Businesses

Robinhood Bought Back Sam Bankman-Fried's Stake From US Government For $606 Million (cointelegraph.com) 17

Robinhood announced it has purchased more than 55 million shares of the firm previously held by former FTX CEO Sam Bankman-Fried, which were seized in January by the U.S. Department of Justice as part of the criminal case against FTX and its executives. CoinTelegraph reports: The purchase had been expected. Robinhood's board of directors announced the approval of the deal in the company's Q4 2022 report, and an Aug. 30 SEC filing said the U.S. District Court for the Southern District of New York had approved the purchase "free and clear of any claims, interests, liens and encumbrances." Robinhood made the repurchase agreement with the U.S. Marshals Service. "We are happy to have completed the purchase of these shares and look forward to executing on our growth plans on behalf of our customers and shareholders," said Robinhood chief financial officer Jason Warnick.
Social Networks

Judge Blocks Arkansas Law Requiring Parental OK For Minors To Create Social Media Accounts (apnews.com) 64

An anonymous reader quotes a report from the Associated Press: A federal judge on Thursday temporarily blocked Arkansas from enforcing a new law that would have required parental consent for minors to create new social media accounts, preventing the state from becoming the first to impose such a restriction. U.S. District Judge Timothy L. Brooks granted a preliminary injunction that NetChoice -- a tech industry trade group whose members include TikTok, Facebook parent Meta, and X, formerly known as Twitter -- had requested against the law. The measure, which Republican Gov. Sarah Huckabee Sanders signed into law in April, was set to take effect Friday.

In a 50-page ruling, Brooks said NetChoice was likely to succeed in its challenge to the Arkansas law's constitutionality and questioned the effectiveness of the restrictions. "Age-gating social media platforms for adults and minors does not appear to be an effective approach when, in reality, it is the content on particular platforms that is driving the state's true concerns," wrote Brooks, who was appointed to the bench by former President Barack Obama. NetChoice argued the requirement violated the constitutional rights of users and arbitrarily singled out types of speech that would be restricted.

Arkansas' restrictions would have only applied to social media platforms that generate more than $100 million in annual revenue. It also wouldn't have applied to certain platforms, including LinkedIn, Google and YouTube. Brooks' ruling said the the exemptions nullified the state's intent for imposing the restrictions, and said the law also didn't adequately define which platforms they would apply to. As an example, he cited confusion over whether the social media platform Snapchat would be subject to the age-verification requirement. Social media companies that knowingly violate the age verification requirement would have faced a $2,500 fine for each violation under the now-blocked law. The law also prohibited social media companies and third-party vendors from retaining users' identifying information after they've been granted access to the social media site.
In a statement on X, Sanders wrote: "Big Tech companies put our kids' lives at risk. They push an addictive product that is shown to increase depression, loneliness, and anxiety and puts our kids in human traffickers' crosshairs. Today's court decision delaying this needed protection is disappointing but I'm confident the Attorney General will vigorously defend the law and protect our children."
The Courts

Texas Law Requiring Age Verification On Porn Sites Ruled Unconstitutional (arstechnica.com) 106

An anonymous reader quotes a report from Ars Technica: The day before a Texas antiporn law that requires age verification to access adult websites was set to take effect, the state's attorney general, Angela Colmenero, has been at least temporarily blocked from enforcing the law. US District Judge David Alan Ezra granted a preliminary injunction temporarily blocking enforcement after the Free Speech Coalition (FSC) joined adult performers and sites like Pornhub in a lawsuit opposing the law. Today, they convinced Ezra that Texas' law violates the First Amendment and would have "a chilling effect on legally-protected speech," FSC said in a press release.

"This is a huge and important victory against the rising tide of censorship online," Alison Boden, FSC's executive director, said. "From the beginning, we have argued that the Texas law, and those like it, are both dangerous and unconstitutional. We're pleased that the court agreed with our view that [the law's] true purpose is not to protect young people, but to prevent Texans from enjoying First Amendment protected expression. The state's defense of the law was not based in science or technology, but ideology and politics." Now, Texas will have to wait until this lawsuit is litigated to enforce the law. [...] According to FSC, in addition to free speech concerns, the law needed to be blocked because it would have exposed consumers to "significant privacy risks" by forcing adult-website visitors to show digital IDs.
A spokesperson for Pornhub's parent company Aylo told Ars: "We are pleased with the court's decision today, which reaffirms our position that the age verification law implemented in Texas is unconstitutional. We have publicly supported mandatory age verification of viewers of adult content for years, but any method of age verification must preserve user privacy and safety."

"The only solution that makes the Internet safer, preserves user privacy, and stands to prevent children from accessing age-inappropriate content is performing age verification at the device level," Aylo's spokesperson said. "We are pleased that the court recognizes the severity of compelled speech and its presence in this law that Texas has implemented. We are proud to fight for our industry and the performers that use it to legally earn a living, and we are glad to see the court recognize that this law is unconstitutional and would have required adult entertainers to falsely imply that their content poses health risks."

A similar age verification initiative in Australia was halted yesterday, citing concerns around privacy and security of the technology.
AI

US Copyright Office Wants To Hear What People Think About AI and Copyright 57

The US Copyright Office is opening a public comment period around AI and copyright issues beginning August 30th as the agency figures out how to approach the subject. From a report: As announced [PDF] in the Federal Register, the agency wants to answer three main questions: how AI models should use copyrighted data in training; whether AI-generated material can be copyrighted even without a human involved; and how copyright liability would work with AI. It also wants comments around AI possibly violating publicity rights but noted these are not technically copyright issues. The Copyright Office said if AI does mimic voices, likenesses, or art styles, it may impact state-mandated rules around publicity and unfair competition laws. Written comments are due on October 18th, and replies must be submitted to the Copyright Office by November 15th.

The copyright status of AI training data and the output of generative AI tools has become a hot topic for politicians, artists, authors, and even civil rights groups, making it a potential testing ground for coming AI regulation. The Copyright Office says that "over the past several years, the Office has begun to receive applications to register works containing AI-generated material." It may use the comments to inform how it decides to grant copyright in the future. The Copyright Office was involved in a lawsuit last year after it refused to grant Stephen Thaler rights to an image created by an AI platform. Earlier this month, a Washington, DC, court sided with the US Copyright Office in the case, stating copyright has never been handed to any work without a human involved.
Television

Paramount DMCAs 'Star Trek' Fan Project (techdirt.com) 173

Timothy Geigner writes via Techdirt: Paramount has gone after fan-made works playing off of the franchise for years and years. Even Paramount's release of guidelines by which fans could create fan films served mostly as a giant middle finger to the fandom, so stringent were the rules. This apparently represents the owners of Star Trek's IP being completely deaf to the history of Star Trek and the internet and what the fans have meant to the franchise. And this all continued into the present day.

Recently, a fan-made project called Wolf 359 Project suffered a DMCA takedown from Paramount. If you're a Next Generation fan, that name will likely sound familiar: "The Battle of Wolf 359 hearkens to a classic The Next Generation two-episode event called 'The Best of Both Worlds.' Captain Picard is assimilated by the Borg, and before the Enterprise crew rescues him, the relentless Borg forces fight a battle that kills 11,000 people. Star Trek: Picard Season 3 dealt with this, specifically through the character of Captain Liam Shaw. It was the first time someone described the Starfleet experience during one of the costliest battles in Star Trek history. Star Trek fans are never one to let a good idea go to waste, and The Wolf 359 Project is a fan-written oral history of the battle. The 'book' ran over 500 pages long, and its authors were giving it away for free. However, Paramount issued a Digital Millennium Copyright Act strike against it."

So here's what this essentially is: fans who love TNG filling in the gaps of the original story they love with the unexplored rest of the universe of people who would have been impacted by that storyline. That's important for two reasons. First and foremost, this doesn't take anything away from Paramount's Star Trek production, and in fact does the opposite. The project doesn't replace the original episodes, but rather builds upon them. In other words, this project could only possibly serve to draw more interest to Paramount's product, since the book isn't going to make much sense to anyone who hasn't seen the original episodes. Second, this is a work being done for free, given away for free, all by fans that are doing what Star Trek fans have always done: create. [...]
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Crime

Saudi Man Receives Death Penalty For Posts Online (apnews.com) 159

An anonymous reader quotes a report from the Associated Press: A Saudi court has sentenced a man to death over his posts on X, formerly known as Twitter, and his activity on YouTube, the latest in a widening crackdown on dissent in the kingdom that has drawn international criticism. The judgement against Mohammed bin Nasser al-Ghamdi, seen Wednesday by The Associated Press, comes against the backdrop of doctoral student Salma al-Shehab and others facing decades-long prison sentences over their comments online. The sentences appear part of Crown Prince Mohammed bin Salman's wider effort to stamp out any defiance in the kingdom as he pursues massive building projects and other diplomatic deals to raise his profile globally.

According to court documents, the charges levied against al-Ghamdi include "betraying his religion," "disturbing the security of society," "conspiring against the government" and "impugning the kingdom and the crown prince" -- all for his activity online that involved re-sharing critics' posts. Saudi officials offered no reason for why they specifically targeted al-Ghamdi, a retired school teacher living in the city of Mecca. However, his brother, Saeed bin Nasser al-Ghamdi, is a well-known critic of the Saudi government living in the United Kingdom. "This false ruling aims to spite me personally after failed attempts by the investigators to have me return to the country," the brother tweeted last Thursday. Saudi Arabia has used arrests of family members in the past as a means to pressure those abroad into returning home, activists and those targeted in the past say. [...]

Saudi Arabia is one of the world's top executioners, behind only China and Iran in 2022, according to Amnesty International. The number of people Saudi Arabia executed last year -- 196 inmates -- was the highest recorded by Amnesty in 30 years. In one day alone last March, the kingdom executed 81 people, the largest known mass execution carried out in the kingdom in its modern history. However, al-Ghamdi's case appears to be the first in the current crackdown to level the death penalty against someone for their online behavior.

United States

EPA Removes Federal Protections For Most of the Country's Wetlands (npr.org) 122

An anonymous reader quotes a report from NPR: The Environmental Protection Agency removed federal protections for a majority of the country's wetlands on Tuesday to comply with a recent U.S. Supreme Court ruling. The EPA and Department of the Army announced a final rule amending the definition of protected "waters of the United States" in light of the decision in Sackett v. EPA in May, which narrowed the scope of the Clean Water Act and the agency's power to regulate waterways and wetlands. A 2006 Supreme Court decision determined that wetlands would be protected if they had a "significant nexus" to major waterways. This year's court decision undid that standard. The EPA's new rule "removes the significant nexus test from consideration when identifying tributaries and other waters as federally protected," the agency said.

In May, Justice Samuel Alito said the navigable U.S. waters regulated by the EPA under the Clean Water Act do not include many previously regulated wetlands. Writing the court's decision, he said the law includes only streams, oceans, rivers and lakes, and wetlands with a "continuous surface connection to those bodies." The EPA said the rule will take effect immediately. "The agencies are issuing this amendment to the 2023 rule expeditiously -- three months after the Supreme Court decision -- to provide clarity and a path forward consistent with the ruling," the agency said. As a result of the rule change, protections for many waterways and wetlands will now fall to states.

AI

OpenAI Disputes Authors' Claims That Every ChatGPT Response is Derivative Work 119

OpenAI has responded to a pair of nearly identical class-action lawsuits from book authors -- including Sarah Silverman, Paul Tremblay, Mona Awad, Chris Golden, and Richard Kadrey -- who earlier this summer alleged that ChatGPT was illegally trained on pirated copies of their books. From a report: In OpenAI's motion to dismiss (filed in both lawsuits), the company asked a US district court in California to toss all but one claim alleging direct copyright infringement, which OpenAI hopes to defeat at "a later stage of the case." The authors' other claims -- alleging vicarious copyright infringement, violation of the Digital Millennium Copyright Act (DMCA), unfair competition, negligence, and unjust enrichment -- need to be "trimmed" from the lawsuits "so that these cases do not proceed to discovery and beyond with legally infirm theories of liability," OpenAI argued.

OpenAI claimed that the authors "misconceive the scope of copyright, failing to take into account the limitations and exceptions (including fair use) that properly leave room for innovations like the large language models now at the forefront of artificial intelligence." According to OpenAI, even if the authors' books were a "tiny part" of ChatGPT's massive dataset, "the use of copyrighted materials by innovators in transformative ways does not violate copyright." Unlike plagiarists who seek to directly profit off distributing copyrighted materials, OpenAI argued that its goal was "to teach its models to derive the rules underlying human language" in order to do things like help people "save time at work," "make daily life easier," or simply entertain themselves by typing prompts into ChatGPT.

The purpose of copyright law, OpenAI argued is "to promote the Progress of Science and useful Arts" by protecting the way authors express ideas, but "not the underlying idea itself, facts embodied within the author's articulated message, or other building blocks of creative," which are arguably the elements of authors' works that would be useful to ChatGPT's training model. Citing a notable copyright case involving Google Books, OpenAI reminded the court that "while an author may register a copyright in her book, the 'statistical information' pertaining to 'word frequencies, syntactic patterns, and thematic markers' in that book are beyond the scope of copyright protection."
Bitcoin

First Bitcoin ETF Could Be Coming Soon as Court Rules in Favor of Grayscale Over SEC (cnbc.com) 29

The U.S. Court of Appeals for the D.C. Circuit has paved the way for bitcoin exchange-traded funds. From a report: On Tuesday, the court sided with Grayscale in a lawsuit against the Securities and Exchange Commission which had denied the company's application to convert the Grayscale Bitcoin Trust to an ETF. The decision could impact other companies that want to create bitcoin ETFs, like BlackRock and Fidelity. A spot bitcoin ETF would be traded through a traditional stock exchange, although the bitcoin would be held by a brokerage, and would allow investors to gain exposure to the world's biggest cryptocurrency without having to own the coin themselves. Many crypto bulls believe that approval of a spot bitcoin ETF will lead to more mainstream institutional adoption.

Bitcoin, ether and other major cap crypto coins surged on the news, and Coinbase, which is listed as the custodian partner in multiple spot bitcoin ETF applications, was up more than 14% on Tuesday. "The Commission failed to adequately explain why it approved the listing of two bitcoin futures ETPs but not Grayscale's proposed bitcoin ETP," the court said, referring to exchange-traded products. "In the absence of a coherent explanation, this unlike regulatory treatment of like products is unlawful." Grayscale Investments, which manages the world's biggest crypto fund, initiated its lawsuit against the SEC in June 2022 after the agency rejected its application to turn its flagship bitcoin fund, better known by its ticker GBTC, into an ETF. The company decided to pursue the ETF, which would be backed by bitcoin rather than bitcoin derivatives, after the SEC approved ProShares' futures-based bitcoin ETF in October 2021.

Transportation

Kias and Hyundais Keep Getting Stolen By the Thousands and Cities Are Suing (vice.com) 264

An anonymous reader quotes a report from Motherboard: Cities across the country are suing Kia and Hyundai for failing to install basic anti-theft technology, with a subsequent massive surge of stolen cars burdening police departments, according to lawsuits filed in recent months. Since the beginning of the year, Seattle, Baltimore, Cleveland, New York, Chicago, St. Louis, and Columbus have all sued Kia and Hyundai, which are owned by the same parent company, for selling cars without engine immobilizers, a technology that has served as a major contributor to the plummeting rate of stolen vehicles in the U.S. As the rest of the industry adopted immobilizers, Kia and Hyundai didn't, with only 26 percent of their cars including them in 2015, compared to 96 percent for other manufacturers.

Without the immobilizers, the cars are trivially easy to steal, requiring just a USB cable. A viral Youtube and Tiktok trend instructed people how to steal the cars. Kia and Hyundai cars manufactured without the immobilizers between 2015 and 2020, especially lower-end models like the Accent, Rio, and Sportage, are especially vulnerable. A lawsuit filed by dozens of insurance companies against Kia and Hyundai allege the lack of immobilizers violated federal regulations. The surge in Kia and Hyundai thefts in cities around the country has been staggering and it shows no sign of abating. In a lawsuit filed last week, the City of Chicago said that in 2022, more than 8,800 Kia and Hyundai vehicles were stolen in the city, which accounts for 41 percent of all of Chicago's car thefts, despite Kia and Hyundai making up just seven percent of the city's vehicles. In a press release announcing the lawsuit, the city said it is getting even worse in 2023, with Kias and Hyundais making up more than half of all stolen cars in the city this year. Chicago is hardly alone. [...]

In statements to Motherboard, Kia spokesperson James Bell said the lawsuits filed by cities against the company are "without merit" and that the National Highway Traffic Safety Administration determined it did not violate any regulations or safety standards. In June, NHTSA's acting associate director of enforcement Cem Hatipoglu responded to 18 state attorneys general that asked for a recall of the cars by saying, "At this time, NHTSA has not determined that this issue constitutes either a safety defect or noncompliance requiring a recall." A NHTSA spokesperson told Motherboard the agency has been meeting with Kia and Hyundai about the issue but wouldn't say if it agreed with Kia's interpretation. Hyundai spokesperson Ira Gabriel similarly said that all its vehicles are "fully compliant with federal anti-theft requirements." Hyundai and Kia owners can get steering wheel locks from their local police departments or through dedicated websites. Both companies also offer a free software patch that they say removes the threat of theft, which requires visiting a dealer. Bell of Kia says the company has distributed more than 190,000 wheel locks and that 650,000 vehicles have gotten the software update, out of three million total. Both companies now include immobilizers on all their new cars.

United States

SEC Says NFTs Sold by an LA-based Entertainment Firm Are Securities (fortune.com) 32

In an enforcement action announced on Monday, the Securities and Exchange Commission charged Los Angelesâ"based entertainment company Impact Theory with conducting an unregistered offering of securities via non-fungible tokens, or NFTs. From a report: As the SEC expands its definition of which types of crypto assets qualify as securities, the case breaks new ground by determining that NFTs fall under the agency's jurisdiction. "Absent a valid exemption, offerings of securities, in whatever form, must be registered," Antonia Apps, director of the SEC's New York Regional Office, said in a statement.

The question of whether NFTs qualify as securities has remained open for several years. Before the SEC weighed in, a lawsuit in the U.S. District Court for the Southern District of New York remained the highest-profile case to tackle the issue, with a group of NFT collectors suing Dapper Labs. The plaintiffs alleged that the crypto firm had earned hundreds of millions of dollars by selling unregistered securities. Although Dapper Labs motioned for the case to be dismissed last year, a judge ruled in February that it could move forward, concluding that it was "plausible" NFTs could qualify as securities.

United States

Silicon Valley Billionaires Purchase 52,000 Acres of California Farmland to Build a New City from Scratch (marinij.com) 199

An anonymous reader shared this report from the New York: In 2017, Michael Moritz, a billionaire venture capitalist, sent a note to a potential investor about what he described as an unusual opportunity: a chance to invest in the creation of a new California city. The site was in a corner of the San Francisco Bay Area where land was cheap. Moritz and others had dreams of transforming tens of thousands of acres into a bustling metropolis that, according to the pitch, could generate thousands of jobs and be as walkable as Paris or the West Village in New York.

He painted a kind of urban blank slate where everything from design to construction methods and new forms of governance could be rethought. And it would all be a short distance from San Francisco and Silicon Valley... Since then, a company called Flannery Associates has been buying large plots of land in a largely agricultural region 60 miles northeast of San Francisco. The company, which has little information public about its operations, has committed more than $800 million to secure thousands of acres of farmland, court documents show. One parcel after another, Flannery made offers to every landowner for miles, paying several times the market rate, whether the land had been listed for sale or not...

Brian Brokaw, a representative for the investor group, said in a statement that the group was made up of "Californians who believe that Solano County's and California's best days are ahead." He said the group planned to start working with Solano County residents and elected officials, as well as with Travis Air Force Base, next week... The land that Flannery has been purchasing is not zoned for residential use, and even in his 2017 pitch, Moritz acknowledged that rezoning could "clearly be challenging" — a nod to California's notoriously difficult and litigious development process. To pull off the project, the company will almost certainly have to use the state's initiative system to get Solano County residents to vote on it. The hope is that voters will be enticed by promises of thousands of local jobs; increased tax revenue; and investments in infrastructure like parks, a performing arts center, shopping, dining and a trade school.

Moritz's 2017 email had argued their project "should relieve some of the Silicon Valley pressures we all feel — rising home prices, homelessness, congestion etc."

SFGate estimates the group now owns 52,000 acres — "an empire that is nearly double the size of the city of San Francisco" — and notes that some details emerged when the group filed a document to repond to a lawsuit. "It claims it told landowners that they could keep 'existing income streams from wind energy and natural gas storage,' could 'continue using these properties rent-free for decades,' and would receive 'significant grants from Flannery for charitable giving, to be used at the [landowners'] discretion to support local schools and other non-profits.'"

"Tech billionaires reportedly backing mysterious Solano County land grab," reads the headline on SFGate's latest article: SFGATE reported earlier this week that a survey had circulated to Solano County residents asking for their opinions on the potential development of "a new city with tens of thousands of new homes, a large solar energy farm, orchards with over a million new trees, and over ten thousand acres of new parks and open space."
Republicans

Judge Tears Apart Republican Lawsuit Alleging Bias In Gmail Spam Filter (arstechnica.com) 184

An anonymous reader quotes a report from Ars Technica: A federal judge yesterday granted Google's motion to dismiss a lawsuit filed by the Republican National Committee (RNC), which claims that Google intentionally used Gmail's spam filter to suppress Republicans' fundraising emails. An order (PDF) dismissing the lawsuit was issued yesterday by US District Judge Daniel Calabretta. The RNC is seeking "recovery for donations it allegedly lost as a result of its emails not being delivered to its supporters' inboxes," Calabretta noted. But Google correctly argued that the lawsuit claims are barred by Section 230 of the Communications Decency Act, the judge wrote. The RNC lawsuit was filed in October 2022 in US District Court for the Eastern District of California.

"While it is a close case, the Court concludes that... the RNC has not sufficiently pled that Google acted in bad faith in filtering the RNC's messages into Gmail users' spam folders, and that doing so was protected by Section 230. On the merits, the Court concludes that each of the RNC's claims fail as a matter of law for the reasons described below," he wrote. Calabretta, a Biden appointee, called it "concerning that Gmail's spam filter has a disparate impact on the emails of one political party, and that Google is aware of and has not yet been able to correct this bias." But he noted that "other large email providers have exhibited some sort of political bias" and that if Google did not filter spam, it would harm its users by subjecting them "to harmful malware or harassing messages. On the whole, Google's spam filter, though in this instance imperfect, is not morally blameworthy."

The RNC was given leave to amend another claim that alleged intentional interference with prospective economic relations under California law. The judge dismissed the claim as follows: "The RNC argues that Google's conduct was independently wrongful because '(1) it is political discrimination against the RNC, (2) it is dishonest to Google's users and the public, and (3) Google repeatedly lied about it.' As established above, political discrimination is not prohibited by California anti-discrimination laws and so Google's alleged discrimination would not be unlawful. The latter two reasons do not provide a 'determinable legal standard' under which the Court could find the conduct wrongful; they rest on a 'nebulous' theory of wrongfulness which other courts have rejected." The RNC "has failed to establish that Defendant's alleged interference constituted a separate, independently 'wrongful act' that would be an appropriate predicate offense" but "will be granted leave to amend this claim to establish that Defendant's conduct was unlawful by some legal measure," Calabretta wrote.
Google said in a statement: "We welcome the Court's finding that there are no plausible allegations that Gmail's spam filters discriminate for political purposes. We will continue investing in spam-filtering technologies that protect people from unwanted emails while still allowing senders to reach the inboxes of users who want their messages."
Piracy

Amazon Sues Online Stores Selling Pirated DVDs 71

Amazon has filed a lawsuit against a group of online stores that sell pirated DVDs of key titles such as "The Lord of the Rings: The Rings of Power" and "The Peripheral." TorrentFreak reports: In a complaint filed at a California federal court, Amazon accuses seven websites of selling pirated discs. These sites, including dvdshelf.com.au, dvds.trade, and dvdwholesale.co.uk, are presumably operated by the same group, using a variety of companies. For the public at large, it may not be immediately obvious that these discs are pirated. However, since Amazon doesn't produce or sell DVDs for these Prime Video series, there is no doubt that they are created from illicit sources.

The piracy operation consists of at least seven websites and these all remain online today. According to Amazon, the sites ship to customers in the U.S. and abroad, twenty-four hours a day, seven days a week, resulting in mass copyright infringement. Before going to court, investigators conducted more than twenty test purchases of pirated DVDs. After these orders arrived, Amazon sent the discs to the Motion Picture Association which independently confirmed that they were all pirated.

The complaint lists Yangchun Zhang as a key suspect. This person presumably resides in China and obtained the 'DVD Shelf' trademark in Australia. In addition, Zhang is also listed as the registrant of several of the domain names involved. The complaint accuses Zhang and the others of both copyright and trademark infringement. Through the lawsuit (PDF), Amazon hopes to recoup damages, which can run in the millions of dollars. Another key priority is to shut the sites down and Amazon asks the court for an injunction to stop all infringing activity.
United Kingdom

Teenagers Convicted of Grand Theft Auto, Nvidia Lapsus$ Hacks in the UK (bloomberg.com) 35

Two UK teenagers accused of being key members of the notorious hacking group Lapsus$, behind attacks on companies including Nvidia, Rockstar Games, and Uber, were convicted of their crimes by a London jury Wednesday. From a report: Arion Kurtaj, 18, and a 17-year-old male, who can't be identified, were found to have carried out a number of offenses including serious computer misuse, blackmail and fraud against BT Group's EE network and Nvidia. Kurtaj was also separately accused of hacks into Uber, Rockstar's Grand Theft Auto game, and fintech firm Revolut. The Southwark Crown Court jury only needed to come to a decision on whether Kurtaj was liable for the crimes after he was found by the judge to be unfit to stand trial because of a complex medical condition. The jury found him liable for all 12 charges. The 17-year-old was found guilty of hacking, fraud and blackmail against Nvidia and cleared over two other counts against EE. He had previously plead guilty to two charges relating to the BT hacks. Lapsus$ are an international bunch of loosely connected online extortionists.
Social Networks

A Pennsylvania Court Says State Police Can't Hide How It Monitors Social Media (apnews.com) 32

An anonymous reader quotes a report from the Associated Press: Pennsylvania's Supreme Court ruled Tuesday that the state police can't hide from the public its policy on how it monitors social media. Advocates for civil liberties cheered the decision. The law enforcement agency had argued that fully disclosing its policy for using software to monitor online postings may compromise public safety. All four Democratic justices supported the majority decision, which said the lower Commonwealth Court went beyond its authority in trying to give the state police another attempt to justify keeping details of the policy a secret. Tuesday's order appears to end a six-year legal battle.

Justifying what the majority opinion described as heavy or complete redactions on every page of the nine-page regulation, the head of the state police's bureau of criminal investigations argued that greater transparency about the policy would make its investigations less effective. The state Office of Open Records held a private review of the blacked out material and and ruled that making the policy public would not be likely to harm investigations, calling the social media policy processes strictly internal and administrative in nature. Redacted sections addressed the use of open sources, what approval is required, when to go undercover and use an online alias and how to verify information. State police also blacked out the entire section on using social media for employment background investigations.

A panel of three Republican Commonwealth Court judges reversed the Office of Open Records' ruling that the policy should be disclosed without redactions, saying in May 2018 that the state police investigations chief based his analysis about the risk of exposure on his own extensive experience. The majority decision issued Tuesday said Commonwealth Court should not have given the state police a new opportunity to lay out the supposed public safety risks. The majority ruled that Pennsylvania's Right-to-Know Law does not permit Commonwealth Court to order additional fact-finding not sought by state police.
Andrew Christy, a lawyer with the ACLU of Pennsylvania, said the ruling "sort of puts law enforcement on the same playing field as all government agencies. If they have a legal justification to keep something secret, then they have to put forth sufficient evidence to justify that."

"Ultimately that relies on the voters understanding what law enforcement is doing so that then, through their elected representatives, they can rein them in when they're acting in a way that doesn't comport with what the public wants," Christy said.
Bitcoin

Bitcoin Developers Push Back Against Craig Wright's Claim to Billions of Dollars in Bitcoin (coindesk.com) 82

Long-time Slashdot reader UnknowingFool writes: In 2021, Craig Wright sued 12 bitcoin developers who refused help him recover 111,000 bitcoins he claimed were lost in a hack. His company, Tulip Trading, wanted the developers to put in a backdoor mechanism in bitcoin that would override the ownership of the coins, arguing it was the developers "fiduciary duty" to assist him. The developers allege (PDF) that Tulip and Wright never owned the coins and the evidence of ownership provided is "fabricated." Tulip Trading "never owned the digital assets and has commenced this claim fraudulently and in reliance on fabricated documents," the developers' lawyers said in a statement. "Dr. Wright has a long history of fraud, forgery, and dishonesty ... [and is using] the English courts as an instrument of fraud."
AI

AI-Generated Art Cannot Receive Copyrights, US Court Says 57

A U.S. court in Washington, D.C. today has ruled that artwork created by artificial intelligence without any human input cannot be copyrighted under U.S. law. Reuters reports: Only works with human authors can receive copyrights, U.S. District Judge Beryl Howell said on Friday, affirming the Copyright Office's rejection of an application filed by computer scientist Stephen Thaler on behalf of his DABUS system. The Friday decision follows losses for Thaler on bids for U.S. patents covering inventions he said were created by DABUS, short for Device for the Autonomous Bootstrapping of Unified Sentience. Thaler has also applied for DABUS-generated patents in other countries including the United Kingdom, South Africa, Australia and Saudi Arabia with limited success.
Privacy

Cellebrite Asks Cops To Keep Its Phone Hacking Tech 'Hush Hush' (techcrunch.com) 50

An anonymous reader shares a report: For years, cops and other government authorities all over the world have been using phone hacking technology provided by Cellebrite to unlock phones and obtain the data within. And the company has been keen on keeping the use of its technology "hush hush." As part of the deal with government agencies, Cellebrite asks users to keep its tech -- and the fact that they used it -- secret, TechCrunch has learned. This request concerns legal experts who argue that powerful technology like the one Cellebrite builds and sells, and how it gets used by law enforcement agencies, ought to be public and scrutinized.

In a leaked training video for law enforcement customers that was obtained by TechCrunch, a senior Cellebrite employee tells customers that "ultimately, you've extracted the data, it's the data that solves the crime, how you got in, let's try to keep that as hush hush as possible." "We don't really want any techniques to leak in court through disclosure practices, or you know, ultimately in testimony, when you are sitting in the stand, producing all this evidence and discussing how you got into the phone," the employee, who we are not naming, says in the video.

The Courts

AI-Generated Works Aren't Protected By Copyrights, US Judge Rules (billboard.com) 28

A U.S. federal judge "ruled Friday that U.S. copyright law does not cover creative works created by artificial intelligence," reports Billboard magazine: In a 15-page written opinion, Judge Beryl Howell upheld a decision by the U.S. Copyright Office to deny a copyright registration to computer scientist Stephen Thaler for an image created solely by an AI model. The judge cited decades of legal precedent that such protection is only afforded to works created by humans. "The act of human creation — and how to best encourage human individuals to engage in that creation, and thereby promote science and the useful arts — was ... central to American copyright from its very inception," the judge wrote. "Non-human actors need no incentivization with the promise of exclusive rights under United States law, and copyright was therefore not designed to reach them."

In a statement Friday, Thaler's attorney Ryan Abbot said he and his client "disagree with the district court's judgment" and vowed to appeal: "In our view, copyright law is clear that the public is the main beneficiary of the law and this is best achieved by promoting the generation and dissemination of new works, regardless of how they are created."

Though novel, the decision was not entirely surprising. Federal courts have long strictly limited to content created by humans, rejecting it for works created by animals, by forces of nature, and even those claimed to have been authored by divine spirits, like religious texts.

The Hollywood Reporter notes that "various courts have reached the same conclusion." In another case, a federal appeals court said that a photo captured by a monkey can't be granted a copyright since animals don't qualify for protection, though the suit was decided on other grounds. Howell cited the ruling in her decision. "Plaintiff can point to no case in which a court has recognized copyright in a work originating with a non-human," the order, which granted summary judgment in favor of the copyright office, stated.

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