The Courts

Rapper Afroman Wins Defamation Lawsuit Over Use of Police Raid Footage In His Music Videos (billboard.com) 81

Longtime Slashdot reader UnknowingFool writes: Rapper Afroman, born Joseph Edgar Foreman, famous for his 2000 hit "Because I Got High", has won a defamation lawsuit that seven Ohio police offers filed against him. A jury found he did not defame the officers in music videos he made about a 2022 police raid of his home. In August 2022, Adams County Sheriff's Department raided Afroman's home on suspicion of drug trafficking and kidnapping. Neither drugs nor kidnapping victims were found, and charges were never filed. However, local officials would not pay for damages occurred during the raid including a broken front door and a video surveillance camera. Afroman used his home security footage of the raid to create music rap videos criticizing the police over the incident; "Will You Help Me Repair My Door?", "Why You Disconnecting My Video Camera?", and "Lemon Pound Cake". He posted the videos on YouTube.

In March 2023, seven officers filed a lawsuit against Afroman for invasion of privacy and the unauthorized use of their images from the security footage in addition to defamation claims. The officers requested an injunction for Afroman to stop speaking about them or using their photos. The officers also wanted all proceeds from the videos, song sales, performances, and merchandise claiming they had suffered "emotional distress" due to the videos. Afroman's defense included Freedom of Speech rights to criticize public officials. The ACLU filed an amicus brief supporting the rapper, arguing that the lawsuit was a SLAPP suit only meant to silence criticism. In October 2023, the court agreed and dismissed the invasion of privacy, "right of publicity", and "unauthorized use of individual's persona" claims but allowed the defamation case to proceed.

Defamation claims by the officers included the allegation Afroman repeatedly had sex with the wife of Randolph L. Walters, Jr. When Afroman's lawyer asked Walters "But we all know that's not true, right?", the officer replied he did not know. Defamation from emotional damages requires that harm arise from a false statement; however, if a statement is so outrageous that no one would believe it to be true, then reputational damage cannot be a result.

Encryption

Telegram Disputes Russia's Claim Its Encryption Was Compromised (business-standard.com) 21

Russia's domestic intelligence agency claimed Saturday that Ukraine can obtain sensitive information from troops using the Telegram app on the front line, reports Bloomberg. The fact that the claims were made through Russia's state-operated news outlet RIA Novosti signals "tightening scrutiny over a platform used by millions of Russians," Bloomberg notes, as the Kremlin continues efforts to "push people to use a new state-backed alternative." Russia's communications watchdog limited access to Telegram — a popular messaging app owned by Russian-born billionaire Pavel Durov — over a week ago for failing to comply with Russian laws requiring personal data to be stored locally. Voice and video calls were blocked via Telegram in August. The pressure is the latest move in a long-running campaign to promote what the Kremlin calls a sovereign internet that's led to blocks on YouTube, Instagram and WhatsApp... Foreign intelligence services are able to see Russia's military messages in Telegram too, Russia's Minister for digital development, Maksut Shadaev, said on Wednesday, although he added that Russia will not block access to Telegram for troops for now.

Telegram responded at the time that no breaches of the app's encryption have ever been found. "The Russian government's allegation that our encryption has been compromised is a deliberate fabrication intended to justify outlawing Telegram and forcing citizens onto a state-controlled messaging platform engineered for mass surveillance and censorship," it said in an emailed response.

Youtube

Court Rules That Ripping YouTube Clips Can Violate the DMCA (torrentfreak.com) 87

A federal court in California has ruled that YouTube creators who use stream-ripping tools to download clips for reaction and commentary videos may face liability under the DMCA's anti-circumvention provisions -- a decision that could reshape how one of the platform's most popular content genres operates.

U.S. Magistrate Judge Virginia K. DeMarchi of the Northern District of California denied a motion to dismiss in Cordova v. Huneault, a creator-versus-creator dispute, finding that YouTube's "rolling cipher" technology qualifies as an access control measure under section 1201(a) even though the underlying videos are freely viewable by the public. The distinction matters because it separates the act of watching a video from the act of downloading it.

The defense had argued that no ripping tools were actually used and that screen recording could account for the copied footage. Judge DeMarchi allowed the claim to proceed to discovery regardless, noting that the plaintiff had adequately pled the circumvention allegation. The ruling opens a legal avenue beyond standard copyright infringement for creators who want to go after rivals. Reaction channels have long leaned on fair use as a blanket defense, but plaintiff's attorney Randall S. Newman told TorrentFreak that circumventing copy protections under section 1201 is a separate violation unaffected by any fair use finding.
Businesses

Kalshi Claims 'Extortion,' Then Recants in Feud Over User Losses (bloomberg.com) 25

Kalshi, the largest U.S. prediction market, accused a small data startup called Juice Reel of "extortion" after a stock analyst used the company's transaction-level data to argue that prediction market users lose money faster than gamblers on traditional betting apps -- then walked the allegation back hours later.

The equity research analyst Jordan Bender at Citizens found that the bottom quarter of prediction market users lost about 28 cents of every dollar wagered in their first three months, compared to roughly 11 cents per dollar on sites like FanDuel and DraftKings. Kalshi's head of communications told Bloomberg the report was "flat-out wrong" and called the data an extortion attempt. Juice Reel CEO Ricky Gold said Kalshi had actually pressured him to tell Bloomberg the data was inaccurate. Kalshi later issued an updated statement saying it continued to dispute the findings but "after further review, we don't believe the intention was extortion." The company did not provide any data to counter the analysis.
ISS

Woman Pleads Guilty to Lying About Astronaut Accessing Bank Account From International Space Station (cnbc.com) 34

It was the first allegation of a crime committed in space — back in 2019. But by 2020 it had led to charges of lying to federal authorities. And now a former Air Force intelligence officer "has pleaded guilty to lying to a federal agent," reports CNBC, "by falsely claiming that her estranged astronaut wife illegally accessed her bank account while aboard the International Space Station for six months, prosecutors in Houston, Texas, said Friday." The guilty plea by Summer Worden, 50, on Thursday comes more than five years after she was indicted in the space case for lying about actions by her wife, Anne McClain, a U.S. Army colonel, West Point graduate and Iraq war combat veteran, while they were in the midst of a divorce. The claim came at a time when Worden said that the couple was engaged in a custody battle over what Worden's then-6-year-old son, who had been conceived through in vitro fertilizationand carried by a surrogate...

McClain was aboard the Space Station from December 2018 through June 2019. She recently commanded the SpaceX Crew-10 crew mission to the Space Station from March this year until August.

Worden, who remains free on bond, is scheduled to be sentenced on February 12. She faces a maximum possible sentence of up to five years in prison.

United States

US Agencies Back Banning Top-Selling Home Routers on Security Grounds (msn.com) 89

More than a half dozen federal departments and agencies have backed a proposal to ban future sales of the most popular home routers in the United States on the grounds that the vendor's ties to mainland China make them a national security risk, Washington Post reported Thursday, citing people briefed on the matter. From the report: The proposal, which arose from a months-long risk assessment, calls for blocking sales of networking devices from TP-Link Systems of Irvine, California, which was spun off from a China-based company, TP-Link Technologies, but owns some of that company's former assets in China.

The ban was proposed by the Commerce Department and supported this summer by an interagency process that includes the Departments of Homeland Security, Justice and Defense, the people said. "TP-Link vigorously disputes any allegation that its products present national security risks to the United States," Ricca Silverio, a spokeswoman for TP-Link Systems, said in a statement. "TP-Link is a U.S. company committed to supplying high-quality and secure products to the U.S. market and beyond."

If imposed, the ban would be among the largest in consumer history and a possible sign that the East-West divide over tech independence is still deepening amid reports of accelerated Chinese government-supported hacking. Only the legislated ban of Chinese-owned TikTok, which President Donald Trump has averted with executive orders and a pending sale, would impact more U.S. consumers.

AI

Facial Recognition Error Sees Woman Wrongly Accused of Theft (bbc.com) 60

A chain of stores called Home Bargains installed facial recognition software to spot returning shoplifters. Unfortunately, "Facewatch" made a mistake.

"We acknowledge and understand how distressing this experience must have been," an anonymous Facewatch spokesperson tells the BBC, adding that the store using their technology "has since undertaken additional staff training."

A woman was accused by a store manager of stealing about £10 (about $13) worth of items ("Everyone was looking at me"). And then it happened again at another store when she was shopping with her 81-year-old mother on June 4th: "As soon as I stepped my foot over the threshold of the door, they were radioing each other and they all surrounded me and were like 'you need to leave the store'," she said. "My heart sunk and I was anxious and bothered for my mum as well because she was stressed...."

It was only after repeated emails to both Facewatch and Home Bargains that she eventually found there had been an allegation of theft of about £10 worth of toilet rolls on 8 May. Her picture had somehow been circulated to local stores alerting them that they should not allow her entry. Ms. Horan said she checked her bank account to confirm she had indeed paid for the items before Facewatch eventually responded to say a review of the incident showed she had not stolen anything. "Because I was persistent I finally got somewhere but it wasn't easy, it was really stressful," she said. "My anxiety was really bad — it really played with my mind, questioning what I've done for days. I felt anxious and sick. My stomach was turning for a week."

In one email from Facewatch seen by the BBC, the firm told Ms Horan it "relies on information submitted by stores" and the Home Bargains branches involved had since been "suspended from using the Facewatch system". Madeleine Stone, senior advocacy officer at the civil liberties campaign group Big Brother Watch, said they had been contacted by more than 35 people who have complained of being wrongly placed on facial recognition watchlists.

"They're being wrongly flagged as criminals," Ms Stone said.

"They've given no due process, kicked out of stores," adds the senior advocacy officer. "This is having a really serious impact." The group is now calling for the technology to be banned. "Historically in Britain, we have a history that you are innocent until proven guilty but when an algorithm, a camera and a facial recognition system gets involved, you are guilty. The Department for Science, Innovation and Technology said: "While commercial facial recognition technology is legal in the UK, its use must comply with strict data protection laws. Organisations must process biometric data fairly, lawfully and transparently, ensuring usage is necessary and proportionate.

"No one should find themselves in this situation."

Thanks to alanw (Slashdot reader #1,822) for sharing the article.
Businesses

Apple Must Halt Non-App Store Sales Commissions, Judge Says (yahoo.com) 75

Apple violated a court order requiring it to open up the App Store to third-party payment options and must stop charging commissions on purchases outside its software marketplace, a federal judge said in a blistering ruling that referred the company to prosecutors for a possible criminal probe. From a report: U.S. District Judge Yvonne Gonzalez Rogers sided Wednesday with "Fortnite" maker Epic Games over its allegation that the iPhone maker failed to comply with an order she issued in 2021 after finding the company engaged in anticompetitive conduct in violation of California law.

Gonzalez Rogers also referred the case to federal prosecutors to investigate whether Apple committed criminal contempt of court for flouting her 2021 ruling. The U.S. attorney's office in San Francisco declined to comment. The changes the company must now make could put a sizable dent in the double-digit billions of dollars in revenue the App Store generates each year.
The judge's order [PDF]: Apple willfully chose not to comply with this Court's Injunction. It did so with the express intent to create new anticompetitive barriers which would, by design and in effect, maintain a valued revenue stream; a revenue stream previously found to be anticompetitive. That it thought this Court would tolerate such insubordination was a gross miscalculation. As always, the cover-up made it worse. For this Court, there is no second bite at the apple.

It Is So Ordered.

The Courts

Donkey Kong Champion Wins Defamation Case Against Australian YouTuber Karl Jobst (theguardian.com) 58

An anonymous reader quotes a report from The Guardian: A professional YouTuber in Queensland has been ordered to pay $350,000 plus interest and costs to the former world record score holder for Donkey Kong, after the Brisbane district court found the YouTuber had defamed him "recklessly" with false claims of a link between a lawsuit and another YouTuber's suicide. William "Billy" Mitchell, an American gamer who had held world records in Donkey Kong and Pac-Man going back to 1982, as recognized by the Guinness World Records and the video game database Twin Galaxies, brought the case against Karl Jobst, seeking $400,000 in general damages and $50,000 in aggravated damages.

Jobst, who makes videos about "speed running" (finishing games as fast as possible), as well as gaming records and cheating in games, made a number of allegations against Mitchell in a 2021 YouTube video. He accused Mitchell of cheating, and "pursuing unmeritorious litigation" against others who had also accused him of cheating, the court judgment stated. The court heard Mitchell was accused in 2017 of cheating in his Donkey Kong world records by using emulation software instead of original arcade hardware. Twin Galaxies investigated the allegation, and subsequently removed Mitchell's scores and banned him from participating in its competitions. The Guinness World Records disqualified Mitchell as a holder of all his records -- in both Donkey Kong and Pac-Man -- after the Twin Galaxies decision. The judgment stated that Jobst's 2021 video also linked the December 2020 suicide of another YouTuber, Apollo Legend, to "stress arising from [his] settlement" with Mitchell, and wrongly asserted that Apollo Legend had to pay Mitchell "a large sum of money."

Government

NSO, Not Government Clients, Operates Its Spyware (theguardian.com) 45

jojowombl shares a report from The Guardian: Legal documents released in ongoing US litigation between NSO Group and WhatsApp have revealed for the first time that the Israeli cyberweapons maker -- and not its government customers -- is the party that "installs and extracts" information from mobile phones targeted by the company's hacking software. The new details were contained in sworn depositions from NSO Group employees, portions of which were published for the first time on Thursday.

It comes five years after WhatsApp, the popular messaging app owned by Facebook, first announced it was filing suit against NSO. The company, which was blacklisted by the Biden administration in 2021, makes what is widely considered the world's most sophisticated hacking software, which -- according to researchers -- has been used in the past in Saudi Arabia, Dubai, India, Mexico, Morocco and Rwanda. [...] At the heart of the legal fight was an allegation by WhatsApp that NSO had long denied: that it was the Israeli company itself, and not its government clients around the world, who were operating the spyware. NSO has always said that its product is meant to be used to prevent serious crime and terrorism, and that clients are obligated not to abuse the spyware. It has also insisted that it does not know who its clients are targeting. [...]

To make its case, WhatsApp was allowed by Judge Phyllis Hamilton to make its case, including citing depositions that have previously been redacted and out of public view. In one, an NSO employee said customers only needed to enter a phone number of the person whose information was being sought. Then, the employee said, "the rest is done automatically by the system." In other words, the process was not operated by customers. Rather NSO alone decided to access WhatsApp's servers when it designed (and continuously upgraded) Pegasus to target individuals' phones.
A spokesperson for NSO, Gil Lainer, said in a statement: "NSO stands behind its previous statements in which we repeatedly detailed that the system is operated solely by our clients and that neither NSO nor its employees have access to the intelligence gathered by the system. We are confident that these claims, like many others in the past, will be proven wrong in court, and we look forward to the opportunity to do so."
Piracy

Kim Dotcom Fends Off Arrest Before Conspiracy Theories and Reality Collide (torrentfreak.com) 119

TorrentFreak's Andy Maxwell reports: In August, New Zealand's Justice Minister authorized Kim Dotcom's immediate arrest and extradition. Dotcom's response to his followers on X was simple: "I'm not leaving." Another post mid-September -- "we are very close to disaster" -- led to Dotcom disappearing for three weeks. On his return, Dotcom said X had suspended his account, based on an extremely serious allegation. After accusing Elon Musk of failing to help, yesterday Dotcom warned that a Trump loss would see Musk indicted and "fighting for his life." Dotcom has a plan to avoid extradition; chaos like this provides the fuel.

The details of Dotcom's "plan" to stay in New Zealand are yet to be revealed. Given Dotcom's history, exhausting the judiciary with every possible avenue of appeal is pretty much guaranteed, no matter how unlikely the prospects of success. At the same time, it's likely that Dotcom will use social media to preach to the existing choir. He will also try to appeal to those who loathe him, and those who merely hate him, by focusing on a common grievance. "People keep suggesting that I should leave this corrupt US colony like a fugitive on the run. Hell no," he told 1.7 million X followers recently. "Corrupt US colony" and the interchangeable "obedient" variant are clearly derogatory, catering to theories of joint complicity and sniveling weakness. This rhetoric has been visible on Dotcom's social media accounts for some time, but the main theme is Dotcom's belligerent, out-of-the-blue support for Russia's invasion of Ukraine. [...]

Some people believe that Dotcom genuinely supports Russia and, with his quotes regularly appearing on state-run news channels, arguing otherwise is a pretty tough ask. A different assessment starts with the things Dotcom values most -- his family, his wealth, and his freedom -- and applies that to a reputation of doing whatever it takes to protect and maintain those three, non-negotiable aspects of his life. Right now, his best chance is to tilt the chess board via a change at the White House, and then carefully exploit a change in policy. Dotcom's colleagues took a plea deal from the U.S. and New Zealand that Dotcom insists he would never accept; certainly not if Biden was in power. A Donald Trump win, on the other hand, would introduce an administration Dotcom could be seen to negotiate with, on previously unthinkable terms, without losing face. Previous reluctance to admit any wrongdoing could suddenly seem trivial after the prevention of World War 3.

[Since 2022, Dotcom supported narratives more closely aligned with those of the Kremlin, in particular the claim that United States policy is the root cause of the current conflict. The amplification of anti-Ukraine rumors in the United States, strategically links alleged U.S. policy failures to billions of dollars in military aid, all at taxpayers' expense. This toxic mix, Dotcom insists, heralds the collapse of the dollar, the dismantling of the "US Empire," and ultimately a global human catastrophe; World War 3, no holds barred.]

The Courts

California Sues ExxonMobil For Alleged Decades of Deception Around Plastic Recycling (cnn.com) 171

An anonymous reader quotes a report from CNN: California Attorney General Rob Bonta filed a lawsuit against ExxonMobil on Monday alleging the company carried out a "decades-long campaign of deception" in which the oil and gas giant misled the public on the merits of plastic recycling. The complaint accuses the company of using slick marketing and misleading public statements for half a century to claim recycling was an effective way to deal with plastic pollution, according to a press release from Bonta's office published Monday. It alleges the company continues to perpetuate the "myth" of recycling today. The case, filed in the San Francisco County Superior Court, seeks to compel ExxonMobil "to end its deceptive practices that threaten the environment and the public," the statement said.

Bonta is also asking the court to rule ExxonMobil must pay civil penalties, among other payments, for the harm inflicted by plastic pollution in California. "Plastics are everywhere, from the deepest parts of our oceans, the highest peaks on earth, and even in our bodies, causing irreversible damage -- in ways known and unknown -- to our environment and potentially our health," Bonta said. "For decades, ExxonMobil has been deceiving the public to convince us that plastic recycling could solve the plastic waste and pollution crisis when they clearly knew this wasn't possible. ExxonMobil lied to further its record-breaking profits at the expense of our planet and possibly jeopardizing our health," he said. [...]

Lawsuits against oil and gas companies for their role in climate change and air pollution are becoming more common, but Monday's is the first in the country to take on a fossil fuel company for its messaging around plastic recycling. The statement said that ExxonMobil "falsely promoted all plastic as recyclable, when in fact the vast majority of plastic products are not and likely cannot be recycled, either technically or economically." The lawsuit also alleges Exxon "continues to deceive the public by touting "advanced recycling" as the solution to the plastic waste and pollution crisis." Advanced -- or chemical -- recycling is a technology promoted by many oil companies, but which has been plagued by missed targets, closed or shelved plants and reports of fires and spills. [...] At the heart of the suit is the allegation ExxonMobil's messaging caused consumers to buy and use more single-use plastic than they otherwise would have.
In response to the lawsuit, ExxonMobil pointed the finger back at California, which it said has an ineffective recycling system that officials have known about for decades: "They failed to act, and now they seek to blame others. Instead of suing us, they could have worked with us to fix the problem and keep plastic out of landfills."

ExxonMobil contends chemical recycling does work. "We're bringing real solutions, recycling plastic waste that couldn't be recycled by traditional methods," the company said in a statement.

A copy of the Attorney General's complaint can be found here (PDF).
The Courts

Court Clears Researchers of Defamation For Identifying Manipulated Data (arstechnica.com) 21

An anonymous reader quotes a report from Ars Technica: Earlier this year, we got a look at something unusual: the results of an internal investigation conducted by Harvard Business School that concluded one of its star faculty members had committed research misconduct. Normally, these reports are kept confidential, leaving questions regarding the methods and extent of data manipulations. But in this case, the report became public because the researcher had filed a lawsuit that alleged defamation on the part of the team of data detectives that had first identified potential cases of fabricated data, as well as Harvard Business School itself. Now, the court has ruled (PDF) on motions to dismiss the case. While the suit against Harvard will go on, the court has ruled that evidence-backed conclusions regarding fabricated data cannot constitute defamation -- which is probably a very good thing for science.

The researchers who had been sued, Uri Simonsohn, Leif Nelson, and Joe Simmons, run a blog called Data Colada where, among other things, they note cases of suspicious-looking data in the behavioral sciences. As we detailed in our earlier coverage, they published a series of blog posts describing an apparent case of fabricated data in four different papers published by the high-profile researcher Francesca Gino, a professor at Harvard Business School. The researchers also submitted the evidence to Harvard, which ran its own investigation that included interviewing the researchers involved and examining many of the original data files behind the paper. In the end, Harvard determined that research misconduct had been committed, placed Gino on administrative leave and considered revoking her tenure. Harvard contacted the journals where the papers were published to inform them that the underlying data was unreliable.

Gino then filed suit alleging that Harvard had breached their contract with her, defamed her, and interfered with her relationship with the publisher of her books. She also added defamation accusations against the Data Colada team. Both Harvard and the Data Colada collective filed a motion to have all the actions dismissed, which brings us to this new decision. Harvard got a mixed outcome. This appears to largely be the result that the Harvard Business School adopted a new and temporary policy for addressing research misconduct when the accusations against Gino came in. This, according to the court, leaves questions regarding whether the university had breached its contract with her. However, most of the rest of the suit was dismissed. The judge ruled that the university informing Gino's colleagues that Gino had been placed on administrative leave does not constitute defamation. Nor do the notices requesting retractions sent to the journals where the papers were published. "I find the Retraction Notices amount 'only to a statement of [Harvard Business School]'s evolving, subjective view or interpretation of its investigation into inaccuracies in certain [data] contained in the articles,' rather than defamation," the judge decided.

More critically, the researchers had every allegation against them thrown out. Here, the fact that the accusations involved evidence-based conclusions, and were presented with typical scientific caution, ended up protecting the researchers. The court cites precedent to note that "[s]cientific controversies must be settled by the methods of science rather than by the methods of litigation" and concludes that the material sent to Harvard "constitutes the Data Colada Defendants' subjective interpretation of the facts available to them." Since it had already been determined that Gino was a public figure due to her high-profile academic career, this does not rise to the standard of defamation. And, while the Data Colada team was pretty definitive in determining that data manipulation had taken place, its members were cautious about acknowledging that the evidence they had did not clearly indicate Gino was the one who had performed the manipulation. Finally, it was striking that the researchers had protected themselves by providing links to the data sources they'd used to draw their conclusions. The decision cites a precedent that indicates "by providing hyperlinks to the relevant information, the articles enable readers to review the underlying information for themselves and reach their own conclusions."

Privacy

CNN Investigates 'Airbnb's Hidden Camera Problem' (cnn.com) 76

2017 Slashdot headline: "People Keep Finding Hidden Cameras in Their Airbnbs."

Nearly seven years later, CNN launched their own investigation of "Airbnb's hidden camera problem". CNN: "Across North America, police have seized thousands of images from hidden cameras at Airbnb rentals, including people's most intimate moments... It's more than just a few reported cases. And Airbnb knows it's a problem. In this deposition reviewed by CNN, an Airbnb rep said 35,000 customer support tickets about security cameras or recording devices had been documented over a decade. [The deposition estimates "about" 35,000 tickets "within the scope of the security camera and recording devices policy."]

Airbnb told CNN a single complaint can involve multiple tickets.

CNN actually obtained the audio recording of an Airbnb host in Maine admitting to police that he'd photographed a couple having sex using a camera hidden in a clock — and also photographed other couples. And one Airbnb guest told CNN he'd only learned he'd been recorded "because police called him, months later, after another guest found the camera" — with police discovering cameras in every single room in the house, concealed inside smoke detectors. "Part of the challenge is that the technology has gotten so advanced, with these cameras so small that you can't even see them," CNN says.

But even though recording someone without consent is illegal in every state, CNN also found that in this case and others, Airbnb "does not contact law enforcement once hidden cameras are discovered — even if children are involved." Their reporter argues that Airbnb "not only fails to protect its guests — it works to keep complaints out of the courts and away from the public."

They spoke to two Florida attorneys who said trying to sue Airbnb if something goes wrong is extremely difficult — since its Terms of Service require users to assume every risk themselves. "The person going to rent the property agrees that if something happens while they're staying at this accommodation, they're actually prohibited from suing Airbnb," says one of the attorneys. "They must go a different route, which is a binding arbitration." (When CNN asked if this was about controlling publicity, the two lawyers answered "absolutely" and "100%".) And when claims are settled, CNN adds, "Airbnb has required guests to sign confidentiality agreements — which CNN obtained — that keep some details of legal cases private."

Responding to the story, Airbnb seemed to acknowledge guests have been secretly recorded by hosts, by calling such occurrences "exceptionally rare... When we do receive an allegation, we take appropriate, swift action, which can include removing hosts and listings that violate the policy.

"Airbnb's trust and safety policies lead the vacation rental industry..."
The Courts

Tornado Cash Developer Found Guilty of Laundering $1.2 Billion of Crypto (wired.com) 95

A panel of judges in the Netherlands has found Alexey Pertsev, one of the developers behind crypto anonymizing tool Tornado Cash, guilty of money laundering. Wired: Over the course of two days in March, the Russian national was tried on the allegation that the tool he developed had allowed criminals -- among them hackers with ties to North Korea -- to freely launder $1.2 billion in stolen cryptocurrency. "The management of Tornado Cash welcomed the bank robbers with open arms," the prosecutors wrote in a March court filing.

Dutch judges sentenced Pertsev to five years and four months in prison on Tuesday, which was the term requested by prosecutors in the case. "With Tornado Cash, the defendant created a shortcut for financing crimes and terrorism," said the court in a statement, translated from Dutch. "He chose to look away from the abuse and did not take any responsibility." The purpose of tools like Tornado Cash, known as crypto mixers or tumblers, is to mask the origin and destination of users' coins. Funds belonging to many parties are pooled, jumbled up, and spat out into brand-new wallets, by which time it is no longer clear whose crypto is whose. These services are promoted as a way to improve the level of privacy available to crypto users, but have been readily co-opted for the purpose of money laundering.

On August 8, 2022, Tornado Cash was sanctioned in the United States, making it illegal for US citizens to use the service. Any product that "indiscriminately facilitates anonymous transactions," wrote the US Treasury's Office of Foreign Assets Control, represents a "threat to US national security." Two days later, Pertsev was arrested in the Netherlands, where he resided. Money laundering activity, the Dutch prosecutors claim, accounted for more than 30 percent of the funds that passed through Tornado Cash between 2019 and 2022. [...] Pertsev built his defense on the argument that Tornado Cash, which remains in operation, is under nobody's control -- including his own -- as a piece of software that runs on the Ethereum blockchain, a distributed network of computers.
Further reading: Coinbase Employees and Ethereum Backers Sue US Treasury Over Tornado Cash Sanctions (September 2022).
AI

Ex-Amazon Exec Claims She Was Asked To Ignore Copyright Law in Race To AI (theregister.com) 29

A lawsuit is alleging Amazon was so desperate to keep up with the competition in generative AI it was willing to breach its own copyright rules. From a report: The allegation emerges from a complaint accusing the tech and retail mega-corp of demoting, and then dismissing, a former high-flying AI scientist after it discovered she was pregnant. The lawsuit was filed last week in a Los Angeles state court by Dr Viviane Ghaderi, an AI researcher who says she worked successfully in Amazon's Alexa and LLM teams, and achieved a string of promotions, but claims she was later suddenly demoted and fired following her return to work after giving birth. She is alleging discrimination, retaliation, harassment and wrongful termination, among other claims.
Crime

Nigerian Woman Faces Jail Time For Facebook Review of Tomato Sauce (techdirt.com) 72

An anonymous reader quotes a report from Techdirt: Nigeria doesn't exactly have a stellar reputation when it comes to respecting the speech rights of its own citizens, nor the rights of platforms that its citizens use. But I will admit that even with that reputation in place, I'm a bit at a loss as to why the country decided to arrest and charge a woman for violating those same laws because she wrote an unkind review of a can of tomato puree on Facebook: "A Nigerian woman who wrote an online review of a can of tomato puree is facing imprisonment after its manufacturer accused her of making a 'malicious allegation' that damaged its business. Chioma Okoli, a 39-year-old entrepreneur from Lagos, is being prosecuted and sued in civil court for allegedly breaching the country's cybercrime laws, in a case that has gripped the West African nation and sparked protests by locals who believe she is being persecuted for exercising her right to free speech."

By now you're wondering what actually happened here. Well, Okoli got on Facebook after having tried a can of Nagiko Tomato Mix, made by local Nigerian company Erisco Foods. Her initial post essentially complained about it being too sugary. So pretty standard fair for a review-type post on Facebook. When she started getting some mixed replies, some of them told her to stop trying to ruin the company and just buy something else, with one such message supposedly coming from a relative of the company's ownership. To that, she replied: "Okoli responded: 'Help me advise your brother to stop ki***ing people with his product, yesterday was my first time of using and it's pure sugar.'"

By the way, you can see all of this laid out by Erisco Foods itself on its own Facebook page. The company also claims that she exchanged messages with others talking about how she wanted to trash the product online so that nobody would buy it and that sort of thing. Whatever the truth about that situation is, this all stems from a poor review of a product posted online, which is the kind of speech countries with free speech laws typically protect. In Okoli's case, she was arrested shortly after those posts. [...] Okoli is pregnant and was placed in a cell during her arrest that had water leaking into it, by her account. She was also forced to apologize to Erisco Foods as part of her bond release, which she then publicly stated was done under duress and refused to apologize once out of holding. Okoli is also countersuing both Erisco Foods and the police, arguing for a violation of her speech rights.

AI

Science Fiction and Fantasy Writers Take Aim At AI Freeloading (torrentfreak.com) 73

An anonymous reader quotes a report from TorrentFreak: Members of the Science Fiction and Fantasy Writers Association have no trouble envisioning an AI-centered future, but developments over the past year are reason for concern. The association takes offense when AI models exploit the generosity of science fiction writers, who share their work without DRM and free of charge. [...] Over the past few months, we have seen a variety of copyright lawsuits, many of which were filed by writers. These cases target ChatGPT's OpenAI but other platforms are targeted as well. A key allegation in these complaints is that the AI was trained using pirated books. For example, several authors have just filed an amended complaint against Meta, alleging that the company continued to train its AI on pirated books despite concerns from its own legal team. This clash between AI and copyright piqued the interest of the U.S. Copyright Office which launched an inquiry asking the public for input. With more than 10,000 responses, it is clear that the topic is close to the hearts of many people. It's impossible to summarize all opinions without AI assistance, but one submission stood out to us in particular; it encourages the free sharing of books while recommending that AI tools shouldn't be allowed to exploit this generosity for free.

The submission was filed by the Science Fiction and Fantasy Writers Association (SFWA), which represents over 2,500 published writers. The association is particularly concerned with the suggestion that its members' works can be used for AI training under a fair use exception. SFWA sides with many other rightsholders, concluding that pirated books shouldn't be used for AI training, adding that the same applies to books that are freely shared by many Science Fiction and Fantasy writers. [...] Many of the authors strongly believe that freely sharing stories is a good thing that enriches mankind, but that doesn't automatically mean that AI has the same privilege if the output is destined for commercial activities. The SFWA stresses that it doesn't take offense when AI tools use the works of its members for non-commercial purposes, such as research and scholarship. However, turning the data into a commercial tool goes too far.

AI freeloading will lead to unfair competition and cause harm to licensing markets, the writers warn. The developers of the AI tools have attempted to tone down these concerns but the SFWA is not convinced. [...] The writers want to protect their rights but they don't believe in the extremely restrictive position of some other copyright holders. They don't subscribe to the idea that people will no longer buy books because they can get the same information from an AI tool, for example. However, authors deserve some form of compensation. SFWA argues that all stakeholders should ultimately get together to come up with a plan that works for everyone. This means fair compensation and protection for authors, without making it financially unviable for AI to flourish.
"Questions of 'how' and 'when' and 'how much money' all come later; first and foremost the author must have the right to say how their work is used," their submission reads.

"So long as authors retain the right to say 'no' we believe that equitable solutions to the thorny problems of licensing, scale, and market harm can be found. But that right remains the cornerstone, and we insist upon it," SFWA concludes.
The Courts

Sarah Silverman Hits Stumbling Block in AI Copyright Infringement Lawsuit Against Meta (hollywoodreporter.com) 93

Winston Cho writes via The Hollywood Reporter: A federal judge has dismissed most of Sarah Silverman's lawsuit against Meta over the unauthorized use of authors' copyrighted books to train its generative artificial intelligence model, marking the second ruling from a court siding with AI firms on novel intellectual property questions presented in the legal battle. U.S. District Judge Vince Chhabria on Monday offered a full-throated denial of one of the authors' core theories that Meta's AI system is itself an infringing derivative work made possible only by information extracted from copyrighted material. "This is nonsensical," he wrote in the order. "There is no way to understand the LLaMA models themselves as a recasting or adaptation of any of the plaintiffs' books."

Another of Silverman's arguments that every result produced by Meta's AI tools constitutes copyright infringement was dismissed because she didn't offer evidence that any of the outputs "could be understood as recasting, transforming, or adapting the plaintiffs' books." Chhabria gave her lawyers a chance to replead the claim, along with five others that weren't allowed to advance. Notably, Meta didn't move to dismiss the allegation that the copying of books for purposes of training its AI model rises to the level of copyright infringement.
In July, Silverman and two authors filed a class action lawsuit against Meta and OpenAI for allegedly using their content without permission to train AI language models.
AI

What Exactly Happened At OpenAI? (arstechnica.com) 107

Microsoft's stock price plumetted 16% after OpenAI fired CEO Sam Altman — but appears to have immediately recovered most of the drop in after-hours trading. Yet OpenAI's move "also blindsided key investor and minority owner Microsoft," writes Ars Technica, "reportedly making CEO Satya Nadella furious."

Tech reporter Kara Swisher called the firing a "badly managed coup de Sam," tweeting more details Friday night. "Sources tell me that the profit direction of the company under Altman and the speed of development, which could be seen as too risky, and the nonprofit side dedicated to more safety and caution were at odds. One person on the Sam side called it a 'coup,' while another said it was the the right move."

Ars Technica fills in the story: Sources told reporter Kara Swisher that OpenAI's Dev Day event on November 6, with Altman front and center in a keynote pushing consumer-like products, was an "inflection moment of Altman pushing too far, too fast."

In a joint statement released Friday night, Altman and Brockman said they were "shocked and saddened" by the board's actions... OpenAI has an unusual structure where its for-profit arm is owned and controlled by a non-profit 501(c)(3) public charity... Insiders say the move was mostly a power play that resulted from a cultural schism between Altman and [cofounder/board member Ilya] Sutskever over Altman's management style and drive for high-profile publicity. On September 29, Sutskever tweeted, "Ego is the enemy of growth." The schism is causing further turmoil on the inside. Three AI researchers loyal to Altman departed the company as well on Friday, resigning in reaction to the news: Jakub Pachocki, GPT-4 lead and OpenAI's director of research; Aleksander Madry, head of a team evaluating AI risk, and Szymon Sidor, an open source baselines researcher.

Rumors have already begun swirling about potential internal breakthroughs at OpenAI that may have intensified the slow/fast rift within the company, owing to Sutskever's role as co-lead of a "Superalignment" team that is tasked with figuring out how to control hypothetical superintelligent AI. At the APEC CEO Summit on Thursday, Altman said, "Four times now in the history of OpenAI — the most recent time was just in the last couple of weeks — I've gotten to be in the room when we push the veil of ignorance back and the frontier of discovery forward. And getting to do that is like the professional honor of a lifetime."

The concern here not necessarily being that OpenAI has developed superintelligence, which experts say is unlikely, but that the new breakthrough Altman mentioned may have added pressure to a company that is fighting within itself to proceed safely (from its non-profit branch) but also make money (from its for-profit subsidiary).

Former Google CEO/chairman Eric Schmidt tweeted, "Sam Altman is a hero of mine. He built a company from nothing to $90 Billion in value, and changed our collective world forever. I can't wait to see what he does next. I, and billions of people, will benefit from his future work- it's going to be simply incredible."

And reacting to the news, angel investor Ron Conway tweeted Friday that it looked like "a Board coup that we have not seen the likes of since 1985 when the then-Apple board pushed out Steve Jobs. It is shocking; it is irresponsible; and it does not do right by Sam & Greg or all the builders in OpenAI."

Addressing the charges of a "coup," OpenAI held "an impromptu all-hands meeting" Friday after the firing, according to a (paywalled) article from The Information: "You can call it this way," Sutskever said about the coup allegation. "And I can understand why you chose this word, but I disagree with this. This was the board doing its duty to the mission of the nonprofit, which is to make sure that OpenAI builds AGI that benefits all of humanity...." When Sutskever was asked whether "these backroom removals are a good way to govern the most important company in the world?" he answered: "I mean, fair, I agree that there is not an ideal element to it. 100%."
Reporter Kara Swisher predicted that Altman "will have a new company up by Monday."

"If i start going off, the openai board should go after me for the full value of my shares," Sam Altman posted on X Saturday — although Swisher wondered if Altman was simply trolling the company that had fired him.

"He has almost no shares, I believe."

Slashdot Top Deals