Musk beats fraud charges; jury rejects investor claims in “funding secured” case

Musk lawyer claimed investors were “gambling and looking for lawsuits as insurance.”

Elon Musk wearing a suit and mask as he leaves a federal courthouse.

Enlarge / Elon Musk leaves court in San Francisco on Friday, February 3, 2023. (credit: Getty Images | Bloomberg)

Update at 6:15 pm ET: The jury sided with Elon Musk in a ruling issued about two hours after closing arguments on Friday.

"A jury rejected investor claims that Elon Musk violated federal securities law when he tweeted in 2018 about potentially taking Tesla private, handing a major win to the billionaire chief executive," The Wall Street Journal reported. "The nine-person jury said the investors who brought the class-action case failed to prove that Mr. Musk hurt them by tweeting about a possible deal."

Original story: The class-action trial over Elon Musk's false "funding secured" tweets ended today with closing arguments. A nine-member federal jury now must decide whether Musk and Tesla should have to pay damages to investors who lost money after Musk falsely claimed in August 2018 that he had secured funding to take Tesla private.

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Why would the Chinese government be flying a large stratospheric balloon?

It is possible that the balloon’s flight termination system failed.

Stratospheric weather balloons are released every day, such as this one from the Technical University of Munich in 2021. The Chinese balloon is likely much larger and more sophisticated.

Enlarge / Stratospheric weather balloons are released every day, such as this one from the Technical University of Munich in 2021. The Chinese balloon is likely much larger and more sophisticated. (credit: Tobias Hase/picture alliance via Getty Images)

On Thursday US officials confirmed that a high-altitude balloon, launched some days ago by the Chinese government, has been flying over the Northern United States. This has since become an international incident and led the US secretary of state, Antony Blinken, to delay a high-profile visit to China to meet with the nation's president, Xi Jinping.

The balloon's flight raises a number of questions—such as, just what the heck is it doing there? This story will address what is known, and not known, about the flight. The information below is based on public statements, other news reports, and an interview with a stratospheric balloon expert, Andrew Antonio, whose company, Urban Sky, is developing the world’s first reusable stratospheric balloons for remote sensing.

How big is the balloon?

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Microsoft alleges attacks on French magazine came from Iranian-backed group

Leaked personal data of Charlie Hebdo customers puts them at risk from extremists.

Microsoft alleges attacks on French magazine came from Iranian-backed group

Enlarge

Microsoft said on Friday that an Iranian nation-state group already sanctioned by the US government was behind an attack last month that targeted the satirical French magazine Charlie Hebdo and thousands of its readers.

The attack came to light on January 4, when a previously unknown group calling itself Holy Souls took to the Internet to claim it had obtained a Charlie Hebdo database that contained personal information for 230,000 of its customers. The post said the database was available for sale at the price of 20 BTC, or roughly $340,000 at the time. The group also released a sample of the data that included the full names, telephone numbers, and home and email addresses of people who had subscribed to, or purchased merchandise from, the publication. French media confirmed the veracity of the leaked data.

The release of the sample put the customers at risk of online targeting or physical violence by extremist groups, which have retaliated against Charlie Hebdo in recent years for its satirical treatment of matters pertaining to the Muslim religion and Islamic countries such as Iran. The retaliation included the 2015 shooting by two French Muslim terrorists and brothers at Charlie Hebdo offices that killed 12 and injured 11 others. To further gin up attention to the breached data, a flurry of fake personas—one falsely claiming to be a Charlie Hebdo editor—took to social media to discuss and publicize the leak.

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Microsoft alleges attacks on French magazine came from Iranian-backed group

Leaked personal data of Charlie Hebdo customers puts them at risk from extremists.

Microsoft alleges attacks on French magazine came from Iranian-backed group

Enlarge

Microsoft said on Friday that an Iranian nation-state group already sanctioned by the US government was behind an attack last month that targeted the satirical French magazine Charlie Hebdo and thousands of its readers.

The attack came to light on January 4, when a previously unknown group calling itself Holy Souls took to the Internet to claim it had obtained a Charlie Hebdo database that contained personal information for 230,000 of its customers. The post said the database was available for sale at the price of 20 BTC, or roughly $340,000 at the time. The group also released a sample of the data that included the full names, telephone numbers, and home and email addresses of people who had subscribed to, or purchased merchandise from, the publication. French media confirmed the veracity of the leaked data.

The release of the sample put the customers at risk of online targeting or physical violence by extremist groups, which have retaliated against Charlie Hebdo in recent years for its satirical treatment of matters pertaining to the Muslim religion and Islamic countries such as Iran. The retaliation included the 2015 shooting by two French Muslim terrorists and brothers at Charlie Hebdo offices that killed 12 and injured 11 others. To further gin up attention to the breached data, a flurry of fake personas—one falsely claiming to be a Charlie Hebdo editor—took to social media to discuss and publicize the leak.

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SEC gets $35 million settlement in Activision misconduct disclosure case

Government says company also violated whistleblower protection laws.

A magnifying glass inspects a surface covered in various corporate logos.

Enlarge / Taking a close look... (credit: Aurich Lawson / Ars Technica)

The Securities and Exchange Commission announced Friday that Activision Blizzard has agreed to pay $35 million to settle a probe into the company's handling of widespread workplace harassment and discrimination allegations.

In an administrative order, the SEC said that complaints of workplace misconduct at Activision Blizzard "were not collected or analyzed for disclosure purposes" since at least 2018. This left Activision Blizzard management "lacking sufficient information to understand the volume and substance of employee complaints of workplace misconduct," and therefore unable to warn investors of any potential business risks those complaints entailed.

The SEC also found that Activision asked departing employees to enter into "separation agreements" that illegally asked those employees "to notify Activision Blizzard of any requests from an administrative agency in connection with a report or complaint." That violates SEC rules designed to protect whistleblowers and prohibit employers from impeding employee complaints to government agencies.

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SEC gets $35 million settlement in Activision misconduct disclosure case

Government says company also violated whistleblower protection laws.

A magnifying glass inspects a surface covered in various corporate logos.

Enlarge / Taking a close look... (credit: Aurich Lawson / Ars Technica)

The Securities and Exchange Commission announced Friday that Activision Blizzard has agreed to pay $35 million to settle a probe into the company's handling of widespread workplace harassment and discrimination allegations.

In an administrative order, the SEC said that complaints of workplace misconduct at Activision Blizzard "were not collected or analyzed for disclosure purposes" since at least 2018. This left Activision Blizzard management "lacking sufficient information to understand the volume and substance of employee complaints of workplace misconduct," and therefore unable to warn investors of any potential business risks those complaints entailed.

The SEC also found that Activision asked departing employees to enter into "separation agreements" that illegally asked those employees "to notify Activision Blizzard of any requests from an administrative agency in connection with a report or complaint." That violates SEC rules designed to protect whistleblowers and prohibit employers from impeding employee complaints to government agencies.

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Treasury decides Model Y, Lyriq, ID.4, are SUVs after all, not sedans

Now it will use the consumer EPA standard and not CAFE to decide.

US Treasury Building. Washington DC

Enlarge (credit: Getty Images)

On Friday the US Treasury Department published an update to the way it implements the new clean vehicle tax credit. Introduced in the Inflation Reduction Act of 2022, the new rules restrict the number of EVs that qualify for a federal tax credit of up to $7,500 with income and price caps, as well as a requirement for final assembly in North America and, once the Treasury has written some more guidance, a requirement for domestic content and value in the EV battery.

When the new rules came out in January, there were some complaints that some five-seat crossovers—the Cadillac Lyriq, Tesla Model Y, and Volkswagen ID.4—were being counted as sedans, with a $55,000 MSRP cap; anyone buying any of those EVs with a purchase price of more than $55,000 was ineligible for the tax credit, although the seven-seat Model Y was classified as an SUV and therefore only subject to an $80,000 MSRP limit.

The reason for that was the Treasury using the US Environmental Protection Agency's Corporate Average Fuel Economy standard classification, which categorizes light trucks (including SUVs and minivans) differently from passenger cars. But there's a separate EPA fuel economy labeling standard, used in consumer-facing applications, that already counted the Lyriq, Model Y, and ID.4 as crossovers and not sedans.

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Treasury decides Model Y, Lyriq, ID.4, are SUVs after all, not sedans

Now it will use the consumer EPA standard and not CAFE to decide.

US Treasury Building. Washington DC

Enlarge (credit: Getty Images)

On Friday the US Treasury Department published an update to the way it implements the new clean vehicle tax credit. Introduced in the Inflation Reduction Act of 2022, the new rules restrict the number of EVs that qualify for a federal tax credit of up to $7,500 with income and price caps, as well as a requirement for final assembly in North America and, once the Treasury has written some more guidance, a requirement for domestic content and value in the EV battery.

When the new rules came out in January, there were some complaints that some five-seat crossovers—the Cadillac Lyriq, Tesla Model Y, and Volkswagen ID.4—were being counted as sedans, with a $55,000 MSRP cap; anyone buying any of those EVs with a purchase price of more than $55,000 was ineligible for the tax credit, although the seven-seat Model Y was classified as an SUV and therefore only subject to an $80,000 MSRP limit.

The reason for that was the Treasury using the US Environmental Protection Agency's Corporate Average Fuel Economy standard classification, which categorizes light trucks (including SUVs and minivans) differently from passenger cars. But there's a separate EPA fuel economy labeling standard, used in consumer-facing applications, that already counted the Lyriq, Model Y, and ID.4 as crossovers and not sedans.

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This stripped-down Windows 11 version runs on as little as 2GB of RAM (and doesn’t require TPM)

The official system requirements for Windows 11 include a computer with at least 4GB of RAM, 64GB of storage, and TPM 2.0 security. Folks have been finding ways around that last requirement for ages. But now you can easily avoid the first two as well …

The official system requirements for Windows 11 include a computer with at least 4GB of RAM, 64GB of storage, and TPM 2.0 security. Folks have been finding ways around that last requirement for ages. But now you can easily avoid the first two as well thanks to a stripped down version of Windows 11 called […]

The post This stripped-down Windows 11 version runs on as little as 2GB of RAM (and doesn’t require TPM) appeared first on Liliputing.

Yout.com Reignites RIAA Stream-Ripping Dispute at Court of Appeal

Popular stream-ripping site Yout.com has filed its appeal brief at the United States Court of Appeals for the Second Circuit. The service aims to reverse a district court ruling that dismissed Yout’s claims against the RIAA. Yout seeks a declaration that it doesn’t violate the DMCA and accuses the music industry group of defamation and business disparagement.

From: TF, for the latest news on copyright battles, piracy and more.

yout logoYouTube’s terms and service prohibit users from downloading audio and video, but there are numerous ‘stream-ripping’ sites available on the web that do just that.

These services are a thorn in the side of recording labels which consider them a major piracy threat. Some operators of these stream-ripping tools disagree, pointing at the variety of legal use cases instead.

At the end of 2020, the operator of one of the largest stream-rippers took matters into his own hands. Instead of hiding in the shadows like some competitors, Yout.com owner Johnathan Nader sued the RIAA, asking the federal court in Connecticut to declare his service non-infringing.

Last fall, the district court decided to dismiss the matter, handing a win to the RIAA. Judge Stefan Underhill ultimately concluded that Yout had failed to show that it doesn’t circumvent YouTube’s technological protection measures. This also rendered the associated defamation and business disparagement claims moot.

Yout.com Opens Appeal

Yout did not give up on the case. Site operator Johnathan Nader opted to appeal the case as he believes that YouTube rippers don’t violate the DMCA. After the RIAA’s request for legal fees was denied, Yout’s attorneys filed their opening brief yesterday at the Court of Appeals for the Second Circuit.

appeal yout

The appeal begins by pointing out that the case deals with novel issues regarding the DMCA’s anti-circumvention provision. One of the key questions is whether YouTube videos have effective technological measures that aim to prevent the public from accessing copyrighted works.

Arguing that there is no DRM or encryption protecting the videos, Yout says that’s not the case here.

“Neither YouTube nor the Defendants employ any form of Digital Rights Management or encryption, the inclusion of which would eliminate the ability of the Yout software to allow Yout’s users to make copies of the works.

“Indeed, not only is there a lack of protection against such copying, the process can be accomplished by anyone with a web browser without the need for Yout’s services,” the opening brief adds.

The RIAA nonetheless asked Google to remove Yout.com URLs from its search engine, which it did. As a result, Yout’s traffic numbers dropped and similar takedown notices allegedly resulted in a PayPal ban too.

“Defendants improperly sent anti-circumvention notices to Google with the intent that Google would ‘delist’ Yout’s software platform, rendering it undiscoverable for the majority of Internet users seeking such services, which is precisely what occurred to Yout’s detriment.”

The 92-page appeal brief lists a myriad of issues and open questions, which suggest that the case warrants an in-depth proceeding. The lower court’s dismissal was premature, Yout’s attorneys argue, adding that the service is analogous to a VCR and has significant non-infringing uses.

The brief illustrates, through detailed descriptions accompanied by screenshots, that anyone can download video and audio from YouTube. The process doesn’t require any software other than a regular web browser.

Downloading Taylor Swift

The example used the music video of Taylor Swift’s “The Lakes” but the same process applies to all YouTube videos. Through this process the audio and video files are separate, but there are free tools to combine the two.

“A visitor can use Yout to save a personal recording on their personal computer for later viewing when not connected to the Internet. In essence, Yout allows a user to ‘time shift’ content. Yout never saves or retains its visitors’ time-shifted content on its own servers,” the attorneys write.

taylor

The fact that Yout’s attorneys are using a video from one of the biggest artists in the world shows that potential copyright sensitivities are not being evaded.

Instead, Yout explains that its service simply automates the ‘ripping’ process, without storing any content on its own servers. While rightsholders are clearly against this, the attorneys argue that there is no “circumvention” of a technological measure that prevents either access or copying.

YouTube does employ a JavaScript-based ‘rolling cipher’ to make it harder to download content directly. However, Yout doesn’t believe that this is an effective technological measure. In addition, it’s not clear whether YouTube implemented this code to prevent copying.

Copyright Protection or Bot Prevention?

The RIAA sees the rolling cipher as a form of DRM but the music group didn’t put the code there. YouTube has not been heard in the case but the video platform may have added the code to deter bots from generating fake views to generate income.

“There is no evidence […] that YouTube intended this to be a ‘technological measure’ designed to limit access or copying at all. And, if the technology was not designed or intended to limit or accessing copying, the Defendants cannot claim retroactively that such a technological measure exists by happenstance.”

The appellant doesn’t deny that the rolling cipher was introduced to make it harder to download videos but only YouTube itself can provide the answer.

“YouTube is not a party here and the Defendants can no better speak to YouTube’s intentions than Yout can,” the attorneys write.

Free Access

All in all, it’s clear that YouTube’s videos are not behind a paywall. They are publicly available to anyone with access to a web browser and the Internet. In fact, allowing access to videos is the main purpose of the site.

“Indeed, it is clear from YouTube’s Terms of Service – which the District Court took judicial notice of – that, by providing their videos to Youtube – the Defendants explicitly agreed that Youtube’s visitors were permitted access to the works, the brief reads (emphasis original).

youtube terms

Making copies of audio and video is an entirely different thing, of course. However, Yout argues that since users have access to the files, without any meaningful technological protection measures, there’s no DMCA violation.

The full arguments are much more detailed than we can summarize here. This is just the start of the appeal and certainly not the last time these issues will be raised.

No date has been set for RIAA’s response, which will likely follow in a few months. In addition, there may be several amicus briefs from interested parties as well, given the gravity of the case.

A copy of Yout’s full opening brief, filed as the US Court of Appeals for the Second Circuit, is available here (pdf)

From: TF, for the latest news on copyright battles, piracy and more.