Government

California Passes Law To Protect Consumer 'Brain Data' (govtech.com) 28

On September 28, California amended the California Consumer Privacy Act of 2018 to recognize the importance of mental privacy. "The law marks the second such legal protection for data produced from invasive neurotechnology, following Colorado, which incorporated neural data into its state data privacy statute, the Colorado Privacy Act (CPA) in April," notes Law.com. GovTech reports: The new bill amends the California Consumer Privacy Act of 2018, which grants consumers rights over personal information that is collected by businesses. The term "personal information" already included biometric data (such as your face, voice, or fingerprints). Now it also explicitly includes neural data. The bill defines neural data as "information that is generated by measuring the activity of a consumer's central or peripheral nervous system, and that is not inferred from nonneural information." In other words, data collected from a person's brain or nerves.

The law prevents companies from selling or sharing a person's data and requires them to make efforts to deidentify the data. It also gives consumers the right to know what information is collected and the right to delete it. "This new law in California will make the lives of consumers safer while sending a clear signal to the fast-growing neurotechnology industry there are high expectations that companies will provide robust protections for mental privacy of consumers," Jared Genser, general counsel to the Neurorights Foundation, which cosponsored the bill, said in a statement. "That said, there is much more work ahead."

EU

Meta Faces Data Retention Limits On Its EU Ad Business After Top Court Ruling (techcrunch.com) 35

An anonymous reader quotes a report from TechCrunch: The European Union's top court has sided with a privacy challenge to Meta's data retention policies. It ruled on Friday that social networks, such as Facebook, cannot keep using people's information for ad targeting indefinitely. The judgement could have major implications on the way Meta and other ad-funded social networks operate in the region. Limits on how long personal data can be kept must be applied in order to comply with data minimization principles contained in the bloc's General Data Protection Regulation (GDPR). Breaches of the regime can lead to fines of up to 4% of global annual turnover -- which, in Meta's case, could put it on the hook for billions more in penalties (NB: it is already at the top of the leaderboard of Big Tech GDPR breachers). [...]

The original challenge to Meta's ad business dates back to 2014 but was not fully heard in Austria until 2020, per noyb. The Austrian supreme court then referred several legal questions to the CJEU in 2021. Some were answered via a separate challenge to Meta/Facebook, in a July 2023 CJEU ruling -- which struck down the company's ability to claim a "legitimate interest" to process people's data for ads. The remaining two questions have now been dealt with by the CJEU. And it's more bad news for Meta's surveillance-based ad business. Limits do apply. Summarizing this component of the judgement in a press release, the CJEU wrote: "An online social network such as Facebook cannot use all of the personal data obtained for the purposes of targeted advertising, without restriction as to time and without distinction as to type of data."

The ruling looks important on account of how ads businesses, such as Meta's, function. Crudely put, the more of your data they can grab, the better -- as far as they are concerned. Back in 2022, an internal memo penned by Meta engineers which was obtained by Vice's Motherboard likened its data collection practices to tipping bottles of ink into a vast lake and suggested the company's aggregation of personal data lacked controls and did not lend itself to being able to silo different types of data or apply data retention limits. Although Meta claimed at the time that the document "does not describe our extensive processes and controls to comply with privacy regulations." How exactly the adtech giant will need to amend its data retention practices following the CJEU ruling remains to be seen. But the law is clear that it must have limits. "[Advertising] companies must develop data management protocols to gradually delete unneeded data or stop using them," noyb suggests.
The court also weighed in a second question that concerns sensitive data that has been "manifestly made public" by the data subject, "and whether sensitive characteristics could be used for ad targeting because of that," reports TechCrunch. "The court ruled that it could not, maintaining the GDPR's purpose limitation principle."
Patents

Cloudflare Defeats Patent Troll (cloudflare.com) 63

Cloudflare has emerged victorious in a patent infringement lawsuit against Sable Networks, securing a $225,000 settlement and forcing the patent holder to dedicate its entire portfolio to the public domain. The case, which began in March 2021 with Sable asserting nearly 100 claims across four patents, concluded after a Texas jury found Cloudflare not guilty of infringement in February 2024.

Sable, described by Cloudflare as a "patent troll," had previously sued several tech companies, including Cisco and Juniper Networks, who settled out of court. Cloudflare's aggressive defense strategy included launching Project Jengo, a crowd-sourced initiative to invalidate Sable's patents. The settlement prevents Sable from asserting these patents against any other company in the future, marking a significant blow to patent trolling practices in the tech industry. In a blog post, Cloudflare adds: While this $225,000 can't fully compensate us for the time, energy and frustration of having to deal with this litigation for nearly three years, it does help to even the score a bit. And we hope that it sends an important message to patent trolls everywhere to beware before taking on Cloudflare.
Biotech

23andMe Is On the Brink. What Happens To All Its DNA Data? (npr.org) 60

The one-and-done nature of 23andMe is "indicative of a core business problem with the once high-flying biotech company that is now teetering on the brink of collapse," reports NPR. As 23andMe struggles for survival, many of its 15 million customers are left wondering what the company plans to do with all the data it has collected since it was founded in 2006. An anonymous reader shares an excerpt from the report: Andy Kill, a spokesperson for 23andMe, would not comment on what the company might do with its trove of genetic data beyond general pronouncements about its commitment to privacy. "For our customers, our focus continues to be on transparency and choice over how they want their data to be managed," he said. When signing up for the service, about 80% of 23andMe's customers have opted in to having their genetic data analyzed for medical research. "This rate has held steady for many years," Kill added. The company has an agreement with pharmaceutical giant GlaxoSmithKline, or GSK, that allows the drugmaker to tap the tech company's customer data to develop new treatments for disease. Anya Prince, a law professor at the University of Iowa's College of Law who focuses on genetic privacy, said those worried about their sensitive DNA information may not realize just how few federal protections exist. For instance, the Health Insurance Portability and Accountability Act, also known as HIPAA, does not apply to 23andMe since it is a company outside of the health care realm. "HIPAA does not protect data that's held by direct-to-consumer companies like 23andMe," she said.

Although DNA data has no federal safeguards, some states, like California and Florida, do give consumers rights over their genetic information. "If customers are really worried, they could ask for their samples to be withdrawn from these databases under those laws," said Prince. According to the company, all of its genetic data is anonymized, meaning there is no way for GSK, or any other third party, to connect the sample to a real person. That, however, could make it nearly impossible for a customer to renege on their decision to allow researchers to access their DNA data. "I couldn't go to GSK and say, 'Hey, my sample was given to you -- I want that taken out -- if it was anonymized, right? Because they're not going to re-identify it just to pull it out of the database," Prince said.

Vera Eidelman, a staff attorney with the American Civil Liberties Union who specializes in privacy and technology policy, said the patchwork of state laws governing DNA data makes the generic data of millions potentially vulnerable to being sold off, or even mined by law enforcement. "Having to rely on a private company's terms of service or bottom line to protect that kind of information is troubling -- particularly given the level of interest we've seen from government actors in accessing such information during criminal investigations," Eidelman said. She points to how investigators used a genealogy website to identify the man known as the Golden State Killer, and how police homed in on an Idaho murder suspect by turning to similar databases of genetic profiles. "This has happened without people's knowledge, much less their express consent," Eidelman said.

Neither case relied on 23andMe, and spokesperson Kill said the company does not allow law enforcement to search its database. The company has, however, received subpoenas to access its genetic information. According to 23andMe's transparency report, authorities have sought genetic data on 15 individuals since 2015, but the company has resisted the requests and never produced data for investigators. "We treat law enforcement inquiries, such as a valid subpoena or court order, with the utmost seriousness. We use all legal measures to resist any and all requests in order to protect our customers' privacy," Kill said. [...] In a September filing to financial regulators, [23andMe CEO Anne Wojcicki] wrote: "I remain committed to our customers' privacy and pledge," meaning the company's rules requiring consent for DNA to be used for research would remain in place, as well as allowing customers to delete their data. Wojcicki added that she is no longer considering offers to buy the company after previously saying she was.

Government

Senator Calls Out John Deere For Clean Air Act Violations, Blocking Farmer Repairs (substack.com) 48

"The Fight to Repair Newsletter is reporting that U.S. Senator Elizabeth Warren is calling out agricultural equipment giant John Deere for possible violations of the federal Clean Air Act and a years-long pattern of thwarting owners' ability to repair their farm equipment," writes longtime Slashdot reader chicksdaddy. From the report: Deere "appears to be evading its responsibilities under the Clean Air Act to grant customers the right to repair their own agricultural equipment." That is costing farmers an estimated $4.2 billion annually "causing them to miss key crop windows on which their businesses and livelihoods rely," Warren wrote in a letter (https://www.theverge.com/2024/10/3/24260513/john-deere-right-to-repair-elizabeth-warren-clean-air-act) dated October 2nd. The letter from Warren (PDF), a Senator from Massachusetts and strong repair advocate, is just the latest volley lobbed at Illinois-based Deere, an iconic American brand and the largest supplier of agricultural equipment to farms in the U.S. Deere controls an estimated 53 percent of the U.S. market for large tractors and 60 percent of the U.S. market for farm combines.

In recent weeks, Deere faced criticism, including from Republican presidential candidate Donald Trump, after laying off close to 2,000 U.S. based employees at facilities in Iowa and Illinois, moving many of those jobs to facilities in Mexico. The company has also been repeatedly called out for complicating repair and service of its farm equipment -- often relying on software locks and digital rights management to force farmers to use Deere dealers and authorized service providers for even the simplest repairs.

The Courts

Judge Blocks California's New AI Law In Case Over Kamala Harris Deepfake (techcrunch.com) 128

An anonymous reader quotes a report from TechCrunch: A federal judge blocked one of California's new AI laws on Wednesday, less than two weeks after it was signed by Governor Gavin Newsom. Shortly after signing AB 2839, Newsom suggested it could be used to force Elon Musk to take down an AI deepfake of Vice President Kamala Harris he had reposted (sparking a petty online battle between the two). However, a California judge just ruled the state can't force people to take down election deepfakes -- not yet, at least. AB 2839 targets the distributors of AI deepfakes on social media, specifically if their post resembles a political candidate and the poster knows it's a fake that may confuse voters. The law is unique because it does not go after the platforms on which AI deepfakes appear, but rather those who spread them. AB 2839 empowers California judges to order the posters of AI deepfakes to take them down or potentially face monetary penalties.

Perhaps unsurprisingly, the original poster of that AI deepfake -- an X user named Christopher Kohls -- filed a lawsuit to block California's new law as unconstitutional just a day after it was signed. Kohls' lawyer wrote in a complaint that the deepfake of Kamala Harris is satire that should be protected by the First Amendment. On Wednesday, United States district judge John Mendez sided with Kohls. Mendez ordered a preliminary injunction to temporarily block California's attorney general from enforcing the new law against Kohls or anyone else, with the exception of audio messages that fall under AB 2839. [...] In essence, he ruled the law is simply too broad as written and could result in serious overstepping by state authorities into what speech is permitted or not.

Facebook

Meta Confirms It Will Use Ray-Ban Smart Glasses Images for AI Training (techcrunch.com) 14

Meta has confirmed that it may use images analyzed by its Ray-Ban Meta AI smart glasses for AI training. The policy applies to users in the United States and Canada who share images with Meta AI, according to the company. While photos captured on the device are not used for training unless submitted to AI, any image shared for analysis falls under different policies, potentially contributing to Meta's AI model development.

Further reading: Meta's Smart Glasses Repurposed For Covert Facial Recognition.
The Courts

NSO Should Lose Spyware Case for Discovery Violations, Meta Says (bloomberglaw.com) 10

WhatsApp and its parent Meta asked a judge to award them a total win against spyware maker NSO Group as punishment for discovery violations in a years-long case accusing the Israeli company of violating anti-hacking laws. From a report: NSO Group violated the Federal Rules of Civil Procedure, repeatedly ignoring the court's orders and its discovery obligations, according to a motion for sanctions filed Wednesday in the US District Court for the Northern District of California. "NSO's discovery violations were willful, and unfairly skew the record on virtually every key issue in the case, from the merits, to jurisdiction, to damages, making a full and fair trial on the facts impossible," they said. Judge Phyllis J. Hamilton should award the companies judgment as a matter of law or, "if the court finds that the limited discovery produced in this case does not suffice," enter default judgment against NSO, WhatsApp and Meta wrote.

The social media platforms first filed their complaint in October 2019, accusing NSO of using WhatsApp to install NSO spyware on the phones of about 1,400 WhatsApp users.
The move follows Apple asking a court last month to dismiss its three-year-old hacking lawsuit against spyware pioneer NSO Group, arguing that it might never be able to get the most critical files about NSO's Pegasus surveillance tool and that its own disclosures could aid NSO and its increasing number of rivals.
The Courts

WP Engine Sues WordPress for Libel, Extortion 49

WP Engine, a major web hosting provider, has filed a federal lawsuit against WordPress [PDF] co-founder Matt Mullenweg and Automattic, alleging libel and attempted extortion. The suit stems from a public dispute over WordPress trademark usage and open-source licensing.

WP Engine, which hosts over 200,000 websites, accuses Mullenweg and Automattic of "abuse of power, extortion, and greed." The conflict escalated after Mullenweg called WP Engine a "cancer to WordPress" on his blog, prompting a cease-and-desist letter. Automattic subsequently demanded 8% of WP Engine's monthly revenue as royalties for alleged trademark infringement. The lawsuit includes 11 complaints, ranging from slander to violations of the Computer Fraud and Abuse Act.
Crime

Police Arrest Four Suspects Linked To LockBit Ransomware Gang (bleepingcomputer.com) 10

Law enforcement from 12 countries arrested four individuals linked to the LockBit ransomware gang, including a developer and a bulletproof hosting administrator. The operation also resulted in the seizure of LockBit infrastructure and involved sanctions targeting affiliates of both LockBit and Evil Corp. BleepingComputer reports: According to Europol, a suspected LockBit ransomware developer was arrested in August 2024 at the request of French authorities while on holiday outside of Russia. The same month, the U.K.'s National Crime Agency (NCA) arrested two more individuals linked to LockBit activity: one believed to be associated with a LockBit affiliate, while the second was apprehended on suspicion of money laundering. In a separate action, at Madrid airport, Spain's Guardia Civil arrested the administrator of a bulletproof hosting service used to shield LockBit's infrastructure. Today, Australia, the United Kingdom, and the United States also revealed sanctions against an individual the UK NCA believes is a prolific LockBit ransomware affiliate linked to Evil Corp.

The United Kingdom sanctioned 15 more Russian nationals involved in Evil Corp's criminal activities, while the United States sanctioned six individuals and Australia targeted two. "These actions follow the massive disruption of LockBit infrastructure in February 2024, as well as the large series of sanctions and operational actions that took place against LockBit administrators in May and subsequent months," Europol said.

The Courts

Meta Hit With New Author Copyright Lawsuit Over AI Training (reuters.com) 47

Novelist Christopher Farnsworth has filed a class-action lawsuit (PDF) against Meta, accusing the company of using his and other authors' pirated books to train its Llama AI model. Farnsworth seeks damages and an order to stop the alleged copyright infringement, joining a growing group of creators suing tech companies over unauthorized AI training. Reuters reports: Farnsworth said in the lawsuit on Tuesday that Meta fed Llama, which powers its AI chatbots, thousands of pirated books to teach it how to respond to human prompts. Other authors including Ta-Nehisi Coates, former Arkansas governor Mike Huckabee and comedian Sarah Silverman have brought similar class-action claims against Meta in the same court over its alleged use of their books in AI training. [...] Several groups of copyright owners including writers, visual artists and music publishers have sued major tech companies over the unauthorized use of their work to train generative AI systems. The companies have argued that their AI training is protected by the copyright doctrine of fair use and that the lawsuits threaten the burgeoning AI industry.
The Courts

Court Blocks Uber Crash Lawsuit After Couple's Daughter Agreed To Uber Eats TOS (npr.org) 122

An anonymous reader quotes a report from NPR: A New Jersey appeals court says a couple cannot sue Uber over a life-altering car accident because of the app's terms and conditions, even though they say it was their daughter who agreed to those terms while placing an Uber Eats order. John and Georgia McGinty -- a Mercer County couple both in their 50s -- filed a lawsuit against the ride-hailing company in February 2023, nearly a year after suffering "serious physical, psychological, and financial damages" when the Uber they were riding in crashed into another car, according to court filings. "There are physical scars, mental scars, and I don't think that they will ever really be able to go back to their full capacity that they were at before," says their attorney, Mike Shapiro.

Uber responded by filing a motion to dismiss the complaint and compel arbitration, which would require the parties to resolve their differences outside court instead -- ostensibly benefiting the company by lowering legal costs and keeping proceedings private. Uber argued that Georgia McGinty, a longtime customer of Uber Rides and Uber Eats, had agreed to arbitrate any disputes with the company when she signed off on the language in the app's terms of use on three occasions over the years. The McGintys fought back, saying it was actually their daughter -- who was and remains a minor -- who had most recently agreed to the terms when she used Georgia's phone to order food on their behalf. A lower court initially sided with the couple, denying Uber's motion to compel arbitration in November 2023. Uber appealed the decision, and late last month, the appeals court ruled in its favor.

"We hold that the arbitration provision contained in the agreement under review, which Georgia or her minor daughter, while using her cell phone agreed to, is valid and enforceable," the three-judge panel wrote in September. "We, therefore, reverse the portion of the order denying arbitration of the claims against Uber." Shapiro told NPR that the couple "100%" wants to keep pursuing their case and are mulling their options, including asking the trial court to reconsider it or potentially trying to bring it to the New Jersey Supreme Court. "Uber has just been extremely underhanded in their willingness to open the same cabinets that they're forcing the McGintys to open up and have to peek around in," Shapiro says. "It's unfortunate that that's the way that they're carrying on their business, because this is truly something that subjects millions and millions of Americans and people all over the world to a waiver of their hard-fought rights."
"While the plaintiffs continue to tell the press that it was their daughter who ordered Uber Eats and accepted the Terms of Use, it's worth noting that in court they could only 'surmise' that that was the case but could not recall whether 'their daughter ordered food independently or if Georgia assisted,'" Uber said in a statement.

The report cites another recent case where Disney "tried to block a man's wrongful death lawsuit on behalf of his wife -- who died following an allergic reaction after eating at a Disney World restaurant -- because he had signed up for a trial of Disney+." After negative media coverage, the company backtracked on its push for arbitration.
Privacy

Did Apple Just Kill Social Apps? (nytimes.com) 78

Apple's iOS 18 update has introduced changes to contact sharing that could significantly impact social app developers. The new feature allows users to selectively share contacts with apps, rather than granting access to their entire address book. While Apple touts this as a privacy enhancement, developers warn it may hinder the growth of new social platforms. Nikita Bier, a start-up founder, called it "the end of the world" for friend-based social apps. Critics argue the change doesn't apply to Apple's own services, potentially giving the tech giant an unfair advantage.
Facebook

Meta's Smart Glasses Repurposed For Covert Facial Recognition (404media.co) 47

Two Harvard students have developed smart glasses with facial recognition capabilities, sparking debate over privacy and surveillance. The project, dubbed I-XRAY, uses Meta's Ray-Ban smart glasses coupled with facial recognition software to identify strangers and retrieve personal information about them. AnhPhu Nguyen and Caine Ardayfio, the creators, tested the technology on unsuspecting individuals in public spaces. The glasses scan faces, match them against online databases, and display personal details on a smartphone within seconds. The students claim their project aims to raise awareness about potential privacy risks.
Transportation

Bidirectional Charging May Be Required On EVs Soon Due To New California Law (electrek.co) 291

California Governor Gavin Newsom signed a law giving the California Energy Commission the authority to require bidirectional charging in electric vehicles (EVs) in the future -- although no timeline is set. Bidirectional charging allows EVs to not only charge from the grid but also supply electricity back to the grid, potentially enhancing grid resiliency, supporting renewable energy, and reducing peak electricity demand. Electrek reports: The idea started in 2023 when state Senator Nancy Skinner introduced a bill which would require EVs to have bidirectional charging by 2027. As this bill made its way through the legislative process, it got watered down from that ambitious timeline. So the current form of the bill, which is now called SB 59, took away that timeline and instead gave the California Energy Commission (CEC) the go-ahead to issue a requirement whenever they see it fit. The bill directs the CEC, the California Air Resources Board, and the California Public Utilities Commission to examine the use cases of bidirectional charging and give them the power to require specific weight classes of EVs to be bidirectional-capable if a compelling use case exists.

The state already estimates that integrating EVs into the grid could save $1 billion in costs annually, so there's definitely a use case there, but the question is the cost and immediacy of building those vehicles into the grid. The reason this can't be done immediately is that cars take time to design, and while adding bidirectional charging to an EV isn't the most difficult process, it also only really becomes useful with a whole ecosystem of services around the vehicle.

And that ecosystem has been a bit of a hard sell so far. It's all well and good to tell someone they can make $500/year by selling energy to the grid, but then you have to convince them to buy a more expensive charging unit and keep their car plugged in all the time, with someone else managing its energy storage. Some consumers might push back against that, so part of CEC's job is to wait to pull the trigger until it becomes apparent that people are actually interested in the end-user use case for V2G -- otherwise, no sense in requiring a feature that nobody is going to use.

The Courts

eBay Wins Dismissal of US Lawsuit Over Alleged Sale of Harmful Products (reuters.com) 35

An anonymous reader quotes a report from Reuters: A federal judge dismissed a U.S. Department of Justice lawsuit accusing eBay of violating environmental laws by allowing the sale of hundreds of thousands of harmful products on its platform, including pesticides and devices to evade motor vehicle pollution controls. U.S. District Judge Orelia Merchant in Brooklyn ruled on Monday that Section 230 of the federal Communications Decency Act, which protects online platforms from liability over user content, shielded eBay from liability in the civil lawsuit.

The judge said eBay's administrative and technical support to sellers "does not materially contribute to the products' alleged unlawfulness" and does not make the San Jose, California, company a "publisher or speaker" on sellers' behalf. Merchant also said eBay was not a "seller" of some of the challenged products, because it did not physically possess them or hold title. She rejected the government's argument that eBay was a seller because it exchanged the products for money.
The U.S. government argued eBay violated the Clean Air Act by allowing the sale of harmful products, including more than 343,000 aftermarket "defeat" devices that help vehicles generate more power and get better fuel economy by evading emissions controls. The company also was accused of allowing sales of 23,000 unregistered, misbranded or restricted-use pesticides, as well as distributing more than 5,600 paint and coating removal products that contained methylene chloride, a chemical linked to brain and liver cancer and non-Hodgkin lymphoma.
Privacy

Crooks Made Millions By Breaking Into Execs' Office365 Inboxes, Feds Say (arstechnica.com) 55

An anonymous reader quotes a report from Ars Technica: Federal prosecutors have charged a man for an alleged "hack-to-trade" scheme that earned him millions of dollars by breaking into the Office365 accounts of executives at publicly traded companies and obtaining quarterly financial reports before they were released publicly. The action, taken by the office of the US Attorney for the district of New Jersey, accuses UK national Robert B. Westbrook of earning roughly $3.75 million in 2019 and 2020 from stock trades that capitalized on the illicitly obtained information. After accessing it, prosecutors said, he executed stock trades. The advance notice allowed him to act and profit on the information before the general public could. The US Securities and Exchange Commission filed a separate civil suit against Westbrook seeking an order that he pay civil penalties and return all ill-gotten gains. [...]

By obtaining material information, Westbrook was able to predict how a company's stock would perform once it became public. When results were likely to drive down stock prices, he would place "put" options, which give the purchaser the right to sell shares at a specific price within a specified span of time. The practice allowed Westbrook to profit when shares fell after financial results became public. When positive results were likely to send stock prices higher, Westbrook allegedly bought shares while they were still low and later sold them for a higher price. The prosecutors charged Westbrook with one count each of securities fraud and wire fraud and five counts of computer fraud. The securities fraud count carries a maximum penalty of up to 20 years' prison time and $5 million in fines The wire fraud count carries a maximum penalty of up to 20 years in prison and a fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Each computer fraud count carries a maximum five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
"The SEC is engaged in ongoing efforts to protect markets and investors from the consequences of cyber fraud," Jorge G. Tenreiro, acting chief of the SEC's Crypto Assets and Cyber Unit, said in a statement. "As this case demonstrates, even though Westbrook took multiple steps to conceal his identity -- including using anonymous email accounts, VPN services, and utilizing bitcoin -- the Commission's advanced data analytics, crypto asset tracing, and technology can uncover fraud even in cases involving sophisticated international hacking."
Crime

Google Wins Lawsuit Against Scammers Who 'Weaponized' DMCA Takedowns (torrentfreak.com) 63

Google has obtained (PDF) a default judgment against two men who abused its DMCA takedown system to falsely target 117,000 URLs of competitors' online stores. With none of the defendants showing up in court, a California federal court sided with the search engine. Through an injunction, the men are now prohibited from sending false takedown notices and creating new Google accounts. TorrentFreak reports: Last November, Google decided to take action against the rampant DMCA abuse. In a lawsuit filed at a federal court in California, it accused Nguyen Van Duc and Pham Van Thien of sending over 100,000 fraudulent takedown requests. Many of these notices were allegedly filed against third-party T-shirt shops. [...] Following the complaint, the defendants, who are believed to reside in Vietnam, were summoned via their Gmail accounts and SMS. However, the pair remained quiet and didn't respond in court. Without the defendants representing themselves, Google requested a default judgment. According to the tech giant, it's clear that the duo violated the DMCA with their false takedown notices. In addition, they committed contract breach under California law.

Google said that, absent a default judgment, the defendants would continue to harm consumers and third-party businesses. These actions, in turn, will damage Google's reputation as a search engine. In July, U.S. Magistrate Judge Sallie Kim recommended granting Google's motion for default judgment. The recommendation included an injunction that prevents the two men from abusing Google's services going forward. However, the District Judge had the final say. Last Friday, U.S. District Court Judge Edward Davila adopted the recommendations, issuing a default judgment in favor of Google. The order confirms that defendants Nguyen Van Duc and Pham Van Thien violated the DMCA with their false takedown notices. In addition, they committed contract breach under California law.

In typical copyrights-related verdicts, most attention is paid to the monetary damages, but not here. While Google could have requested millions of dollars in compensation, it didn't request a penny. Google's primary goal was to put an end to the abusive behavior, not to seek financial compensation. Therefore, the company asked for an injunction to prohibit the defendants from sending false takedowns going forward. This includes a ban on registering any new Google accounts. The request ticked all the boxes and, without a word from the defendants, Judge Davila granted the default judgment as well as the associated injunction.

Google

Epic Games Sues Google and Samsung Over App Store Restrictions 45

Epic Games filed a new antitrust lawsuit against Google and Samsung, alleging they conspired to undermine third-party app stores. The suit focuses on Samsung's "Auto Blocker" feature, now enabled by default on new phones, which restricts app installations to "authorized sources" - primarily Google and Samsung's stores.

Epic claims Auto Blocker creates significant barriers for rival stores, requiring users to navigate a complex process to install third-party apps. The company argues this feature does not actually assess app safety, but is designed to stifle competition. Epic CEO Tim Sweeney stated the lawsuit aims to benefit all developers, not secure special privileges for Epic. The company seeks either default deactivation of Auto Blocker or creation of a fair whitelisting process for legitimate apps. This legal action follows Epic's December victory against Google in a separate antitrust case. Epic recently launched its own mobile app store, which it claims faces unfair obstacles due to Auto Blocker.
AI

California's Governor Just Vetoed Its Controversial AI Bill (techcrunch.com) 35

"California Governor Gavin Newsom has vetoed SB 1047, a high-profile bill that would have regulated the development of AI," reports TechCrunch. The bill "would have made companies that develop AI models liable for implementing safety protocols to prevent 'critical harms'." The rules would only have applied to models that cost at least $100 million and use 10^26 FLOPS (floating point operations, a measure of computation) during training.

SB 1047 was opposed by many in Silicon Valley, including companies like OpenAI, high-profile technologists like Meta's chief AI scientist Yann LeCun, and even Democratic politicians such as U.S. Congressman Ro Khanna. That said, the bill had also been amended based on suggestions by AI company Anthropic and other opponents.

In a statement about today's veto, Newsom said, "While well-intentioned, SB 1047 does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data. Instead, the.." bill applies stringent standards to even the most basic functions — so long as a large system deploys it. I do not believe this is the best approach to protecting the public from real threats posed by the technology."

"Over the past 30 days, Governor Newsom signed 17 bills covering the deployment and regulation of GenAI technology..." according to a statement from the governor's office, "cracking down on deepfakes, requiring AI watermarking, protecting children and workers, and combating AI-generated misinformation... The Newsom Administration will also immediately engage academia to convene labor stakeholders and the private sector to explore approaches to use GenAI technology in the workplace."

In a separate statement the governor pointed out California " is home to 32 of the world's 50 leading Al companies," and warned that the bill "could give the public a false sense of security about controlling this fast-moving technology. Smaller, specialized models may emerge as equally or even more dangerous than the models targeted by SB 1047 — at the potential expense of curtailing the very innovation that fuels advancement in favor of the public good..."

"While well-intentioned, SB 1047 does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data. Instead, the bill applies stringent standards to even the most basic functions — so long as a large system deploys it.

"I do not believe this is the best approach to protecting the public from real threats posed by the technology."

Interestingly, the Los Angeles Times reported that the vetoed bill had been supported by Mark Hamill, J.J. Abrams, and "more than 125 Hollywood actors, directors, producers, music artists and entertainment industry leaders" who signed a letter of support. (And that bill also cited the support of "over a hundred current and former employees of OpenAI, Google DeepMind, Anthropic, Meta, and xAI..."

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