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Adobe to Offer Free App to Help with Labeling AI-generated Content

Adobe logo is seen on smartphone in this illustration taken June 13, 2022. (Reuters)
Adobe logo is seen on smartphone in this illustration taken June 13, 2022. (Reuters)
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Adobe to Offer Free App to Help with Labeling AI-generated Content

Adobe logo is seen on smartphone in this illustration taken June 13, 2022. (Reuters)
Adobe logo is seen on smartphone in this illustration taken June 13, 2022. (Reuters)

Adobe said on Tuesday it will offer a free web-based app starting next year, aimed at helping the creators of images and videos to get credit for their work used in AI systems.

Since 2019, Adobe and other technology companies have been working on what the firms call "Content Credentials," a sort of digital stamp for photos and videos around the web to denote how they were created.

TikTok, which is owned by China's ByteDance, has already said it will use Content Credentials to help label AI-generated content, Reuters reported.

San Jose, California-based Adobe said it will offer a free service to allow the creators of photos and videos to affix Content Credentials to their work.

In addition to indicating that they authored the content, the creators can also use the free app to signal if they do not want their work to be used by AI training systems that ingest huge amounts of data, the company said.

The use of data in AI training systems has sparked legal responses in multiple industries, with publishers such as the New York Times suing OpenAI, while some other firms have opted to work out licensing deals.

As yet, no large AI company has agreed to abide by Adobe's system for transparency. In a release, Adobe said it was "actively working to drive industry-wide adoption" of its standards.

"By offering creators a simple, free and easy way to attach Content Credentials to what they create, we are helping them preserve the integrity of their work, while enabling a new era of transparency and trust online," Scott Belsky, chief strategy officer and executive vice president for design and emerging products at Adobe, said in a statement.

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US Supreme Court Tosses Case Involving Securities Fraud Suit against Facebook

A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
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US Supreme Court Tosses Case Involving Securities Fraud Suit against Facebook

A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)
A 3D-printed Facebook logo is seen in front of a displayed stock graph. (Reuters)

The US Supreme Court sidestepped on Friday a decision on whether to allow shareholders to proceed with a securities fraud lawsuit accusing Meta's Facebook of misleading investors about the misuse of the social media platform's user data.
The justices, who heard arguments in the case on Nov. 6, dismissed Facebook's appeal of a lower court's ruling that had allowed a 2018 class action led by Amalgamated Bank to proceed. The Supreme Court opted not resolve the underlying legal dispute, determining that the case should not have been taken up. Its action leaves the lower court's decision in place, Reuters reported. 
The court's dismissal came in a one-line order that provided no explanation. The Facebook dispute was one of two cases to come before the Supreme Court this month involving the right of private litigants to hold companies to account for alleged securities fraud. The other one, involving the artificial intelligence chipmaker Nvidia, was argued on Nov. 13. The Supreme Court has not ruled yet in the Nvidia case.
The plaintiffs in the Facebook case claimed the company unlawfully withheld information from investors about a 2015 data breach involving British political consulting firm Cambridge Analytica that affected more than 30 million Facebook users. They accused Facebook of misleading investors in violation of the Securities Exchange Act, a 1934 federal law that requires publicly traded companies to disclose their business risks. Facebook's stock fell following 2018 media reports that Cambridge Analytica had used improperly harvested Facebook user data in connection with Donald Trump's successful US presidential campaign in 2016. The investors have sought unspecified monetary damages in part to recoup the lost value of the Facebook stock they held.
At issue was whether Facebook broke the law when it failed to detail the prior data breach in subsequent business-risk disclosures, and instead portrayed the risk of such incidents as purely hypothetical.
Facebook argued that it was not required to reveal that its warned-of risk had already materialized because "a reasonable investor" would understand risk disclosures to be forward-looking statements. President Joe Biden's administration supported the shareholders in the case.
US District Judge Edward Davila dismissed the lawsuit but the San Francisco-based 9th US Circuit Court of Appeals revived it.
The Cambridge Analytica data breach prompted US government investigations into Facebook's privacy practices, various lawsuits and a US congressional hearing. The US Securities and Exchange Commission in 2019 brought an enforcement action against Facebook over the matter, which the company settled for $100 million. Facebook paid a separate $5 billion penalty to the US Federal Trade Commission over the issue.
The Supreme Court in prior rulings has limited the authority of the Securities and Exchange Commission, the federal agency that polices securities fraud.