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Twitter's former CEO and other execs are suing Elon Musk and X for $128 million in unpaid severance

A group of former Twitter executives, including former CEO Parag Agrawal, are suing Elon Musk and X over millions of dollars in unpaid severance benefits. The claims date back to the chaotic circumstances surrounding Musk’s takeover of the company in October 2022.

When Musk took control of the company, his first move was to fire Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde and general counsel Sean Edgett. According to the lawsuit, Musk had “special ire” for the group because of the role they played in the months-long court battle that forced Musk to follow through with the acquisition after he attempted to back out of the deal. According to the lawsuit, Agrawal is entitled to $57.4 million in severance benefits, Segal is entitled to $44.5 million, Gadde $20 million and Edgett $6.8 million, for a total of about $128 million.

The lawsuit cites Musk biographer Walter Isaacson’s account of the events, which explains that Musk rushed to close the Twitter deal a day early so he could fire the executives “for cause” just before their final stock options were set to vest. According to Isaacson, Musk bragged that the legal maneuver saved him about $200 million. 

“Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him,” the lawsuit states,“Because Musk decided he didn’t want to pay Plaintiffs’ severance benefits, he simply fired them without reason, then made up fake cause and appointed employees of his various companies to uphold his decision.”

X didn’t respond to a request for comment on the lawsuit. Of note, it’s not the first time former Twitter employees have sued the company for failing to pay severance benefits. A separate lawsuit claimed Twitter owed former workers more than $500 million in unpaid severance. Agrawal, Segal and Gadde also previously sued the company over unpaid legal bills as a result of shareholder lawsuits and other investigations that resulted from Musk’s takeover,

This article originally appeared on Engadget at https://www.engadget.com/twitters-former-ceo-and-other-execs-are-suing-elon-musk-and-x-for-128-million-in-unpaid-severance-231428042.html?src=rss

Makers of Switch emulator Yuzu quickly settle with Nintendo for $2.4 million

Tropic Haze, the popular Yuzu Nintendo Switch emulator developer, appears to have agreed to settle Nintendo’s lawsuit against it. Less than a week after Nintendo filed the legal action, accusing the emulator’s creators of “piracy at a colossal scale,” a joint final judgment and permanent injunction filed Tuesday says Tropic Haze has agreed to pay the Mario maker $2.4 million, along with a long list of concessions.

Nintendo’s lawsuit claimed Tropic Haze violated the anti-circumvention and anti-trafficking provisions of the Digital Millennium Copyright Act (DMCA). “Without Yuzu’s decryption of Nintendo’s encryption, unauthorized copies of games could not be played on PCs or Android devices,” the company wrote in its complaint. It described Yuzu as “software primarily designed to circumvent technological measures.”

Yuzu launched in 2018 as free, open-source software for Windows, Linux and Android. It could run countless copyrighted Switch games — including console sellers like The Legend of Zelda: Breath of the Wild and Tears of the Kingdom, Super Mario Odyssey and Super Mario Wonder. Reddit threads comparing Switch emulators praised Yuzu’s performance compared to rivals like Ryujinx. Yuzu introduces various bugs across different titles, but it can typically handle games at higher resolutions than the Switch, often with better frame rates, so long as your hardware is powerful enough.

A screenshot from Yuzu’s website, showing The Legend of Zelda: Breath of the Wild
Tropic Haze / Nintendo

As part of an Exhibit A attached to the proposed joint settlement, Tropic Haze agreed to a series of accommodations. In addition to paying Nintendo $2.4 million, it must permanently refrain from “engaging in activities related to offering, marketing, distributing, or trafficking in Yuzu emulator or any similar software that circumvents Nintendo’s technical protection measures.”

Tropic Haze must also delete all circumvention devices, tools and Nintendo cryptographic keys used in the emulator and turn over all circumvention devices and modified Nintendo hardware. It even has to surrender the emulator’s web domain (including any variants or successors) to Nintendo. (The website is still live now, perhaps waiting for the judgment’s final a-okay.) Not abiding by the settlement’s agreements could land Tropic Haze in contempt of court, including punitive, coercive and monetary actions.

Although piracy is the top motive for many emulator users, the software can double as crucial tools for video game preservation — making rapid legal surrenders like Tropic Haze’s potentially problematic. Without emulators, Nintendo and other copyright holders could make games obsolete for future generations as older hardware eventually becomes more difficult to find.

Nintendo’s legal team is, of course, no stranger to aggressively enforcing copyrighted material. In recent years, the company went after Switch piracy websites, sued ROM-sharing website RomUniverse for $2 million and helped send hacker Gary Bowser to prison. Although it was Valve’s doing, Nintendo’s reputation indirectly got the Dolphin Wii and GameCube emulator blocked from Steam. It’s safe to say the Mario maker doesn’t share preservationists’ views on the crucial historical role emulators can play.

Despite the settlement, it appears unlikely the open-source Yuzu will disappear entirely. The emulator is still available on GitHub, where its entire codebase can be found.

This article originally appeared on Engadget at https://www.engadget.com/makers-of-switch-emulator-yuzu-quickly-settle-with-nintendo-for-24-million-203204698.html?src=rss

Proposed class action lawsuit accuses Apple of monopolizing cloud storage for its devices

A class action complaint filed against Apple on Friday in the northern California court has accused the company of creating unfair conditions to ensure iCloud remains the dominant cloud storage choice for its devices, according to Bloomberg Law. By placing “surgical technological restraints” on the types of files other cloud providers can host, Apple has made it so only iCloud can offer Apple device users full-service storage, the complaint argues. According to the complaint, this has also allowed Apple to charge higher fees in the absence of “any real threat to iCloud’s dominance.”

The proposed class, represented by Hagens Berman, would cover tens of millions of customers in the US, Bloomberg Law notes. While iPhone and iPad users do have the option to store certain types of files with non-Apple cloud storage providers, there are some things — including app data and device settings — that only iCloud has permission to host. This leaves users to choose either the “unattractive” option of juggling multiple cloud storage accounts to fully cover their backup needs, or iCloud’s full-service convenience. The complaint argues that Apple’s restrictions are arbitrary and work to stifle competition.

Apple “does not dominate because it built a superior cloud-storage product,” the complaint states. “From a security and functionality standpoint, iCloud is no better (and often inferior) to other cloud storage platforms. Instead, Apple has achieved market dominance by rigging the competitive playing field so that only iCloud can win.” The case was only just filed and hasn’t yet been granted class action status, but anyone who thinks they may be eligible to get in on it can fill out a form on the Hagens Berman website to find out more information.

This article originally appeared on Engadget at https://www.engadget.com/proposed-class-action-lawsuit-accuses-apple-of-monopolizing-cloud-storage-for-its-devices-190822242.html?src=rss

Meta is starting to test the Threads API with third-party developers

Meta is starting to bring the Threads API online, though it will still be some time before it’s widely accessible to developers. The company has begun testing its new developer tools with a handful of companies, Meta engineer Jesse Chen shared in a post on Threads.

According to Chen, whose post was first spotted by TechCrunch, the API is currently in “beta” but a wider rollout could come “by the end of June.” The initial group of companies testing out the beta version of the API include social media management platforms Sprinklr, Hootsuite, Social News Desk and Sprout Social. Meta is also working with tech news aggregator Techmeme and live video platform Grabyo. For now, it sounds like the API will primarily enable the publishing of content to Threads from these services, but Chen said there are also plans to “enable reply moderation and insights capabilities.”

Having an API could help Threads attract more publishers and power users, who often rely on third-party software for posting and analytics. Instagram head Adam Mosseri has previously expressed some reluctance to woo publishers, saying that his “concern” was that a dedicated API would “mean a lot more publisher content and not much more creator content.” (Mosseri has also said he doesn’t want to “amplify news on the platform.”)

But with 130 million users, Threads is starting to look more and more like a viable alternative to X, and offering professional-level tools is a good way to get publishers and brands to post more to the platform. Having an API could also, potentially, aid the company’s plans to support interoperability with Mastodon and the rest of the fediverse, though Meta hasn’t publicly discussed its API in that context,.

This article originally appeared on Engadget at https://www.engadget.com/meta-is-starting-to-test-the-threads-api-with-third-party-developers-200125403.html?src=rss

Elon Musk sues OpenAI and Sam Altman for allegedly ditching non-profit mission

OpenAI co-founder Elon Musk has sued the company, his fellow co-founders, associated businesses and unidentified others. He claims that, by chasing profits, they’re violating OpenAI’s status as a non-profit and its foundational contractual agreements to develop AI “for the benefit of humanity.”

The suit alleges that OpenAI has become a “closed-source de facto subsidiary” of Microsoft, which has invested $13 billion and holds a 49 percent stake. Microsoft uses OpenAI tech to power generative AI tools such as Copilot.

According to the filing, under OpenAI’s current board, it is allegedly developing and refining an artificial general intelligence (AGI) “to maximize profits for Microsoft, rather than for the benefit of humanity. This was a stark betrayal of the Founding Agreement.”

The suit defines AGI as "a machine having intelligence for a wide variety of tasks like a human." Musk argues in the suit that GPT-4, which is purportedly "better at reasoning than average humans," is tantamount to AGI and is "a de facto Microsoft proprietary algorithm."

Musk has long expressed concerns over AGI. He claims the theoretical tech posits "a grave threat to humanity," particularly "in the hands of a closed, for-profit company like Google."

According to the filing, OpenAI CEO Sam Altman and fellow co-founder Greg Brockman persuaded Musk to help them start the non-profit and to fund its early operations in a bid to counter Google's advancements in the AGI space with DeepMind. He noted that their initial agreement called for OpenAI's tech to be "freely available" to the public. Musk claims to have donated $44 million to the non-profit between 2016 and 2020 (he stepped down as an OpenAI board member in 2018). As TechCrunch reports, Musk previously said he was offered a stake in OpenAI's for-profit subsidiary, but rejected it due to "a principled stand."

Muskl, of course, has some skin in the game. Since the public debut of OpenAI's ChatGPT in November 2022, there's been a battle between tech giants to offer the best generative AI tools. Musk joined that rat race when his AI company, xAI, rolled out ChatGPT rival Grok to Premium+ subscribers on his X social network last year.

When Altman swiftly returned to power after OpenAI's board shockingly fired him in November, he's said to have appointed a new group of directors that is less technically minded and more business-focused. Microsoft was appointed as a non-voting observer. “The new board consisted of members with more experience in profit-centric enterprises or politics than in AI ethics and governance,” the lawsuit alleges.

The suit accuses the defendants of breach of contract, breach of fiduciary duty and unfair business practices. Musk is seeking a jury trial and a ruling that forces OpenAI to stick to its original non-profit mission. He also wants it to be banned from monetizing tech it developed as a non-profit for the benefit of OpenAI leadership as well as Microsoft and other partners.

Competition regulators in the US, the UK and European Union are said to be examining OpenAI's partnership with Microsoft. It was reported this week that the Securities and Exchange Commission is investigating whether OpenAI misled investors. Several news organizations have sued OpenAI and Microsoft as well, alleging that ChatGPT repurposes their work "verbatim or nearly verbatim" without attribution, infringing upon their copyright in the process.

This article originally appeared on Engadget at https://www.engadget.com/elon-musk-sues-openai-and-sam-altman-for-allegedly-ditching-non-profit-mission-160722736.html?src=rss

More news organizations sue OpenAI and Microsoft over copyright infringement

Legal claims are starting to pile up against Microsoft and OpenAI, as three more news sites have sued the firms over copyright infringement, The Verge reported. The Intercept, Raw Story and AlterNet filed separate lawsuits accusing ChatGPT of reproducing news content "verbatim or nearly verbatim" while stripping out important attribution like the author's name.

The sites, all represented by the same law firm, said that if ChatGPT trained on copyright material, it "would have learned to communicate that information when providing responses." Raw Story and AlterNet added that OpenAI and Microsoft must have known that the chatbot would be less popular and generate lower revenue if "users believed that ChatGPT responses violated third-party copyrights." 

The news organizations note in the lawsuit that OpenAI offers an opt-out system for website owners, meaning that the company must be aware of potential copyright infringement. Microsoft and OpenAI have also said that they'll defend customers against legal claims around copyright infringement that might arise from using their products, and even pay for incurred costs.

Late last year, The New York Times sued OpenAI and Microsoft for copyright infringement, saying it "seeks to hold them responsible for the billions of dollars in statutory and actual damages". OpenAI asked a court to dismiss that claim, saying the NYT took advantage of a ChatGPT bug that made it recite articles word for word.

The companies also face lawsuits from multiple non-fiction authors accusing them of "massive and deliberate theft of copyrighted works," and by comedian Sarah Silverman over similar claims. 

This article originally appeared on Engadget at https://www.engadget.com/more-news-organizations-sue-openai-and-microsoft-over-copyright-infringement-061103178.html?src=rss

EA is laying off over 650 employees

Video game company Electronic Arts will lay off 5 precent of its workforce according to a report it filed with the Securities and Exchange Commission on Wednesday. More than 650 EA employees will lose their jobs as a result of the move, part of a broader restricting that will see the company cutting back on office space and ending work on some video games.

EA’s cuts are the latest in a long line of layoffs that have rocked the video game industry since last year. In 2023, more than 10,500 video game workers lost their jobs, and more than 6,000 people in the industry were cut in January 2024 alone. The video game companies that have laid off workers so far include Microsoft, Riot Games, and Unity among many others. On Tuesday, Sony announced that it was laying off 900 people from its PlayStation division, roughly 8 percent of its headcount.

In a memo sent to EA employees, CEO Andrew Wilson wrote that the company is “streamlining our company operations to deliver deeper, more connected experiences for fans everywhere.” EA expects to finish making the cuts by early next quarter, the memo says. The cuts, Wilson adds, will let EA focus more on its “biggest opportunities — including our owned IP, sports, and massive online communities.”

This article originally appeared on Engadget at https://www.engadget.com/ea-is-laying-off-over-650-employees-221221637.html?src=rss

Nintendo lawsuit accuses Switch emulator creators of 'piracy at a colossal scale'

Nintendo has filed a lawsuit against the creators of a popular Switch emulator called Yuzu, which gives users a way to play games developed for the platform on their PCs and Android devices. In the lawsuit shared by Game File's Stephen Totilo, the company argued that Yuzu violates the anti-circumvention and anti-trafficking provisions of the Digital Millennium Copyright Act (DMCA). 

Nintendo explained that it protects its games with encryption and other security features meant to prevent people from playing pirated copies. Yuzu has the capability to defeat those security measures and to decrypt Nintendo games. "[W]ithout Yuzu's decryption of Nintendo's encryption, unauthorized copies of games could not be played on PCs or Android devices," the company wrote in its complaint. 

It's illegal to "circumvent technological measures put into place by copyright owners to protect against unlawful access to and copying of copyrighted works" under the DMCA, Nintendo continued. And distributing "software primarily designed to circumvent technological measures" also constitutes unlawful trafficking. The defendants are, thus, "facilitating piracy at a colossal scale," the lawsuit argued. This case could set a precedent for future lawsuits against emulators, which aren't illegal in and of them themselves. As Ars Technica notes, Nintendo's arguments are calling their very nature unlawful. 

To illustrate how much Yuzu has affected its business, Nintendo revealed in its complaint that The Legend of Zelda: Tears of the Kingdom was illegally distributed a week and a half before its official release. It was apparently downloaded over a million times from pirated websites, which specifically noted that people can play the game file through Yuzu. The company also mentioned that Yuzu's creators are making money from their emulator. They're getting around $30,000 a month from their Patreon supporters and have earned around $50,000 from the paid version of their software on Google Play, so far. 

Nintendo is asking the court to stop Yuzu's creators from promoting and distributing the software. It's also asking for an unspecified amount in "equitable relief and damages."

This article originally appeared on Engadget at https://www.engadget.com/nintendo-lawsuit-accuses-switch-emulator-creators-of-piracy-at-a-colossal-scale-093157736.html?src=rss

Appeals court overturns $1 billion copyright lawsuit against Cox

An appeals court has blocked a $1 billion copyright verdict from 2019 against US internet service provider Cox Communications and ordered a retrial, Arts Technica has reported. A three-judge panel ruled unanimously that Cox didn't profit directly from its users' piracy, rebutting claims from Sony, Universal and Warner. 

The judges did affirm the original jury's finding of willful contributory infringement from the trial, first announced back in 2018. To that effect, they ordered a new damages trial that may reduce the size of the award.

"We reverse the vicarious liability verdict and remand for a new trial on damages because Cox did not profit from its subscribers' acts of infringement, a legal prerequisite for vicarious liability," the panel wrote. It added that "no reasonable jury could find that Cox received a direct financial benefit from its subscribers' infringement of Plaintiffs' copyrights." 

Cox allegedly refused to take "reasonable measures" to fight piracy, according to the original allegations. Internet providers are supposed to terminate the accounts of offending users, but the ISP only conducted temporary disconnections and warned some users more than 100 times. The labels claimed it even instituted a cap on accepted copyright complaints and cut back on anti-piracy staffers.

However, the judges said that Sony offered no causal connection between infringement and higher revenues for Cox. "No evidence suggest that customers chose Cox's Internet service, as opposed to a competitor's, because of any knowledge or expectation about Cox's lenient response to infringement." 

Under the US Digital Millennium Copyright Act (DMCA) and EU rules, ISPs enjoy "safe harbor" protections that shield them from liability for user actions. However, that only holds if they comply with specific requirements and address copyright violations promptly — and in this case, Cox didn't do that, the judges said. 

"The jury saw evidence that Cox knew of specific instances of repeat copyright infringement occurring on its network, that Cox traced those instances to specific users, and that Cox chose to continue providing monthly Internet access to those users... because it wanted to avoid losing revenue," the ruling states. The case is now headed back to a US District court.

This article originally appeared on Engadget at https://www.engadget.com/appeals-court-overturns-1-billion-copyright-lawsuit-against-cox-130810427.html?src=rss

FuboTV accuses Disney, Fox and Warner Bros. of antitrust practices over joint streaming service

FuboTV, a streaming platform dedicated to live sports, has filed an antitrust lawsuit against Disney, Fox and Warner Bros. Discovery, accusing the companies of staging "a years-long campaign" to hamper its business. The company's lawsuit comes shortly Disney-owned ESPN, Fox and Warner Bros. Discovery announced that they're launching a sports streaming service in the fall of 2024, which will give subscribers access to sporting events from the networks they own. FuboTV's complaint argued that the companies are stealing its playbook and that the launch of their joint venture will destroy competition and lead to price inflation for consumers. 

Further, FuboTV alleged that the launch of the defendants' streaming service is but "the latest coordinated step" in their "campaign to eliminate competition in the sports-first streaming market" and in their effort to block its business. The streaming service said the defendants charge it content licensing rates that are 30 to 50 percent higher than the rates they charge other distributors. They also allegedly force FuboTV to bundle "dozens of expensive non-sports channels" that "customers do not want" with their sports offerings as a condition of licensing their content. All these increase the costs FuboTV must pass onto its customers, the company explained. 

FuboTV also claimed that the companies in question have prevented it from being able to offer streaming products subscribers would like, including content available on Hulu. Plus, the defendants allegedly impose a limitation on how many subscribers can buy their content package, ensuring that FuboTV can't make a dent in the market. 

"Each of these companies has consistently engaged in anticompetitive practices that aim to monopolize the market, stifle any form of competition, create higher pricing for subscribers and cheat consumers from deserved choice," FuboTV CEO David Gandler said in a statement. "By joining together to exclusively reserve the rights to distribute a specialized live sports package, we believe these corporations are erecting insurmountable barriers that will effectively block any new competitors from entering the market. This strategy ensures that consumers desiring a dedicated sports channel lineup are left with no alternative but to subscribe to the Defendants' joint venture."

Engadget has reached out to all three defendants: ESPN has declined to comment, while Fox and Warner Bros. Discovery have yet to get back to us. FuboTV is asking the court to prohibit the joint venture's launch or to impose restrictions, such as economic parity of licensing terms, on the defendants.

This article originally appeared on Engadget at https://www.engadget.com/fubotv-accuses-disney-fox-and-warner-bros-of-antitrust-practices-over-joint-streaming-service-064140676.html?src=rss