Inside Tech

For December 27, 2023

Here's a glance at today's top tech stories:

A court has temporarily paused a U.S. ban on Apple Watches.
The New York Times has sued Microsoft and OpenAI over copyright claims.
Japan is preparing antitrust legislation targeting Google and Apple.
Prime Video will show ads starting on Jan. 29.

A federal appeals court has paused a U.S. import ban on Apple's latest smartwatches as a patent dispute continues. Apple can now resume Apple Watch sales on its website and in its retail stores across the U.S.

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The International Trade Commission (ITC), a federal agency, recently found that Apple had infringed on tech company Masimo's patents for technology that reads blood oxygen levels.
The ITC ordered Apple to pause all sales of its Watch models - specifically, the Apple Watch Series 9 and Ultra 2 - containing the blood oxygen sensor technology.
Apple appealed after President Biden's administration chose not to veto the ban, allowing it to take effect. The company argued it would suffer from "irreparable harm" if the ban remained in effect.
On Wednesday, the U.S. Court of Appeals for the Federal Circuit agreed to temporarily suspended the ban while it evaluates Apple's request for a more extended pause during the appeals process.
The court granted the ITC until January 10 to reply to Apple's request.

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The Apple Watch is the leading smartwatch/fitness tracker brand in the U.S., according to Statista Consumer Insights data.
Of 3,000 smartwatch users surveyed between October 2022 and September 2023, 59% reported using an Apple Watch, versus 27% for Fitbit devices.

The New York Times has sued Microsoft and OpenAI for alleged copyright infringement related to their generative AI technologies. In the lawsuit filed Wednesday, The Times alleged that both tech companies used its content without permission to develop products, including OpenAI's ChatGPT and Microsoft's Copilot.

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The suit argues that these AI tools redirect traffic away from The New York Times' website, resulting in lost advertising, licensing, and subscription revenue for the company.
The firms behind generative AI tools often claim that they can use publicly available internet content, citing "fair use" provisions that allow limited use of copyrighted material without permission.
However, the Times argues in its lawsuit that the fair use argument is invalid because AI tools can reproduce large portions of its news articles word-for-word.
The newspaper is seeking "billions of dollars in statutory and actual damages" and a court order to stop OpenAI and Microsoft from using its content.
Representatives for OpenAI and Microsoft have not yet commented on the matter.

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Meanwhile, Apple is in talks with major news publishers about licensing their story archives to train its generative AI systems. Apple has approached news publishers including Condé Nast, NBC News, and IAC.

Japan is working on antitrust legislation that would force Google and Apple to allow third-party app stores and alternative payment options for apps. Nikkei reports that Japan's Fair Trade Commission plans to challenge Apple and Google's dominance in app stores, payments, search, browsers, and operating systems.

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Under the rule, Japan may require Apple and Google to allow users to install apps from sources other than their official app stores on iOS and Android.
The Fair Trade Commission is in the process of finalizing the legislation for possible parliamentary approval in 2024.
If approved, the commission could impose fines of up to 6% of revenue earned from the so-called "problematic activities."

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Japan's proposed regulation is similar to the European Union's Digital Markets Act (DMA), which will force Apple to allow app sideloading in the EU by March 2024.
Currently, both Google and Apple restrict third-party app providers from accepting payments through platforms other than their own.
iOS apps can't be sideloaded due to Apple's rules, while Google's Play Store is used by 97% of Android users.

Amazon will incorporate ads on its Prime Video streaming service starting on Jan. 29. In the U.S., Prime members will see the ads unless they pay an extra $3 per month on top of their existing $15 per month Prime subscription.

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Amazon informed its subscribers via email that Prime Video content will soon include "limited advertisements."
The commercials will begin airing in the U.S. on Jan. 29 and subsequently roll out to subscribers in the U.K., Germany, and Canada on Feb. 5.
The company claims it will still have "meaningfully fewer ads than linear TV and other streaming TV providers."

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Other streaming services like Disney+, Hulu, and Netflix have also introduced ad-supported options.
Apple's streaming service will soon be the only major streamer without an ad-supported tier.

Apple's $3,500 mixed-reality headset is expected to hit retail stores in late January or early February, according to analyst Ming-Chi Kuo. In a note this week, Kuo added that Apple plans to ship roughly 500,000 Vision Pro headsets this year, calling it "the most important product for Apple for 2024."

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The headset has now entered mass production. Apple will start mass shipments of the AR/VR device in the first week of January, Kuo said.
His report aligns with a forecast from Bloomberg's Mark Gurman, who predicted that the device would reach customers by February.
The Vision Pro, which resembles ski goggles, is powered by a standalone battery pack and uses two processors and two dozen sensors to display content in front of the user's eyes.
Apple has been encouraging third-party developers to create apps for the headset's operating system, known as visionOS.
An App Store for the headset will reportedly include all compatible iPhone and iPad apps.

OpenAI is in early talks to raise a new funding round that would value the ChatGPT maker at $100B or more, according to Bloomberg. If successful, the round would cement OpenAI as one of the world's most valuable startups.

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According to sources, OpenAI is planning the new funding round for the upcoming year at a valuation exceeding $100B.
The round's terms, timing, and valuation could still change, the sources said.
It would immediately follow OpenAI's tender offer in January, led by Josh Kushner's Thrive Capital. OpenAI is targeting a valuation of $86B, more than triple its previous valuation of $28B.
The AI startup will not issue any new shares, allowing existing employees to cash in on their holdings.

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Meanwhile, OpenAI is also in talks with Abu Dhabi-based G42 to invest in a new AI chip venture, Project Tigris.
OpenAI has discussed raising $8B to $10B from G42. It's unclear if the chip venture and broader company funding are linked, according to Bloomberg.

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Beth Duckett

AI and technology writer

Beth is a contributing editor and writer of Inside's AI and Tech newsletters. She has written for notable publications like USA Today and the Arizona Business Gazette. During her time as a public policy reporter at The Arizona Republic, she received recognition with a Pulitzer Prize nomination and a First Amendment Award for her collaborative reporting on pension cost increases. Beth also authored a book on the solar photovoltaic industry in 2016. You can reach her at Beth.Duckett@yahoo.com.