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Meta Accused of Using Pirated Books for AI Training with Zuckerberg’s Approval

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Meta Platforms (META.O) is facing serious allegations from a group of authors, including Ta-Nehisi Coates and comedian Sarah Silverman, who claim that the company used pirated versions of copyrighted books to train its artificial intelligence systems, including the Llama language model. The authors argue that this use was approved by Meta’s CEO, Mark Zuckerberg, according to newly disclosed court documents.

The authors, who filed a lawsuit against Meta in 2023 for copyright infringement, allege that internal Meta documents, produced during the discovery phase of the case, show the company was fully aware that the books it used were pirated. Meta has yet to comment on the allegations.

The lawsuit focuses on Meta’s use of the AI training dataset LibGen, a repository of pirated books that the authors claim was distributed through peer-to-peer torrents. The new evidence presented by the authors suggests that Meta executives, including Zuckerberg, were aware that LibGen’s contents were pirated but chose to proceed with using the dataset. Internal Meta communications reportedly confirm this.

The authors are seeking to update their complaint, asserting that the new evidence strengthens their case for copyright infringement. The suit also brings renewed attention to the ongoing legal battles over the use of copyrighted materials to train AI systems, with defendants arguing that such uses may fall under “fair use” doctrine.

In a previous ruling, U.S. District Judge Vince Chhabria dismissed claims related to copyright infringement and the alleged unlawful stripping of copyright management information (CMI) by Meta’s chatbots. However, during a hearing on Thursday, Chhabria indicated that he would permit the authors to file an amended complaint, despite his doubts about the validity of the fraud and CMI claims.

 

US Supports Musk’s Argument in Lawsuit Against OpenAI

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U.S. antitrust regulators have weighed in on Elon Musk’s lawsuit seeking to block OpenAI’s transition into a public company, reinforcing his claims that OpenAI and Microsoft engaged in anticompetitive practices. Although the Federal Trade Commission (FTC) and the Department of Justice (DOJ) did not express a direct opinion on the lawsuit, they provided legal analysis that backs Musk’s argument ahead of a crucial hearing in Oakland, California.

Musk, who co-founded OpenAI and owns AI startup xAI, alleges that OpenAI violated antitrust laws by requiring investors to avoid funding rival artificial intelligence companies and by sharing board members with Microsoft, which is also named in the lawsuit. The lawsuit asserts that these actions harmed competition in the AI market.

In response, OpenAI dismissed the lawsuit, claiming that Musk’s allegations lack evidence and are merely harassment. The company also argued that the claims regarding board member affiliations were irrelevant, as two former Microsoft-affiliated board members—Reid Hoffman and Deannah Templeton—are no longer associated with OpenAI.

However, the FTC and DOJ emphasized that even former board members could still possess sensitive competitive information, which could have implications for antitrust law violations. The authorities also stated that a group investor boycott, as Musk alleges, could be illegal even if the organizer was not a direct investor, reinforcing Musk’s claims of anticompetitive conduct.

The FTC is currently investigating partnerships in AI, including the collaboration between OpenAI and Microsoft, to determine if there have been violations of antitrust or consumer protection laws.

Texas Sues Allstate for Collecting Driver Data Without Consent

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The state of Texas has filed a lawsuit against Allstate, accusing the insurer of illegally tracking drivers through their cell phones without their consent. Texas Attorney General Ken Paxton claims that Allstate created “the world’s largest driving behavior database” by paying mobile app developers millions of dollars to secretly incorporate tracking software into apps. The lawsuit, filed in a Texas state court near Houston, alleges that Allstate used the data to justify raising car insurance premiums, denying coverage, and selling the data to other insurers.

The tracking software, developed by Allstate’s data analytics unit Arity, was integrated into widely used apps such as Fuel Rewards, GasBuddy, Life360, and the Allstate-owned Routely starting in 2015. The complaint further asserts that Allstate has also purchased location data directly from vehicle manufacturers, including Toyota, Lexus, Mazda, and Stellantis, to track the movements of policyholders more accurately.

The lawsuit alleges that Allstate’s actions violated Texas laws on data privacy, data brokers, and unfair and deceptive practices by insurers. Texas is seeking restitution, civil fines up to $10,000 per violation, and the destruction of illegally collected data. The state also contends that Allstate profited from this practice by increasing premiums and denying coverage based on the collected data.

This lawsuit follows a similar case filed last August against General Motors, accusing the company of collecting driver data from over 14 million vehicles and selling it to insurers and other businesses without drivers’ consent.