Following lawsuits, Snapchat pulls its controversial speed filter

Lately, Snapchat’s 3D Cartoon lens has been all the buzz, making all of our friends look like Pixar characters. But since 2013, a staple filter on the ephemeral photo sharing app has been the speed filter, which shows how fast a phone is moving when it takes a photo or video. Today, Snapchat confirmed that it will pull the filter from the app.

NPR first reported this today, calling it a “dramatic reversal” of Snap’s earlier defense of the feature. Over the years, there have been multiple car accidents, injuries, and deaths that were related to the use of the filter. In 2016, for instance, an eighteen-year-old took a Snapchat selfie while driving, then struck another driver’s car at 107 miles per hour. The other driver, Maynard Wentworth, suffered traumatic brain injuries and sued Snap. His lawyer said that the eighteen-year-old “was just trying to get the car to 100 miles per hour to post it on Snapchat.”

Snapchat’s filter-related offenses don’t begin and end here. Last year on Juneteenth, a day that commemorates the end of slavery, Snapchat released a filter that prompted users to “smile to break the chains.” On 4/20 in 2016, Snapchat partnered with Bob Marley’s estate to release a feature that gave users dreadlocks and darker skin, committing blackface. And even after Snapchat’s speed filter was linked to fatal car accidents, it remained available in the app with a simple “don’t snap and drive” warning.

“Today the sticker is barely used by Snapchatters, and in light of that, we are removing it altogether,” a spokesperson from Snap said, adding that the feature had previously been disabled at driving speeds. The company has begun removing the filter, but it might take several weeks to take full effect.

This new stance from Snap comes after the Ninth Circuit Appeals Court found in May that the company can be sued for its role in a fatal car accident.

Generally, Section 230 of the Communications Decency Act protects websites, or “interactive computer services,” from lawsuits like this, providing immunity for these platforms from third-party content posted on them. But in 2019, the parents of two children killed in crashes – Landen Brown and Hunter Morby – filed another lawsuit. They argued that the app’s “negligent design” (including a speed filter to begin with) contributed to the crash. A California judge dismissed the case, citing Section 230, but in May of this year, three judges on the federal Ninth Circuit Appeals Court ruled that Section 230 actually doesn’t apply here. The conflict isn’t with Snapchat’s role as a social media platform, but rather, the app’s design, which includes a demonstrably dangerous speed filter.

So, the sudden removal of the speed filter isn’t as random as it may seem. Now that their Section 230 defense is no longer, it makes sense that keeping the filter isn’t worth the legal risk. You’d think that the filter-related accidents would have been enough for Snapchat to take down the filter years ago, but better late than never.

#apps, #california, #car-accidents, #computing, #driver, #filter, #instant-messaging, #lawsuit, #lawyer, #mobile-applications, #selfie, #snap-inc, #snapchat, #software, #technology, #vertical-video

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EU bodies’ use of US cloud services from AWS, Microsoft being probed by bloc’s privacy chief

Europe’s lead data protection regulator has opened two investigations into EU institutions’ use of cloud services from U.S. cloud giants, Amazon and Microsoft, under so called Cloud II contracts inked earlier between European bodies, institutions and agencies and AWS and Microsoft.

A separate investigation has also been opened into the European Commission’s use of Microsoft Office 365 to assess compliance with earlier recommendations, the European Data Protection Supervisor (EDPS) said today.

Wojciech Wiewiórowski is probing the EU’s use of U.S. cloud services as part of a wider compliance strategy announced last October following a landmark ruling by the Court of Justice (CJEU) — aka, Schrems II — which struck down the EU-US Privacy Shield data transfer agreement and cast doubt upon the viability of alternative data transfer mechanisms in cases where EU users’ personal data is flowing to third countries where it may be at risk from mass surveillance regimes.

In October, the EU’s chief privacy regulator asked the bloc’s institutions to report on their transfers of personal data to non-EU countries. This analysis confirmed that data is flowing to third countries, the EDPS said today. And that it’s flowing to the U.S. in particular — on account of EU bodies’ reliance on large cloud service providers (many of which are U.S.-based).

That’s hardly a surprise. But the next step could be very interesting as the EDPS wants to determine whether those historical contracts (which were signed before the Schrems II ruling) align with the CJEU judgement or not.

Indeed, the EDPS warned today that they may not — which could thus require EU bodies to find alternative cloud service providers in the future (most likely ones located within the EU, to avoid any legal uncertainty). So this investigation could be the start of a regulator-induced migration in the EU away from U.S. cloud giants.

Commenting in a statement, Wiewiórowski said: “Following the outcome of the reporting exercise by the EU institutions and bodies, we identified certain types of contracts that require particular attention and this is why we have decided to launch these two investigations. I am aware that the ‘Cloud II contracts’ were signed in early 2020 before the ‘Schrems II’ judgement and that both Amazon and Microsoft have announced new measures with the aim to align themselves with the judgement. Nevertheless, these announced measures may not be sufficient to ensure full compliance with EU data protection law and hence the need to investigate this properly.”

Amazon and Microsoft have been contacted with questions regarding any special measures they have applied to these Cloud II contracts with EU bodies.

The EDPS said it wants EU institutions to lead by example. And that looks important given how, despite a public warning from the European Data Protection Board (EDPB) last year — saying there would be no regulatory grace period for implementing the implications of the Schrems II judgement — there hasn’t been any major data transfer fireworks yet.

The most likely reason for that is a fair amount of head-in-the-sand reaction and/or superficial tweaks made to contracts in the hopes of meeting the legal bar (but which haven’t yet been tested by regulatory scrutiny).

Final guidance from the EDPB is also still pending, although the Board put out detailed advice last fall.

The CJEU ruling made it plain that EU law in this area cannot simply be ignored. So as the bloc’s data regulators start scrutinizing contracts that are taking data out of the EU some of these arrangement are, inevitably, going to be found wanting — and their associated data flows ordered to stop.

To wit: A long-running complaint against Facebook’s EU-US data transfers — filed by the eponymous Max Schrems, a long-time EU privacy campaigners and lawyer, all the way back in 2013 — is slowing winding toward just such a possibility.

Last fall, following the Schrems II ruling, the Irish regulator gave Facebook a preliminary order to stop moving Europeans’ data over the pond. Facebook sought to challenge that in the Irish courts but lost its attempt to block the proceeding earlier this month. So it could now face a suspension order within months.

How Facebook might respond is anyone’s guess but Schrems suggested to TechCrunch last summer that the company will ultimately need to federate its service, storing EU users’ data inside the EU.

The Schrems II ruling does generally look like it will be good news for EU-based cloud service providers which can position themselves to solve the legal uncertainty issue (even if they aren’t as competitively priced and/or scalable as the dominant US-based cloud giants).

Fixing U.S. surveillance law, meanwhile — so that it gets independent oversight and accessible redress mechanisms for non-citizens in order to no longer be considered a threat to EU people’s data, as the CJEU judges have repeatedly found — is certainly likely to take a lot longer than ‘months’. If indeed the US authorities can ever be convinced of the need to reform their approach.

Still, if EU regulators finally start taking action on Schrems II — by ordering high profile EU-US data transfers to stop — that might help concentrate US policymakers’ minds toward surveillance reform. Otherwise local storage may be the new future normal.

#amazon, #aws, #cloud, #cloud-services, #data-protection, #data-protection-law, #data-security, #eu-us-privacy-shield, #europe, #european-commission, #european-data-protection-board, #european-union, #facebook, #lawyer, #max-schrems, #microsoft, #privacy, #surveillance-law, #united-states, #wojciech-wiewiorowski

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For M&A success, tap legal early and often

While mergers and acquisitions may be the right strategic path for many businesses, organizations tend to underestimate the role in-house legal teams play in a large-scale strategic transaction until the company is firmly entrenched in a deal.

While the CEO and board might fully appreciate the counsel of the legal team, the ability of the legal team to earn the support of the business — from product and development to marketing and HR — is critical to a smooth, efficient closing and post-close integration process.

Your in-house legal team should be held accountable for catching things specific to your business that outside attorneys will miss.

Having been on the inside of M&A transactions, here are a few insights that I recommend any executive team considering a major strategic transaction keep in mind when working with, and setting expectations for, the in-house legal function as the deal moves from business agreement to closing and through integration.

Is this the right transaction to move the business forward?

When you’re thinking of M&A (or any other type of strategic transaction, for that matter), it is critical to understand why you’re pursuing a deal and what the potential implications (both good and bad) may be for the business at large.

As the executive or founding team, have you agreed that doing the deal is the best way to further the overall strategic business objectives? Is the proposed deal allowing the company to scale more rapidly or efficiently? Does the transaction provide for a more diversified, complementary product offering?

After settling that the deal is the best way to achieve the overall business objective, the next focus is on execution. How will the resulting leadership bring together the two organizations? Do you have a plan on how to go from closing the transaction to successfully moving forward with the strategic purposes for doing the transaction in the first place? Is there agreement on product direction, go-to-market strategies, staffing, company culture, etc.?

These high-level discussions are important to have while evaluating a potential deal, and bringing in your internal legal leadership is critical in these early phases. You may identify during these early discussions aspects that are critical for the deal to be a success, and being sure your legal team is aware of these aspects allows the team to anticipate post-closing issues and resolve them proactively with the structure of the deal or by explicitly calling out critical obligations of each party.

Your in-house legal team should be held accountable for catching things specific to your business that outside attorneys will miss. Outside attorneys are experts in M&A or IPOs or venture financings or whatever else, but your in-house lawyers are experts in your company — that’s the true value of having an in-house team.

#advisors, #business-process-management, #column, #ec-column, #ec-how-to, #human-resource-management, #lawyer, #ma, #mergers-and-acquisitions, #tc

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Three dimensional search engine Physna wants to be the Google of the physical world

In June of 1999, Sequoia Capital and Kleiner Perkins invested $25 million into an early stage company developing a new search engine called Google, paving the way for a revolution in how knowledge online was organized and shared.

Now, Sequoia Capital is placing another bet on a different kind of search engine, one for physical objects in three dimensions, just as the introduction of three dimensional sensing technologies on consumer phones are poised to create a revolution in spatial computing.

At least, that’s the bet that Sequoia Capital’s Shaun Maguire is making on the Cincinnati, Ohio-based startup Physna.

Maguire and Sequoia are leading a $20 million bet into the company alongside Drive Capital, the Columbus, Ohio-based venture firm founded by two former Sequoia partners, Mark Kvamme and Chris Olsen.

“There’s been this open problem in mathematics, which is how you do three dimensional search. How do you define a metric that gives you other similar three dimensional objects. This has a long history in mathematics,” Maguire said. “When I first met [Physna founder] Paul Powers, he had already come up with a wildly novel distance metric to compare different three dimensional objects. If you have one distance metric, you can find other objects that are a distance away. His thinking underlying that is so unbelievably creative. If I were to put it in the language of modern mathematics… it just involves a lot of really advanced ideas that actually also works.”

Powers’ idea — and Physna’s technology — was a long time coming.

A lawyer by training and an entrepreneur at heart, Powers came to the problem of three dimensional search through his old day job as an intellectual property lawyer.

Powers chose IP law because he thought it was the most interesting way to operate at the intersection of technology and law — and would provide good grounding for whatever company the serial entrepreneur would eventually launch next. While practicing, Powers hit upon a big problem, while some intellectual property theft around software and services was easy to catch, it was harder to identify when actual products or parts were being stolen as trade secrets. “We were always able to find 2D intellectual property theft,” Powers said, but catching IP theft in three dimensions was elusive.

From its launch in 2015 through 2019, Powers worked with co-founder and chief technology officer Glenn Warner Jr. on developing the product, which was initially intended to protect product designs from theft. Tragically just as the company was getting ready to unveil its transformation into the three dimensional search engine it had become, Warner died.

Powers soldiered on, rebuilding the company and its executive team with the help of Dennis DeMeyere, who joined the company in 2020 after a stint in Google’s office of the chief technology officer and technical director for Google Cloud.

“When I moved, I jumped on a plane with two checked bags and moved into a hotel, until I could rent a fully furnished home,” DeMeyere told Protocol last year.

Other heavy hitters were also drawn to the Cincinnati-based company thanks in no small part to Olsen and Kvamme’s Silicon Valley connections. They include Github’s chief technology officer, Jason Warner, who has a seat on the company’s board of directors alongside Drive Capital’s co-founder Kvamme, who serves as the chairman.

In Physna, Kvamme, Maguire, and Warner see a combination of Github and Google — especially after the launch last year of the company’s consumer facing site, Thangs.

That site allows users to search for three dimensional objects by a description or by uploading a model or image. As Mike Murphy at Protocol noted, it’s a bit like Thingiverse, Yeggi or other sites used by 3D-printing hobbyists. What the site can also do is show users the collaborative history of each model and the model’s component parts — if it involves different objects.

Hence the GitHub and Google combination. And users can set up profiles to store their own models or collaborate and comment on public models.

What caught Maguire’s eye about the company was the way users were gravitating to the free site. “There were tens of thousands of people using it every day,” he said. It’s a replica of the way many successful companies try a freemium or professional consumer hybrid approach to selling products. “They have a free version and people are using it all the time and loving it. That is a foundation that they can build from,” said Maguire.

And Maguire thinks that the spatial computing wave is coming sooner than anyone may realize. “The new iPhone has LIDAR on it… This is the first consumer device that comes shipped with a 3D scanner with LIDAR and I think three dimensional is about to explode.”

Eventually, Physna could be a technology hub where users can scan three dimensional objects into their phones and have a representational model for reproduction either as a virtual object or as something that can be converted into a file for 3D printing.

Right now, hundreds of businesses have approached the company with different requests for how to apply its technology, according to Powers.

One new feature will allow you to take a picture of something and not only show you what that is or where it goes. Even if that is into a part of the assembly. We shatter a vase and with the vase shards we can show you how the pieces fit back together,” Powers said.

Typical contracts for the company’s software range from $25,000 to $50,000 for enterprise customers, but the software that powers Physna’s product is more than just a single application, according to Powers.

“We’re not just a product. We’re a fundamental technology,” said Powers. “There is a gap between the physical and the digital.”

For Sequoia and Drive Capital, Physna’s software is the technology to bridge that gap.

 

#california, #chairman, #chief-technology-officer, #chris-olsen, #cincinnati, #co-founder, #columbus, #computing, #drive-capital, #entrepreneur, #executive, #github, #google, #google-cloud, #iphone, #kleiner-perkins, #lawyer, #mark-kvamme, #ohio, #printing, #search-engine, #sequoia, #sequoia-capital, #sequoia-partners, #serial-entrepreneur, #shaun-maguire, #tc

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Kanarys raises $3 million for its data-driven platform to assess diversity and inclusion efforts

Mandy Price was already a highly successful lawyer in private practice before she took the jump into entrepreneurship alongside two co-founders to launch Kanarys a little over one year ago.

The Harvard Law School graduated didn’t have to start her company, which helps businesses measure the efficacy of their diversity and inclusion efforts using hard data, but she needed to start the company.

Now, a year after its launch, the company counts companies like Yum Brands, the Dallas Mavericks, and Neiman Marcus among the dozen or so companies using its service and has $3 million in seed funding to help it expand.

For Price, the drive to launch Kanarys came from her own experiences working in law. It wasn’t the microagressions, or the lower pay, or casually dismissive attitude of colleagues toward her well-earned success that led Price to start Kanarys, but the knowledge that her experience wasn’t unique and that thousands of other women and minorities faced the same experiences daily.

I have had many things happen to me in the workplace that is similar to what many other women and women of color have dealt with and didn’t want to have my children have to go through similar issues,” Price said. 

So alongside her husband, Bennie King (himself a serial entrepreneur in the Dallas area), and her University of Texas at Austin and Harvard classmate, Star Carter, Price launched Kanarys in late 2019.

The company uses Equal Employment Opportunity reports and assessments of various policies involving promotion, recruitment, and benefits to track how a company is performing in relation to its industry peers.

“A lot of the inequities we see are from a structural and systemic standpoint. That is where Kanarys can see how they’re perpetuating inequity,” Price said. 

Kanarys starts with an independent assessment of a company’s policies and practices and then conducts quarterly surveys with employees of its customers to see how well they are meeting their stated goals and objectives. They also integrate with existing human resources systems to track things like pay equity and promotions.

The service has attracted the attention of the Rise of the Rest fund, Morgan Stanley, Jigsaw Ventures, Segal Ventures and Zeal Capital Partners, which led the company’s $3 million seed round.

“Organizations have typically tried to address this with individual interventions,” said Price. “What we’re saying is we have to address it on both fronts. So much of the inequities that we see are based off of institutional and systemic policies and practices.”

Not only does Kanarys track information on diversity and inclusion efforts for customers, but for job seekers there’s a database of about 1,000 companies which operates like Glassdoor . The focus is not just on worker satisfaction, but on how employees view the diversity efforts their employers are undertaking.

Notably, Kanarys founders join the (far-too-few) ranks of Black entrepreneurs launching businesses and raising venture capital. In 2017, studies showed that 98 percent of venture capital raised in the U.S. went to men, according to data provided by the company. Black entrepreneurs in general receive less than one percent of venture capital, and Black women founders make up only 0.6 percent of venture capital funding raised. 

“We know that a focus on DEI in business is not just the right thing to do for employees, it also makes good business sense,” said Price, CEO and co-founder of Kanarys, in a statement. “Kanarys’ DEI data arms companies, for the first time, to make precise, immediate, and informed decisions using real, intersectional metrics around their diversity goals and inclusion programs that ultimately drive bottom-line business objectives.”

 

#articles, #business, #business-models, #dallas, #dallas-mavericks, #economy, #entrepreneurship, #glassdoor, #harvard, #lawyer, #morgan-stanley, #neiman-marcus, #serial-entrepreneur, #small-business, #tc, #texas, #united-states, #university-of-texas, #venture-capital, #yum-brands

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LA gets a big SAAS exit as Fastly nabs the Culver City-based Signal Sciences for $775M

Los Angeles was always more than a one industry town, even when it comes to technology startups, but media and entertainment (and social networking) were always the big draws in tinseltown.

Now the city’s enterprise tech scene can claim a really big winner with Signal Sciences, the security monitoring and management company that is getting bought by Fastly, a provider of content delivery networking services, for $775 million.

“Our team couldn’t be more excited about the opportunity to join Fastly to continue to drive forward security protections that empower developers. But we also believe this is a great moment to showcase the diversity of the LA technology scene,” wrote Signal Sciences chief executive, Andrew Peterson, in a direct message. “Being the largest enterprise tech outcome ever here, we’re just one of so many great deep technology companies who are paving the way for the next generation of SoCal based start ups. We’re thrilled to help lead the way for the broader tech community in Los Angeles.”

Content delivery and security go hand-in-hand and some of the biggest companies online use businesses like Fastly and its competitor, Cloudflare, to ensure that their online presence doesn’t go offline — and that browsers can quickly download and deliver websites.

Fastly said that the acquisition of Signal Sciences’ business will boost its ability to provide better security for applications and APIs — the connective fabric between different services that knit different technologies together behind the scenes.

With the acquisition, Fastly is planting a flag as a new competitor in the cybersecurity market, even as companies like Amazon, Microsoft, and Google offer a wider array of services under their Internet as a service business lines.

Application security is a higher value piece of the services stack and it takes advantage of the natural position that a company like Fastly has as a content distribution network.

“Fastly was founded to meet developers’ need for greater visibility and control. Now, as the digital transformation movement continues to accelerate, DevOps teams are struggling with inadequate and inflexible security tools,” said Joshua Bixby, Chief Executive Officer of Fastly, in a statement. “Together with Signal Sciences, we will give developers modern security tools designed for the way they work.”

Los Angeles, California, USA – March 23, 2016: Aerial view of the Hollywood sign at dusk in Los Angeles. The image has been taken from an helicopter flying over LA. Image Credit: Getty Images/franckreporter

Under the terms of the agreement Fastly is buying Signal Sciences for $200 million in cash and approximately $575 million worth of stock, subject to customary adjustments for transactions, according to a statement.

Fastly is also setting up a $50 million retention pool of restricted stock units to give out to Signal Sciences employees.

Signal Sciences employees aren’t the only winners in the deal. The company raised $63 million in venture financing from investors including CRV, Harrison Metal, Index Ventures, Oreilly Alphatech Ventures, Lead Edge Capital, and individual investors including former Facebook security officer Alex Stamos, and Etsy chief executive Chad Dickerson.

The company’s last round was a $35 million investment raised about two years ago, and one investor with knowledge of the company’s cap table called it a “pretty efficient exit” for its backers.

Morgan Stanley & Co. and Union Square Advisors are acting as financial advisors to Fastly, and Cooley LLP is acting as its legal advisor with regard to the transaction, according to a statement. Qatalyst Partners is acting as financial advisor to Signal Sciences, while Goodwin Procter was the company’s lawyer.

#alex-stamos, #amazon, #chad-dickerson, #chief-executive-officer, #cloudflare, #computing, #cooley-llp, #etsy, #facebook, #fastly, #financial-advisor, #financial-advisors, #google, #harrison-metal, #internet, #internet-security, #joshua-bixby, #lawyer, #lead-edge-capital, #los-angeles, #microsoft, #oreilly-alphatech-ventures, #qatalyst-partners, #signal-sciences, #social-networking, #tc, #union-square-advisors

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Legaltech startup Orbital Witness scores £3.3M to create a ‘universal risk rating’ for real estate

Orbital Witness, a U.K.-based legaltech startup developing “AI-powered” software to transform the £4 billion U.K. property due diligence market, has raised £3.3 million in seed funding.

The round is led by LocalGlobe and Outward VC, with participation from previous investors, including Seedcamp and JLL Spark. It brings Orbital Witness’s total funding to £4.5 million.

Launched with its first customer in September 2018 and now used by numerous large law firms, including four of the five so-called “Magic Circle” firms, Orbital Witness’ long-term vision is to build a “universal risk rating” for real estate. “Think of a credit risk check for land and property,” Orbital Witness co-founder and COO Will Pearce tells me.

To do this, the startup is employing machine learning technology that it hopes can mirror the process a lawyer goes through when gathering and checking property information. The idea is to use AI to “predetermine” issues that constitute a potential risk.

“Our technology is adept at trawling through and extracting key issues from the wide range of sources that a property lawyer considers, including HM Land Registry and local authorities,” explains Pearce. “For example, a user is alerted to third party rights, charges and restrictions that might block a sale. In our current state of product development, this allows Orbital Witness to act as an ‘early warning system’ for property lawyers”.

Zooming out further, Pearce says real estate is the world’s largest asset class, but that the process of recording and reporting on property rights has not materially changed in 150 years. This sees real estate lawyers having to manually collect and review information from an array of disparate sources, which can often take weeks to arrive before they can even start. Meanwhile, the various real estate stakeholders — from banks making lending decisions, large commercial real estate PE funds, to residential homebuyers — can’t sign off transactions until the lawyers have completed their due diligence.

“Anyone who has ever bought a home will appreciate the frustrations of dealing with this legal due diligence process, and in commercial real estate, where Orbital Witness is initially focussed, many of these problems are amplified,” says Pearce.

The longer term plan is to ingest a broader range of data, so that Orbital Witness can eventually become trusted to provide a universal risk rating for real estate. This will see its risk modelling solutions wired to also include geographic information (e.g. flood risk), privately held information that can be uploaded to the platform (e.g. rights of lights reports), and also non-legal information (e.g. financial data from public records and ratings agencies).

Adds the Orbital Witness co-founder: “Very importantly, risk in real estate is dependent on the context of a transaction. For a real estate investor purchasing a block of flats, they are interested in understanding the security of rental income derived from the leaseholds. However, a property developer transacting on the same building, may be more interested in any hidden covenants that could prevent the ability to build or redevelop the site”.

#articles, #artificial-intelligence, #co-founder, #commercial-real-estate, #corporations, #due-diligence, #economy, #lawyer, #machine-learning-technology, #real-estate, #tc, #united-kingdom

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