The Courts

Netflix Faces Consumer Class Action Over $72 Billion Warner Bros Deal (reuters.com) 49

Netflix's $72 billion bid to buy Warner Bros Discovery has triggered a consumer class action claiming the merger would crush competition, erase HBO Max as a rival, and hand Netflix control over major franchises. Reuters reports: The proposed class action (PDF) was filed on Monday by a subscriber to Warner Bros-owned HBO Max who said the proposed deal threatened to reduce competition in the U.S. subscription video-on-demand market. "Netflix has demonstrated repeated willingness to raise subscription prices even while facing competition from full-scale rivals such as WBD," the lawsuit said. [...] The lawsuit said the Warner Bros deal would eliminate one of Netflix's closest rivals, HBO Max, and give Netflix control over Warner Bros marquee franchises including Harry Potter, DC Comics and Game of Thrones. On Monday, Paramount Skydance launched a $108 billion hostile bid to buy Warner Bros. Discovery with an all-cash, $30-per-share offer.
Australia

Millions of Australian Teens Lose Access To Social Media As Ban Takes Effect (bbc.com) 137

Australia's world-first ban blocking under-16s from major social platforms has come into effect. The BBC is live reporting the reactions "both from within Australia and outside it." From the report: I've been speaking to 12-year-old Paloma, who lives in Sydney and says she is "sad" about the ban. She spends between 30 minutes and two hours a day on social media. "I'm upset... because I am part of several communities on Snapchat and TikTok," she tells me. "I've developed good friendships on the apps, with people in the US and New Zealand, who have common interests like gaming, and it makes me feel more connected to the world."

Paloma says she regularly talks about the ups and downs of her life with a boy of the same age in New Jersey, in the US, who she knows through gaming and TikTok. "I feel like I can explore my creativity when I am in a community online with people of similar ages," she says. Everyone Paloma knows is "a bit annoyed" about the ban. By stopping them from using social media, she says "the government is taking away a part of ourselves."

Two 15-year-olds, Noah Jones and Macy Neyland, backed by a rights group, are arguing at Australia's highest court that the legislation robs them of their right to free communication. The Digital Freedom Project (DFP) announced the case had been filed in the High Court late last month. After news of the case broke, Australia's Communications Minister Anika Wells told parliament the government would not be swayed. "We will not be intimidated by threats. We will not be intimidated by legal challenges. We will not be intimidated by big tech. On behalf of Australian parents, we will stand firm," she said.

The Courts

Google Must Limit Its 'Default Search' Contracts to One Year, Judge Rules (yahoo.com) 6

Bloomberg reports that Google "must renegotiate any contract to make its search engine or artificial intelligence app the default for smartphones and other devices every year, a federal judge ruled." Judge Amit Mehta in Washington sided with the US Justice Department on the one year limitation in his final ruling on what changes the search giant must make in the wake of a landmark ruling that the company illegally monopolized online search. The yearly renegotiation will give rivals — particularly those in the burgeoning generative AI field — a chance to compete for key placements.

The final judgment will still allow Google to offer its products to Apple Inc. for use in its popular iPhone and pay other electronics makers like Samsung Electronics Co. for default placement. But the judge said those contracts must be renegotiated annually. Mehta noted in his ruling that both Google and the US government said they could work with the one-year limitation on default contracts. As such, "the court holds that a hard-and-fast termination requirement after one year would best carry out the purpose of the injunctive relief."

The Courts

The New York Times Is Suing Perplexity For Copyright Infringement (techcrunch.com) 68

The New York Times is suing Perplexity for copyright infringement, accusing the AI startup of repackaging its paywalled reporting without permission. TechCrunch reports: The Times joins several media outlets suing Perplexity, including the Chicago Tribune, which also filed suit this week. The Times' suit claims that "Perplexity provides commercial products to its own users that substitute" for the outlet, "without permission or remuneration." [...] "While we believe in the ethical and responsible use and development of AI, we firmly object to Perplexity's unlicensed use of our content to develop and promote their products," Graham James, a spokesperson for The Times, said in a statement. "We will continue to work to hold companies accountable that refuse to recognize the value of our work."

Similar to the Tribune's suit, the Times takes issue with Perplexity's method for answering user queries by gathering information from websites and databases to generate responses via its retrieval-augmented generation (RAG) products, like its chatbots and Comet browser AI assistant. "Perplexity then repackages the original content in written responses to users," the suit reads. "Those responses, or outputs, often are verbatim or near-verbatim reproductions, summaries, or abridgments of the original content, including The Times's copyrighted works."

Or, as James put it in his statement, "RAG allows Perplexity to crawl the internet and steal content from behind our paywall and deliver it to its customers in real time. That content should only be accessible to our paying subscribers." The Times also claims Perplexity's search engine has hallucinated information and falsely attributed it to the outlet, which damages its brand. "Publishers have been suing new tech companies for a hundred years, starting with radio, TV, the internet, social media, and now AI," Jesse Dwyer, Perplexity's head of communications, told TechCrunch. "Fortunately it's never worked, or we'd all be talking about this by telegraph."

Crime

Contractors With Hacking Records Accused of Wiping 96 Government Databases (bleepingcomputer.com) 54

Two Virginia brothers Muneeb and Sohaib Akhter, previously convicted of hacking the U.S. State Department, were rehired as federal contractors and are now charged with conspiring to steal sensitive data and destroy government databases after being fired. "Following the termination of their employment, the brothers allegedly sought to harm the company and its U.S. government customers by accessing computers without authorization, issuing commands to prevent others from modifying the databases before deletion, deleting databases, stealing information, and destroying evidence of their unlawful activities," the Justice Department said in a Wednesday press release. BleepingComputer reports: According to court documents, Muneeb Akhter deleted roughly 96 databases containing U.S. government information in February 2025, including Freedom of Information Act records and sensitive investigative documents from multiple federal agencies. One minute after deleting a Department of Homeland Security database, Muneeb Akhter also allegedly asked an artificial intelligence tool for instructions on clearing system logs after deleting a database.

The two defendants also allegedly ran commands to prevent others from modifying the targeted databases before deletion, and destroyed evidence of their activities. The prosecutors added that both men wiped company laptops before returning them to the contractor and discussed cleaning out their house in anticipation of a law enforcement search. The complaint also claims that Muneeb Akhter stole IRS information from a virtual machine, including federal tax data and identifying information for at least 450 individuals, and stole Equal Employment Opportunity Commission information after being fired by the government contractor.

Muneeb Akhter has been charged with conspiracy to commit computer fraud and destroy records, two counts of computer fraud, theft of U.S. government records, and two counts of aggravated identity theft. If found guilty, he faces a minimum of two years in prison for each aggravated identity theft count, with a maximum of 45 years on other charges. His brother, Sohaib, is charged with conspiracy to commit computer fraud and password trafficking, facing a maximum penalty of six years if convicted.

EU

EU Hits Meta With Antitrust Probe Over Plans To Block AI Rivals From WhatsApp 3

The EU has opened an antitrust investigation into Meta over a new WhatsApp policy that could block rival AI assistants from accessing the platform. Complaints from smaller AI developers triggered the probe, which could lead to fines of up to 10% of Meta's global revenue if the company is found to have abused its dominance. Reuters reports: EU antitrust chief Teresa Ribera said the move was to prevent dominant firms from "abusing their power to crowd out innovative competitors." She added interim measures could be imposed to block Meta's new WhatsApp AI policy rollout. "AI markets are booming in Europe and beyond," she said. "This is why we are investigating if Meta's new policy might be illegal under competition rules, and whether we should act quickly to prevent any possible irreparable harm to competition in the AI space."

A WhatsApp spokesperson called the claims "baseless," adding that the emergence of chatbots on its platforms had put a "strain on our systems that they were not designed to support," a reference to AI systems from other providers. "Still, the AI space is highly competitive and people have access to the services of their choice in any number of ways, including app stores, search engines, email services, partnership integrations, and operating systems."
The Courts

OpenAI Loses Fight To Keep ChatGPT Logs Secret In Copyright Case (reuters.com) 39

A federal judge has ordered OpenAI to hand over 20 million anonymized ChatGPT logs in its copyright battle with the New York Times and other outlets. Reuters reports: U.S. Magistrate Judge Ona Wang in a decision made public on Wednesday said that the 20 million logs were relevant to the outlets' claims and that handing them over would not risk violating users' privacy. The judge rejected OpenAI's privacy-related objections to an earlier order requiring the artificial intelligence startup to submit the records as evidence. "There are multiple layers of protection in this case precisely because of the highly sensitive and private nature of much of the discovery," Wang said.

An OpenAI spokesperson on Wednesday cited an earlier blog post from the company's Chief Information Security Officer Dane Stuckey, which said the Times' demand for the chat logs "disregards long-standing privacy protections" and "breaks with common-sense security practices." OpenAI has separately appealed Wang's order to the case's presiding judge, U.S. District Judge Sidney Stein.

A group of newspapers owned by Alden Global Capital's MediaNews Group is also involved in the lawsuit. MediaNews Group executive editor Frank Pine said in a statement on Wednesday that OpenAI's leadership was "hallucinating when they thought they could get away with withholding evidence about how their business model relies on stealing from hardworking journalists."

Medicine

San Francisco Will Sue Ultraprocessed Food Companies 143

An anonymous reader quotes a report from the New York Times: The San Francisco city attorney filed on Tuesday the nation's first government lawsuit against food manufacturers over ultraprocessed fare (source may be paywalled; alternative source), arguing that cities and counties have been burdened with the costs of treating diseases that stem from the companies' products. David Chiu, the city attorney, sued 10 corporations that make some of the country's most popular food and drinks. Ultraprocessed products now comprise 70 percent of the American food supply and fill grocery store shelves with a kaleidoscope of colorful packages. Think Slim Jim meat sticks and Cool Ranch Doritos. But also aisles of breads, sauces and granola bars marketed as natural or healthy.

It is a rare issue on which the liberal leaders in San Francisco City Hall are fully aligned with the Trump administration, which has targeted ultraprocessed foods as part of its Make America Healthy Again mantra. Mr. Chiu's lawsuit, which was filed in San Francisco Superior Court on behalf of the State of California, seeks unspecified damages for the costs that local governments bear for treating residents whose health has been harmed by ultraprocessed food. The city accuses the companies of "unfair and deceptive acts" in how they market and sell their foods, arguing that such practices violate the state's Unfair Competition Law and public nuisance statute. The city also argues the companies knew that their food made people sick but sold it anyway.
The Courts

Supreme Court Hears Copyright Battle Over Online Music Piracy (nytimes.com) 32

The Supreme Court appears inclined to side with Cox Communications in a major copyright case, suggesting that ISPs shouldn't be held liable for users' music piracy based solely on "mere knowledge," given the risk of forcing outages for universities, hospitals, and other large customers. The New York Times reports: Leading music labels and publishers who represent artists ranging from Bob Dylan to Beyonce sued Cox Communications in 2018, saying it had failed to terminate the internet connections of subscribers who had been repeatedly flagged for illegally downloading and distributing copyrighted music. At issue is whether providers like Cox can be held legally responsible and be required to pay steep damages -- a billion dollars or more -- if they know that customers are pirating the music but do not take sufficient steps to terminate their internet access.

Justices from across the ideological spectrum on Monday raised concerns about whether finding for the music industry could result in internet providers being forced to cut off access to large account holders such as hospitals and universities because of the illegal acts of individual users. "What is the university supposed to do in your view?" asked Justice Samuel A. Alito Jr., a conservative, suggesting it would be difficult to track down bad actors without the risk of losing service campuswide. "I just don't see how it's workable at all."

"The internet is so amorphous," added Justice Sonia Sotomayor, a liberal, saying that a single "customer" could represent tens of thousands of users, particularly in rural areas where an entire region might be considered a "customer." After nearly two hours of argument, a majority of justices seemed likely to side with Cox and to send the case back to the U.S. Court of Appeals for the Fourth Circuit for review under a stricter standard. Several justices suggested the company's "mere knowledge" of the illegal downloads was not sufficient to hold Cox liable.

Social Networks

What Happens When You Kick Millions of Teens Off Social Media? Australia's About to Find Out (cnn.com) 237

27 million people live in Australia. But there's a big change coming if you're under 16, reports CNN: From December 10, sites that meet the Australian government's definition of an "age-restricted social media platform" will need to show that they're doing enough to eject or block children under 16 or face fines of up to 49.5 million Australian dollars ($32 million). The list includes Snapchat, Facebook, Instagram, Kick, Reddit, Threads, TikTok, Twitch, X, and YouTube...

Meta says it'll start deactivating accounts and blocking new Facebook, Instagram and Threads accounts from December 4. Under-16s are being encouraged to download their content. Snap says users can deactivate their accounts for up to three years, or until they turn 16...

There's another sting in the ban, too, coming at the end of the Australian school year before the summer break in the southern hemisphere. For eight weeks, there'll be no school, no teachers — and no scrolling. For millions of children, it could be the first school break they spend in years without the company of time-killing social media algorithms, or an easy way to contact their friends. Even for parents who support the ban, it could be a very long summer.

"There's every chance that bans will spread..." the article argues. "Other countries around the world are taking notes as Australia explores new territory that some say mirrors safety evolutions of years past — the dawning realization that maybe cars need safety belts, and that perhaps cigarettes should come with some kind of health warning." And according to the Associated Press, Malaysia "has also announced plans to ban social media accounts for children under 16 starting in 2026."

But CNN reports few teenagers in Australia knew about its impending ban on social media, judging by a show of hands at one high school auditorium. Teenagers in the audience had two questions.
  • "Can you get your account back when you turn 16?"
  • "What if I lie about my age?"

The Internet

The Battle Over Africa's Great Untapped Resource: IP Addresses (msn.com) 55

In his mid-20s, Lu Heng "got an idea that has made him a lot richer," writes the Wall Street Journal.

He scooped up 10 million unused IP addresses, mostly form Africa, and then leases them to companies, mostly outside Africa, "that need them badly." [A]round half of internet traffic continues to use IPv4, because changing to IPv6 can be expensive and complex and many older devices still need IPv4. Companies including Amazon, Microsoft and Google still want IPv4 addresses because their cloud-hosting businesses need them as bridges between the IPv4 and IPv6 worlds... Africa, which has been slower to develop internet infrastructure than the rest of the world, is the only region that still has some of the older addresses to dole out... He searches for IPv4 addresses that aren't being used — by ISPs or anyone else that holds them — and uses his Hong Kong-based company, Larus, to lease them out to others.

In 2013, Lu registered a new company in the Seychelles, an African archipelago in the Indian Ocean, to apply for IP addresses from Africa's internet registry, called the African Network Information Centre, or Afrinic. Between 2013 and 2016, Afrinic granted that company, Cloud Innovation, 6.2 million IPv4 addresses. That's more addresses than are assigned to Nigeria, Africa's most populous nation. A single IPv4 address can be worth about $50 on its transfer to a company like Larus, which leases it onward for around 5% to 10% of that value annually. Larus and its affiliate companies, Lu said, control just over 10 million IPv4 addresses. The architects of the internet don't appear to have contemplated the possibility that anyone would seek to monetize IP addresses...

Lu's activities triggered a showdown with Africa's internet registry. In 2020, after what it said was an internal review, Afrinic sent letters to Lu and others seeking to reclaim the IP addresses they held. In Lu's case, Afrinic said he shouldn't be using the addresses outside Africa. Lu responded that he wasn't violating rules in place when he got the addresses... After some back-and-forth, Lu sued Afrinic in Mauritius to keep his allocated addresses, eventually filing dozens of lawsuits... One of the lawsuits that Lu filed in Mauritius prompted a court there to freeze Afrinic's bank accounts in July 2021, effectively paralyzing the organization and eventually sending it into receivership. The receivership choked off distributions of new IPv4 addresses, leaving the continent's service providers struggling to expand capacity...

In September, Afrinic elected a new board. Since then, some internet-service providers have been granted IPv4 addresses.

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.

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