Apple and Koss settle dispute over wireless headphone patents

Apple and Koss have ended their feud over wireless headphone patents shortly before trial. As Reutersnotes, the two told a Waco, Texas-based federal court on Saturday that they had reached a settlement over Koss’ claims Apple had infringed on patents for wireless audio technology. The terms of the settlement haven’t been disclosed, but the two firms said they made peace on “all matters in controversy.” The trial was supposed to have started today.

Koss sued Apple, Bose, JLab, Plantronics and Skullcandy in 2020 over allegations wireless earbuds and headphones like AirPods were copying technology from the Striva line of WiFi audio devices. In filing the lawsuit, Koss argued that rivals were “catching up” to its early work and needed to pay compensation. Apple countersued, arguing that Koss’ patents were invalid.

Lawsuits against Bose, Skullcandy and others are still pending. While it’s unclear if those cases will move forward in light of this settlement, there’s little doubt that Apple and Koss were eager to avoid a courtroom fight.

We’ve asked Apple and Koss for comment and will update if we hear back.

Uber settles with FTC for failing to disclose breach that exposed 57 million users’ data

Uber has officially accepted responsibility for hiding a 2016 data breach that exposed the data of 57 million passengers and drivers. On Friday, the company entered into a non-prosecution agreement with the US Department of Justice, reports Reuters. As…

T-Mobile will pay $350 million to settle lawsuits over massive data breach

If you were a T-Mobile customer in August 2021, you may get a few dollars from the carrier in the near future. It has agreed to settle a consolidated class action lawsuit filed against the company over a data breach that exposed the personal information of 76.6 million “current, former and prospective customers.” Back when T-Mobile’s CEO, Mike Sievert, admitted and apologized for the breach, the carrier said the individual who hacked its network used “specialized” tools and knowledge of its infrastructure in order to gain access to its testing environment. That individual then stole customer data from the network and sold them on hacker forums.

The type of information that the bad actor sold varies per person, but it could include the name, birth date and social security number for each individual. T-Mobile got in touch with people affected by the data leak shortly after it came to light and offered them two free years of access to McAfee’s ID Theft Protection Service. Now, they’re also getting monetary compensation, though it will likely be a few dollars at most. While the $350 million settlement may sound substantial, a huge chunk of that amount will go towards paying off legal fees. The rest will be divided among tens of millions of affected customers. According to the SEC filing spotted by GeekWire, the company will also spend $150 million on data security technologies throughout this year and the next.

The settlement still has to be approved by the court. But if it does, it will “resolve substantially all of the claims brought by the company’s current, former and prospective customers who were impacted by the 2021 cyberattack.” You can read the full proposed settlement here.

Lawsuit accuses Chicago authorities of misusing gunshot detection system in a murder case

A 65-year-old man named Michael Williams spent almost a year in jail over the shooting of a man inside his car before prosecutors asked a judge to dismiss his case due to insufficient evidence. Now, the MacArthur Justice Center has sued the city of Chicago for using ShotSpotter, which it calls an “unreliable” gunshot detection technology, as critical evidence in charging him with first-degree murder. The human rights advocate group out of Northwestern University accuses the city’s cops of relying on the technology and failing to pursue other leads in the investigation.

Williams was arrested in 2021 over the death of Safarian Herring, a young man from the neighborhood, who asked him for a ride in the middle of unrest over police brutality in May that year. According to an AP report from March, the key piece of evidence used for his arrest was a clip of noiseless security video showing a car driving through an intersection. That’s coupled with a loud bang picked up by ShotSpotter’s network of surveillance microphones. ShotSpotter uses a large network of audio sensors distributed through a specific area to pick up the sound of gunfire. The sensors work with each other to triangulate the shot’s location, so perpetrators can’t hide behind walls or other structures to mask their crime.

However, a study conducted by the MacArthur Justice Center in 2021 found that 89 percent of the alerts the system sends law enforcement turn up no evidence of any gun-related crime. “In less than two years, there were more than 40,000 dead-end ShotSpotter deployments,” the report said. The group also pointed out that ShotSpotter alerts “should only be used for initial investigative purposes.” San Francisco’s surveillance technology policy (PDF), for instance, states that its police department must only use ShotSpotter information to find shell casing evidence on the scene and to further analyze the incident.

The lawsuit accuses Chicago’s police department of failing to pursue other leads in investigating Williams, including reports that the victim was shot earlier at a bus stop. Authorities never established what’s supposed to be Williams’ motive, didn’t find a firearm or any kind of physical evidence that proves that Williams shot Herring, the group said.

On its website, ShotSpotter posted a response to “false claims” about its technology, calling reports about its inaccuracy “absolutely false.” The company claims its technology has a 97 percent accuracy rate, including a 0.5 percent false positive rate, and says those numbers were independently confirmed by Edgeworth Analytics, a data science firm in Washington, D.C. It also answers the part of the lawsuit that criticizes Chicago’s decision to place most of it sensors in predominantly Black and Latino neighborhoods, which could lead to potentially dangerous clashes with the police. ShotSpotter said it’s a false narrative that its coverage areas are biased and racially discriminatory and that it works with clients to determine coverage areas based on historical gunfire and homicide data .

As AP reports, the lawsuit is seeking class-action status for any Chicago resident who was stopped because of a ShotSpotter alert. The MacArthur Justice Center is also seeking damages from the city for the mental anguish and loss of income Williams had experienced throughout the whole ordeal, as well as for the legal fees he incurred. Further, the group is asking the court to ban the technology’s use in the city altogether.

US files its first criminal charges over insider trading of cryptocurrency

American authorities are continuing to crack down against insider trading of digital assets. The New York Timesreports that federal prosecutors in New York City have charged three people with wire fraud relating to an insider trading scheme for cryptocurrency, including former Coinbase exchange employee Ishan Wahi. This is the first time officials have levelled charges relating to insider trading of digital currency, according to Southern District of New York attorney Damian Williams.

As with a companion civil case from the Securities and Exchange Commission, prosecutors allege Wahi shared confidential information about future asset listings with his brother Nikhil Wahi and his brother’s friend Sammer Ramani. The data, shared between “at least” June 2021 and April 2022, helped Nikhil and his friend buy assets before the listing boosted their value. The two would then sell their assets for a profit. The purchases of 25 or more assets netted a profit of more than $1.1 million, according to the SEC.

Coinbase started an internal investigation in April in response to a Twitter post about unusual trading activity. Ishan Wahi booked a flight to India right before Coinbase was set to interview him, but he and his brother were arrested in Seattle this morning. Ramani is still at large and believed to be in India, the SEC said.

Wahi’s lawyers maintained their client’s innocence, and said he would “vigorously” defend against the charges. Ramani and the attorney for Wahi’s brother haven’t commented on the charges. Coinbase said it had turned over information to the Justice Department and had fired Wahi as part of a “zero tolerance” policy for this behavior.

This is far from the largest crypto case. Lending firm BlockFi recently paid $100 million to settle securities violations, while Telegram had to return $1.2 billion to investors for its own violations on top of paying $18.5 million. However, the charges are intended more to send a warning. The government wants to make clear that fraud is illegal whether it’s “on the blockchain or on Wall Street,” as Williams explained to The Times. This is as much about discouraging would-be crooks as it is punishment for the defenders.

Judge grants Twitter expedited trial against Elon Musk

Twitter has scored a victory in its lawsuit against Elon Musk over his attempted exit from a $44 billion takeover deal. In an initial hearing, Delaware Court of Chancery chancellor Kathaleen McCormick has granted Twitter’s request for an expedited, five-day trial beginning in October. The company originally sought a four-day trial in September as part of its effort to make Musk “honor his obligations.”

Musk’s lawyers asked the court to delay the trial to February 2023. They claimed Twitter was in a sudden rush to complete a trial and force the acquisition follow two months of alleged “foot-dragging and obfuscation” over requested data relating to bots and other fake accounts. Musk accused Twitter of underreporting the volume of bogus accounts (and failing to provide enough information) in a bid to clinch the deal. As part of the call for a delay, Musk’s lawyers also claimed they needed more time to search Twitter’s raw “firehose” data.

While Twitter didn’t get exactly what it wanted, the ruling is a clear victory for the social network. It won’t have to wait long to obtain a decision, and may force Musk to rely primarily on the claims he made when he announced plans to back out of the purchase. There’s a chance Musk may have to continue with the buyout before the year is over, no matter how much he might regret making the offer.

Apple Pay illegally profited by walling off contactless payments, lawsuit alleges

A proposed class-action lawsuit filed on behalf of payment card issuers accuses Apple of illegally profiting from Apple Pay and breaking antitrust laws. Iowa’s Affinity Credit Union is listed as the plaintiff in the complaint, filed today in the US District Court for the Northern District of California. The lawsuit alleges that by restricting contactless payments on iOS devices to Apple Pay and charging payment card issuers fees to use the mobile wallet, the iPhone maker is engaging in anti-competitive behavior.

While Android users have options for contactless mobile wallets, iOS users can only use tap-to-pay technology through Apple Pay. In other words, while iPhone users can download the Google Pay app, they can’t use it to make contactless payments in stores. Android doesn’t charge payment card issuers for use of any supported mobile wallet. But it’s a different story for Apple Pay, which charges card issuers a 0.15% fee on credit transactions and half of a cent on debit transactions. These fees have brought in up to $1 billion annually for Apple, the lawsuit alleges.

“In the Android ecosystem, where multiple digital wallets compete, there are no issuer fees whatsoever, ” said the complaint. “The upshot is that card issuers pay a reported $1 billion annually in fees on Apple Pay and $0 for accessing functionally identical Android wallets. If Apple faced competition, it could not sustain these substantial fees.”

The suit alleges that by restricting iOS users to only Apple Pay for contactless payments, Apple is blocking competing mobile wallets from the market. Payment card issuers are essentially forced to pay Apple’s transaction fees if they want to offer their service to iPhone users.

Apple is facing a similar challenge over its payment system in the EU, where an antitrust commission in May said that the tech giant is illegally blocking third-party developers from enabling contactless payments. Apple has denied the EU’s allegations, arguing that giving third-party developers access would be a security risk. This is an argument that Apple has used before as a reason why it doesn’t open up its platform, such as in the case of third-party app stores.

Engadget has reached out to Apple for comment on the lawsuit and will update if we hear back.

Elon Musk asks court to delay Twitter trial start to February 2023

Elon Musk’s lawyers allege Twitter is pushing for an unreasonably fast trial over allegations the Tesla and SpaceX CEO improperly ended his $44 billion bid to buy the social media platform, reports Bloomberg. “Twitter’s sudden request for warp speed af…

Twitter and Elon Musk have their first court hearing on July 19th

Twitter won’t have to wait long to take Elon Musk to court, in a limited fashion. Reutersreports that Delaware Court of Chancery chancellor Kathaleen McCormick has scheduled the first hearing for Twitter’s lawsuits on July 19th at 11AM Eastern. The 90-minute session will have a judge hear arguments relating to Twitter’s request for a September trial.

The social network sued Musk earlier this week, days after the Tesla chief filed to kill the $44 billion deal. The executive claimed that Twitter falsely represented the volume of bots and other fake accounts on its platform, withholding details to make sure the acquisition goes through. Twitter has denied the allegations. It maintained that it shared the full data pipeline, and that Musk broke the terms of the agreement by backing out with “unreasonable requests” and insults to the company.

There’s still no word of a countersuit from Musk as of this writing. Even if it doesn’t materialize, though, the outcome of Twitter’s lawsuit will have far-reaching implications. If the court sides with Twitter, it could force Musk to either complete the purchase or pay the breakup costs associated with the agreement.