too high a standard, effectively requiring it to prove that the deal was anticompetitive. He told a three-judge appeals court panel in California that the FTC had only to show that Microsoft had the ability and incentive to withhold Activision's games from rival game platforms to prove the agency's case. He said the FTC "showed that in the past that's what Microsoft did," referring to allegations that Microsoft made some Zenimax games exclusive after buying that company.

Speaking for Microsoft, lawyer Rakesh Kilaru called the FTC case "weak" and said that the agency had asked the lower-court judge for too much leeway. "It is also clear that the standard can't be as low as the FTC is suggesting," he said. "It can't be kind of a mere scintilla of evidence." He argued that the agency failed to show that Microsoft had an incentive to withhold "Call of Duty" from rival gaming platforms. The judges actively questioned both attorneys, with Judge Daniel Collins pressing the FTC's attorney on how concessions that Microsoft gave British antitrust enforcers affect the U.S. market. He also appeared to take issue with Abyad's assertions that more analysis of the deal was necessary, especially since Microsoft had struck agreements with rivals recently, including one with Sony this past summer. "This was not a rush job on the part of the FTC," he said.

Two antitrust scholars who listened to the arguments said the FTC faced a tough slog to prevail. A finding of "clear error" by a lower court judge is "really stark," said Alden Abbott, a former FTC general counsel, comparing it to the idea that a court ignored key evidence from a witness. Abbott said the appeals court noted that the trial judge had considered "a huge amount of record evidence."

Jason Koebler reports via 404 Media: A judge rejected John Deere's motion to dismiss a landmark class action lawsuit over the agricultural giant's repair monopolies, paving the way for a trial that will determine whether the company's repair practices are illegal. The case will specifically examine whether Deere has engaged in a "conspiracy" in which Deere and its dealerships have driven up the cost of repair while preventing independent and self-repair of tractors that farmers own.

In a forceful, 89-page memorandum, U.S. District Court Judge Iain Johnson wrote that the founder of John Deere "was an innovative farmer and blacksmith who -- with his own hands -- fundamentally changed the agricultural industry." Deere the man "would be deeply disappointed in his namesake corporation" if the plaintiffs can ultimately prove their antitrust allegations against Deere the company, which are voluminous and well-documented. Reuters first reported on Johnson's memo.

At issue are the many tactics Deere has used to make it more difficult and often impossible for farmers to repair their own tractors, from software locks and "parts pairing" that prevent farmers from replacing parts without the authorization of a Deere dealership. "Only Deere and Dealer authorized technicians have access to the Repair Tools, and Deere withholds these resources from farmers and independent repair shops," Johnson wrote.

Twitch, the popular video streaming service, plans to shut down its business in South Korea on February 27 after finding that operating in one of the world's largest esports markets is "prohibitively expensive." From a report: Twitch CEO Dan Clancy said the firm undertook a "significant effort" to reduce the network costs to operate in Korea, but ultimately the fees to operate in the East Asian nation was still 10 times more expensive than in most other countries. The ceasing of operations in Korea is a "unique situation," he wrote in a blog post.

South Korea's expensive internet fees have led to legal fights -- streaming giant Netflix unsuccessfully sued a local broadband supplier last year to avoid paying usage charges, but Seoul's court ruled that Netflix must contribute to the network costs enabling its half-billion-dollar Korean business. Twitch attempted to lower its network costs by experimenting with a peer-to-peer model and then downgrading the streaming quality to 720p video resolution, Clancy said. While these efforts helped the firm lower its network costs, it wasn't enough.

An anonymous reader shares a report: After a spy camera designed to look like a towel hook was purchased on Amazon and illegally used for months to capture photos of a minor in her private bathroom, Amazon was sued. The plaintiff -- a former Brazilian foreign exchange student then living in West Virginia -- argued that Amazon had inspected the camera three times and its safety team had failed to prevent allegedly severe, foreseeable harms still affecting her today.

Amazon hoped the court would dismiss the suit, arguing that the platform wasn't responsible for the alleged criminal conduct harming the minor. But after nearly eight months deliberating, a judge recently largely denied the tech giant's motion to dismiss. Amazon's biggest problem persuading the judge was seemingly the product descriptions that the platform approved. An amended complaint included a photo from Amazon's product listing that showed bathroom towels hanging on hooks that disguised the hidden camera. Text on that product image promoted the spycams, boasting that they "won't attract attention" because each hook appears to be "a very ordinary hook."

Because "Amazon approved product descriptions suggesting consumers use" the spycam "to record private moments in a bathroom," US district judge Robert Chambers wrote, "Amazon cannot claim shock when a consumer does just that." "These allegations raise a reasonable inference Amazon sold a camera knowing it would be used to record a third party in a bathroom without their consent," Chambers wrote.

According to Microsoft Gaming CEO Phil Spencer, the company is talking to partners to help launch a mobile gaming store that will take on Apple and Google. "It's an important part of our strategy and something we are actively working on today not only alone, but talking to other partners who'd also like to see more choice for how they can monetize on the phone," Spencer said in an interview in Sao Paulo during the CCXP comics and entertainment convention. From the report: The executive declined to give a specific date for a launch of the online store, which earlier reports suggested could be next year. "I don't think this is multiple years away, I think this is sooner than that,'' he said. [...] Microsoft's mobile store would also enter a challenging regulatory climate around smartphone-based digital marketplaces. Fortnite-maker Epic Games has sued both Apple and Alphabet's Google over their iOS and Android store practices, alleging they are unnecessarily restrictive and unfair. Apple doesn't allow competing stores on its iPhone and iPad platforms, and collects a 30% cut of sales for most purchases. Game makers have taken issue with the fees.

Epic lost its battle with Apple but in September asked the US Supreme Court to weigh in. Apple is also petitioning that court to reverse an order that would force the company to let developers steer customers to other payment methods. Epic is still in court fighting its case against Google, which does allow third-party app stores on its devices.The European Union's Digital Markets Act, which is just beginning to take effect, could force Apple to open up its app store ecosystem. Apple is challenging the regulation.

Microsoft may be able to use long-standing resentment against the market leaders to martial support for its store offering. Xbox's cloud gaming technology already lets users stream blockbuster games to mobile phones. "We've talked about choice, and today on your mobile phones, you don't have choice,'' Spencer said. "To make sure that Xbox is not only relevant today but for the next 10, 20 years, we're going to have to be strong across many screens." Earlier this week, Xbox CFO Tim Stuart said during the Wells Fargo TMT Summit that Microsoft wants to make first-party games and Game Pass available on "every screen that can play games," including rival consoles. "It's a bit of a change of strategy. Not announcing anything broadly here, but our mission is to bring our first-party experiences [and] our subscription services to every screen that can play games," Stuart said. "That means smart TVs, that means mobile devices, that means what we would have thought of as competitors in the past like PlayStation and Nintendo."

Montana's first-of-its-kind state ban on TikTok has been blocked by a U.S. judge, saying it "oversteps state power and infringes on the constitutional rights of users." Reuters reports: TikTok, which is owned by China's ByteDance, did not immediately comment Thursday. The company sued Montana in May, seeking to block the U.S. state ban on several grounds, arguing that it violates the First Amendment free speech rights of the company and users. TikTok users in Montana also filed suit to block the ban. TikTok said in a court filing it "has not shared, and would not share, U.S. user data with the Chinese government, and has taken substantial measures to protect the privacy and security of TikTok users."

Molloy, who was appointed to the bench by Democratic President Bill Clinton, found merit to numerous arguments raised by TikTok in his opinion. During an October hearing, Molloy questioned why no other state had followed Montana in banning TikTok and asked if the state was being "paternalistic" in arguing the ban was necessary to protect the data of TikTok users. Montana could have imposed fines of $10,000 for each violation by TikTok in the state but the law did not impose penalties on individual TikTok users.

An anonymous reader shares a report: In late September, an arsonist set fire to a storage shed at Memorial Park used by the Santa Monica Pickleball Club, torching thousands of dollars worth of nets, rackets, balls, and other pickleball equipment. "Unknown suspect(s) caused a fire that damaged city property (Tennis Court Gate)," a police report I obtained using a public records request says. The report adds that there is body camera footage of the incident and police-shot photos, but the city refused to release them to me because there is an ongoing investigation. The arsonist is still at large.

We still don't know the motive behind the arson, but the news caught my attention because it happened while I was in the midst of trying to understand what I've been calling the pickleball wars. For the last few months I've been trying to understand what's been happening behind-the-scenes in cities large and small by filing public records requests aimed at learning how common beefs about pickleball are, and what's causing them.

If you don't already know about "the fastest growing sport," Pickleball is kind of like tennis, but played on a court a quarter of the size using a plastic ball similar to a wiffle ball and a hard racket. The smaller court, hard ball, and hard racket means that pickleball is louder than tennis, a fact that is brought up very often by homeowners and homeowner associations who claim, somewhat dubiously, that the noise from pickleball drives down their home values. My hypothesis going into researching this article was that people who live in cities are mad at the noise created during the act of playing pickleball and they have probably complained to the government about it. What I found was surprisingly more complex: Thousands of pages of documents I've reviewed show that pickleball's surging popularity is overwhelming under-resourced parks departments in city governments all over the country.

Richard Speed reports via The Register: A jury has sided with Computer Sciences Corporation (CSC) against Tata Consultancy Services (TCS) over the theft of source code and documentation. A total of $210 million was this week awarded. According to the verdict [PDF], a Texas jury agreed that TCS had "willfully and maliciously" misappropriated both source and confidential documentation by "improper means," awarding CSC $140 million in damages, with another $70 million tacked on for TCS's "unjust enrichment." The complaint [PDF] was filed in April 2019 regarding CSC's VANTAGE-ONE and CyberLife software platforms. CSC had licensed these software platforms to Transamerica Corporation, a life insurance holding company, to whom Tata -- used here to collectively refer to Tata Consultancy Services Limited and Tata America International Corporation -- began providing maintenance services.

In 2014, CSC and Transamerica signed off on a Third-Party Access Addendum that would allow Tata to alter CSC's software, but only for the benefit of its customer -- Transamerica. All was well until 2016, when Transamerica decided it needed to refresh its software. CSC and Tata both put in bids. CSC lost, and Tata won with its own software platform called BaNCS. The circumstances got sticky at this point, not least because Tata hired more than 2,000 Transamerica employees. CSC alleged that these former employees had access to its code and documents, and forwarded them on to the Tata BaNCS development team. The situation escalated in 2019, when a CSC employee was accidentally copied in on an email between Tata and Transamerica showing that Tata was accessing confidential information, according to CSC. The company then began legal proceedings. Documents and motions have been exchanged in the years since as Tata sought to get the case thrown out while CSC's claims were upheld. Eventually, it went to a jury trial, which found for CSC.

An anonymous reader quotes a report from The Guardian: Instagram and Facebook parent company Meta purposefully engineered its platforms to addict children and knowingly allowed underage users to hold accounts, according to a newly unsealed legal complaint. The complaint is a key part of a lawsuit filed against Meta by the attorneys general of 33 states in late October and was originally redacted. It alleges the social media company knew -- but never disclosed -- it had received millions of complaints about underage users on Instagram but only disabled a fraction of those accounts. The large number of underage users was an "open secret" at the company, the suit alleges, citing internal company documents.

In one example, the lawsuit cites an internal email thread in which employees discuss why a 12-year-old girl's four accounts were not deleted following complaints from the girl's mother stating her daughter was 12 years old and requesting the accounts to be taken down. The employees concluded that "the accounts were ignored" in part because representatives of Meta "couldn't tell for sure the user was underage." The complaint said that in 2021, Meta received over 402,000 reports of under-13 users on Instagram but that 164,000 -- far fewer than half of the reported accounts -- were "disabled for potentially being under the age of 13" that year. The complaint noted that at times Meta has a backlog of up to 2.5m accounts of younger children awaiting action. The complaint alleges this and other incidents violate the Children's Online Privacy and Protection Act, which requires that social media companies provide notice and get parental consent before collecting data from children. The lawsuit also focuses on longstanding assertions that Meta knowingly created products that were addictive and harmful to children, brought into sharp focus by whistleblower Frances Haugen, who revealed that internal studies showed platforms like Instagram led children to anorexia-related content. Haugen also stated the company intentionally targets children under the age of 18.

Company documents cited in the complaint described several Meta officials acknowledging the company designed its products to exploit shortcomings in youthful psychology, including a May 2020 internal presentation called "teen fundamentals" which highlighted certain vulnerabilities of the young brain that could be exploited by product development. The presentation discussed teen brains' relative immaturity, and teenagers' tendency to be driven by "emotion, the intrigue of novelty and reward" and asked how these asked how these characteristics could "manifest ... in product usage." [...] One Facebook safety executive alluded to the possibility that cracking down on younger users might hurt the company's business in a 2019 email. But a year later, the same executive expressed frustration that while Facebook readily studied the usage of underage users for business reasons, it didn't show the same enthusiasm for ways to identify younger kids and remove them from its platforms.

The New York Times reports: Meta has received more than 1.1 million reports of users under the age of 13 on its Instagram platform since early 2019 yet it "disabled only a fraction" of those accounts, according to a newly unsealed legal complaint against the company brought by the attorneys general of 33 states.

Instead, the social media giant "routinely continued to collect" children's personal information, like their locations and email addresses, without parental permission, in violation of a federal children's privacy law, according to the court filing. Meta could face hundreds of millions of dollars, or more, in civil penalties should the states prove the allegations. "Within the company, Meta's actual knowledge that millions of Instagram users are under the age of 13 is an open secret that is routinely documented, rigorously analyzed and confirmed," the complaint said, "and zealously protected from disclosure to the public...."

It also accused Meta executives of publicly stating in congressional testimony that the company's age-checking process was effective and that the company removed underage accounts when it learned of them — even as the executives knew there were millions of underage users on Instagram... The lawsuit argues that Meta elected not to build systems to effectively detect and exclude such underage users because it viewed children as a crucial demographic — the next generation of users — that the company needed to capture to assure continued growth.
More from the Wall Street Journal: An internal 2020 Meta presentation shows that the company sought to engineer its products to capitalize on the parts of youth psychology that render teens "predisposed to impulse, peer pressure, and potentially harmful risky behavior," the filings show... "Teens are insatiable when it comes to 'feel good' dopamine effects," the Meta presentation shows, according to the unredacted filing, describing the company's existing product as already well-suited to providing the sort of stimuli that trigger the potent neurotransmitter. "And every time one of our teen users finds something unexpected their brains deliver them a dopamine hit...."

"In December 2017, an Instagram employee indicated that Meta had a method to ascertain young users' ages but advised that 'you probably don't want to open this pandora's box' regarding age verification improvements," the states say in the suit. Some senior executives raised the possibility that cracking down on underage usage could hurt Meta's business... The states say Meta made little progress on automated detection systems or adequately staffing the team that reviewed user reports of underage activity. "Meta at times has a backlog of 2-2.5 million under-13 accounts awaiting action," according to the complaint...

The unredacted material also includes allegations that Meta Chief Executive Mark Zuckerberg instructed his subordinates to give priority to boosting its platforms' usage above the well being of users... Zuckerberg also repeatedly dismissed warnings from senior company officials that its flagship social-media platforms were harming young users, according to unsealed allegations in a lawsuit filed by Massachusetts earlier this month...

The complaint cites numerous other executives making public claims that were allegedly contradicted by internal documents. While Meta's head of global safety, Antigone Davis, told Congress that the company didn't consider profitability when designing products for teens, a 2018 internal email stated that product teams should keep in mind that "The lifetime value of a 13 y/o teen is roughly $270" when making product decisions.

New submitter Kiddo 9000 writes: Dbrand, a company known best for making cases for phones, game consoles, and laptops, has filed a lawsuit against case manufacturer CASETiFY over their "Inside Out" case lineup. Dbrand alleges that CASETiFY copied the designs from their Teardown skins and put them on their own products without permission. In a video published by JerryRigEverything, several easter eggs placed in the Teardown skins were found in the CASETiFY designs, alongside numerous tweaks and layout changes, and even Dbrand's logo.

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.

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.

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.