Arm Holdings is cancelling a key architectural license agreement with Qualcomm, escalating the legal dispute between the two companies. According to a Bloomberg News report, Arm has given Qualcomm a 60-day notice to terminate the agreement, which allows Qualcomm to design chips using Arm’s intellectual property. The two tech giants have been embroiled in a legal battle since 2022 when Arm sued Qualcomm for not renegotiating the license after its acquisition of chip startup Nuvia.
Qualcomm criticised Arm’s decision, calling it a ‘desperate ploy’ to disrupt the upcoming trial, which is set to begin in December. Qualcomm claims its rights under the agreement will be upheld and accuses Arm of anti-competitive behaviour. The dispute could impact shipments of laptops using Qualcomm’s chips, including Microsoft’s Copilot+ devices, and potentially reverse Qualcomm’s acquisition of Nuvia.
Despite the tensions, some analysts expect the companies to reach a settlement before the trial. A legal victory for Arm could have significant consequences for Qualcomm and its partners.
Australia’s corporate regulator has charged Grant Colthup, the former CEO of Mine Digital, with fraud involving a A$2.2 million transaction. The Australian Securities and Investments Commission (ASIC) claims that a customer paid this amount to ACCE Australia, which operated the crypto exchange, to purchase Bitcoin in July 2022. However, the customer allegedly received no cryptocurrency in return.
ASIC alleges that Colthup used the funds to cover ACCE’s liabilities or acquire cryptocurrency for others. Mine Digital, active from 2019 to 2022, shut down following financial issues. Investigations revealed that the company had only A$20,000 in assets, far below the A$16 million owed to creditors.
The charges come amid ongoing scrutiny of the collapsed exchange and growing concerns over the accountability of cryptocurrency platforms. Colthup’s case sheds light on the challenges of regulating the digital asset sector and ensuring transparency.
The Magistrates Court in Ipswich will hear the case next on 16 December 2024. Legal proceedings are expected to explore Colthup’s role and whether funds were misappropriated to benefit others.
Dow Jones and the New York Post have taken legal action against AI startup Perplexity AI, accusing the company of unlawfully copying their copyrighted content. The lawsuit is part of a wider dispute between publishers and tech companies over the use of news articles and other content without permission to train and operate AI systems.
Perplexity AI, which aims to disrupt the search engine market, assembles information from websites it deems authoritative and presents AI-generated summaries. Publishers claim that Perplexity bypasses their websites, depriving them of advertising and subscription revenue, and undermines the work of journalists.
The lawsuit, filed in the Southern District of New York, argues that Perplexity’s AI generates answers based on a vast database of news articles, often copying content verbatim. News Corp, owner of Dow Jones and the New York Post, is asking the court to block Perplexity’s use of its articles and to destroy any databases containing copyrighted material.
Perplexity has also faced allegations from other media organisations, including Forbes and Wired. While the company has introduced a revenue-sharing programme with some publishers, many news outlets continue to resist, seeking stronger legal protections for their content.
Alcon Entertainment, the producer behind Blade Runner 2049, has filed a lawsuit against Tesla and Warner Bros, accusing them of misusing AI-generated images that resemble scenes from the movie to promote Tesla’s new autonomous cybercab. Filed in California, the lawsuit alleges violations of US copyright law and claims Tesla falsely implied a partnership with Alcon through the use of the imagery.
Alcon stated that it had rejected Warner Bros’ request to use official Blade Runner images for Tesla’s cybercab event on October 10. Despite this, Tesla allegedly proceeded with AI-created visuals that mirrored the film’s style. Alcon is concerned this could confuse its brand partners, especially ahead of its upcoming Blade Runner 2099 series for Amazon Prime.
Though no specific damages were mentioned, Alcon emphasized that it has invested hundreds of millions in the Blade Runner brand and argued that Tesla’s actions had caused substantial financial harm.
A California judge has granted Google’s request to delay a ruling that required overhauling its Play Store by 1 November. The pause allows more time for an appeals court to consider Google’s challenge to the order, which aimed to give users more choice in downloading apps.
The ruling came as part of an antitrust lawsuit from Epic Games, the creator of Fortnite. Google warned that implementing the changes quickly would introduce security risks across the Android ecosystem. The company’s request for a longer pause during the full appeals process was denied.
Epic criticised Google’s argument as fearmongering, stating the court had dismissed the appeal as meritless. The initial order required Google to permit rival app stores within the Play Store and enable third-party payment systems. The ruling also barred Google from incentivising device makers to preinstall its store.
Google has already challenged the antitrust findings and maintains that Play competes directly with Apple’s App Store. The company argued it should not be labelled a monopolist and warned that complying with the injunction would unfairly force it to collaborate with rivals.
Meta Platforms is facing a lawsuit in Massachusetts for allegedly designing Instagram features to exploit teenagers’ vulnerabilities, causing addiction and harming their mental health. A Suffolk County judge rejected Meta’s attempt to dismiss the case, asserting that claims under state consumer protection law remain valid.
The company argued for immunity under Section 230 of the Communications Decency Act, which shields internet firms from liability for user-generated content. However, the judge ruled that this protection does not extend to Meta’s own business conduct or misleading statements about Instagram’s safety measures.
Massachusetts Attorney General Andrea Joy Campbell emphasised that the ruling allows the state to push for accountability and meaningful changes to safeguard young users. Meta expressed disagreement, maintaining that its efforts demonstrate a commitment to supporting young people.
The lawsuit highlights internal data suggesting Instagram’s addictive design, driven by features like push notifications and endless scrolling. It also claims Meta executives, including CEO Mark Zuckerberg, dismissed concerns raised by research indicating the need for changes to improve teenage users’ well-being.
US federal prosecutors are ramping up efforts to tackle the use of AI tools in creating child sexual abuse images, as they fear the technology could lead to a rise in illegal content. The Justice Department has already pursued two cases this year against individuals accused of using generative AI to produce explicit images of minors. James Silver, chief of the Department’s Computer Crime and Intellectual Property Section, anticipates more cases, cautioning against the normalisation of AI-generated abuse material.
Child safety advocates and prosecutors worry that AI systems can alter ordinary photos of children to produce abusive content, making it more challenging to identify and protect actual victims. The National Center for Missing and Exploited Children reports approximately 450 cases each month involving AI-generated abuse. While this number is small compared to the millions of online child exploitation reports received, it represents a concerning trend in the misuse of technology.
The legal framework is still evolving regarding cases involving AI-generated abuse, particularly when identifiable children are not depicted. Prosecutors are resorting to obscenity charges when traditional child pornography laws do not apply. This is evident in the case of Steven Anderegg, accused of using Stable Diffusion to create explicit images. Similarly, US Army soldier Seth Herrera faces child pornography charges for allegedly using AI chatbots to alter innocent photos into abusive content. Both defendants have pleaded not guilty.
Nonprofit groups like Thorn and All Tech Is Human are working with major tech companies, including Google, Amazon, Meta, OpenAI, and Stability AI, to prevent AI models from generating abusive content and to monitor their platforms. Thorn’s vice president, Rebecca Portnoff, emphasised that the issue is not just a future risk but a current problem, urging action during this critical period to prevent its escalation.
Republican presidential candidate Donald Trump revealed that he spoke with Apple CEO Tim Cook about the financial penalties imposed on the tech giant by the European Union. Trump claimed that Cook informed him about a recent $15 billion fine from the EU, along with an additional $2 billion penalty, although Apple has not confirmed the details of the call.
The EU is investigating major tech companies to limit their influence and promote fair competition for smaller businesses. Recently, Apple encountered major challenges, including a court ruling that required the company to pay about $14 billion in back taxes to Ireland. Additionally, Apple was hit with a $2 billion antitrust fine for allegedly restricting competition in the music streaming sector via its App Store.
During the podcast with Patrick Bet-David, Trump expressed his commitment to protect American companies from what he described as unfair treatment. He stated, ‘Tim, I got to get elected first. But I’m not going to let them take advantage of our companies.’ Trump and Democrat Kamala Harris are currently in a tight race for the 5 November presidential election.
X (formerly Twitter), has updated its terms of service, requiring users to file any lawsuits against the company in Texas’ Northern District in the US, a court known for conservative rulings. This change, effective November 15, appears to align with Musk’s increasing support for conservative causes, including backing Donald Trump’s 2024 presidential campaign. Critics argue the move is an attempt to ‘judge-shop,’ as the Northern District has become a popular destination for right-leaning litigants seeking to block parts of President Biden’s agenda.
X’s headquarters are in Bastrop, Texas, located in the Western District, but the company has chosen the Northern District for legal disputes. This district already hosts two lawsuits filed by X, including one against Media Matters after the watchdog group published a report linking ads on the platform to posts promoting Nazism. The move to steer legal cases to this specific court highlights the company’s efforts to benefit from a legal environment more favorable to conservative causes.
A 25-year-old man from Alabama has been arrested for hacking the US Securities and Exchange Commission’s X account in a scheme to manipulate Bitcoin prices. The incident, which occurred in January, involved a false post on the SEC’s account claiming the approval of Bitcoin exchange-traded funds, briefly causing Bitcoin’s price to rise by $1,000. The SEC swiftly deleted the post and denied the message, but the hack sparked criticism over security vulnerabilities on X.
The suspect, Eric Council Jr., used a SIM-swapping technique to access the account and later received Bitcoin as payment for his involvement in the hack. Following the incident, he reportedly searched online for information on how to avoid FBI detection. Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud.
The SEC expressed its gratitude to law enforcement for their prompt action in the case, while the incident reignited concerns over the security of social media platforms, particularly since X’s acquisition by Elon Musk.
