Policy

pornhub-blocks-all-of-texas-to-protest-state-law—paxton-says-“good-riddance”

Pornhub blocks all of Texas to protest state law—Paxton says “good riddance”

Pornhub protest —

Pornhub went dark in Texas and other states requiring age verification for porn.

Large signs that say

Enlarge / Signs displayed at the Pornhub booth at the 2024 AVN Adult Entertainment Expo at Resorts World Las Vegas on January 25, 2024 in Las Vegas, Nevada.

Getty Images | Ethan Miller /

Pornhub has disabled its website in Texas following a court ruling that upheld a state law requiring age-verification systems on porn websites. Visitors to pornhub.com in Texas are now greeted with a message calling the Texas law “ineffective, haphazard, and dangerous.”

“As you may know, your elected officials in Texas are requiring us to verify your age before allowing you access to our website. Not only does this impinge on the rights of adults to access protected speech, it fails strict scrutiny by employing the least effective and yet also most restrictive means of accomplishing Texas’s stated purpose of allegedly protecting minors,” Pornhub’s message said.

Pornhub said it has “made the difficult decision to completely disable access to our website in Texas. In doing so, we are complying with the law, as we always do, but hope that governments around the world will implement laws that actually protect the safety and security of users.”

The same message was posted on other sites owned by the same company, including RedTube, YouPorn, and Brazzers. Pornhub has also blocked its website in Arkansas, Mississippi, Montana, North Carolina, Utah, and Virginia in protest of similar laws. VPN services can be used to evade the blocks and to test out which states have been blocked by Pornhub.

Texas AG sued Pornhub, says “good riddance”

The US Court of Appeals for the 5th Circuit upheld the Texas law in a 2–1 decision last week. The 5th Circuit appeals court had previously issued a temporary stay that allowed the law to take effect in September 2023.

Texas Attorney General Ken Paxton last month sued Pornhub owner Aylo (formerly MindGeek) for violating the law. Paxton’s complaint in Travis County District Court sought civil penalties of up to $10,000 for each day since the law took effect on September 19, 2023.

“Sites like Pornhub are on the run because Texas has a law that aims to prevent them from showing harmful, obscene material to children,” Paxton wrote yesterday. “We recently secured a major victory against PornHub and other sites that sought to block this law from taking effect. In Texas, companies cannot get away with showing porn to children. If they don’t want to comply, good riddance.”

The 5th Circuit panel majority held that the Texas porn-site law should be reviewed on the “rational-basis” standard and not under strict scrutiny. In a dissent, Judge Patrick Higginbotham wrote that the law should face strict scrutiny because it “limits access to materials that may be denied to minors but remain constitutionally protected speech for adults.”

“[T]he Supreme Court has unswervingly applied strict scrutiny to content-based regulations that limit adults’ access to protected speech,” Higginbotham wrote.

Pornhub wants device-based age verification instead

Pornhub’s message to Texas users argued that “providing identification every time you want to visit an adult platform is not an effective solution for protecting users online, and in fact, will put minors and your privacy at risk.” Pornhub said that in other states with age-verification laws, “such bills have failed to protect minors, by driving users from those few websites which comply, to the thousands of websites, with far fewer safety measures in place, which do not comply.”

Pornhub’s message advocated for a device-based approach to age verification in which “personal information that is used to verify the user’s age is either shared in-person at an authorized retailer, inputted locally into the user’s device, or stored on a network controlled by the device manufacturer or the supplier of the device’s operating system.”

Pornhub says this could be used to prevent underage users from accessing age-restricted content without requiring websites to verify ages themselves. “To come to fruition, such an approach requires the cooperation of manufacturers and operating-system providers,” Pornhub wrote.

The age-verification question could eventually go to the Supreme Court. “This opinion will be appealed to the Supreme Court, alongside other cases over statutes imposing mandatory age authentication,” Santa Clara University law professor Eric Goldman wrote.

The 5th Circuit panel majority’s analysis relied on Ginsberg v. New York, a 1968 Supreme Court ruling about the sale of “girlie” magazines to a 16-year-old at a lunch counter. Goldman criticized the 5th Circuit for relying on Ginsburg “instead of the squarely on-point 1997 Reno v. ACLU and 2004 Ashcroft v. ACLU opinions, both of which dealt with the Internet.” Goldman argued that decisions upholding laws like the Texas one could open the door to “rampant government censorship.”

The Free Speech Coalition, an adult-industry lobby group that sued Texas over its law, said it “disagree[s] strenuously with the analysis of the Court majority. As the dissenting opinion by Judge Higginbotham makes clear, this ruling violates decades of precedent from the Supreme Court.” The group is considering its “next steps in regard to both this lawsuit and others.”

Pornhub blocks all of Texas to protest state law—Paxton says “good riddance” Read More »

us-government-agencies-demand-fixable-ice-cream-machines

US government agencies demand fixable ice cream machines

I scream, you scream, we all scream for 1201(c)3 exemptions —

McFlurries are a notable part of petition for commercial and industrial repairs.

Taylor ice cream machine, with churning spindle removed by hand.

Enlarge / Taylor’s C709 Soft Serve Freezer isn’t so much mechanically complicated as it is a software and diagnostic trap for anyone without authorized access.

Many devices have been made difficult or financially nonviable to repair, whether by design or because of a lack of parts, manuals, or specialty tools. Machines that make ice cream, however, seem to have a special place in the hearts of lawmakers. Those machines are often broken and locked down for only the most profitable repairs.

The Federal Trade Commission and the antitrust division of the Department of Justice have asked the US Copyright Office (PDF) to exempt “commercial soft serve machines” from the anti-circumvention rules of Section 1201 of the Digital Millennium Copyright Act (DMCA). The governing bodies also submitted proprietary diagnostic kits, programmable logic controllers, and enterprise IT devices for DMCA exemptions.

“In each case, an exemption would give users more choices for third-party and self-repair and would likely lead to cost savings and a better return on investment in commercial and industrial equipment,” the joint comment states. Those markets would also see greater competition in the repair market, and companies would be prevented from using DMCA laws to enforce monopolies on repair, according to the comment.

The joint comment builds upon a petition filed by repair vendor and advocate iFixit and interest group Public Knowledge, which advocated for broad reforms while keeping a relatable, ingestible example at its center. McDonald’s soft serve ice cream machines, which are famously frequently broken, are supplied by industrial vendor Taylor. Taylor’s C709 Soft Serve Freezer requires lengthy, finicky warm-up and cleaning cycles, produces obtuse error codes, and, perhaps not coincidentally, costs $350 per 15 minutes of service for a Taylor technician to fix. iFixit tore down such a machine, confirming the lengthy process between plugging in and soft serving.

After one company built a Raspberry Pi-powered device, the Kytch, that could provide better diagnostics and insights, Taylor moved to ban franchisees from installing the device, then offered up its own competing product. Kytch has sued Taylor for $900 million in a case that is still pending.

Beyond ice cream, the petitions to the Copyright Office would provide more broad exemptions for industrial and commercial repairs that require some kind of workaround, decryption, or other software tinkering. Going past technological protection measures (TPMs) was made illegal by the 1998 DMCA, which was put in place largely because of the concerns of media firms facing what they considered rampant piracy.

Every three years, the Copyright Office allows for petitions to exempt certain exceptions to DMCA violations (and renew prior exemptions). Repair advocates have won exemptions for farm equipment repair, video game consoles, cars, and certain medical gear. The exemption is often granted for device fixing if a repair person can work past its locks, but not for the distribution of tools that would make such a repair far easier. The esoteric nature of such “release valve” offerings has led groups like the EFF to push for the DMCA’s abolishment.

DMCA exemptions occur on a parallel track to state right-to-repair bills and broader federal action. President Biden issued an executive order that included a push for repair reforms. The FTC has issued studies that call out unnecessary repair restrictions and has taken action against firms like Harley-Davidson, Westinghouse, and grill maker Weber for tying warranties to an authorized repair service.

Disclosure: Kevin Purdy previously worked for iFixit. He has no financial ties to the company.

US government agencies demand fixable ice cream machines Read More »

“overwhelming-evidence”-shows-craig-wright-did-not-create-bitcoin,-judge-says

“Overwhelming evidence” shows Craig Wright did not create bitcoin, judge says

Debate closed —

Jack Dorsey posted a “W,” as judge halts Wright’s suits against developers.

Dr. Craig Wright arrives at the Rolls Building, part of the Royal Courts of Justice, on February 06, 2024, in London, England.

Enlarge / Dr. Craig Wright arrives at the Rolls Building, part of the Royal Courts of Justice, on February 06, 2024, in London, England.

“Overwhelming evidence” shows that Australian computer scientist Craig Wright is not bitcoin creator Satoshi Nakamoto, a UK judge declared Thursday.

In what Wired described as a “surprise ruling” at the closing of Wright’s six-week trial, Justice James Mellor abruptly ended years of speculation by saying:

“Dr. Wright is not the author of the Bitcoin white paper. Dr. Wright is not the person that operated under the pseudonym Satoshi Nakamoto. Dr. Wright is not the person that created the Bitcoin system. Nor is Dr. Wright the author of the Bitcoin software.”

Wright was not in the courtroom for this explosive moment, Wired reported.

In 2016, Wright had claimed that he did not have the “courage” to prove that he was the creator of bitcoin, shortly after claiming that he had “extraordinary proof.” As debate swirled around his claims, Wright began filing lawsuits, alleging that many had violated his intellectual property rights.

A nonprofit called the Crypto Open Patent Alliance (COPA) sued to stop Wright from filing any more lawsuits that it alleged were based on fabricated evidence, Wired reported. They submitted hundreds of alleged instances of forgery or tampering, Wired reported, asking the UK High Court for a permanent injunction to block Wright from ever making the claim again.

As a result of Mellor’s ruling, CoinDesk reported that Wright’s lawsuits against Coinbase and Twitter founder Jack Dorsey’s Block would be halted. COPA’s lawyer, Jonathan Hough, told CoinDesk that Wright’s conduct should be considered “deadly serious.”

“On the basis of his dishonest claim to be Satoshi, he has pursued claims he puts at hundreds of billions of dollars, including against numerous private individuals,” Hough said.

On Thursday, Dorsey posted a “W” on X (formerly Twitter), marking the win and quoting Mellor’s statements clearly rejecting Wright’s claims as false. COPA similarly celebrated the victory.

“This decision is a win for developers, for the entire open source community, and for the truth,” a COPA spokesperson told CoinDesk. “For over eight years, Dr. Wright and his financial backers have lied about his identity as Satoshi Nakamoto and used that lie to bully and intimidate developers in the bitcoin community. That ends today with the court’s ruling that Craig Wright is not Satoshi Nakamoto.”

Wright’s counsel, Lord Anthony Grabiner, had argued that Mellor granting an injunction would infringe Wright’s freedom of speech. Grabiner noted that “such a prohibition is unprecedented in the UK and would prevent Wright from even casually going to the park and declaring he’s Satoshi without incurring fines or going to prison,” CoinDesk reported.

COPA thinks the injunction is necessary, though.

“We are seeking to enjoin Dr. Wright from ever claiming to be Satoshi Nakamoto again and in doing so avoid further litigation terror campaigns,” COPA’s spokesperson told Wired.

And that’s not all that COPA wants. COPA has also petitioned for Wright’s alleged forgeries—some of which Reuters reported were allegedly produced using ChatGPT—to be review by UK criminal courts, where he could face fines and/or prison time. Hough alleged at trial that Wright “has committed fraud upon the court,” Wired reported, asking Britain’s Crown Prosecution Service to consider prosecuting Wright for “perjury and perverting the course of justice,” CoinDesk reported.

Wright’s counsel argued that COPA would need more evidence to back such a claim, CoinDesk reported.

Mellor won’t issue his final judgment for a month or more, Wired reported, so it’s not clear yet if Wright will be enjoined from claiming he is bitcoin’s creator. The judgement will “be ready when it’s ready and not before,” Mellor said.

“Overwhelming evidence” shows Craig Wright did not create bitcoin, judge says Read More »

epic-asks-court-to-block-apple’s-27%-commission-on-website-purchases

Epic asks court to block Apple’s 27% commission on website purchases

iPhones on display at an Apple Store

Getty Images | Justin Sullivan

Epic Games yesterday urged a federal court to sanction Apple for alleged violations of an injunction that imposed restrictions on the iOS App Store. Epic cited a 27 percent commission charged by Apple on purchases completed outside the usual in-app payment system and other limits imposed on developers.

“Apple is in blatant violation of this Court’s injunction,” Epic wrote in a filing in US District Court for the Northern District of California. “Its new App Store policies continue to impose prohibitions on developers that this Court found unlawful and enjoined. Moreover, Apple’s new policies introduce new restrictions and burdens that frustrate and effectively nullify the relief the Court ordered.”

The permanent injunction issued by the court in September 2021 said that Apple may not prohibit app developers from including external links to alternate sales channels “or other calls to action that direct customers to purchasing mechanisms” that aren’t Apple’s in-app purchasing system. The injunction also said that Apple may not prohibit developers from “communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.”

Epic pointed out that the iPhone maker requires developers to “pay Apple a new fee of 27% on any purchases users make outside the app up to one week after clicking a Link.” The fee alone “is enough to frustrate the very purpose of the Injunction; if Apple is allowed to tax out-of-app purchases, those purchases could never constrain Apple’s pricing of IAP [in-app purchases], and developers and consumers would not have any reason to use these alternative transacting options,” Epic said.

The case began in August 2020 when Fortnite maker Epic filed a lawsuit claiming that Apple monopolizes the iOS app distribution and in-app payment markets and was guilty of anti-competitive conduct. A federal judge determined after trial that Apple violated California’s competition laws and “that Apple’s anti-steering provisions hide critical information from consumers and illegally stifle consumer choice.”

An appeals court upheld the injunction in April 2023, and the Supreme Court decided not to take up the case. The injunction applies nationwide.

Apple: We’re complying

Apple said in a January 2024 filing that it is complying with the 2021 injunction. Apple said it now “expressly permits developers with apps on the iOS or iPadOS App Store US storefronts to include buttons or external links with calls to action within their apps that direct users to alternative, out-of-app purchasing mechanisms.” Apple also said it “does not limit developers’ ability to send out-of-app communications to users regarding alternative purchasing methods.”

Regarding the 27 percent commission, Apple said the charge “complies with the Injunction’s plain terms” and is “consistent with the Court’s rationale for upholding Apple’s other App Store policies.” Apple’s website says the commission applies to proceeds for sales “on your website after a link out.”

Epic argues that “Apple’s new scheme so pervasively taxes, regulates, restricts and burdens in-app links directing users to alternative purchasing mechanisms on a developer’s website (‘External Links’ or ‘Links’) as to make them entirely useless. Moreover, Apple continues to completely prohibit the use of ‘buttons… or other calls to action’ in direct contravention of this Court’s Injunction.”

Epic argues that the “plain button style” required by Apple “is not a button at all.” Epic provided this illustration, saying the only allowed button types are the ones in the green box:

The original version of that illustration comes from Apple’s website. On another page, Apple says that external purchase links must use the plain button style.

“With these new policies, Apple continues to charge unjustified fees and intentionally prevent the ‘open flow of information,'” Epic said. “Apple’s goal is clear: to prevent purchasing alternatives from constraining the supracompetitive fees it collects on purchases of digital goods and services. Apple’s so-called compliance is a sham.”

Epic asks court to block Apple’s 27% commission on website purchases Read More »

amid-paralyzing-ransomware-attack,-feds-probe-unitedhealth’s-hipaa-compliance

Amid paralyzing ransomware attack, feds probe UnitedHealth’s HIPAA compliance

most significant and consequential incident —

UnitedHealth said it will cooperate with the probe as it works to restore services.

Multistory glass-and-brick building with UnitedHealthcare logo on exterior.

As health systems around the US are still grappling with an unprecedented ransomware attack on the country’s largest health care payment processor, the US Department of Health and Human Services is opening an investigation into whether that processor and its parent company, UnitedHealthcare Group, complied with federal rules to protect private patient data.

The attack targeted Change Healthcare, a unit of UnitedHealthcare Group (UHG) that provides financial services to tens of thousands of health care providers around the country, including doctors, dentists, hospitals, and pharmacies. According to an antitrust lawsuit brought against UHG by the Department of Justice in 2022, 50 percent of all medical claims in the US pass through Change Healthcare’s electronic data interchange clearinghouse. (The DOJ lost its case to prevent UHG’s acquisition of Change Healthcare and last year abandoned plans for an appeal.)

As Ars reported previously, the attack was disclosed on February 21 by UHG’s subsidiary, Optum, which now runs Change Healthcare. On February 29, UHG accused the notorious Russian-speaking ransomware gang known both as AlphV and BlackCat of being responsible. According to The Washington Post, the attack involved stealing patient data, encrypting company files, and demanding money to unlock them. The result is a paralysis of claims processing and payments, causing hospitals to run out of cash for payroll and services and preventing patients from getting care and prescriptions. Additionally, the attack is believed to have exposed the health data of millions of US patients.

Earlier this month, Rick Pollack, the president and CEO of the American Hospital Association, called the ransomware attack on Change Healthcare “the most significant and consequential incident of its kind against the US health care system in history.”

Now, three weeks into the attack, many health systems are still struggling. On Tuesday, members of the Biden administration met with UHG CEO Andrew Witty and other health industry leaders at the White House to demand they do more to stabilize the situation for health care providers and services and provide financial assistance. Some improvements may be in sight; on Wednesday, UHG posted an update saying that “all major pharmacy and payment systems are up and more than 99 percent of pre-incident claim volume is flowing.”

HIPAA compliance

Still, the data breach leaves big questions about the extent of the damage to patient privacy, and the adequacy of protections moving forward. In an additional development Wednesday, the health department’s Office for Civil Rights (OCR) announced that it is opening an investigation into UHG and Change Healthcare over the incident. It noted that such an investigation was warranted “given the unprecedented magnitude of this cyberattack, and in the best interest of patients and health care providers.”

In a “Dear Colleague” letter dated Wednesday, the OCR explained that the investigation “will focus on whether a breach of protected health information occurred and Change Healthcare’s and UHG’s compliance with the HIPAA Rules.” HIPAA is the Health Insurance Portability and Accountability Act, which establishes privacy and security requirements for protected health information, as well as breach notification requirements.

In a statement to the press, UHG said it would cooperate with the investigation. “Our immediate focus is to restore our systems, protect data and support those whose data may have been impacted,” the statement read. “We are working with law enforcement to investigate the extent of impacted data.”

The Post notes that the federal government does have a history of investigating and penalizing health care organizations for failing to implement adequate safeguards to prevent data breaches. For instance, health insurance provider Anthem paid a $16 million settlement in 2020 over a 2015 data breach that exposed the private data of almost 79 million people. The exposed data included names, Social Security numbers, medical identification numbers, addresses, dates of birth, email addresses, and employment information. The OCR investigation into the breach discovered that the attack began with spear phishing emails that at least one employee of an Anthem subsidiary fell for, opening the door to further intrusions that went undetected between December 2, 2014, and January 27, 2015.

“Unfortunately, Anthem failed to implement appropriate measures for detecting hackers who had gained access to their system to harvest passwords and steal people’s private information,” OCR Director Roger Severino said at the time. “We know that large health care entities are attractive targets for hackers, which is why they are expected to have strong password policies and to monitor and respond to security incidents in a timely fashion or risk enforcement by OCR.”

Amid paralyzing ransomware attack, feds probe UnitedHealth’s HIPAA compliance Read More »

bytedance-unlikely-to-sell-tiktok,-as-former-trump-official-plots-purchase

ByteDance unlikely to sell TikTok, as former Trump official plots purchase

ByteDance unlikely to sell TikTok, as former Trump official plots purchase

Aurich Lawson | Getty Images Pool

Former US Treasury Secretary Steven Mnuchin is reportedly assembling an investor group to buy TikTok as the US comes closer to enacting legislation forcing the company to either divest from Chinese ownership or face a nationwide ban.

“I think the legislation should pass, and I think it should be sold,” Mnuchin told CNBC Thursday. “It’s a great business, and I’m going to put together a group to buy TikTok.”

Mnuchin currently leads Liberty Strategic Capital, which describes itself as “a Washington DC-based private equity firm focused on investing in dynamic global technology companies.”

According to CNBC, there is already “common ground between Liberty and ByteDance,” as Softbank—which invested in ByteDance in 2018—partnered with Liberty in 2021, contributing what Financial Times reported was an unknown amount to Mnuchin’s $2.5 billion private equity fund.

TikTok has made no indication that it would consider a sale should the legislation be enacted. Instead, TikTok CEO Shou Zi Chew is continuing to rally TikTok users to oppose the legislation. In a TikTok post viewed by 3.8 million users, the CEO described yesterday’s vote passing the law in the US House of Representatives as “disappointing.”

“This legislation, if signed into law, WILL lead to a ban of TikTok in the United States,” Chew said, seeming to suggest that TikTok’s CEO is not considering a sale to be an option.

But Mnuchin expects that TikTok may be forced to choose to divest—as the US remains an increasingly significant market for the company. If so, he plans to be ready to snatch up the popular app, which TikTok estimated boasts 170 million American monthly active users.

“This should be owned by US businesses,” Mnuchin told CNBC. “There’s no way that the Chinese would ever let a US company own something like this in China.”

Chinese foreign ministry spokesperson Wang Wenbin has said that a TikTok ban in the US would hurt the US, while little evidence backs up the supposed national security threat that lawmakers claim is urgent to address, the BBC reported. Wang has accused the US of “bullying behavior that cannot win in fair competition.” This behavior, Wang said, “disrupts companies’ normal business activity, damages the confidence of international investors in the investment environment, and damages the normal international economic and trade order.”

Liberty and Mnuchin were not immediately available to comment on whether investors have shown any serious interest so far.

However, according to the Los Angeles Times, Mnuchin has already approached a “bunch of people” to consider investing. Mnuchin told CNBC that TikTok’s technology would be the driving force behind wooing various investors.

“It would be a combination of investors, so there would be no one investor that controls this,” Mnuchin told CNBC. “The issue is all about the technology. This needs to be controlled by US businesses.”

Mnuchin’s group would likely face competition to buy TikTok. ByteDance—which PitchBook data indicates was valued at $223.5 billion in 2023—should also expect an offer from former Activision Blizzard CEO Bobby Kotick, The Wall Street Journal reported.

It’s unclear how valuable TikTok is to ByteDance, CNBC reported, and Mnuchin has not specified what potential valuation his group would anticipate. But if TikTok’s algorithm—which was developed in China—is part of the sale, the price would likely be higher than if ByteDance refused to sell the tech fueling the social media app’s rapid rise to popularity.

In 2020, ByteDance weighed various ownership options while facing a potential US ban under the Trump administration, The New York Times reported. Mnuchin served as Secretary of the Treasury at that time. Although ByteDance ended up partnering with Oracle to protect American TikTok users’ data instead, people briefed on ByteDance’s discussions then confirmed that ByteDance was considering carving out TikTok, potentially allowing the company to “receive new investments from existing ByteDance investors.”

The Information provided a breakdown of the most likely investors to be considered by ByteDance back in 2020. Under that plan, though, ByteDance intended to retain a minority holding rather than completely divesting ownership, the Times reported.

ByteDance unlikely to sell TikTok, as former Trump official plots purchase Read More »

meta-sues-“brazenly-disloyal”-former-exec-over-stolen-confidential-docs

Meta sues “brazenly disloyal” former exec over stolen confidential docs

Meta sues “brazenly disloyal” former exec over stolen confidential docs

A recently unsealed court filing has revealed that Meta has sued a former senior employee for “brazenly disloyal and dishonest conduct” while leaving Meta for an AI data startup called Omniva that The Information has described as “mysterious.”

According to Meta, its former vice president of infrastructure, Dipinder Singh Khurana (also known as T.S.), allegedly used his access to “confidential, non-public, and highly sensitive” information to steal more than 100 internal documents in a rushed scheme to poach Meta employees and borrow Meta’s business plans to speed up Omniva’s negotiations with key Meta suppliers.

Meta believes that Omniva—which Data Center Dynamics (DCD) reported recently “pivoted from crypto to AI cloud”—is “seeking to provide AI cloud computing services at scale, including by designing and constructing data centers.” But it was held back by a “lack of data center expertise at the top,” DCD reported.

The Information reported that Omniva began hiring Meta employees to fill the gaps in this expertise, including wooing Khurana away from Meta.

Last year, Khurana notified Meta that he was leaving on May 15, and that’s when Meta first observed Khurana’s allegedly “utter disregard for his contractual and legal obligations to Meta—including his confidentiality obligations to Meta set forth in the Confidential Information and Invention Assignment Agreement that Khurana signed when joining Meta.”

A Meta investigation found that during Khurana’s last two weeks at the company, he allegedly uploaded confidential Meta documents—including “information about Meta’s ‘Top Talent,’ performance information for hundreds of Meta employees, and detailed employee compensation information”—on Meta’s network to a Dropbox folder labeled with his new employer’s name.

“Khurana also uploaded several of Meta’s proprietary, highly sensitive, confidential, and non-public contracts with business partners who supply Meta with crucial components for its data centers,” Meta alleged. “And other documents followed.”

In addition to pulling documents, Khurana also allegedly sent “urgent” requests to subordinates for confidential information on a key supplier, including Meta’s pricing agreement “for certain computing hardware.”

“Unaware of Khurana’s plans, the employee provided Khurana with, among other things, Meta’s pricing-form agreement with that supplier for the computing hardware and the supplier’s Meta-specific preliminary pricing for a particular chip,” Meta alleged.

Some of these documents were “expressly marked confidential,” Meta alleged. Those include a three-year business plan and PowerPoints regarding “Meta’s future ‘roadmap’ with a key supplier” and “Meta’s 2022 redesign of its global-supply-chain group” that Meta alleged “would directly aid Khurana in building his own efficient and effective supply-chain organization” and afford a path for Omniva to bypass “years of investment.” Khurana also allegedly “uploaded a PowerPoint discussing Meta’s use of GPUs for artificial intelligence.”

Meta was apparently tipped off to this alleged betrayal when Khurana used his Meta email and network access to complete a writing assignment for Omniva as part of his hiring process. For this writing assignment, Khurana “disclosed non-public information about Meta’s relationship with certain suppliers that it uses for its data centers” when asked to “explain how he would help his potential new employer develop the supply chain for a company building data centers using specific technologies.”

In a seeming attempt to cover up the alleged theft of Meta documents, Khurana apparently “attempted to scrub” one document “of its references to Meta,” as well as removing a label marking it “CONFIDENTIAL—FOR INTERNAL USE ONLY.” But when replacing “Meta” with “X,” Khurana allegedly missed the term “Meta” in “at least five locations.”

“Khurana took such action to try and benefit himself or his new employer, including to help ensure that Khurana would continue to work at his new employer, continue to receive significant compensation from his new employer, and/or to enable Khurana to take shortcuts in building his supply-chain team at his new employer and/or helping to build his new employer’s business,” Meta alleged.

Ars could not immediately reach Khurana for comment. Meta noted that he has repeatedly denied breaching his contract or initiating contact with Meta employees who later joined Omniva. He also allegedly refused to sign a termination agreement that reiterates his confidentiality obligations.

Meta sues “brazenly disloyal” former exec over stolen confidential docs Read More »

eu-votes-to-ban-riskiest-forms-of-ai-and-impose-restrictions-on-others

EU votes to ban riskiest forms of AI and impose restrictions on others

Europe’s AI Act —

Lawmaker hails “world’s first binding law on artificial intelligence.”

Illustration of a European flag composed of computer code

Getty Images | BeeBright

The European Parliament today voted to approve the Artificial Intelligence Act, which will ban uses of AI “that pose unacceptable risks” and impose regulations on less risky types of AI.

“The new rules ban certain AI applications that threaten citizens’ rights, including biometric categorisation systems based on sensitive characteristics and untargeted scraping of facial images from the Internet or CCTV footage to create facial recognition databases,” a European Parliament announcement today said. “Emotion recognition in the workplace and schools, social scoring, predictive policing (when it is based solely on profiling a person or assessing their characteristics), and AI that manipulates human behavior or exploits people’s vulnerabilities will also be forbidden.”

The ban on certain AI applications provides for penalties of up to 35 million euros or 7 percent of a firm’s “total worldwide annual turnover for the preceding financial year, whichever is higher.” Violations of other provisions have lower penalties.

There are exemptions to allow law enforcement use of remote biometric identification systems in certain cases. A European Commission summary of the legislation said:

All remote biometric identification systems are considered high-risk and subject to strict requirements. The use of remote biometric identification in publicly accessible spaces for law enforcement purposes is, in principle, prohibited.

Narrow exceptions are strictly defined and regulated, such as when necessary to search for a missing child, to prevent a specific and imminent terrorist threat or to detect, locate, identify or prosecute a perpetrator or suspect of a serious criminal offence.

“Strict obligations” for high-risk AI

The AI Act was supported by 523 members of the European Parliament (MEPs), while 46 voted against and 49 abstained. The legislation classifies AI into four categories of risk: unacceptable risk, high risk, limited risk, and minimal or no risk.

“High-risk AI systems will be subject to strict obligations before they can be put on the market,” the legislation summary said. Obligations include “adequate risk assessment and mitigation systems,” “logging of activity to ensure traceability of results,” “appropriate human oversight measures to minimise risk,” and other requirements.

The law drew opposition from the Computer & Communications Industry Association, a tech-industry lobby group.

“The agreed AI Act imposes stringent obligations on developers of cutting-edge technologies that underpin many downstream systems, and is therefore likely to slow down innovation in Europe,” the group said when a deal on the law was agreed to in December 2023. “Furthermore, certain low-risk AI systems will now be subjected to strict requirements without further justification, while others will be banned altogether. This could lead to an exodus of European AI companies and talent seeking growth elsewhere.”

The law will officially be on the books 20 days after its publication in the official Journal, the European Parliament announcement said. The law’s ban on prohibited practices will apply six months after that, but other regulations won’t take effect until later. The “obligations for high-risk systems” will only take effect after 36 months, the announcement said.

“We finally have the world’s first binding law on artificial intelligence, to reduce risks, create opportunities, combat discrimination, and bring transparency,” said MEP Brando Benifei, the Internal Market Committee co-rapporteur. An AI office will be formed “to support companies to start complying with the rules before they enter into force,” he said.

Risky AI categories

Examples of high-risk AI include AI used in robot-assisted surgery; credit scoring systems that can deny loans; law enforcement that may interfere with fundamental rights, such as evaluation of the reliability of evidence; and automated examination of visa applications.

The limited-risk category has to do with applications that aren’t transparent about AI usage. “The AI Act introduces specific transparency obligations to ensure that humans are informed when necessary, fostering trust,” the European Commission said. “For instance, when using AI systems such as chatbots, humans should be made aware that they are interacting with a machine so they can take an informed decision to continue or step back. Providers will also have to ensure that AI-generated content is identifiable.”

AI-generated text that is “published with the purpose to inform the public on matters of public interest must be labelled as artificially generated,” and this requirement “also applies to audio and video content constituting deep fakes.”

AI with minimal or no risk “includes applications such as AI-enabled video games or spam filters. The vast majority of AI systems currently used in the EU fall into this category,” the commission said. There would be no restrictions on this category.

EU votes to ban riskiest forms of AI and impose restrictions on others Read More »

bill-that-could-ban-tiktok-passes-in-house-despite-constitutional-concerns

Bill that could ban TikTok passes in House despite constitutional concerns

Bill that could ban TikTok passes in House despite constitutional concerns

On Wednesday, the US House of Representatives passed a bill with a vote of 352–65 that could block TikTok in the US. Fifteen Republicans and 50 Democrats voted in opposition, and one Democrat voted present, CNN reported.

TikTok is not happy. A spokesperson told Ars, “This process was secret and the bill was jammed through for one reason: it’s a ban. We are hopeful that the Senate will consider the facts, listen to their constituents, and realize the impact on the economy, 7 million small businesses, and the 170 million Americans who use our service.”

Lawmakers insist that the Protecting Americans from Foreign Adversary Controlled Applications Act is not a ban. Instead, they claim the law gives TikTok a choice: either divest from ByteDance’s China-based owners or face the consequences of TikTok being cut off in the US.

Under the law—which still must pass the Senate, a more significant hurdle, where less consensus is expected and a companion bill has not yet been introduced—app stores and hosting services would face steep consequences if they provide access to apps controlled by US foreign rivals. That includes allowing the app to be updated or maintained by US users who already have the app on their devices.

Violations subject app stores and hosting services to fines of $5,000 for each individual US user “determined to have accessed, maintained, or updated a foreign adversary-controlled application.” With 170 million Americans currently on TikTok, that could add up quickly to eye-popping fines.

If the bill becomes law, app stores and hosting services would have 180 days to limit access to foreign adversary-controlled apps. The bill specifically names TikTok and ByteDance as restricted apps, making it clear that lawmakers intend to quash the alleged “national security threat” that TikTok poses in the US.

House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.), a proponent of the bill, has said that “foreign adversaries like China pose the greatest national security threat of our time. With applications like TikTok, these countries are able to target, surveil, and manipulate Americans.” The proposed bill “ends this practice by banning applications controlled by foreign adversaries of the United States that pose a clear national security risk.”

McMorris Rodgers has also made it clear that “our goal is to get this legislation onto the president’s desk.” Joe Biden has indicated he will sign the bill into law, leaving the Senate as the final hurdle to clear. Senators told CNN that they were waiting to see what happened in the House before seeking a path forward in the Senate that would respect TikTok users’ civil liberties.

Attempts to ban TikTok have historically not fared well in the US, with a recent ban in Montana being reversed by a federal judge last December. Judge Donald Molloy granted TikTok’s request for a preliminary injunction, denouncing Montana’s ban as an unconstitutional infringement of Montana-based TikTok users’ rights.

More recently, the American Civil Liberties Union (ACLU) has slammed House lawmakers for rushing the bill through Congress, accusing lawmakers of attempting to stifle free speech. ACLU senior policy counsel Jenna Leventoff said in a press release that lawmakers were “once again attempting to trade our First Amendment rights for cheap political points during an election year.”

“Just because the bill sponsors claim that banning TikTok isn’t about suppressing speech, there’s no denying that it would do just that,” Leventoff said.

Bill that could ban TikTok passes in House despite constitutional concerns Read More »

some-states-are-now-trying-to-ban-lab-grown-meat

Some states are now trying to ban lab-grown meat

A franken-burger and a side of fries —

Spurious “war on ranching” cited as reason for legislation.

tanks for growing cell-cultivated chicken

Enlarge / Cell-cultivated chicken is made in the pictured tanks at the Eat Just office on July 27, 2023, in Alameda, Calif.

Justin Sullivan/Getty Images

Months in jail and thousands of dollars in fines and legal fees—those are the consequences Alabamians and Arizonans could soon face for selling cell-cultured meat products that could cut into the profits of ranchers, farmers, and meatpackers in each state.

State legislators from Florida to Arizona are seeking to ban meat grown from animal cells in labs, citing a “war on our ranching” and a need to protect the agriculture industry from efforts to reduce the consumption of animal protein, thereby reducing the high volume of climate-warming methane emissions the sector emits.

Agriculture accounts for about 11 percent of the country’s greenhouse gas emissions, according to federal data, with livestock such as cattle making up a quarter of those emissions, predominantly from their burps, which release methane—a potent greenhouse gas that’s roughly 80 times more effective at warming the atmosphere than carbon dioxide over 20 years. Globally, agriculture accounts for about 37 percent of methane emissions.

For years, climate activists have been calling for more scrutiny and regulation of emissions from the agricultural sector and for nations to reduce their consumption of meat and dairy products due to their climate impacts. Last year, over 150 countries pledged to voluntarily cut emissions from food and agriculture at the United Nations’ annual climate summit.

But the industry has avoided increased regulation and pushed back against efforts to decrease the consumption of meat, with help from local and state governments across the US.

Bills in Alabama, Arizona, Florida, and Tennessee are just the latest legislation passed in statehouses across the US that have targeted cell-cultured meat, which is produced by taking a sample of an animal’s muscle cells and growing them into edible products in a lab. Sixteen states—Alabama, Arkansas, Georgia, Kansas, Kentucky, Louisiana, Maine, Mississippi, Missouri, Montana, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, and Wyoming—have passed laws addressing the use of the word “meat” in such products’ packaging, according to the National Agricultural Law Center at the University of Arkansas, with some prohibiting cell-cultured, plant-based, or insect-based food products from being labeled as meat.

“Cell-cultured meat products are so new that there’s not really a framework for how state and federal labeling will work together,” said Rusty Rumley, a senior staff attorney with the National Agricultural Law Center, resulting in no standardized requirements for how to label the products, though legislation has been proposed that could change that.

At the federal level, Rep. Mark Alford (R-Mo.) introduced the Fair and Accurate Ingredient Representation on Labels Act of 2024, which would authorize the United States Department of Agriculture to regulate imitation meat products and restrict their sale if they are not properly labeled, and US Sens. Jon Tester (D-Mont.) and Mike Rounds (R-S.D.) introduced a bill to ban schools from serving cell-cultured meat.

But while plant-based meat substitutes are widespread, cell-cultivated meats are not widely available, with none currently being sold in stores. Just last summer, federal agencies gave their first-ever approvals to two companies making cell-cultivated poultry products, which are appearing on restaurant menus. The meat substitutes have garnered the support of some significant investors, including billionaire Bill Gates, who has been the subject of attacks from supporters of some of the state legislation proposed.

“Let me start off by explaining why I drafted this bill,” said Rep. David Marshall, an Arizona Republican who proposed legislation to ban cell-cultured meat from being sold or produced in the state, during a hearing on the bill. “It’s because of organizations like the FDA and the World Economic Forum, also Bill Gates and others, who have openly declared war on our ranching.”

In Alabama, fear of “franken-meat” competition spurs legislation

In Alabama, an effort to ban lab-grown meat is winding its way through the State House in Montgomery.

There, state senators have already passed a bill that would make it a misdemeanor, punishable by up to three months in jail and a $500 fine, to sell, manufacture, or distribute what the proposed legislation labels “cultivated food products.” An earlier version of the bill called lab-grown protein “meat,” but it was quickly revised by lawmakers. The bill passed out of committee and through the Senate without opposition from any of its members.

Now, the bill is headed toward a vote in the Alabama House of Representatives, where the body’s health committee recently held a public hearing on the issue. Rep. Danny Crawford, who is carrying the bill in the body, told fellow lawmakers during that hearing that he’s concerned about two issues: health risks and competition for Alabama farmers.

“Lab-grown meat or whatever you want to call it—we’re not sure of all of the long-term problems with that,” he said. “And it does compete with our farming industry.”

Crawford said that legislators had heard from NASA, which expressed concern about the bill’s impact on programs to develop alternative proteins for astronauts. An amendment to the bill will address that problem, Crawford said, allowing an exemption for research purposes.

Some states are now trying to ban lab-grown meat Read More »

50-injured-on-boeing-787-as-“strong-shake”-reportedly-sent-heads-into-ceiling

50 injured on Boeing 787 as “strong shake” reportedly sent heads into ceiling

Boeing nosedive —

LATAM Airlines said “technical event” in mid-flight “caused a strong movement.”

A Boeing airplane on a runway. The LATAM Airlines logo is printed on the side of the plane.

Enlarge / A LATAM Airlines Boeing 787-9 Dreamliner taxiing at Arturo Merino Benítez International Airport in Chile on March 20, 2019.

Getty Images | SOPA Images

About 50 people were injured on a LATAM Airlines flight today in which a Boeing 787-9 Dreamliner suffered a technical problem that caused a “strong shake,” reportedly causing some passengers’ heads to hit the ceiling.

The plane flying from Australia to New Zealand “experienced a strong shake during flight, the cause of which is currently under investigation,” LATAM said on its website today. LATAM, a Chilean airline, was also quoted in news reports as saying the plane suffered “a technical event during the flight which caused a strong movement.”

The Boeing plane, carrying 263 passengers and nine flight and cabin crew members, landed at Auckland Airport as scheduled. New Zealand ambulance service Hato Hone St. John published a statement saying that its “ambulance crews assessed and treated approximately 50 patients, with one patient in a serious condition and the remainder in a moderate to minor condition.” Twelve patients were taken to hospitals, the statement said.

Most of the patients were “discharged shortly after,” LATAM said on its website. “Only one passenger and one cabin crew member required additional attention, but without any life-threatening risks.”

The plane was originally supposed to continue from New Zealand to Chile, but that leg of the trip was rescheduled. LATAM said it is “working in coordination with the respective authorities to support the investigations into the incident.”

Boeing told news outlets that it is “working to gather more information about the flight and will provide any support needed by our customers.” We contacted Boeing today and will update this article if it provides more information.

Passenger describes nosedive, people hitting the ceiling

Passenger Brian Jokat described the frightening incident in interviews with several media outlets. “The ceiling’s broken from people’s heads and bodies hitting it,” Jokat said, according to ABC News. “Basically neck braces were being put on people, guys’ heads were cut and they were bleeding. It was just crazy.”

Jokat was also quoted as saying that he “felt the plane take a nosedive—it felt like it was at the top of a roller coaster, and then it flattened out again.” It all happened in “split seconds,” he reportedly said.

Today’s flight came about two months after a near-disaster involving a Boeing 737 Max 9 plane used by Alaska Airlines. On January 5, the plane was forced to return to Portland International Airport in Oregon after a passenger door plug blew off the aircraft during flight.

The National Transportation Safety Board concluded that four bolts were missing from the plane. The Justice Department has opened a criminal investigation into the incident, The Wall Street Journal reported Saturday.

Boeing was seeking a safety exemption from the US Federal Aviation Administration related to its 737 Max 7 aircraft, but withdrew the application in January after the 737 Max 9 door-plug blowout.

50 injured on Boeing 787 as “strong shake” reportedly sent heads into ceiling Read More »

nvidia-sued-over-ai-training-data-as-copyright-clashes-continue

Nvidia sued over AI training data as copyright clashes continue

In authors’ bad books —

Copyright suits over AI training data reportedly decreasing AI transparency.

Nvidia sued over AI training data as copyright clashes continue

Book authors are suing Nvidia, alleging that the chipmaker’s AI platform NeMo—used to power customized chatbots—was trained on a controversial dataset that illegally copied and distributed their books without their consent.

In a proposed class action, novelists Abdi Nazemian (Like a Love Story), Brian Keene (Ghost Walk), and Stewart O’Nan (Last Night at the Lobster) argued that Nvidia should pay damages and destroy all copies of the Books3 dataset used to power NeMo large language models (LLMs).

The Books3 dataset, novelists argued, copied “all of Bibliotek,” a shadow library of approximately 196,640 pirated books. Initially shared through the AI community Hugging Face, the Books3 dataset today “is defunct and no longer accessible due to reported copyright infringement,” the Hugging Face website says.

According to the authors, Hugging Face removed the dataset last October, but not before AI companies like Nvidia grabbed it and “made multiple copies.” By training NeMo models on this dataset, the authors alleged that Nvidia “violated their exclusive rights under the Copyright Act.” The authors argued that the US district court in San Francisco must intervene and stop Nvidia because the company “has continued to make copies of the Infringed Works for training other models.”

A Hugging Face spokesperson clarified to Ars that “Hugging Face never removed this dataset, and we did not host the Books3 dataset on the Hub.” Instead, “Hugging Face hosted a script that downloads the data from The Eye, which is the place where ELeuther hosted the data,” until “Eleuther removed the data from The Eye” over copyright concerns, causing the dataset script on Hugging Face to break.

Nvidia did not immediately respond to Ars’ request to comment.

Demanding a jury trial, authors are hoping the court will rule that Nvidia has no possible defense for both allegedly violating copyrights and intending “to cause further infringement” by distributing NeMo models “as a base from which to build further models.”

AI models decreasing transparency amid suits

The class action was filed by the same legal team representing authors suing OpenAI, whose lawsuit recently saw many claims dismissed, but crucially not their claim of direct copyright infringement. Lawyers told Ars last month that authors would be amending their complaints against OpenAI and were “eager to move forward and litigate” their direct copyright infringement claim.

In that lawsuit, the authors alleged copyright infringement both when OpenAI trained LLMs and when chatbots referenced books in outputs. But authors seemed more concerned about alleged damages from chatbot outputs, warning that AI tools had an “uncanny ability to generate text similar to that found in copyrighted textual materials, including thousands of books.”

Uniquely, in the Nvidia suit, authors are focused exclusively on Nvidia’s training data, seemingly concerned that Nvidia could empower businesses to create any number of AI models on the controversial dataset, which could affect thousands of authors whose works could allegedly be broadly infringed just by training these models.

There’s no telling yet how courts will rule on the direct copyright claims in either lawsuit—or in the New York Times’ lawsuit against OpenAI—but so far, OpenAI has failed to convince courts to toss claims aside.

However, OpenAI doesn’t appear very shaken by the lawsuits. In February, OpenAI said that it expected to beat book authors’ direct copyright infringement claim at a “later stage” of the case and, most recently in the New York Times case, tried to convince the court that NYT “hacked” ChatGPT to “set up” the lawsuit.

And Microsoft, a co-defendant in the NYT lawsuit, even more recently introduced a new argument that could help tech companies defeat copyright suits over LLMs. Last month, Microsoft argued that The New York Times was attempting to stop a “groundbreaking new technology” and would fail, just like movie producers attempting to kill off the VCR in the 1980s.

“Despite The Times’s contentions, copyright law is no more an obstacle to the LLM than it was to the VCR (or the player piano, copy machine, personal computer, Internet, or search engine),” Microsoft wrote.

In December, Hugging Face’s machine learning and society lead, Yacine Jernite, noted that developers appeared to be growing less transparent about training data after copyright lawsuits raised red flags about companies using the Books3 dataset, “especially for commercial models.”

Meta, for example, “limited the amount of information [it] disclosed about” its LLM, Llama-2, “to a single paragraph description and one additional page of safety and bias analysis—after [its] use of the Books3 dataset when training the first Llama model was brought up in a copyright lawsuit,” Jernite wrote.

Jernite warned that AI models lacking transparency could hinder “the ability of regulatory safeguards to remain relevant as training methods evolve, of individuals to ensure that their rights are respected, and of open science and development to play their role in enabling democratic governance of new technologies.” To support “more accountability,” Jernite recommended “minimum meaningful public transparency standards to support effective AI regulation,” as well as companies providing options for anyone to opt out of their data being included in training data.

“More data transparency supports better governance and fosters technology development that more reliably respects peoples’ rights,” Jernite wrote.

Nvidia sued over AI training data as copyright clashes continue Read More »