Welcome to AI Box, your weekly source for the latest developments in AI technology and applications.

Today's AI News lineup:🥊

• ⚖️ Artists' Copyright Lawsuit Against AI Companies Moves Forward Partially

• 🎵 Meta and UMG Strengthen Music Licensing Deal: AI Challenges

• 🚨 Another Fraud incident: Startup NovaTech caught in Alleged $650M Ponzi Scheme

⚖️ Artists' Copyright Lawsuit Against AI Companies Moves Forward Partially

AI Box: A class action lawsuit just surfaced against Stability, Runway, and DeviantArt over alleged illegal use of copyrighted works for AI training. The lawsuit had been partially upheld by a judge, allowing some claims to proceed.

Key Highlights:

• The judge's decision allows parts of the lawsuit to move forward, meaning some claims against Stability, Runway, and DeviantArt will continue toward a possible trial.

• Several claims were dismissed, but the surviving claims could lead to a lengthy and costly legal process for the AI companies.

• This lawsuit reflects broader issues in the tech industry, as many companies face similar copyright challenges amid the rise of AI technologies.

Why It Matters: The outcome of this case could set significant precedents for how AI companies handle copyrighted material and may influence future legal battles in the rapidly evolving field of artificial intelligence.

🎵 Meta and UMG Strengthen Music Licensing Deal: AI Challenges

AI Box: Meta and Universal Music Group have expanded their music licensing agreement to include provisions that address unauthorized AI-generated content and enhance music sharing across Meta's platforms.

Key Highlights:

• The updated agreement allows users to share UMG’s music across Meta’s platforms—Facebook, Instagram, Horizon, Threads, and WhatsApp—while addressing issues related to unauthorized AI-generated content.

• This deal marks a response to the growing concern over AI systems scraping music without creators' consent and follows a previous dispute between UMG and TikTok over AI and copyright issues.

• For the first time, WhatsApp users can now share licensed music from UMG, and the agreement includes Meta-owned social networking app Threads.

Why It Matters: This expanded partnership highlights the increasing importance of protecting artists' rights in the age of AI, addressing both the ethical use of music and the legal complexities surrounding AI-generated content.

🚨 Another Fraud incident: Startup NovaTech caught in Alleged $650M Ponzi Scheme

AI Box: The SEC has filed a lawsuit against NovaTech and its founders for allegedly defrauding over 200,000 investors of more than $650 million through a multi-level marketing scheme disguised as a crypto investment opportunity.

Key Highlights:

• NovaTech, founded by Cynthia and Eddy Petion, is accused of operating a Ponzi scheme, using new investor funds to pay returns to earlier investors while only a small portion was actually invested in crypto markets.

• The SEC also named several promoters who helped recruit investors, and is seeking permanent injunctions, disgorgement of ill-gotten gains, and civil penalties.

• This lawsuit is part of the SEC's broader crackdown on fraudulent crypto ventures, following similar high-profile cases against Ripple and BitClout.

Why It Matters: The case underscores the growing regulatory scrutiny on crypto investments and highlights the risks of MLM schemes within the crypto space, which can exploit investors through deceptive promises and lack of transparency. 

💻 AI Box: No Code AI App Builder & Marketplace

AI Box is a no-code, AI app building platform paired with the App Store for AI that lets you monetize your AI tools.

The platform lets you build apps by linking together hundreds of AI models like ChatGPT, MidJourney, and Eleven Labs. Eventually we’ll integrate software like Gmail, Trello and Salesforce so you can use AI to automate every function within your organization.

To get notified when we launch and be the first to build on the platform just stay subscribed to this newsletter alternatively you can join the waitlist at AIBox.ai

Interested in sponsoring The AI Box Newsletter or the AI Chat Podcast?
Email [email protected] to see if you'd be a good fit!

#️⃣ AI Twitter

Bill Gates and Socrates talk about AI. Super Insightful!

That's all for today!

If you have any interesting projects or ideas, please reach out to us by responding to this email or by sending us a DM on Twitter: @jaeden_ai & @aibox_ai

As always, thanks for reading, and see you next time. 🫡