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NFT Titans Clash Over Royalty Rights: Yuga Labs vs OpenSea

In a showdown that could reshape the way creators are compensated for non-fungible tokens (NFTs), Yuga Labs, the mastermind behind popular NFT collections such as Bored Ape Yacht Club and CryptoPunks, has announced it will block trading of its newer NFT collections on the platform OpenSea by February 2024. This protest stems from OpenSea’s decision to make royalty collections optional, a move that threatens to hit Yuga Labs hard.

Contrary to the inflated promises offered by Web3 technology, it’s been up to the marketplace to enforce and distribute fees for NFT artists. This has become increasingly challenging as the NFT bubble cools and marketplaces have chosen to leave artists in the cold, reducing fees to lure in sellers. OpenSea, the leading force in this marketplace, has dipped their fee down to a meager 0.5%, a stark contrast to the 5-10% typically commanded by artists.

This dispute does not, however, impact all of Yuga’s NFTs. It has been clarified that due to certain tech limitations, it’s only the “upgradable contracts and new collections” that will lose OpenSea’s support. This ensures that established collections such as Bored Ape Yacht Club and CryptoPunks will endure on OpenSea with little change to their trading status.

The principle behind NFTs was for creators to receive royalties each time their work is bought and sold. For companies like Yuga Labs that have experienced explosive growth in popular collections, these lingering royalties sum up to an impressive fortune. Based on information provided in a blog post, Bored Apes helped rake in around $35 million exclusively through OpenSea trading as of November 2022.

NFT creators are increasingly reliant on this model, creating limited collections before cultivating their value in hopes of accruing notable resale royalties. An insightful case in point is the Bored Apes story, with original selling prices around $220, later escalating to an astounding $216,000 for a single NFT purchased by Jimmy Fallon, a mere year later.

In a recent comment to The Verge, Yuga Labs spokesperson Emily Kitts disclosed plans to stop OpenSea’s platform from trading their collections as they remove royalties tracing. She, however, refrained from delving into the specifics of the collections that will be affected.

The straw that tipped Yuga against OpenSea came after OpenSea’s announcement that they would voluntary-ize artists’ royalties by March 2024. This essentially converts royalties into optional tips that sellers can choose to share or not. Taking effect from August 31st, this policy applies to all new collections.

Underpinning Yuga’s stance, CEO Daniel Alegre asserted the company’s belief in protecting creator royalties, ensuring that creators are appropriately compensated. Before now, Yuga Labs had restricted specific transactions on Blur and other platforms that failed to enforce royalty fees.

In conclusion, the face-off between Yuga Labs and OpenSea is a dramatic escalation of the ongoing debate regarding artists’ rights in the NFT sphere. It’s a reminder that while NFTs have created new venues for creativity and commerce, the rules of the game are still up to be defined – a fact that’s staring right at the face of the proponents and enthusiasts of these digital assets.

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Surmounting Surround Sound Saga: Madden 24 Audio Issues Annoy Gamers

As murky clouds of discontent gather in the virtual football space, an annoying audio issue is creating a vexing cacophony for PlayStation 5 and PC Madden 24 players. In an ironic twist of the serenity before the storm, gamers are reporting bizarre sound glitches including popping and crackling audio, underscored by sporadic disappearing sound channels.

According to reports from the Madden subreddit, these audio hiccups occur during gameplay. Essentially, half the audio vanishes, then resurfaces with an unpleasant presence of static each time a play concludes and a cutscene rolls. Treating these glitches like an unwanted halftime show, players with surround sound audio setups—be it speakers, soundbars, or headphones—appear to be the primary victims.

Electronic Arts, the gaming giant behind Madden 24, has yet to provide a full breakdown of the issues or a promise of a server fix. However, it hasn’t fallen on deaf ears, as avid players of this beloved franchise are throwing their audible touchdowns on forums, desperate for a solution.

Interestingly, The Verge’s Nilay Patel provides a player’s perspective on the issue. Confirming firsthand that the problem persists on his PS5 while using a Dolby Atmos rig, the saga of stubborn sound hiccups refuses to subside even after switching the PS5’s output to just stereo. A browse through the labyrinthine Reddit post also reveals users expressing their audible angst via loud popping sounds that strike every few seconds or whenever the game comes to a pause. These aberrations potentially suggest that the issue lies within a modification in the output set up.

Repairing the sonic landscape isn’t as easy as piecing together Madden’s defensive formation. The lack of an official patch from EA has left gamers doing their workaround calisthenics, figuring out remedies to these ear-grating issues. In an amusing occurrence, a PC user managed to contrive an incredibly intricate solution that involves shutting off an array of features. Although we’re currently unable to test this potential panacea, various video commentators suggest it works—an abstractly gratifying protocol in the absence of a professional fix.

The controversy over these troubling sound-blems appeared to rope in rap legend Snoop Dogg, initially thought to be irked by the audio glitches. However, it later turned out that his grievance was primarily rooted in the game’s server issues.

Whilst the Madden community awaits an official fix from EA, the soundtrack to the game has become an orchestra of popping and crackling for many. Should you decide to brave these field goals of discomfortable noises, it’s wise to note that your surround sound setup might just be the 12th Madden player, throwing off your in-game strategies with unexpected audible interferences.

The game of football is as much about acoustics as it is about actions, and when the roars of the crowd, the crunch of a tackle, or the referee’s whistle is punctuated by unsettling sound glitches, it’s a missed pass for everyone involved. Gamers around the globe are all hoping that EA can soon provide a fix to this grand audio performance, turning down the distortion and bringing back the resonant, clear calls that Madden 24 should deliver.

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Tech

US District Court Declares Human Authorship as a Bedrock for Copyright: How AI Created Artwork Stands

In a landmark decision that could have significant implications for the future of artificial intelligence (AI), United States District Court Judge Beryl A. Howell declared on Friday that AI-generated artwork is not eligible for copyright. The ruling, shedding light on the complexities and ambiguities surrounding ownership in the realm of AI creations, was in response to Stephen Thaler’s legal feud with the US Copyright Office. Thaler, the creator of an AI algorithm named the Creativity Machine, sought copyright protection for an image produced by his AI system.

Fueled by a desire for acknowledgment for his AI’s creative output, Thaler made countless attempts to copyright the image as a work-for-hire attributed to the Creativity Machine. Under his proposition, the AI system would stand as the author while Thaler assumes the role of the artwork’s owner. Notwithstanding his justifications, the Office dismissed Thaler’s requests, a decision he rebutted as being “arbitrary, capricious … and not in accordance with the law.”

Judge Howell, however, took a firm stance against the copyright eligibility of AI outputs. In her ruling, she maintains that human authorship remains an indispensable prerequisite for a copyright. In other words, the judge firmly affirms that the rights associated with creative works have never been extended to productions “absent any guiding human hand.”

But while speaking from the throne of law, Judge Howell expresses the awareness of an incoming age—where artists employ AI tools to generate new content—and the complex questions it will prompt on the minimum human input needed to copyright such AI-produced art. This is a nod toward the AI models’ standard practice of training on pre-existing works.

AI and copyright law have engaged in a turbulent dance recently, with the courtroom witnessing a surge in related lawsuits. High-profile figures like Sarah Silverman and two other authors levelled suits against Meta and OpenAI concerning their models’ data scraping practices. Similarly, lawyer Matthew Butterick instituted legal proceedings against Microsoft, GitHub, and OpenAI, accusing them of software piracy.

Judge Howell’s decision also indicated echoes of previous cases. She cited the famed ‘monkey selfie’ case, where an ape’s photo was denied copyright. Conversely, copyright was granted in another case where a woman organized a book based on notebooks filled with words that she claimed were conveyed by a celestial voice.

Despite Judge Howell’s detailed justification, Stephen Thaler, through his attorney, Ryan Abbott of Brown Neri Smith & Khan LLP, announced plans to appeal the case. Abbott revealed their dissatisfaction with the Judge’s ruling, stating, “We respectfully disagree with the court’s interpretation of the Copyright Act,” as quoted by Bloomberg Law. The US Copyright Office, however, agreed with the court’s decision, endorsing it as the correct interpretation.

Attempting to navigate the uncharted territory of AI and copyright, this latest court ruling suggests that the burgeoning overlap between AI-generated content and copyright law is far from a closed chapter. As the law grapples with the swift current of technological advances, it seems that human creativity – at least for now – will maintain its unique, irreplaceable position in the realm of copyright.

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