Posts with «company legal & law matters» label

GTA 6 hacker is sentenced to an indefinite hospitalization

A London judge has sentenced the teenage hacker who infiltrated Rockstar Games, leaking Grand Theft Auto VI footage, to an indefinite hospitalization, as reported by The BBC. The 18-year-old, Arion Kurtaj, breached Rockstar’s servers from a Travelodge hotel while under police custody, using only an Amazon Fire TV Stick, smartphone, keyboard and mouse. (He was promptly re-arrested.) Kurtaj was a central member of the Lasus$ international hacking group.

Doctors declared Kurtaj unfit to stand trial because he has acute autism. Following the judgment, the jury was instructed to determine if he committed the alleged crimes, not whether he had criminal intent. Following a mental health assessment suggesting he “continued to express the intent to return to cybercrime,” the judge decided he remained too high a risk to the public. The court also heard accounts of Kurtaj’s allegedly violent behavior while in custody, including reports of injury and property damage.

Despite Rockstar's claim that the hack cost it $5 million and thousands of hours of staff time, Kurtaj’s attorneys argued the success of the GTA 6 trailer, which racked up 128 million views in its first four days, meant his hack didn’t cause serious harm.

A second Lapsus$ member was found guilty in the same trial, but the 17-year-old’s name wasn’t made public because they’re a minor. The unnamed hacker was accused of working with Kurtaj and other Lapsus$ members to infiltrate Nvidia and phone company BT/EE, stealing data and demanding a $4 million ransom. The minor was sentenced to an 18-month youth rehabilitation order under “intense supervision,” including a ban on VPN use.

The two accomplices are the first Lapsus$ members to be convicted. Authorities believe other “digital bandits” in the group (suspected to be primarily teenagers in the UK and Brazil) are still at large. It isn’t clear what kind of payoff the hackers got from the ransom requests, if any, as none of the affected companies have admitted to ponying up.

This article originally appeared on Engadget at https://www.engadget.com/gta-6-hacker-is-sentenced-to-an-indefinite-hospitalization-194251395.html?src=rss

ITC denies motion to pause US Apple Watch ban until appeal is over

Following the patent dispute over the blood oxygen sensor on the Apple Watch Series 9 and Apple Watch Ultra 2, the International Trade Commission (ITC) sided with medical technology company Masimo, and ordered to halt all sales of said wearables in the US — conveniently just in time for the holidays. Apple has since filed a motion to pause this ban until its appeal is done, but earlier today, the ITC denied this request, meaning the Apple Watch ban is going ahead, unless the President decides to veto.

"A Presidential Review Period is in progress regarding an order from the US International Trade Commission on a technical intellectual property dispute pertaining to Apple Watch devices containing the Blood Oxygen feature," Apple told Engadget in an earlier statement. "While the review period will not end until December 25, Apple is preemptively taking steps to comply should the ruling stand."

The Apple Watch models affected will stop being sold on Apple.com on December 21 i.e. tomorrow, then on December 24 at Apple's retail stores, and then until stocks run out for third-party retailers like Amazon and Best Buy — which could be pretty fast given the import ban on December 26. Other models like the Apple Watch SE that don't contain a blood oxygen sensor will continue to be sold.

Masimo filed its lawsuit against Apple in 2021 over alleged violations of patents related to light-based blood-oxygen monitoring. The case originally targeted the Apple Watch Series 6, but despite the sales ban, you can continue to use the blood oxygen feature on that and other previously purchased Apple Watch models. In retaliation, Apple filed two patent infringement suits against Masimo in October 2022, claiming that the latter's own smartwatch copied Apple Watch features.

This article originally appeared on Engadget at https://www.engadget.com/itc-denies-motion-to-pause-us-apple-watch-ban-until-appeal-is-over-041608763.html?src=rss

UK Supreme Court rules AI can't be a patent inventor, 'must be a natural person'

AI may or may not take people's jobs in years to come, but in the meantime, there's one thing they cannot obtain: patents. Dr. Stephen Thaler has spent years trying to get patents for two inventions created by his AI "creativity machine" DABUS. Now, the United Kingdom's Supreme Court has rejected his appeal to approve these patents when listing DABUS as the inventor, Reuters reports

The court's rationale stems from a provision in UK patent law that states, "an inventor must be a natural person." The ruling stipulated that the appeal was unconcerned with whether this should change in the future. "The judgment establishes that UK patent law is currently wholly unsuitable for protecting inventions generated autonomously by AI machines," Thaler's lawyers said in a statement. 

Thaler first attempt to register the patents — for a food container and a flashing light — was in 2018, as owner of the machine that invented them. However, the UK's Intellectual Property Office said he must list an actual human being on the application, and when he refused, it withdrew his application. Thaler fought the decision in the High Court and then the Court of Appeal, with Lady Justice Elisabeth Laing stating, "Only a person can have rights. A machine cannot." 

Thaler, an American, also submitted the two products to the United States Patent and Trademark Office, which rejected his application. Plus, he previously sued the US Copyright Office (USCO) for not awarding him the copyright for a piece of art DABUS created. The case reached the US District Court of Columbia, with Judge Beryl Howell's ruling explaining, "Human authorship is a bedrock requirement of copyright." Thaler has argued that this provision is unconstitutional, but the US Supreme Court declined to hear his case, ending any further chances to argue his stance. While the UK and US have rejected Thaler's petitions, he has succeeded in countries such as Australia and South Africa. 

This article originally appeared on Engadget at https://www.engadget.com/uk-supreme-court-rules-ai-cant-be-a-patent-inventor-must-be-a-natural-person-131207359.html?src=rss

NLRB finds that eBay and subsidiary TCGPlayer engaged in union-busting practices

The National Labor Relations Board (NLRB) has found that eBay has violated the rights of unionized workers at TCGPlayer, a trading card marketplace owned by the company. This comes in response to charges filed by the Communications Workers of America back in March of this year. eBay has allegedly refused to recognize TCGPlayer’s worker union and it delayed participating in any bargaining practices and it has also refused to divulge any information with the group that the union is legally entitled to.

As part of its examination of the issue, the NLRB said that because eBay and TCGPlayer broke the law, the company must face legal consequences for its union-busting practices. The union, which officially formed in March following numerous anti-union actions from eBay and TCGPlayer, was denied representation during disciplinary investigations. The NLRB also found that eBay was changing working conditions and benefits without engaging in bargaining with the group. On top of that, eBay is said to have even enforced rules that would punish any workers’ elections to unionize.

While the NLRB lays out evidence of eBay’s union-busting practices, it did not officially issue a decision on the matter. The agency is still waiting on the company’s response to the issue. “Now that the board has come to a decision on eBay’s illegal practices, we hope the company will see the light, obey labor law and engage in good faith bargaining practices so that workers can secure a strong union contract,” Dennis Trainor, Communications Workers of America District 1 Vice-President, said in a statement. eBay could not be reached for comment.

This article originally appeared on Engadget at https://www.engadget.com/nlrb-finds-that-ebay-and-subsidiary-tcgplayer-engaged-in-union-busting-practices-205337429.html?src=rss

Apple is reportedly scrambling to update Apple Watch software to avoid a looming ban

Apple is scrambling to make software updates to Apple Watch algorithms that measure blood oxygen levels to avoid an impending ban on the smartwatch in the US over a patent dispute, Bloomberg reported. Changing how the Watch measures oxygen saturation, Apple believes, could help keep the Watch on shelves during the busy holiday shopping season.

The blood oxygen sensor, which was first introduced with the Apple Watch 6 in 2020, is at the heart of a patent dispute between Apple and Masimo, another California-based company that sued Apple in 2021. Masimo claimed that Apple’s sensor violated two patents related to light-based blood-oxygen monitoring that it owned. In October, the International Trade Commission (ITC) upheld a ruling, stating that Apple did, in fact, violate Masimo’s patents.

The case then went to the White House for a 60-day Presidential Review period, which ends next week. If President Biden doesn’t veto the ITC’s decision, Apple will be banned from selling the Apple Watch 9 and Apple Watch Ultra 2, which include blood oxygen sensing. Apple is complying preemptively with the ban and will stop selling both Apple Watch models on its website on December 21 and in retail stores on December 24 in case the veto doesn’t happen.

One way Apple could keep selling the watch is to settle with Masimo, but the company’s last-minute race to make software changes to the Watch suggests that it doesn’t plan to do so. The company told Bloomberg that it plans to submit its software workaround to the ITC for approval. Masimo’s CEO Joe Kiani, told Bloomberg that he would be open to settling with Apple, but the company hasn’t called him yet. “It takes two to tango,” he said.

He also doesn’t think that a software update to the Apple Watch would resolve the situation. “I don’t think that could work — it shouldn’t — because our patents are not about the software,” Kiani said. “They are about the hardware with the software.”

Overhauling Apple Watch hardware would, of course, be a lot more challenging for Apple than tweaking its software. Even if the ITC approves any potential hardware changes, manufacturing and shipping modified versions of the two Watch models could take upwards of three months, a person familiar with how Apple operates told the publication.

Apple and Masimo have a complicated history. Apple reportedly discussed acquiring the company in 2013 and hiring Kiani to work on the medical features on its smartwatch. That deal never went through. Instead, Kiani claimed that Apple hired more than 20 Masimo engineers, doubled some of their salaries, and made them develop the same kind of medical technology they were working on at Masimo at Apple. “This is not an accidental infringement — this is a deliberate taking of our intellectual property,” Kiani told Bloomberg.

Engadget has reached out to Apple for comment on Kiani’s statements. The company has previously called the ITC’s ruling “erroneous” and plans to appeal the decision to the Federal Circuit.

It’s not clear whether Apple will get immediate relief. The silver lining for the company is that the ban only applies to Apple Watch sales through the company’s own channels — its website and its retail stores — in the US. You should still be able to buy the Apple Watch through other retailers like Best Buy, Walmart and Target.

This article originally appeared on Engadget at https://www.engadget.com/apple-is-reportedly-scrambling-to-update-apple-watch-software-to-avoid-a-potential-ban-202710009.html?src=rss

Google's multi-state lawsuit settlement will cost it $700 million

On top of fighting (and losing to) Epic Games over Play Store antitrust concerns, Google has been fighting a similar lawsuit filed by 36 states and the District of Columbia in 2021. A settlement for that suit was announced in September, but a judge still had to confirm the terms. Now, Google has announced that it will pay a $700 million fine and make what amounts to fairly minor changes to the Play Store. 

Of that sum, Google will distribute $630 million to consumers who may have overpaid for apps or in-app purchases on Google Play (after taxes, lawyers’ fees, etc.). That covers around 102 million people, according to The Washington Post. It will also pay $70 million into a "fund that will be used by the states," according to Google's blog. 

The other major change is that Google must allow developers to steer consumers toward sideloading to avoid Google's Play Store fees on subscriptions and the like. It'll do that via updated "language that informs users about these potential risks of downloading apps directly from the web for the first time." However, these actions will be time limited to seven years for the sideloading and five years for the updated language, according to settlement's wording spotted by The Verge

Google will also include language stating that "OEMs can continue to provide users with options out of the box to use Play or another app store." Starting with Android 14, third-party stores will be allowed to handle future app updates, including automatic installs. It's also expanding user choice billing that will allow Android apps and games to offer their own payment system in the US. "Developers are also able to show different pricing options within the app when a user makes a digital purchase," Google states. 

The company will only be required to make these changes for five or six years maximum (seven years for alternate means to download apps). In other words, it could feasibly cut off access to sideloading or third-party app stores after that point, or make it harder for the average consumer to find the option. 

Another big thing missing is exterior payment links. "Google is not required to allow developers to include links that take a User outside an app distributed through Google Play to make a purchase," the settlement agreement reads. 

The settlement sum represents a miniscule portion of Google's turnover and the other terms are relatively minor changes over what it already does. It also doesn't include Epic Games, which won its own lawsuit against Google earlier this month (Google has vowed to appeal). A court still needs to formally approve the states' settlement.  

Google also argued at its Epic trial that consumers were able to get games by sideloading and other means, but that failed to sway the jury. When the settlement with the states was announced in September, Epic CEO Tim Sweeny said that if it "left the Google tax in place" his company would fight on. "Consumers only benefit if antitrust enforcement not only opens up markets, but also restores price competition," he said at the time.

This article originally appeared on Engadget at https://www.engadget.com/googles-multi-state-lawsuit-settlement-will-cost-it-700-million-103512109.html?src=rss

Nikola founder Trevor Milton sentenced to four years in prison

Trevor Milton, the disgraced founder of Nikola, was just sentenced to four years in prison on three counts of fraud. 

In October 2022, a jury found Milton guilty of one count of securities fraud and two counts of wire fraud. Milton faced up to 60 years in prison. Prosecutors asked the judge for an 11-year prison sentence and a $5 million fine, according to The New York Times, while the defense argued for probation. 

After announcing the sentence at a federal court hearing in New York City, U.S. District Judge Edgar Ramos spoke directly to Milton. "As difficult as it may be for you or your family to hear, I believe the jury got it right," Ramos said, as transcribed Reuters.

Milton addressed the court before sentencing was handed down, saying "I did not intend to harm anyone and I did not commit those crimes levied against me." He also spoke at length about his rural upbringing and recited biblical verse. 

Prosecutors claimed that Milton pumped up the value of the company's stock by lying to investors about "nearly all aspects" of Nikola's business. Among other things, Milton claimed his company had a fully functional electric truck. The company released a video that made it appear as though a Nikola One prototype was able to move by itself. However, an indictment alleged that the truck was actually rolling down a hill and that Milton was involved in the video's creation.

In addition, Milton was accused of lying about Nikola having billions of dollars worth of pre-order reservations and that it was producing hydrogen fuel at four times less than market rates. Prosecutors also said Milton falsely claimed Nikola had developed "game-changing" battery tech.

Nikola is still in business and it plans to resume deliveries of its battery electric truck in early 2024 following a recall over battery issues that cost around $61.8 million to resolve. In the nine months to September 30, Nikola produced 96 trucks and shipped 79.

The company's stock price has dropped by 99 percent since 2020 and investors are said to have lost more than $660 million. Milton sold around $100 million of his Nikola stock in 2020 and spent most of that on luxury goods such as a plane and real estate, according to the Times. It's likely that Milton will appeal this conviction, as he's already asked Ramos for a new trial following the jury's guilty verdict.

This article originally appeared on Engadget at https://www.engadget.com/nikola-founder-trevor-milton-sentenced-to-four-years-in-prison-192432136.html?src=rss

Apple will pause Watch Series 9 and Ultra 2 sales in the US due to a patent dispute

If you're planning to buy an Apple Watch Series 9 or Apple Watch Ultra 2 for someone as a holiday gift, you should probably act quickly. Apple says it will soon suspend sales of both devices in the country due to a patent dispute over the blood oxygen sensor on the wearables. The Apple Watch SE will remain available for purchase as it doesn't have a blood oxygen sensor.

"A Presidential Review Period is in progress regarding an order from the US International Trade Commission on a technical intellectual property dispute pertaining to Apple Watch devices containing the Blood Oxygen feature," the company told 9to5 Mac in a statement. "While the review period will not end until December 25, Apple is preemptively taking steps to comply should the ruling stand. This includes pausing sales of the Apple Watch Series 9 and Apple Watch Ultra 2 from Apple.com starting December 21, and from Apple retail locations after December 24."

In October, the US International Trade Commission (ITC) upheld a ruling that the Apple Watch violated medical tech company Masimo's patents. That sent the case to the White House for a 60-day Presidential Review Period. Although President Biden has one more week to decide whether to veto the ITC ruling, Apple has opted to preemptively comply with the commission's decision. If the president decides against a veto, Apple can appeal to Court of Appeals for the Federal Circuit, reach a settlement with Masimo or issue software updates that nullify patent infringements (i.e. by deactivating blood oxygen features).

This story is developing; please refresh for updates.

This article originally appeared on Engadget at https://www.engadget.com/apple-will-pause-watch-series-9-and-ultra-2-sales-in-the-us-due-to-a-patent-dispute-142051903.html?src=rss

Adobe walks away from its $20 billion Figma acquisition amid regulatory scrutiny

Adobe is abandoning its planned $20 billion acquisition of Figma after the companies determined that there was no clear path to obtaining approval from UK and European Union regulators. The two sides have signed an agreement that fully resolves all aspects of the failed deal. Adobe will pay collaborative design platform Figma a previously agreed $1 billion termination fee.

In November, the UK's Competition and Markets Authority (CMA) and the European Commission both cited concerns over the proposed acquisition's impact on competition. The CMA said in its provisional findings that that the merger would “eliminate competition between two main competitors.” The competition watchdog said it was considering either blocking the deal or requiring Adobe to sell Figma's core product, Figma Design, along with Adobe XD.

Earlier on Monday, Adobe claimed that it wouldn't offer the CMA any potential remedies. “It is clear that no realistic remedy would satisfy the concerns the CMA is maintaining,” an Adobe spokesperson told Bloomberg. “We believe that the best path forward is to continue our ongoing engagement with the CMA on the merits.”

Meanwhile, Adobe had anticipated a potential lawsuit from the US Department of Justice in an attempt to block the deal Stateside. The company and Figma reportedly met with DOJ officials last week to try and secure approval for their merger. 

This story is developing; please refresh for updates.

This article originally appeared on Engadget at https://www.engadget.com/adobe-walks-away-from-its-20-billion-figma-acquisition-amid-regulatory-scrutiny-132203336.html?src=rss

Apple, Visa and Mastercard sued in proposed class action antitrust case over Apple Pay card fees

A proposed class action lawsuit has accused Apple of accepting a form of bribe from Visa and Mastercard to ensure their dominance over point-of-sale payment card services for Apple Pay transactions, according to Reuters. As a result, the lawsuit says merchants have been forced to pay higher fees.

The companies are being sued by beverage retailer Mirage Wine & Spirits in Illinois on behalf of “all merchants in the United States that accepted Apple Pay as a method of payment at the physical point-of-sale.” According to the complaint, Apple made an agreement with Visa and Mastercard that did away with any incentive for it to develop its own competing point-of-sale transaction payment network or allow other companies to make use of iPhone’s “tap to pay” NFC functionality with third-party wallet apps. On the iPhone, Apple’s own wallet app is the only option. All of this has led to inflated merchant fees, the suit argues.

“In exchange for agreeing not to compete with Visa and Mastercard in the Relevant Market, the two card networks offered Apple a very large and ongoing cash bribe,” the lawsuit states. This bribe came as a percentage of the two companies’ transaction fees for credit and debit card payments made with Apple Pay. “Even as Apple Pay was in its infancy, the Entrenched Networks and Apple understood that this bribe would amount to hundreds of millions of dollars per year.”

Apple has been accused of anti-competitive behavior with Apple Pay in the past for how it blocks third-party access to its contactless payment technology. But earlier this week, Reuters reported that Apple may open up NFC access in the EU to avoid a fine in a case that has been ongoing since 2020.

This article originally appeared on Engadget at https://www.engadget.com/apple-visa-and-mastercard-sued-in-proposed-class-action-antitrust-case-over-apple-pay-card-fees-203445696.html?src=rss