Microsoft Agrees to Pay Copyright Damages for Users of Its AI Products

Microsoft will pay legal damages on behalf of customers using its artificial intelligence (AI) products if they are sued for copyright infringement for the output generated by such systems, the company said. Microsoft will assume responsibility for the potential legal risks arising out of any claims raised by third parties so long as the company's customers use "the guardrails and content filters" built into its products, the company said. It offers functionality meant to reduce the likelihood that the AI returns infringing content.

Russian National Sentenced to Nine Years for Hacking U.S. Corporate Databases

A Russian national found guilty of hacking into corporate earnings databases to steal and trade on nonpublic information about companies like Tesla and Roku was sentenced to nine years in prison. The sentence for Vladislav Klyushin, handed down by a federal judge in Boston, adds to the U.S. government’s roster of Russian nationals in its possession as U.S. officials seek potential bargaining chips in a negotiated prisoner swap with Moscow for Americans, including the detained Wall Street Journal reporter Evan Gershkovich.

Europe to Investigate Microsoft, Apple for Digital Markets Act Coverage

Microsoft Corp. and Apple Inc. face fresh investigations from European Union regulators as part of the bloc’s landmark digital markets clampdown, which could end up forcing significant changes in how the firms do business in the region. The likes of Alphabet Inc.’s Google Search, Apple’s App Store and Amazon.com Inc.’s marketplace are among a list of 22 services that fall under the EU’s Digital Markets Act.

China Bans Workers at Government Agencies from Using iPhones

China ordered officials at central government agencies not to use Apple’s iPhones and other foreign-branded devices for work or bring them into the office, people familiar with the matter said. The directive is the latest step in Beijing’s campaign to cut reliance on foreign technology and enhance cybersecurity, and comes as China seeks to limit flows of sensitive information outside of China’s borders.

50 State Attorneys General Urge Congress to Study AI Links to Porn, Children

The top prosecutors in all 50 states are urging Congress to study how artificial intelligence can be used to exploit children through pornography, and come up with legislation to further guard against it. In a letter sent to Republican and Democratic leaders of the House and Senate, the attorneys general from across the country call on federal lawmakers to “establish an expert commission to study the means and methods of AI that can be used to exploit children specifically” and expand existing restrictions on child sexual abuse materials specifically to cover AI-generated images.

Meta to Discontinue 'Facebook News' Feature in UK, France, Germany

Meta Platforms said it will discontinue the "Facebook News" feature on its social media app in the UK, France and Germany, later this year. Users will still be able to view links to news articles and European news publishers will continue to have access to their Facebook accounts and pages after the change is implemented in December, Meta said.

Musk Threatens to Sue Anti-Defamation League for Advertising Slump

Elon Musk threatened to sue the Anti-Defamation League after blaming the nonprofit for an advertising revenue slump on X since he led a takeover of the platform formerly known as Twitter. Musk accused the ADL in a post on X of "trying to kill this platform by falsely accusing it & me of being anti-Semitic" after the nonprofit reported a spike in hate speech on the platform following the reinstatement of banned accounts there.

Australian Government Won't Require Adult Websites to Adopt Age Verification

The Australian government will not force adult websites to bring in age verification following concerns about privacy and the lack of maturity of the technology. The communications minister, Michelle Rowland, released the eSafety commissioner’s long-awaited roadmap for age verification for online pornographic material, which has been sitting with the government since March 2023.

U.S. Copyright Office Seeks Public Comments on Artificial Intelligence

The U.S. Copyright Office is opening a public comment period around AI and copyright issues beginning August 30th as the agency figures out how to approach the subject. As announced in the Federal Register, the agency wants to answer three main questions: how AI models should use copyrighted data in training; whether AI-generated material can be copyrighted even without a human involved; and how copyright liability would work with AI.

UK Lawmakers Want Government to Enforce Clearer, Tougher Rules for AI

A group of UK lawmakers are calling on the government to enforce clearer and tougher rules on artificial intelligence systems that are trained off the work of artists, writers and other content creators. In its haste to lure AI companies and development into the UK, the government proposed a new exemption to copyright laws that, if enacted, would reduce arts and cultural content to mere “inputs” for generative AI systems, the UK Culture, Media and Sports Committee — a panel of Parliament members charged with scrutinizing policies for the industry — said in a report.

Commerce Secretary Not Planning to Discuss TikTok During Visit to China

Commerce Secretary Gina Raimondo’s visit to China is putting a spotlight on the future of TikTok in the United States, where criticism of the app and its ties to Beijing reached a fever pitch this year. Despite the intense pressure on the popular short-form video app, which is owned by the Chinese technology company ByteDance, efforts to ban or regulate it in Washington have not yet borne fruit.

Schumer Plans September Forum with Tech Leaders to Discuss AI Issues

Senate Majority Leader Charles E. Schumer in September will convene top tech executives including Tesla CEO Elon Musk, Meta CEO Mark Zuckerberg and OpenAI CEO Sam Altman for a forum on AI policy as Congress races to create guardrails for the swiftly evolving technology. Schumer (D-N.Y.) earlier this summer teased plans for “AI Insight Forums,” which he says will serve as the bedrock for his efforts to craft bipartisan legislation to address the risks of artificial intelligence.

Meta Rejects Recommendation to Suspend Ex-Cambodian Prime Minister

Meta, the parent company of Facebook, rejected a recommendation from its Oversight Board to suspend the account of former Cambodian Prime Minister Hun Sen, according to a decision announced. Meta said it would not be suspending Hun Sen’s Facebook or Instagram page after determining that doing so would “not be consistent with our policies, including our protocol on restricting accounts of public figures during civil unrest.”

Chinese Influence Campaign Prompts Meta's 'Biggest Single Takedown'

A total of 7,704 Facebook accounts, 954 Facebook pages, 15 Facebook groups and 15 Instagram accounts tied to a Chinese influence campaign were removed by Meta, which owns Facebook, Instagram and WhatsApp. Hundreds of other accounts on TikTok, X, LiveJournal and Blogspot also participated in the campaign, which researchers named Spamouflage, for the frequent posting of spamlike messages, according to Meta’s report.

Ransomware Gang Said It Stole Social Security Numbers, Copies of Passports

The Rhysida ransomware gang claimed responsibility for a recent cyberattack on Prospect Medical Holdings, according to a dark web listing reviewed by Axios. The new ransomware gang alleges it stole more than 500,000 Social Security numbers and photocopies of employees' driver's licenses and passports, along with other legal and financial documents.

Canadian Regulator Moves Forward with Plan for Implementing Online News Act

The Canadian regulator responsible for implementing the country's online news law said it will start setting up a framework for negotiations between news organizations and Internet giants this autumn, with the aim of initiating mandatory bargaining by early 2025. Canada's Online News Act, part of a global trend to make tech firms like Alphabet's Google and Meta's Facebook pay for news, became law in June but has not yet come into effect.

Judge Dismisses Republican National Committee's Spam Suit Against Google

A federal judge on dismissed a Republican National Committee lawsuit alleging that Google’s email spam filters illegally suppressed their missives, dealing the campaign group a crushing blow in a lengthy battle that has riled conservative lawmakers in Washington. U.S. District Court Judge Daniel Calabretta wrote that while it was a “close case,” the RNC had not “sufficiently pled that Google acted in bad faith” by filtering their messages into spam filters in its popular Gmail service.

Data Breach Affecting 75,000 Tesla Employees Blamed on 'Insider Wrongdoing'

A Tesla data breach earlier this year affecting more than 75,000 people was caused by "insider wrongdoing," according to a notification on Maine's Attorney General website. The 75,735 people impacted were likely current or former Tesla employees. "While we have not identified evidence of misuse of the data in a manner that may cause harm to you, we are nonetheless providing you with this notice to ensure that you are aware of what happened and the measures we have taken," the company wrote in a letter to employees.