Policy

biased-ai-in-health-care-faces-crackdown-in-sweeping-biden-admin-proposals

Biased AI in health care faces crackdown in sweeping Biden admin proposals

Prior authorization

Elsewhere in the over 700-page proposal, the administration lays out policy that would bar Medicare Advantage plan providers from reopening and reneging on paying claims for inpatient hospital admission if those claims had already been granted approval through prior authorization. The proposal also wants to make criteria for coverage clearer and help ensure that patients know they can appeal denied claims.

The Department of Health and Human Services notes that when patients appeal claim denials from Medicare Advantage plans, the appeals are successful 80 percent of the time. But, only 4 percent of claim denials are appealed—”meaning many more denials could potentially be overturned by the plan if they were appealed.”

AI guardrails

Last, the administration’s proposal also tries to shore up guardrails for the use of AI in health care with edits to existing policy. The goal is to make sure Medicare Advantage insurers don’t adopt flawed AI recommendations that deepen bias and discrimination or exacerbate existing inequities.

As an example, the administration pointed to the use of AI to predict which patients would miss medical appointments—and then recommend that providers double-book the appointment slots for those patients. In this case, low-income patients are more likely to miss appointments, because they may struggle with transportation, childcare, and work schedules. “As a result of using this data within the AI tool, providers double-booked lower-income patients, causing longer wait times for lower-income patients and perpetuating the cycle of additional missed appointments for vulnerable patients.” As such, it should be barred, the administration says.

In general, people of color and people of lower socioeconomic status tend to be more likely to have gaps and flaws in their electronic health records. So, when AI is trained on large data sets of health records, it can generate flawed recommendations based on that spotty and incorrect information, thereby amplifying bias.

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isps-say-their-“excellent-customer-service”-is-why-users-don’t-switch-providers

ISPs say their “excellent customer service” is why users don’t switch providers


Broadband customer service

ISPs tell FCC that mistreated users would switch to one of their many other options.

Credit: Getty Images | Thamrongpat Theerathammakorn

Lobby groups for Internet service providers claim that ISPs’ customer service is so good already that the government shouldn’t consider any new regulations to mandate improvements. They also claim ISPs face so much competition that market forces require providers to treat their customers well or lose them to competitors.

Cable lobby group NCTA-The Internet & Television Association told the Federal Communications Commission in a filing that “providing high-quality products and services and a positive customer experience is a competitive necessity in today’s robust communications marketplace. To attract and retain customers, NCTA’s cable operator members continuously strive to ensure that the customer support they provide is effective and user-friendly. Given these strong marketplace imperatives, new regulations that would micromanage providers’ customer service operations are unnecessary.”

Lobby groups filed comments in response to an FCC review of customer service that was announced last month, before the presidential election. While the FCC’s current Democratic leadership is interested in regulating customer service practices, the Republicans who will soon take over opposed the inquiry.

USTelecom, which represents telcos such as AT&T and Verizon, said that “the competitive broadband marketplace leaves providers of broadband and other communications services no choice but to provide their customers with not only high-quality broadband, but also high-quality customer service.”

“If a provider fails to efficiently resolve an issue, they risk losing not only that customer—and not just for the one service, but potentially for all of the bundled services offered to that customer—but also any prospective customers that come across a negative review online. Because of this, broadband providers know that their success is dependent upon providing and maintaining excellent customer service,” USTelecom wrote.

While the FCC Notice of Inquiry said that providers should “offer live customer service representative support by phone within a reasonable timeframe,” USTelecom’s filing touted the customer service abilities of AI chatbots. “AI chat agents will only get better at addressing customers’ needs more quickly over time—and if providers fail to provide the customer service and engagement options that their customers expect and fail to resolve their customers’ concerns, they may soon find that the consumer is no longer a customer, having switched to another competitive offering,” the lobby group said.

Say what?

The lobby groups’ description may surprise the many Internet users suffering from little competition and poor customer service, such as CenturyLink users who had to go without service for over a month because of the ISP’s failure to fix outages. The FCC received very different takes on the state of ISP customer service from regulators in California and Oregon.

The Mt. Hood Cable Regulatory Commission in northwest Oregon, where Comcast is the dominant provider, told the FCC that local residents complain about automated customer service representatives; spending hours on hold while attempting to navigate automated voice systems; billing problems including “getting charged after cancelling service, unexpected price increases, and being charged for equipment that was returned,” and service not being restored quickly after outages.

The California Public Utilities Commission (CPUC) told the FCC that it performed a recent analysis finding “that only a fraction of California households enjoy access to a highly competitive market for [broadband Internet service], with only 26 percent of households having a choice between two or more broadband providers utilizing either cable modem or fiber optic technologies.” The California agency said the result “suggests that competitive forces alone are insufficient to guarantee service quality for customers who depend upon these services.”

CPUC said its current rulemaking efforts for California “will establish standards for service outages, repair response time, and access to live representatives.” The agency told the FCC that if it adopts new customer service rules for the whole US, it should “permit state and local governments to set customer service standards that exceed the adopted standards.”

People with disabilities need more help, groups say

The FCC also received a filing from several advocacy groups focused on accessibility for people with disabilities. The groups asked for rules “establishing baseline standards to ensure high-quality DVC [direct video calling for American Sign Language users] across providers, requiring accommodations for consumers returning rental equipment, and ensuring accessible cancellation processes.” The groups said that “providers should be required to maintain dedicated, well-trained accessibility teams that are easily reachable via accessible communication channels, including ASL support.”

“We strongly caution against relying solely on emerging AI technologies without mandating live customer service support,” the groups said.

The FCC’s Notice of Inquiry on customer service was approved 3–2 in a party-line vote on October 10. FCC Chairwoman Jessica Rosenworcel said that hundreds of thousands of customers file complaints each year “because they have run into issues cancelling their service, are saddled with unexpected charges, are upset by unexplained outages, and are frustrated with billing issues they have not been able to resolve on their own. Many describe being stuck in ‘doom loops’ that make it difficult to get a real person on the line to help with service that needs repair or to address charges they believe are a mistake.”

If the FCC leadership wasn’t changing hands, the Notice of Inquiry could be the first step toward a rulemaking. “We cannot ignore these complaints, especially not when we know that it is possible to do better… We want to help improve the customer experience, understand what tools we have to do so, and what gaps there may be in the law that prevent consumers from having the ability to resolve routine problems quickly, simply, and easily,” Rosenworcel said.

ISPs have a friend in Trump admin

But the proceeding won’t go any further under incoming Chairman Brendan Carr, a Republican chosen by President-elect Donald Trump. Carr dissented from the Notice of Inquiry, saying that the potential actions explored by the FCC exceed its authority and that the topic should be handled instead by the Federal Trade Commission.

Carr said the FCC should work instead on “freeing up spectrum and eliminating regulatory barriers to deployment” and that the Notice of Inquiry is part of “the Biden-Harris Administration’s efforts to deflect attention away from the necessary course correction.”

Carr has made it clear that he is interested in regulating broadcast media and social networks more than the telecom companies the FCC traditionally focuses on. Carr wrote a chapter for the conservative Heritage Foundation’s Project 2025 in which he criticized the FCC for “impos[ing] heavy-handed regulation rather than relying on competition and market forces to produce optimal outcomes.”

With Carr at the helm, ISPs are likely to get what they’re asking for: No new regulations and elimination of at least some current rules. “Rather than saddling communications providers with unnecessary, unlawful, and potentially harmful regulation, the Commission should encourage the pro-consumer benefits of competition by reducing the regulatory burdens and disparities that are currently unfairly skewing the marketplace,” the NCTA told the FCC, arguing that cable companies face more onerous regulations than other communications providers.

Photo of Jon Brodkin

Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry.

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Workers demand more transparency after Intel secures $8B CHIPS funding


Intel awarded nearly $8B to “supercharge” US semiconductor innovation.

An aerial view from February 2024 shows construction progress at Intel’s Ohio One campus of nearly 1,000 acres in Licking County, Ohio. Credit: Intel Corporation

On Tuesday, the Biden-Harris administration finalized a CHIPS award of up to $7.865 billion to help fund the expansion of Intel’s commercial fabs in the US. By the end of the decade, these fabs are intended to decrease reliance on foreign adversaries and fill substantial gaps in America’s domestic semiconductor supply chain.

Initially, Intel was awarded $8.5 billion, but it was decreased after Intel won a $3 billion subsidy from the Pentagon to expand Department of Defense semiconductor manufacturing. In a press release, Secretary of Commerce Gina Raimondo boasted that the substantial award would set up “Intel to drive one of the most significant semiconductor manufacturing expansions in US history” and “supercharge American innovation” while making the US “more secure.”

For Intel, the CHIPS funding supports an expected investment of nearly $90 billion by 2030 to expand projects in Arizona, New Mexico, Ohio, and Oregon. Approximately 10,000 manufacturing jobs and 20,000 construction jobs will be created “across all four states,” the Commerce Department’s press release said. Additionally, Intel estimated that the funding will create “more than 50,000 indirect jobs with suppliers and supporting industries.”

According to the National Institute of Standards and Technology (NIST), which oversees CHIPS funding for manufacturing and research and development initiatives, the “funding will spur investment in leading-edge logic chip manufacturing, packaging, and R&D facilities.”

The sprawling effort includes the construction of two new fabs in Chandler, Arizona, the modernization of two fabs in Rio Rancho, New Mexico, building a new leading-edge logic fab in New Albany, Ohio, and creating a “premier hub of leading-edge research and development” in Hillsboro, Oregon. By the end, Intel expects to operate America’s largest advanced packaging facility in New Mexico and “one of only three locations in the world where leading-edge process technology is developed” in Oregon, NIST said.

Who’s enforcing worker safety commitments?

To succeed, Intel will need to build a talented workforce, so $65 million has been set aside to fund those efforts. The majority, $56 million, will “help train students and faculty at all education levels,” Intel said. Another $5 million will “help increase childcare availability near Intel’s facilities,” and the final $4 million will support efforts to recruit women and “economically disadvantaged individuals” as construction workers, Intel said.

Recruitment could be challenging if worker safety concerns are continually raised, though. Chips Communities United (CCU), a coalition of “labor, environmental, social justice, civil rights, and community organizations representing millions of workers and community members nationwide,” has been monitoring worker concerns at facilities receiving CHIPS funding. While the coalition fully supports Intel’s US expansion, they recently requested a full environmental impact statement at one of Intel’s Arizona fabs, detailing potential environmental and worker hazards, as well as mitigation plans.

As of August, CCU said that Ocotillo workers and communities had been given “insufficient detail on the use, storage, and release of hazardous substances, as well as other environmental impacts, to conclude that there are no significant environmental impacts.”

Workers have a bunch of questions. But perhaps most urgently, they need more information on how environmental safety commitments will be enforced, CCU suggested, because no one wants to work in constant fear of chemical exposure. Especially when Intel’s facilities in Oregon were revealed last year to have “accidentally turned off its air pollution control equipment for two months and underreported its CO2 emissions.”

NIST noted that Intel is required to protect workers to receive CHIPS funding and has promised to meet regularly with workers and managers at each project facility to discuss worker safety concerns.

Intel could not immediately be reached for comment on whether it’s currently in discussions with workers impacted by CCU’s recent claims.

Weighing in on the Intel Community Impact Report that NIST released today, CCU applauded Intel’s commitments to bring workers to the table, adopt the “most protective health and safety standards for chemical exposure,” “segregate PFAS-containing waste for treatment and disposal,” and “make environmental compliance public when it comes to energy and water use,” CCU coalition director Judith Barish told Ars. But the enforceability of the promised workplace safety conditions remains a concern at Intel’s facilities.

“Protective workplace health and safety regulation” has “historically been missing in semiconductor production,” Barish told Ars. And it’s a big problem Intel’s current plan is to regulate the management of toxic chemicals following guidelines developed by industry—not government.

“Unlike government regulations, this standard is not easily available for public inspection since it is proprietary, copyrighted, and can only be inspected by purchasing it,” Barish told Ars. “Allowing a regulated entity to write the regulations that will be applied to it violates basic principles of good government.”

While segregating PFAS-containing waste sounds good, Barish said that workers need more transparency to understand how it “will be separated, stored, and treated and what the environmental impacts will be for nearby communities.”

It’s also unclear to workers what might happen if Intel fails to follow through on its commitments. The Commerce Department has emphasized that Intel’s funding will be disbursed “based on Intel’s completion of project milestones,” but workers “aren’t clear on the penalties or clawbacks the Commerce Dept. would impose if Intel failed to meet workforce, health and safety, or environmental milestones and metrics,” Barish said.

Intel only approved unionized workers at one site

For top talent to be attracted to Intel’s facilities, establishing the most protective safety protocols will be critical. But just as critical for workers—especially “economically disadvantaged” workers Intel is targeting for construction jobs—will be worker benefits.

Barish noted that Intel has only committed to employing unionized construction workers at one of four sites. The company may struggle to recruit workers, Barish suggested, without being clear about their rights to “join a union free from intimidation, captive audience meetings, exposure to anti-union consultants, threats of retaliation, and other obstacles to achieve bargaining.”

CCU plans to continue monitoring concerns at Intel’s fabs and others receiving CHIPS funding as the presidential administration potentially introduces CHIPS Act changes next year.

On the campaign trail, President-elect Donald Trump attacked the CHIPS Act, saying he was “not thrilled” with the price tag, CNBC reported. However, analysts told CNBC that any changes under Trump would likely be smaller rather than something drastic like repealing the law.

The Commerce Department continues to tout the CHIPS Act as a firmly bipartisan initiative. Intel CEO Pat Gelsinger, whose company’s large investment depends on bipartisan support for the CHIPS Act continuing for years to come, echoed that sentiment after the award was finalized.

“With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil,” Gelsinger said. “Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our US operations over the next several years.”

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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Trump targets Mexico and Canada with tariffs, plus an extra 10% for China

Trump had in particular targeted Mexico on the campaign trail, threatening to impose “whatever tariffs are required—100 percent, 200 percent, 1,000 percent” to stop Chinese cars from crossing the southern border.

He has also warned Mexico’s president, Claudia Sheinbaum, he would impose tariffs of 25 percent if she did not crack down on the “onslaught of criminals and drugs” crossing the border.

The levies could be imposed using executive powers that would override the USMCA, the free trade agreement Trump signed with Canada and Mexico during his first term as president.

“There’s a lot of integration of North American manufacturing in a lot of sectors, particularly autos, so this would be pretty disruptive for a lot of US companies and industries,” said Warren Maruyama, former general counsel at the Office of the US Trade Representative. “Tariffs are inflationary and will drive up prices,” he added.

Ricardo Monreal, leader of Mexico’s ruling party in the lower house of congress, said tariffs would “not solve the underlying issue” at the border. “Escalating trade retaliation would only hurt people’s pockets,” he wrote on X.

Diego Marroquín Bitar at the Wilson Center think tank warned that unilateral tariffs “would shatter confidence in USMCA and harm all three economies.”

In a joint statement, Canada’s deputy prime minister, Chrystia Freeland, and public safety minister Dominic LeBlanc hailed the bilateral relationship with the US as “one of the strongest and closest… particularly when it comes to trade and border security.”

They also noted that Canada “buys more from the United States than China, Japan, France, and the UK combined,” and last year supplied “60 percent of US crude oil imports.”

“Even if this is a negotiating strategy, I don’t see what Canada has to offer that Trump is not already getting,” said Carlo Dade at the Canada West Foundation.

While Trump put tariffs at the center of his economic pitch to voters, President Joe Biden has also increased levies on Chinese imports. In May, Biden’s administration sharply increased tariffs on a range of imported clean-energy technologies, including boosting tariffs on electric vehicles from China to 100 percent.

Biden’s administration has also pushed Beijing for several years to crack down on the production of ingredients for fentanyl, which it estimated claimed the lives of almost 75,000 Americans in 2023. Beijing this year agreed to impose controls on chemicals crucial to manufacturing fentanyl following meetings with senior US officials.

Additional reporting by William Sandlund and Haohsiang Ko in Hong Kong, Christine Murray in Mexico City, Ilya Gridneff in Toronto, Joe Leahy in Beijing, and Alex Rogers in Washington.

© 2024 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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Supreme Court wants US input on whether ISPs should be liable for users’ piracy

The Supreme Court signaled it may take up a case that could determine whether Internet service providers must terminate users who are accused of copyright infringement. In an order issued today, the court invited the Department of Justice’s solicitor general to file a brief “expressing the views of the United States.”

In Sony Music Entertainment v. Cox Communications, the major record labels argue that cable provider Cox should be held liable for failing to terminate users who were repeatedly flagged for infringement based on their IP addresses being connected to torrent downloads. There was a mixed ruling at the US Court of Appeals for the 4th Circuit as the appeals court affirmed a jury’s finding that Cox was guilty of willful contributory infringement but reversed a verdict on vicarious infringement “because Cox did not profit from its subscribers’ acts of infringement.”

That ruling vacated a $1 billion damages award and ordered a new damages trial. Cox and Sony are both seeking a Supreme Court review. Cox wants to overturn the finding of willful contributory infringement, while Sony wants to reinstate the $1 billion verdict.

The Supreme Court asking for US input on Sony v. Cox could be a precursor to the high court taking up the case. For example, the court last year asked the solicitor general to weigh in on Texas and Florida laws that restricted how social media companies can moderate their platforms. The court subsequently took up the case and vacated lower-court rulings, making it clear that content moderation is protected by the First Amendment.

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DOJ wraps up ad tech trial: Google is “three times” a monopolist

One of the fastest monopoly trials on record wound down Monday, as US District Court Judge Leonie Brinkema heard closing arguments on Google’s alleged monopoly in a case over the company’s ad tech.

Department of Justice lawyer Aaron Teitelbaum kicked things off by telling Brinkema that Google “rigged” ad auctions, allegedly controlling “multiple parts” of services used to place ads all over the Internet, unfairly advantaging itself in three markets, The New York Times reported.

“Google is once, twice, three times a monopolist,” Teitelbaum said, while reinforcing that “these are the markets that make the free and open Internet possible.”

Teitelbaum likened Google to a “predator,” preying on publishers that allegedly had no viable other options for ad revenue but to stick with Google’s products. An executive for News Corp. testified that the news organization felt it was being held “hostage” because it risked losing $9 million in 2017 if it walked away from Google’s advertising platform.

Brinkema, who wasted no time and frequently urged lawyers to avoid repeating themselves or dragging out litigation with unnecessary testimony throughout the trial, reportedly pushed back.

In one instance she asked, “What would happen if a company had produced the best product,” but Teitelbaum rejected the idea that Google’s ad tech platform had competed on the merits.

“The problem is Google hasn’t done that,” Teitelbaum said, alleging that instead better emerging products “died out,” unable to compete on the merits.

According to Vidushi Dyall, the director of legal analysis for the Chamber of Progress (a trade group representing Google), this lack of advertiser testimony or evidence of better products could be key flaws in the DOJ’s argument. When Brinkema asked what better products Google had stamped out, the DOJ came up blank, Dyall posted in a thread on X (formerly Twitter).

Further, Dyall wrote, Brinkema “noted that the DOJ’s case was notably absent of direct testimony from advertisers.” The judge apparently criticized the DOJ for focusing too much on how publishers were harmed while providing “no direct evidence about advertisers and how satisfied/dissatisfied they are with the system,” Dyall wrote.

DOJ wraps up ad tech trial: Google is “three times” a monopolist Read More »

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OpenAI blamed NYT for tech problem erasing evidence of copyright abuse


It’s not “lost,” just “inadvertently removed”

OpenAI denies deleting evidence, asks why NYT didn’t back up data.

OpenAI keeps deleting data that could allegedly prove the AI company violated copyright laws by training ChatGPT on authors’ works. Apparently largely unintentional, the sloppy practice is seemingly dragging out early court battles that could determine whether AI training is fair use.

Most recently, The New York Times accused OpenAI of unintentionally erasing programs and search results that the newspaper believed could be used as evidence of copyright abuse.

The NYT apparently spent more than 150 hours extracting training data, while following a model inspection protocol that OpenAI set up precisely to avoid conducting potentially damning searches of its own database. This process began in October, but by mid-November, the NYT discovered that some of the data gathered had been erased due to what OpenAI called a “glitch.”

Looking to update the court about potential delays in discovery, the NYT asked OpenAI to collaborate on a joint filing admitting the deletion occurred. But OpenAI declined, instead filing a separate response calling the newspaper’s accusation that evidence was deleted “exaggerated” and blaming the NYT for the technical problem that triggered the data deleting.

OpenAI denied deleting “any evidence,” instead admitting only that file-system information was “inadvertently removed” after the NYT requested a change that resulted in “self-inflicted wounds.” According to OpenAI, the tech problem emerged because NYT was hoping to speed up its searches and requested a change to the model inspection set-up that OpenAI warned “would yield no speed improvements and might even hinder performance.”

The AI company accused the NYT of negligence during discovery, “repeatedly running flawed code” while conducting searches of URLs and phrases from various newspaper articles and failing to back up their data. Allegedly the change that NYT requested “resulted in removing the folder structure and some file names on one hard drive,” which “was supposed to be used as a temporary cache for storing OpenAI data, but evidently was also used by Plaintiffs to save some of their search results (apparently without any backups).”

Once OpenAI figured out what happened, data was restored, OpenAI said. But the NYT alleged that the only data that OpenAI could recover did “not include the original folder structure and original file names” and therefore “is unreliable and cannot be used to determine where the News Plaintiffs’ copied articles were used to build Defendants’ models.”

In response, OpenAI suggested that the NYT could simply take a few days and re-run the searches, insisting, “contrary to Plaintiffs’ insinuations, there is no reason to think that the contents of any files were lost.” But the NYT does not seem happy about having to retread any part of model inspection, continually frustrated by OpenAI’s expectation that plaintiffs must come up with search terms when OpenAI understands its models best.

OpenAI claimed that it has consulted on search terms and been “forced to pour enormous resources” into supporting the NYT’s model inspection efforts while continuing to avoid saying how much it’s costing. Previously, the NYT accused OpenAI of seeking to profit off these searches, attempting to charge retail prices instead of being transparent about actual costs.

Now, OpenAI appears to be more willing to conduct searches on behalf of NYT that it previously sought to avoid. In its filing, OpenAI asked the court to order news plaintiffs to “collaborate with OpenAI to develop a plan for reasonable, targeted searches to be executed either by Plaintiffs or OpenAI.”

How that might proceed will be discussed at a hearing on December 3. OpenAI said it was committed to preventing future technical issues and was “committed to resolving these issues efficiently and equitably.”

It’s not the first time OpenAI deleted data

This isn’t the only time that OpenAI has been called out for deleting data in a copyright case.

In May, book authors, including Sarah Silverman and Paul Tremblay, told a US district court in California that OpenAI admitted to deleting the controversial AI training data sets at issue in that litigation. Additionally, OpenAI admitted that “witnesses knowledgeable about the creation of these datasets have apparently left the company,” authors’ court filing said. Unlike the NYT, book authors seem to suggest that OpenAI’s deleting appeared potentially suspicious.

“OpenAI’s delay campaign continues,” the authors’ filing said, alleging that “evidence of what was contained in these datasets, how they were used, the circumstances of their deletion and the reasons for” the deletion “are all highly relevant.”

The judge in that case, Robert Illman, wrote that OpenAI’s dispute with authors has so far required too much judicial intervention, noting that both sides “are not exactly proceeding through the discovery process with the degree of collegiality and cooperation that might be optimal.” Wired noted similarly the NYT case is “not exactly a lovefest.”

As these cases proceed, plaintiffs in both cases are struggling to decide on search terms that will surface the evidence they seek. While the NYT case is bogged down by OpenAI seemingly refusing to conduct any searches yet on behalf of publishers, the book author case is differently being dragged out by authors failing to provide search terms. Only four of the 15 authors suing have sent search terms, as their deadline for discovery approaches on January 27, 2025.

NYT judge rejects key part of fair use defense

OpenAI’s defense primarily hinges on courts agreeing that copying authors’ works to train AI is a transformative fair use that benefits the public, but the judge in the NYT case, Ona Wang, rejected a key part of that fair use defense late last week.

To win their fair use argument, OpenAI was trying to modify a fair use factor regarding “the effect of the use upon the potential market for or value of the copyrighted work” by invoking a common argument that the factor should be modified to include the “public benefits the copying will likely produce.”

Part of this defense tactic sought to prove that the NYT’s journalism benefits from generative AI technologies like ChatGPT, with OpenAI hoping to topple NYT’s claim that ChatGPT posed an existential threat to its business. To that end, OpenAI sought documents showing that the NYT uses AI tools, creates its own AI tools, and generally supports the use of AI in journalism outside the court battle.

On Friday, however, Wang denied OpenAI’s motion to compel this kind of evidence. Wang deemed it irrelevant to the case despite OpenAI’s claims that if AI tools “benefit” the NYT’s journalism, that “benefit” would be relevant to OpenAI’s fair use defense.

“But the Supreme Court specifically states that a discussion of ‘public benefits’ must relate to the benefits from the copying,” Wang wrote in a footnote, not “whether the copyright holder has admitted that other uses of its copyrights may or may not constitute fair use, or whether the copyright holder has entered into business relationships with other entities in the defendant’s industry.”

This likely stunts OpenAI’s fair use defense by cutting off an area of discovery that OpenAI previously fought hard to pursue. It essentially leaves OpenAI to argue that its copying of NYT content specifically serves a public good, not the act of AI training generally.

In February, Ars forecasted that the NYT might have the upper hand in this case because the NYT already showed that sometimes ChatGPT would reproduce word-for-word snippets of articles. That will likely make it harder to convince the court that training ChatGPT by copying NYT articles is a transformative fair use, as Google Books famously did when copying books to create a searchable database.

For OpenAI, the strategy seems to be to erect as strong a fair use case as possible to defend its most popular release. And if the court sides with OpenAI on that question, it won’t really matter how much evidence the NYT surfaces during model inspection. But if the use is not seen as transformative and then the NYT can prove the copying harms its business—without benefiting the public—OpenAI could risk losing this important case when the verdict comes in 2025. And that could have implications for book authors’ suit as well as other litigation, expected to drag into 2026.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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Supreme Court to review 5th Circuit ruling that upends Universal Service Fund

The US Supreme Court will hear appeals of a 5th Circuit ruling that called Universal Service fees on phone bills an illegal tax.

The US Court of Appeals for the 5th Circuit ruled in July that the Federal Communications Commission’s Universal Service Fund is unconstitutional and that the fees on phone bills are a “misbegotten tax.” The FCC and several non-government groups challenged the ruling, and the Supreme Court agreed to take up the case on Friday.

The Universal Service Fund is an $8 billion-a-year system that subsidizes the expansion of telecom networks with grants to Internet service providers and makes access more affordable through programs such as Lifeline discounts. The FCC program has faced several court challenges filed by Consumers’ Research, a nonprofit that fights “woke corporations,” and a mobile virtual network operator called Cause Based Commerce.

The conservative 5th Circuit’s ruling conflicted with decisions by the 5th and 11th Circuit appeals courts, which both rejected claims that the Universal Service Fund is unconstitutional. In a 9–7 ruling, the 5th Circuit objected to the FCC’s decision to let the Universal Service Fund be administered by a private organization called the Universal Service Administrative Company (USAC). The 5th Circuit said the FCC “subdelegated the taxing power to a private corporation,” and that “the combination of Congress’s sweeping delegation to FCC and FCC’s unauthorized subdelegation to USAC violates the Legislative Vesting Clause in Article I, § 1.”

FCC Chairwoman Jessica Rosenworcel said on Friday, “I am pleased that the Supreme Court will review the 5th Circuit’s misguided decision. For decades, there has been broad, bipartisan support for the Universal Service Fund and the FCC programs that help communications reach the most rural and least-connected households in the United States, as well as hospitals, schools, and libraries nationwide. I am hopeful that the Supreme Court will overturn the decision that put this vital system at risk.”

FCC challenge

The FCC and Department of Justice submitted a petition for Supreme Court review, saying the court should decide “whether the combination of Congress’s conferral of authority on the Commission and the Commission’s delegation of administrative responsibilities to the Administrator violates the nondelegation doctrine.”

The US petition said the USAC “performs administrative tasks on the FCC’s behalf” but “exercises no independent regulatory power.” The FCC calculates a contribution factor that determines what phone companies will have to pay, and the USAC “calculates each carrier’s contribution by applying the factor to that carrier’s ‘contribution base’ (generally, the carrier’s interstate and international telecommunications revenues),” the petition said.

Supreme Court to review 5th Circuit ruling that upends Universal Service Fund Read More »

$300-billion-pledge-at-cop29-climate-summit-a-“paltry-sum”

$300 billion pledge at COP29 climate summit a “paltry sum”

The world’s most important climate talks were pulled back from the brink of collapse after poorer countries reluctantly accepted a finance package of “at least” $300 billion a year from wealthy nations after bitter negotiations.

Fears about stretched budgets around the world and the election of Donald Trump as US president, who has described climate change as a “hoax,” drove the developing countries into acceptance of the slightly improved package after Sunday 2: 30 am local time in Baku.

The UN COP29 climate summit almost collapsed twice throughout Saturday evening and into the early hours of Sunday morning, as vulnerable nations walked out of negotiations and India objected stridently.

As the gavel came down, India’s lead negotiator, Neelesh Shah, leapt to his feet to ask to take the floor, and when he was ignored made a furious timeout gesture above his head and led his team on to the stage in protest.

Speaking from the floor, Indian delegation member Chandni Raina said the country was “extremely disappointed” by the abrupt passage of the agreement, adding: “This was stage-managed.”

“It is a paltry sum,” she said. “I am sorry to say that we cannot accept it. We seek a much higher ambition from developed countries.” The agreement was “nothing more than an optical illusion,” she added.

The broadside was followed by objections from Bolivia, Chile, and Nigeria, who were told by COP29 President Mukhtar Babayev that their statements were noted. Smaller nations, such as Malawi, Fiji, and the Maldives, joined in the grievance.

Simon Stiell, head of the UN climate change arm, said the new goal was an “insurance policy for humanity, amid worsening climate impacts hitting every country” but added that it was “no time for victory laps.”

European Union climate commissioner Wopke Hoekstra tried to assure disappointed smaller nations, saying he was “confident we will reach the $1.3 trillion” economists say developing countries need to shift to green energy and cope with climate change.

$300 billion pledge at COP29 climate summit a “paltry sum” Read More »

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Elizabeth Warren calls for crackdown on Internet “monopoly” you’ve never heard of

US Senator Elizabeth Warren of Massachusetts and Congressman Jerry Nadler of New York have called on government bodies to investigate what they allege is the “predatory pricing” of .com web addresses, the Internet’s prime real estate.

In a letter delivered today to the Department of Justice and the National Telecommunications and Information Administration, a branch of the Department of Commerce that advises the president, the two Democrats accuse VeriSign, the company that administers the .com top-level domain, of abusing its market dominance to overcharge customers.

In 2018, under the Donald Trump administration, the NTIA modified the terms on how much VeriSign could charge for .com domains. The company has since hiked prices by 30 percent, the letter claims, though its service remains identical and could allegedly be provided far more cheaply by others.

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“VeriSign is exploiting its monopoly power to charge millions of users excessive prices for registering a .com top-level domain,” the letter claims. “VeriSign hasn’t changed or improved its services; it has simply raised prices because it holds a government-ensured monopoly.”

“We intend to respond to senator Warren and representative Nadler’s letter, which repeats inaccuracies and misleading statements that have been aggressively promoted by a small, self-interested group of domain-name investors for years,” said Verisign spokesperson David McGuire in a statement to WIRED. “We look forward to correcting the record and working with policymakers toward real solutions that benefit internet users.”

In an August blog post entitled “Setting the Record Straight,” the company claimed that discourse around its management of .com had been “distorted by factual inaccuracies, a misunderstanding of core technical concepts, and misinterpretations regarding pricing, competition, and market dynamics in the domain name industry.”

In the same blog post, the company argues that it is not operating a monopoly because there are 1,200 generic top-level domains operated by other entities, including .org, .shop, .ai, and .uk.

Though far from a household name, VeriSign takes in about $1.5 billion in revenue each year for servicing its particular section of the Internet’s inscrutable plumbing.

In their letter, Warren and Nadler allege that VeriSign has exploited its exclusive right to charge for highly sought-after .com addresses to juice its revenues and drive up its share price—all at the expense of customers for whom there is no viable alternative.

Elizabeth Warren calls for crackdown on Internet “monopoly” you’ve never heard of Read More »

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Ted Cruz wants to overhaul $42B broadband program, nix low-cost requirement

Emboldened by Donald Trump’s election win, Republicans are seeking big changes to a $42.45 billion broadband deployment program. Their plan could delay distribution of government funding and remove or relax a requirement that ISPs accepting subsidies must offer low-cost Internet plans.

US Senator Ted Cruz (R-Texas) today issued a press release titled, “Sen. Cruz Warns Biden-Harris NTIA: Big Changes Ahead for Multi-Billion-Dollar Broadband Boondoggle.” Cruz, who will soon be chair of the Senate Commerce Committee, is angry about how the National Telecommunications and Information Administration has implemented the Broadband Equity, Access, and Deployment (BEAD) program that was created by Congress in November 2021.

The NTIA announced this week that it has approved the funding plans submitted by all 50 states, the District of Columbia, and five US territories, which are slated to receive federal money and dole it out to broadband providers for network expansions. Texas was the last state to gain approval in what the NTIA called “a major milestone on the road to connecting everyone in America to affordable, reliable high-speed Internet service.”

Republicans including Cruz and incoming Federal Communications Commission Chairman Brendan Carr have criticized the NTIA for not distributing the money faster. But Cruz’s promise of a revamp creates uncertainty about the distribution of funds. Cruz sent a letter yesterday to NTIA Administrator Alan Davidson in which he asked the agency to halt the program rollout until Trump takes over. Cruz also accused the NTIA of “technology bias” because the agency decided that fiber networks should be prioritized over other types of technology.

Cruz: Stop what you’re doing

“It is incumbent on you to bear these upcoming changes in mind during this transition term,” Cruz wrote. “I therefore urge the NTIA to pause unlawful, extraneous BEAD activities and avoid locking states into in [sic] any final actions until you provide a detailed, transparent response to my original inquiry and take immediate, measurable steps to address these issues.”

Ted Cruz wants to overhaul $42B broadband program, nix low-cost requirement Read More »

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DirecTV announces termination of deal to buy Dish satellite business

DirecTV CEO Bill Morrow indicated his company wasn’t willing to change the deal to satisfy Dish bondholders. “We have terminated the transaction because the proposed Exchange Terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” Morrow said.

AT&T still selling DirecTV stake

AT&T owns 70 percent of DirecTV but plans to sell its stake to private equity firm TPG, which owns the other 30 percent. DirecTV said this separate deal is still moving forward.

“The termination of the Dish acquisition does not affect TPG’s acquisition of the remaining 70 percent stake in DirecTV from AT&T, which is expected to close in the second half of 2025,” DirecTV said.

EchoStar was hoping to get rid of the declining satellite TV business and focus on its cellular ambitions. When the deal was announced on September 30, EchoStar said it would be able “to focus more clearly on enhancing and further deploying its nationwide 5G Open RAN wireless network.”

DirecTV and Dish tried to merge over two decades ago. The deal was scrapped after the US Department of Justice filed an antitrust lawsuit, saying the merger “would eliminate competition between the nation’s two most significant direct broadcast satellite services.”

AT&T bought DirecTV for $48.5 billion in 2015 but lost nearly 10 million subscribers in the ensuing years before completing a spinoff in 2021. The subscriber losses continued after the spinoff; DirecTV lost 1.8 million subscribers in 2023, bringing it down to an estimated 11.3 million.

EchoStar recently reported having 5.89 million Dish TV subscribers and 2.14 million Sling TV subscribers after the latest customer losses in the satellite division and customer gains for the Sling streaming service.

DirecTV announces termination of deal to buy Dish satellite business Read More »