Your commercial news round-up: Meta AI, ebikes, concert tickets, River Island

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A judge dismissed authors’ copyright claims against Meta over AI training and MPs have urged Amazon and eBay to tighten controls on ebike sales due to safety concerns. Meanwhile, a BBC investigation has found overseas teams are bulk-buying UK concert tickets for resale and River Island has proposed plans to close 33 stores due to economic downturns.

• Meta has won a copyright case against a group of authors who said the company had used their books to train its AI without permission. Judge Vince Chhabria stated that the authors failed to provide sufficient evidence to show that Meta’s AI would impact the market to the extent that its actions could be deemed illegal. However, Chhabria said using copyrighted work without permission in “many circumstances” would be illegal. He stated: “This ruling does not stand for the proposition that Meta’s use of copyrighted materials to train its language models is lawful. It stands only for the proposition that these plaintiffs made the wrong arguments and failed to develop a record in support of the right one.”

A spokesperson from the authors’ law firm, Boies Schiller Flexner, disagreed with the judgment and said that Meta has a history of “pirating of copyrighted works”. Meanwhile, a Meta spokesperson pointed to the doctrine of fair use, which it argued is “vital” for building “transformative” AI. The doctrine is a US law that allows AI to use copyrighted works without permission in some circumstances to foster creativity. This is a common defence used by technology companies. For example, in a separate lawsuit on Monday, a judge deemed that startup Anthropic’s AI had made “fair use” of copyrighted materials to train AI.

• MPs have called on Amazon and eBay to strengthen controls on the sale of ebikes and chargers, following reports that online marketplaces are selling items that exceed legal power limits of 250 watts. Amazon and eBay were found selling products from Chinese brand Ridsar, which closely resemble three items flagged by the UK’s Office for Product Safety and Standards as serious fire hazards. The chair and vice-chair of the parliamentary group for cycling and walking, MPs Fabian Hamilton and Olly Glover, stated: “It is highly likely that the identical Ridstar bike, and similar Ridstar bikes, for sale on Amazon.co.uk will feature the same product safety issues and could pose an immediate fire risk.” They called for a “detailed” update on how marketplaces aimed to control the sale of ebikes in the UK. An Amazon spokesperson stated: “We require all products offered in our store to comply with applicable laws and regulations, and we monitor for product safety concerns.” Meanwhile, eBay confirmed that it’s already removed several flagged listings and that it’s “working on identifying and removing any further items as quickly as possible”.
   
• A BBC investigation has found that ‘ticket touts’ are employing teams of overseas workers to bulk-buy tickets to big UK concerts to resell for profit. Findings showed that touts are making “millions” by hiring so called “ticket pullers” who use illegal automated software and multiple identities. For example, shortly after the presale for an Oasis concert, tickets were listed on resale sites StubHub and Viagogo for more than £6,000, which is 40 times higher than the face value of standing tickets. Findings showed hiring workers overseas was a popular approach. A ticket pulling boss told an undercover reporter: “We do not participate in illegal things because actually we are outside of the UK.” Chair of the UK government's cross-party Culture, Media and Sport committee, Dame Caroline Dinenage, stated: “This evidence proves that there is not enough activity going on either from the government, in some cases from the police and certainly from some of these really big online organisations to be able to clamp down on this sort of activity." Prime Minister Kier Starmer pledged to cap resale prices and regulate resale platforms in his election manifesto. He’s since launched a consultation, with proposals including a new licensing scheme, larger fines and a price cap of 30% above face value.
   
• River Island has proposed the closure of 33 stores as part of a restructuring plan submitted to creditors, placing hundreds of jobs at risk. It also requested that landlords cut rent at 71 at-risk stores. Planned changes follow a £33.2 million loss in 2023, due to a 19% drop in sales. CEO Ben Lewis said that more online shopping means “a large portfolio of stores […] is no longer aligned to our customers' needs" and that the "sharp rise in the cost of doing business over the last few years has only added to the financial burden". Head of money and markets for financial services company Hargreaves Lansdown, Susannah Streeter, explained that changes to National Insurance contributions have increased costs for retailers with physical stores. Currently, River Island has 230 shops and 5,500 employees across the country. Streeter also noted that fashion retail is very competitive, highlighting the presence of "much cheaper retailers”, such as Shein and Temu. Lewis stated: “We regret any job losses as a result of store closures, and we will try to keep these to a minimum.” Creditors will vote on the plan on 4 August and the court will make its decision on 7 August.

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