Meta Forced To Face Trial Over Accusations Linked To AI Trade Secret Sharing

There are some not-so-great reports coming forward for Meta Platforms which recently lost a bid to end a respective lawsuit in the federal court of Boston.

The case accused the tech giant of stealing confidential information through the likes of AI startup Neural Magic.

Now, Meta will be forced to face the trial regarding accusations about it taking on the firm’s respective algorithms that allow AI systems to gain access to details at a quicker pace.

The news was confirmed by Judge Denise Casper who ruled against the tech giant.

Moreover, the court enabled a testimony from one expert who claims Meta owes the organization $766 million as far as royalties are concerned.

Reps from Facebook’s parent firm and Neural Magic have failed to respond to immediate requests for a comment on the matter. But for now, the trial has been set and the date is outlined in September.

Somerville, Massachusetts is where Neural Magic is based and it was founded by two more researchers from the Institute of Technology. Moreover, investors had even come from the leading venture firm Andreessen Horowitz. Verizon, and more as per reports from the website.

Neural Magic says it launched a case against Facebook because, at that time, Meta did not exist. This was in the year 2020 and it claimed that it needed to steal algorithms that allowed simple computers to take on complex mathematical workings in a better manner.

This would allow research scientists to make use of bigger sets of data along the way.

The case mentioned how Meta was busy hiring away a computer scientist from the respective firm too. They gave the tech giant the main algorithms which made up a leading part of the company’s heart.

Similarly, Meta went on to publish more algorithms on the website called GitHub while thanking the scientist for his assistance in resolving a key matter for the app’s continued advancement in this AI world.

In 2022, Meta sent out a request to the court to dismiss this case and they argued how Neural Magic really did a poor job at outlining what the potential trade secrets were and how the scientist did not acquire the data incorrectly.

On Monday, the court explained how they wished this to continue as they felt all except for one secret out of the 41 outlined were worth a glance in terms of holding Meta responsible.

The judge did grant a few parts of Meta’s request and that meant rejecting the firm’s claims that it violated the clause regarding non-competitive behavior. This even included engaging in practices that it felt were not fair in the world of business under the state law of Massachusetts.

This report is definitely not the sort of thing that Meta or any social media giant would wish to hear as the allegations are huge and they warrant a good explanation as to why Meta would choose to engage in such behavior in the first place.

H/T: Reuters

Read next: Meta Adopts Its Oversight Board’s Recommendations By Making Changes To Its Controversial Cross-Check Program
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