The Internet

ISPs Tell Supreme Court They Don't Want To Disconnect Users Accused of Piracy (arstechnica.com) 72

Joe_Dragon shares a report: Four more large Internet service providers told the US Supreme Court this week that ISPs shouldn't be forced to aggressively police copyright infringement on broadband networks. While the ISPs worry about financial liability from lawsuits filed by major record labels and other copyright holders, they also argue that mass terminations of Internet users accused of piracy "would harm innocent people by depriving households, schools, hospitals, and businesses of Internet access."

The legal question presented by the case "is exceptionally important to the future of the Internet," they wrote in a brief filed with the Supreme Court on Monday. The amici curiae brief was filed by Altice USA (operator of the Optimum brand), Frontier Communications, Lumen (aka CenturyLink), and Verizon. The brief supports cable firm Cox Communications' attempt to overturn its loss in a copyright infringement lawsuit brought by Sony. Cox petitioned the Supreme Court to take up the case last month.

Sony and other music copyright holders sued Cox in 2018, claiming it didn't adequately fight piracy on its network and failed to terminate repeat infringers. A US District Court jury in the Eastern District of Virginia ruled in December 2019 that Cox must pay $1 billion in damages to the major record labels. Cox won a partial victory when the US Court of Appeals for the 4th Circuit vacated the $1 billion verdict, finding that Cox wasn't guilty of vicarious infringement because it did not profit directly from infringement committed by users of its cable broadband network. But the appeals court affirmed the jury's finding of willful contributory infringement and ordered a new damages trial.

Social Networks

Instagram Makes All Teen Accounts Private (npr.org) 46

Instagram has introduced new safety features that make teenage accounts private by default, enhance parental supervision, and set messaging restrictions to protect young users, requiring parental approval for changes. NPR reports: Meta said users under 16 will now need a parent's approval to change the restricted settings, dubbed "Teen Accounts," which filter out offensive words and limit who can contact them. "It's addressing the same three concerns we're hearing from parents around unwanted contact, inappropriate contact and time spent," said Naomi Gleit, Meta's head of product, in an interview with NPR. With teens all being switched to private accounts, they can only be messaged or tagged by people they follow. Content from accounts they don't follow will be in the most restrictive setting, and the app will make periodic screen time reminders under a revamped "take a break" feature. [...]

Meta requires users to be at least 13 years old to create an account. Social media researchers, however, have long noted that young people can lie about their age to get on the platform and may have multiple fake accounts, known as "finstas," to avoid detection by their parents. Officials at Meta say they have built new artificial intelligence systems to detect teens who lie about their age. This is in addition to working with British company Yoti, which analyzes someone's face from their photos and estimates an age. Meta has partnered with the company since 2022. Since then, Meta has required teens to prove their age by submitting a video selfie or a form of identification. Now, Meta says, if a young person tries to log into a new account with an adult birthday, it will place them in the teen protected settings.

While parental supervision on Instagram still requires both a teen and parent to opt in, the new policies add a feature that allows parents to see who their teens have been recently messaging (though not the content of the messages) and what subjects they are exploring on the app. Meta is hoping to avoid one worrisome situation: Someone who is not a parent finding a way to oversee a teen's account. "If we determine a parent or guardian is not eligible, they are blocked from the supervision experience," Meta wrote in a white paper about Tuesday's new child safety measures. [...] Meta points out that parents will be limited to viewing about three dozen topics that their teens are interested in, including things like outdoor activities, animals and music. Meta says the topic-viewing is less about parents surveilling kids and more about learning about a child's curiosities. Still, some of the new Instagram features for teens will be aimed at filtering out sensitive content from the app's Explore Page and on Reels, the app's short-form video service.

Data Storage

Music Industry's 1990s Hard Drives Are Dying (arstechnica.com) 259

An anonymous reader quotes a report from Ars Technica: One of the things enterprise storage and destruction company Iron Mountain does is handle the archiving of the media industry's vaults. What it has been seeing lately should be a wake-up call: roughly one-fifth of the hard disk drives dating to the 1990s it was sent are entirely unreadable. Music industry publication Mix spoke with the people in charge of backing up the entertainment industry. The resulting tale is part explainer on how music is so complicated to archive now, part warning about everyone's data stored on spinning disks. "In our line of work, if we discover an inherent problem with a format, it makes sense to let everybody know," Robert Koszela, global director for studio growth and strategic initiatives at Iron Mountain, told Mix. "It may sound like a sales pitch, but it's not; it's a call for action."

Hard drives gained popularity over spooled magnetic tape as digital audio workstations, mixing and editing software, and the perceived downsides of tape, including deterioration from substrate separation and fire. But hard drives present their own archival problems. Standard hard drives were also not designed for long-term archival use. You can almost never decouple the magnetic disks from the reading hardware inside, so that if either fails, the whole drive dies. There are also general computer storage issues, including the separation of samples and finished tracks, or proprietary file formats requiring archival versions of software. Still, Iron Mountain tells Mix that "If the disk platters spin and aren't damaged," it can access the content.

But "if it spins" is becoming a big question mark. Musicians and studios now digging into their archives to remaster tracks often find that drives, even when stored at industry-standard temperature and humidity, have failed in some way, with no partial recovery option available. "It's so sad to see a project come into the studio, a hard drive in a brand-new case with the wrapper and the tags from wherever they bought it still in there," Koszela says. "Next to it is a case with the safety drive in it. Everything's in order. And both of them are bricks."
"Optical media rots, magnetic media rots and loses magnetic charge, bearings seize, flash storage loses charge, etc.," writes Hacker News user abracadaniel in a discussion post about the article. "Entropy wins, sometimes much faster than you'd expect."
AI

'An AI Bot Named James Has My Old Local News Job' 73

An anonymous reader quotes a report from Wired, written by Guthrie Scrimgeour: It always seemed difficult for the newspaper where I used to work, The Garden Island on the rural Hawaiian island of Kauai, to hire reporters. If someone left, it could take months before we hired a replacement, if we ever did. So, last Thursday, I was happy to see that the paper appeared to have hired two new journalists -- even if they seemed a little off. In a spacious studio overlooking a tropical beach, James, a middle-aged Asian man who appears to be unable to blink, and Rose, a younger redhead who struggles to pronounce words like "Hanalei" and "TV," presented their first news broadcast, over pulsing music that reminds me of the Challengers score. There is something deeply off-putting about their performance: James' hands can't stop vibrating. Rose's mouth doesn't always line up with the words she's saying.

When James asks Rose about the implications of a strike on local hotels, Rose just lists hotels where the strike is taking place. A story on apartment fires "serves as a reminder of the importance of fire safety measures," James says, without naming any of them. James and Rose are, you may have noticed, not human reporters. They are AI avatars crafted by an Israeli company named Caledo, which hopes to bring this tech to hundreds of local newspapers in the coming year. "Just watching someone read an article is boring," says Dina Shatner, who cofounded Caledo with her husband Moti in 2023. "But watching people talking about a subject -- this is engaging."

The Caledo platform can analyze several prewritten news articles and turn them into a "live broadcast" featuring conversation between AI hosts like James and Rose, Shatner says. While other companies, like Channel 1 in Los Angeles, have begun using AI avatars to read out prewritten articles, this claims to be the first platform that lets the hosts riff with one another. The idea is that the tech can give small local newsrooms the opportunity to create live broadcasts that they otherwise couldn't. This can open up embedded advertising opportunities and draw in new customers, especially among younger people who are more likely to watch videos than read articles.
Reception of the AI avatars has been poor, notes Scrimgeour. "This ain't that,â says one Instagram commenter. "Keep journalism local." Another just reads: "Nightmares."

There's also concern around the jobs these avatars will take. "Caledo claims its AI won't take news jobs because it only does work that isn't being done otherwise," notes Scrimgeour, agreeing that his newspaper company never had a video broadcast while he worked there.

"The question is, will local audiences buy into the new tech? Early returns suggest that Kauai viewers, at least, might have trouble accepting James and Rose as kama'aina (locals)..."
Medicine

AirPods Pro 2 Adds 'Clinical Grade' Hearing Aid Feature 47

Apple says AirPods Pro 2 will receive a software feature "soon" that will turn the wireless earbuds into "clinical-grade" hearing aids. "This includes a hearing protection mode being enabled by default, offering passive noise cancellation in loud environments," adds 9to5Mac. From the report: Firstly, users can take a clinically-validated hearing test. The hearing test uses your AirPods and iPhone, and can be conducted by a user in under five times. The result of your hearing test can be viewed securely in the Health app. If hearing loss is detected, the hearing aid mode is then available to use. The AirPods will make it easier to hear sounds from the world around you. A custom hearing profile is automatically applied when listening to audio, like music or podcasts.

The hearing aid feature is currently making its way through the FDA and other regulatory bodies. Apple said the functionality will be available in more than 100 countries. The feature will be enabled through a free software update coming later this year to AirPods Pro 2.
Media

Podcasters Ditch Short Episodes in Favor of Four-Hour Conversations (bloomberg.com) 48

In a newsletter for Bloomberg, Ashley Carman discusses the rising trend of long podcasts and their surprising popularity among listeners. "By today's standards of interminable podcast discussions, a nearly three-hour recording isn't even particularly notable," she writes, highlighting recent episodes from Joe Rogan (2 hours; 16 minutes with Adam Sandler), Lex Fridman (8 hours; 37 minutes with Elon Musk), and the Acquired podcast (3 hours; 38 minutes with Lockheed Martin). "Increasingly, podcasters are pushing the outer limits of episode length while stress testing the endurance of their audiences. Popular podcast gabfests can now run on for half a workday or longer." From the report: One might assume such marathon episodes must be the result of a hands-off approach to editing. But this is not the case, said Ben Gilbert, co-host of the Acquired podcast. Every month, he and his co-host David Rosenthal release a three- to four-hour podcast, detailing the story of a specific company. The in-depth histories, he said, are the result of nine-hour recording sessions and a month of research.

"It's not important to ship every good minute," Gilbert said. "It's important to ship only great minutes. If you're actually intellectually honest with yourself, that's how to release a really good product." Even with the longer runtimes, he said, their audience listens to the vast majority of each episode. Consider their deep dive on Lockheed Martin, which runs for three hours and 38 minutes. On Apple Podcasts, the average listener consumed 70% of the show, he said. An episode on Nike, which clocks in at upwards of four hours, had an average consumption rate of 68%. "Every time we made something longer... people only seemed to love it more," he said. On the show's website, the hosts describe the episodes as "conversational audiobooks." [...]

[Jack Sylvester, executive director at Flight Studio, the Bartlett-founded podcast company behind Diary of a CEO] said the team can view data around how much of the audience consumes episodes on YouTube's TV app versus on a phone, tablet or computer. TV usage, he said, is ticking up. To give viewers a reason to keep the show on as their primary viewing experience, they're now making sure the videos have a top-quality polish. Still, in a world in which people scoff at the prospect of a three-hour movie -- and short-form video is the dominant consumption trend in entertainment -- these podcasters are eagerly meandering in the opposite direction. "The short-form obsession ended up creating white space for us," said Gilbert of Acquired. "Whenever you have a trend, that means there's people who feel left behind and want to flock to something new. This sets us apart."

United Kingdom

UK Competition and Markets Authority Launches Investigation Into Ticketmaster (variety.com) 36

The U.K.'s Competition and Markets Authority (CMA) has formally opened an investigation into Ticketmaster's compliance with consumer protection law in relation to the sale of Oasis concert tickets. From a report: The CMA said on Thursday that it is investigating whether "Ticketmaster has engaged in unfair commercial practices which are prohibited under the Consumer Protection from Unfair Trading Regulations 2008"; "People were given clear and timely information to explain that the tickets could be subject to so-called 'dynamic pricing' with prices changing depending on demand, and how this would operate, including the price they would pay for any tickets purchased"; and if "People were put under pressure to buy tickets within a short period of time -- at a higher price than they understood they would have to pay, potentially impacting their purchasing decisions." The CMA said that it will now engage with Ticketmaster and gather evidence to consider whether it thinks the company has broken consumer protection law.
United States

Feds Indict Musician on Landmark Massive Streaming Fraud Charges (rollingstone.com) 87

Federal investigators have indicted a North Carolina man over a scheme in which he allegedly used bot accounts and hundreds of thousands of AI-generated songs to earn more than $10 million in royalty payments from the major streaming services. RollingStone: The case is a landmark development in the still-developing music streaming market, with the U.S. Attorney's Office for the Southern District of New York calling it the first criminal case involving artificially inflated music streaming. In the indictment, the prosecutors say that for the past seven years, North Carolina musician Michael Smith had been running a complex music streaming manipulation scheme to fraudulently profit off of billions of streams from bot accounts. "At a certain point in the charged time period, Smith estimated that he could use the Bot Accounts to generate approximately 661,440 streams per day, yielding annual royalties of $1,207,128," the prosecutors said in the indictment announcement.

Smith, 52, was charged with wire fraud conspiracy, wire fraud and money laundering conspiracy, totaling to a combined maximum of 60 years in prison if convicted. "Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed," said Damian Williams, U.S. Attorney for the Southern District of New York. "Today, thanks to the work of the FBI and the career prosecutors of this Office, it's time for Smith to face the music."

Social Networks

Instagram Is Adding a Myspace-Like 'Song On Profile' Feature (theverge.com) 10

Instagram is adding a new feature today that will "allow users to add a song on their profile -- much like Myspace in the early 2000s," writes The Verge's Mia Sato. From the report: The music added to a user's profile shows up in the bio area, according to screenshots shared by Instagram. A song will be featured on a profile until the user removes or replaces it. But unlike Myspace, songs won't autoplay -- people viewing a profile with a song can play and pause the track. Users can add a song by going to the "edit profile" page, where they'll be able to search for and select a track from Instagram's library of licensed music that's also available for things like Reels or posts. From there, users will be able to select a 30-second-long portion of the song to add.
Music

Sonos CEO Says the Old App Can't Be Rereleased (theverge.com) 106

The old Sonos app won't be making a return to replace the buggy new version. According to Sonos CEO Patrick Spence, rereleasing the old app would make things worse now that updated software has already been sent out to the company's speakers and cloud infrastructure. The Verge reports: In a Reddit AMA response posted Tuesday, Sonos CEO Spence says that he was hopeful "until very recently" that the company could rerelease the app, confirming a report from The Verge that the company was considering doing so. [...] Since the new app was released on May 7th, Spence has issued a formal apology and announced in August that the company would be delaying the launch of two products "until our app experience meets the level of quality that we, our customers, and our partners expect from Sonos." "The trick of course is that Sonos is not just the mobile app, but software that runs on your speakers and in the cloud too," writes Spence in the Reddit AMA. "In the months since the new mobile app launched we've been updating the software that runs on our speakers and in the cloud to the point where today S2 is less reliable & less stable then what you remember. After doing extensive testing we've reluctantly concluded that re-releasing S2 would make the problems worse, not better. I'm sure this is disappointing. It was disappointing to me."
Japan

Missing Scissors Cause 36 Flight Cancellations In Japan (theregister.com) 166

An anonymous reader quotes a report from The Register: Thirty-six flights were cancelled at Japan's New Chitose airport on Saturday after a pair of scissors went missing. Japanese media report that retail outlets at the airport -- which serves the regional city of Chitose on Japan's northernmost island, Hokkaido -- are required to store scissors in a locker. When staff need to cut something, they withdraw the scissors and then replace them after they're done snipping. But last Saturday, an unnamed retailer at the airport was unable to find a pair of scissors. A lengthy search ensued, during which security checks for incoming passengers were paused for at least two hours.

Chaos ensued as queues expanded, passengers were denied entry, and airport authorities scrambled to determine whether the scissors had been swiped by somebody with malicious intent. The incident saw over 200 flights delayed, and 36 cancelled altogether. The mess meant some artists didn't appear at a music festival. Happily, the scissors were eventually found -- in the very same shop from which they had gone missing, and not in the hands of someone nefarious. But it took time for authorities to verify the scissors were the missing cutters and not another misplaced pair.

Music

Apple Podcasts Launches On the Web (techcrunch.com) 11

Apple's Podcasts app is now available on all major web browsers, allowing you to stream episodes directly from the web at www.podcasts.apple.com. TechCrunch reports: The new dedicated web experience aims to make it easier for anyone with a web browser on any device to access podcasts. Web listening has been available for some time; however, in order to listen to an episode, users had to look up a show on a search engine and go to the show's Apple Podcasts Preview page.

Now Apple Podcasts on the web has launched a new interface, allowing users to access features that were previously only available on the app. These include browsing millions of shows, accessing sections like Library and Top Charts, purchasing premium podcast subscriptions, and more. Listeners can sync their Apple Accounts to be able to pause a podcast and save their play progress to listen to later, as well as see their followed shows and subscriptions. Users without an Apple Account can also use the web experience but can only browse and listen.
You can try it out by listening to the latest episode of the SourceForge Podcast!
Businesses

Ex-Google CEO Says Successful AI Startups Can Steal IP and Hire Lawyers To 'Clean Up the Mess' 42

Eric Schmidt, at a recent talk where he also talked -- and then walked back the comment -- on Google's work-culture: If TikTok is banned, here's what I propose each and every one of you do: Say to your LLM the following: "Make me a copy of TikTok, steal all the users, steal all the music, put my preferences in it, produce this program in the next 30 seconds, release it, and in one hour, if it's not viral, do something different along the same lines."

That's the command. Boom, boom, boom, boom.

So, in the example that I gave of the TikTok competitor -- and by the way, I was not arguing that you should illegally steal everybody's music -- what you would do if you're a Silicon Valley entrepreneur, which hopefully all of you will be, is if it took off, then you'd hire a whole bunch of lawyers to go clean the mess up, right? But if nobody uses your product, it doesn't matter that you stole all the content.

And do not quote me.
Android

'Gemini Is Replacing Google Assistant On Pixel Phones, and It's a Trainwreck' (fastcompany.com) 73

An anonymous reader quotes a report from Fast Company's Jared Newman: With its new Pixel 9 phones, Google Assistant is getting a demotion. In its place, Google's will ship Gemini as the default voice assistant on its flagship phones. Gemini uses large language models to interpret questions and generate answers, which means it can respond in a more conversational way. But while Google is eager to showcase Gemini as an answer to OpenAI's ChatGPT, tossing out Assistant is a mistake. Too often, Gemini fails at performing basic tasks, and it's going to cause lots of frustration for folks who depend on their phone's voice control features. Although Google says Gemini can now handle many of the same instructions as Assistant, that hasn't been my experience at all. As evidence, I submit a list of useful Google Assistant actions that either aren't possible or don't work properly with Gemini. Here is a summary of the challenges Gemini faces, as documented by Newman:

1. Local results are worse: Gemini provides less useful information for local business queries compared to Google Assistant, lacking context and formatting.
2. Gemini can't take notes: Unlike Google Assistant, Gemini cannot take voice notes or save them in an app like Google Keep.
3. No-can-do on to-do lists: Gemini does not support adding items to to-do lists, a feature that Google Assistant handles efficiently.
4. Weather doesn't work right: Gemini struggles with weather forecasts, often giving incorrect locations, unlike Google Assistant which works reliably.
5. Turn-by-turn directions don't load: Gemini fails to provide direct turn-by-turn navigation, only offering a preview, whereas Google Assistant launches navigation immediately.
6. Music and podcast requests are YouTube-only: Gemini only supports YouTube Music, unlike Google Assistant which supports multiple streaming services.
7. Video (in)capabilities: Gemini cannot directly access streaming apps for movies or shows, only suggesting content with no direct links.
8. No photo search: Gemini cannot search for photos in Google Photos, a task that Google Assistant can easily handle.
9. Bye-bye to a useful news feature: Gemini fails to play or provide recent news effectively, unlike Google Assistant's useful daily news briefing feature.
10. No Routines: Gemini does not support the automation of multiple actions through Routines, a feature present in Google Assistant.
11. So much for Shortcuts: Gemini lacks the Shortcuts feature available in Google Assistant, offering no replacement for quick actions in third-party apps.
12. A slower experience: Responses from Gemini are slower by a second or two compared to Google Assistant when answering queries.
Businesses

Apple Finally Allows Spotify To Show Pricing Info To EU Users on iOS (techcrunch.com) 18

An anonymous reader shares a report: After much back and forth earlier this year, Spotify on Wednesday says it's now received approval from Apple to display pricing information in its iOS app for users in the EU. The company is not opting into Apple's new business rules under the EU's Digital Markets Act, but rather is taking advantage of new antitrust guidelines imposed by the EU specifically for music streaming apps. Apple in March was fined by European regulators nearly $2 billion for breaching antitrust rules in the market. Spotify and Apple have also gone back and forth over an update to Spotify's app that would allow the music streamer to share pricing information with EU users.

Now, Spotify says its app update has been approved, and it will be able to display the pricing for things like Spotify subscriptions and digital goods, including Spotify's more recently added collection of audiobooks. The latter includes the ability to show the pricing for subscription plans that include audiobook streaming, as well as "top off" hours users can buy to complete their audiobook listening and a la carte audiobook prices.

United States

US Colleges Slash Majors in Effort To Cut Costs (cbsnews.com) 110

St. Cloud State University announced plans to eliminate its music department and cut 42 degree programs and 50 minors, as part of a broader trend of U.S. colleges slashing offerings amid financial pressures. The Minnesota school's decision, driven by a $32 million budget shortfall over two years, reflects challenges facing higher education institutions nationwide. Similar program cuts have been announced at universities across the country, including in North Carolina, Arkansas, and New York. Some smaller institutions have closed entirely, unable to weather the financial storm, reports CBS News.

Federal COVID relief funds have dried up, operational costs are rising, and fewer high school graduates are pursuing college degrees. St. Cloud State's enrollment plummeted from 18,300 students in fall 2020 to about 10,000 in fall 2023, mirroring national trends. The National Student Clearinghouse Research Center reports a decline in four-year college enrollment, despite a slight rebound in community college numbers.
Anime

Crunchyroll Passes 15 Million Monthly Paid Subscribers (thewrap.com) 17

Sony's Crunchyroll streaming service dedicated to anime has passed 15 million monthly paid subscribers. "Today marks an exciting milestone not only for Crunchyroll, but for the entire anime industry," Rahul Purini, president of Crunchyroll, said in a press release. "It is proof that the rich stories, characters and experiences that our partners create are resonating deeply with fans at record numbers all over the world. As the number of people excited about anime continues to explode and the breadth of content continues to widen, we believe it has never been a better time to be an anime fan." TheWrap reports: Currently, the streamer has the world's largest streaming library dedicated to anime, including 50,000 episodes and more than 25,000 hours of anime series, music and films. Every season, the streamer brings in between 45 and 60 new and returning series to its service. Those include series such as "Demon Slayer Kimetsu no Yaiba," "JUJUTSU KAISEN," "One Piece," "Chainsaw Man" and "Solo Leveling." Last year, the streamer also partnered with SMEJ (Sony Music Entertainment Japan) to bring anime-related music to the platform, a collaboration that has resulted in 3,300 music videos and concerts so far.
Social Networks

Whatever Happened to MySpace? (triblive.com) 64

In 2006 MySpace reportedly became America's most-visited web site — passing both Google and Yahoo Mail.

So what happened? TribLive reports: The co-founders, Tom Anderson and Chris DeWolfe, sold MySpace to Rupert Murdoch's News Corporation for $580 million in 2005, and that company sold it to the online advertising company Specific Media and Justin Timberlake in 2011, which later became the ad tech firm Viant, according to SlashGear. Viant was bought by Time in 2016, which was acquired by Meredith Corporation at the end of 2017, according to The Guardian. Meredith then sold Myspace to Viant Technology LLC, which currently operates the platform, SlashGear said.

During its time under Timberlake, Myspace morphed from a social media platfrom and turned over a new leaf as a music discovery site, SlashGear reported. The once booming online atmosphere has turned into a ghost town, according to The Guardian. Despite the number of people on Myspace dwindling, a handful of devoted users remains.

The glory days of MySpace drew this bittersweet remembrance from TechRadar: Not everyone on the TechRadar team looks back on those early MySpace years fondly, with our US editor in chief Lance Ulanoff recalling that it "it was like peoples' brains had been turned inside out and whatever didn't stick, dropped onto the page and was represented as a GIF".

Many of us do, though, remember picking our Top 8s (the site's weird ranking system for your friends) and decorating our MySpace pages with as many flashing lights as possible.

Government

Artist and Musician Sue SEC Over Its NFT Regulatory Jurisdiction (decrypt.co) 32

"Five years ago, Brian Frye set an elaborate trap," writes Decrypt.co. "Now the law professor is teaming up with a singer-songwriter to finally spring it" on America's Security and Exchange Commission "in a novel lawsuit — and in the process, prevent the regulator from ever coming after NFT art projects again." Over and again, the SEC has sued cherry-picked NFT projects it says qualify as unregistered securities — but never once has the regulator defined what types of NFT projects are legal and which are not, casting a chill over the nascent industry... [In 2019] Frye, an expert in securities law and a fan of novel technologies, minted an NFT of a letter he sent to the SEC in which he declared his art project to constitute an illegal, unregistered security. If the conceptual art project wasn't a security, Frye challenged the agency, then it needed to say so. The SEC never responded to Frye — not then, and not after several more self-incriminating correspondences from the professor. But in due time, the agency began vigorously pursuing, and suing, NFT projects.
So 10 months ago, Jonathan Mann — who writes a new song every day and shares it online — crafted a song titled "This Song is A Security." As a seller of NFTs himself, Mann wrote the song "to fight back against the SEC, and defend his right — plus the rights of other artists like him — to earn revenue," according to the article: Frye, who'd practically been salivating for such an opportunity for half a decade, was a natural fit.... In the lawsuit filed against the SEC in Louisiana earlier this week, they challenged the SEC's standing to regulate their NFT-backed artworks as securities, and demanded the agency declare that their respective art projects do not constitute illegal, unregistered securities offerings.
More from the International Business Times: The complaint asked the court to clarify whether the SEC should regulate art and whether artists were supposed to "register" their artworks before selling the pieces to the general public. The complaint also asked whether artists should be "forced to make public disclosures about the 'risks' of buying their art," and whether artists should be "required to comply" with federal securities laws...

The Blockchain Association, a collective crypto group that includes some of the biggest digital asset firms, asserted that the SEC has no authority over NFT art. "We support the plaintiffs in their quest for legal clarity," the group said.

In an interview with Slashdot, Mann says he started his "Song a Day" project almost 17 years ago (when he was 26 years old) — and his interest in NFTs is sincere: "Over the years, I've always sought a way to make Song A Day sustainable financially, through video contests, conference gigs, ad revenue, royalties, Patreon and more.

"When I came across NFTs in 2017, they didn't have a name. We just called them 'digital collectibles'. For the last 2+ years, NFTs have become that self-sustaining model for my work.

"I know most people believe NFTs are a joke at best and actively harmful at worst. Even most people in the crypto community have given up on them. Despite all that, I still believe they're worth pursuing.

"Collecting an NFT from an artist you love is the most direct way to support them. There's no multinational corporation, no payment processor, and no venture capitalists between you and the artist you want to support."

Slashdot also tracked down the SEC's Office of Public Affairs, and got an official response from SEC public affairs specialist Ryan White.

Slashdot: The suit argues that the SEC's approach "threatens the livelihoods of artists and creators that are simply experimenting with a novel, fast-growing technology," and seeks guidance in the face of a "credible threat of enforcement". Is the SEC going to respond to this lawsuit? And if you don't have an answer at this time, can you give me a general comment on the issues and concerns being raised?

SEC Public Affairs Specialist Ryan White: We would decline comment.

Decrypt.co points out that the lawsuit "has no guarantee of offering some conclusive end to the NFT regulation question... That may only come with concrete legislation or a judgment by the Supreme Court."

But Mann's song still makes a very public show out of their concerns — with Mann even releasing a follow-up song titled "I'm Suing the SEC." (Its music video mixes together wacky clips of Mila Kunis's Stoner Cats and Fonzie jumping a shark with footage of NFT critics like Elizabeth Warren and SEC chairman Gary Gensler.)

And an earlier song also used auto-tune to transform Gensler's remarks about cryptocurrencies into the chorus of a song titled "Hucksters, Fraudsters, Scam Artists, Ponzi Schemes".

Mann later auctioned an NFT of the song — for over $3,000 in Ethereum.
Businesses

iPad Sales Help 'Bail Out' Apple Amid a Continued iPhone Slide (techcrunch.com) 44

Apple reported a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago, fueled largely by new iPad sales. iPad "saw the biggest category increase for the quarter, up from $5.8 billion to $7.2 billion year-over-year," reports TechCrunch. It helped counter slowed iPhone revenue, "which dropped from $39.7 billion to $39.3 billion year-on-year." From the report: In spite of a drop for the quarter, iPhone remained Apple's most important category by a wide margin, followed by service, which includes software offerings like iCloud, Apple TV+ and Apple Music. That category continued to grow, up to $24.2 billion from $21.2 billion over the same three-month period last year. Much of the iPhone slowdown can be attributed to the greater China region. Overall, the region dropped from $15.8 billion to $14.7 billion for the quarter. Canalys figures from last week show a marked decline in iPhone sales, down 6.7% from 10.4 million to 9.7 million for the quarter, Reuters reported.

The drop in Apple's third-largest region (behind the Americas and Europe) had a clear impact on the company's bottom line. The company aggressively discounted iPhone prices in China starting in May, as competition intensified from domestic rivals. The strategy resulted in strong iPhone sales that month, up close to 40% from a year prior. [...] Q3 marked the second consecutive quarter decline for global iPhone sales. The news puts additional pressure on the generative AI strategy that the company laid out at WWDC in June.

Slashdot Top Deals