World
Why NBA Is Seeking Dismissal of TBS, WBD Lawsuit
In a comprehensive memorandum of law urging New York Judge Joel M. Cohen to dismiss TBS and Warner Bros. Discovery’s breach of contract lawsuit against the NBA, league attorneys Friday blasted the case as defying basic contract law principles and misconstruing a right to match.
Last month, TBS and WBD sued in the aftermath of the NBA concluding that the plaintiffs failed to match an offer by Amazon to broadcast games from 2025-26 through 2035-36. The NBA officially recognized Amazon Prime Video, Disney’s ABC/ESPN and NBC/Peacock as the league’s next media partners, and they’ll pay $76.9 billion over the course of the deals. TBS (in part through TNT) will no longer be the league’s primary media partner, a role it has enjoyed for 35 years. But TBS and WBD say they invoked a right to match Amazon’s offer and thus should remain tied to the league.
The motion to dismiss memorandum, authored by Robert A. Sacks and other attorneys from Sullivan & Cromwell as well as by NBA executives Rick Buchanan and Dan Spillane, asserts TBS and WBD’s theory fails for several reasons.
First, the NBA argues TBS’s matching rights—which are contained in a 2014 contract between TBS and the NBA granting TBS the right to distribute NBA games on the TNT linear cable television network through the 2024–2025 season—doesn’t authorize a match of Amazon’s offer. Amazon’s delivery of games is through streaming, whereas linear means TV channels that are “programmed in a time sequence, with content offered in a particular order and at a specific time.”
The 2014 contract also didn’t give TBS the right to distribute games on the Internet, the league points out. In contrast, Amazon’s offer says it “is the NBA’s first ‘streaming-only package” and makes clear Amazon is receiving “no over-the-air broadcast, cable, satellite or other linear television rights.”
The NBA acknowledges that NBA games are streamed on Max, which is owned by WBD, but maintains that is a fact without relevant legal significance in this dispute. The league says the “source of the rights” to stream games on Max is not the NBA/TBS 2014 contract, but instead a separate contract between NBA Media Ventures and Bleacher Report and that—most relevantly here—lacks a matching provision.
Second, the NBA maintains that even if TBS could match Amazon’s offer, its attempt to do so was an air ball. The league says TBS cannot “fundamentally change the method of distribution required by Amazon’s offer,” namely by moving games that would be streamed to linear cable TV. The NBA notes that TBS could have matched NBCUniversal’s “separate, more expensive third-party offer,” since it contemplates linear TV distribution rights. Instead, TBS tried to match the less expensive Amazon offer and, the NBA contends, unilaterally rewrote that offer’s terms.
Third, the NBA maintains that instead of matching Amazon’s offer, TBS took Amazon’s offer, rewrote key terms to advance TBS’s interests and then announced it had accepted the revised version. The NBA says that’s not a match, but instead a new document that neither Amazon nor the NBA would accept and that, by itself, doesn’t do anything. The matching provision from the 2014 agreement, the NBA contends, “unambiguously required” that TBS match each term of Amazon’s offer.
The league says TBS revised eight of 27 sections, altered 11 defined terms, crossed out about 300 words and brought in more than 270 new words. One alleged change involves the financial security of payments. Amazon agreed to maintain an escrow account that contains three years of rights fees, an amount in the ballpark of $5.4 billion since Amazon will pay about $1.8 billion a year. These fees will be automatically deducted. TBS, in contrast, has (as the NBA tells it) agreed to provide the league “with syndicated letters of credit that the NBA can access only if TBS’s payments are late.”
To be clear, a defendant’s motion to dismiss is an advocacy document, meaning, like a plaintiff’s complaint, it offers a one-sided view of the key issues. Attorneys for TBS and WBD will have the chance to attempt to rebut the NBA’s arguments. As Sportico detailed, the plaintiffs have insisted that the technological distinction between streaming and linear is not as bright line as the NBA paints it, including because (they claim) 70% of Prime video watching “occurs on a television” and because, like Amazon Prime, TNT and Max are distributed via the Internet. TBS and WBD thus insist they could and did match Amazon’s offer, despite the NBA’s insistence they couldn’t and didn’t.
Legal disputes over matching provisions have a long history in the sports industry, among other industries. They usually center on the degree to which a “match” can change an offer before the changes become too substantial that it is no longer a match. Here, the NBA asserts not only has TBS dramatically altered Amazon’s offer but that, as a matter of first principle, TBS literally couldn’t match Amazon’s offer.
World
Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions
Anthropic on Wednesday joined growing calls for the artificial intelligence industry to find ways to cushion people from the technology’s disruptions, announcing an initial $200 million investment to research AI’s impact on jobs and the economy.
Alongside new policy proposals from the maker of the Claude chatbot, Anthropic CEO and co-founder Dario Amodei published an essay on his personal website that expanded on his position that the government should promise economic support for those financially impacted by AI. The technology could produce much larger disruptions to the labor market than previous technological advancements, Amodei wrote, and those disruptions could last longer.
“The key challenge in such a world won’t be incentivizing growth, but finding a way for everyone to share in the benefits,” Amodei wrote.
The announcement comes on the heels of Anthropic rival OpenAI on Monday outlining goals that included ensuring gains from the technology are “widely shared.” OpenAI CEO Sam Altman recently met with Sen. Bernie Sanders to discuss a plan for the public to take an ownership stake in artificial intelligence companies like OpenAI, using their stock to create a public wealth fund that would spread the fortune generated by AI behemoths.
In the Oval Office on Wednesday, President Donald Trump told reporters that he will soon meet with executives from several leading AI companies to discuss “giving back” to the public.
“We’re talking about giving back something to the public, and if we do that, the public will become very rich,” Trump said. “I think they’ll do that, and I think it’ll make it very popular.”
In his essay, Amodei said he has warned of job displacement not because he is “trying to be a ‘prophet of doom’” but because he wants “both policymakers and the private sector to have the best chance to adapt and respond.” He proposed better data collection to track AI job displacement, pro-employment policy incentives to slow or reduce displacement and “mechanisms such as universal basic income” if job displacement more permanently drives down labor demand.
That universal basic income could be financed through taxes on “relevant companies” or by raising the capital gains tax, Amodei wrote.
Scant details were available Wednesday about the $200 million commitment from Anthropic, but the company said it will go to what it calls an Economic Futures Research Fund that will back research trials and “program evaluation” on public policies it deems promising. The company is also establishing a $150 million national fellowship program it says will help early-career professionals “extend the benefits of AI to communities across America.”
Anthropic and OpenAI each recently announced they were moving toward initial public offerings of shares, following Elon Musk’s rocket company SpaceX, which is pitching itself as an AI-focused space company as it prepares to go public.
The economic policy framework Anthropic proposed Wednesday set recommendations for how the U.S. government could respond to three levels of economic disruption caused by AI: one in which the national unemployment rate reaches 5%, 10% and an unspecified, “unprecedented” level. The latest unemployment rate, reported last week, was 4.3%.
In the “unprecedented” scenario, the company wrote that more permanent support will be necessary, and it listed several ways to generate and share revenue broadly, including basic income, sovereign wealth models and equity-sharing mechanisms. This would be “novel economic territory,” the company wrote.
The company’s proposals also outlined several suggestions for mitigating safety and security risks. Anthropic is known for its emphasis on safety and building reliable, “steerable” AI systems, with Amodei and its co-founders splitting off from OpenAI to form the new company in 2021.
The proposals add that the government should be able to “block or deter” the rollout of AI models that “pose a significant risk of catastrophic harms.”
Amodei wrote that AI regulations should match the rigor of Federal Aviation Administration regulations in that AI models would be required to go through technical testing and auditing like airplanes. They wouldn’t be released if they didn’t meet high safety standards.
Last week, Trump signed an executive order on AI oversight that established a framework for the government to vet the national security risks of the most advanced AI systems for up to a month before their public release.
Amodei added existing regulations for aircraft, automobiles and drugs should serve as models for regulating AI. They are all “powerful technologies essential to the modern economy,” he wrote, “but capable of killing large numbers of people if designed or operated poorly.”
World
UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand
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U.K. surveillance laws drew scrutiny from House Judiciary Committee Chairman Jim Jordan, R-Ohio June 5 amid warnings they could expose communications of officials and American citizens, according to reports.
The concern centered on the U.K.’s use of secret Technical Capability Notices under the Investigatory Powers Act, which critics say could make U.S. companies weaken encryption or create “backdoors” weaken encryption or create “backdoors” while preventing firms from disclosing requests without U.K. government approval.
Critics have argued this could undermine privacy, create vulnerabilities and limit congressional oversight with one former intelligence official warning of a “standing invitation to Beijing.”
“We have already seen how this ends,” former Department of Defense official Andrew Badger told Fox News Digital.
JD VANCE ‘DIRECTLY’ CONVINCED UK TO DROP APPLE BACKDOOR DATA DEMAND, PROTECTING AMERICANS’ RIGHTS: US OFFICIAL
Rep. Jim Jordan said Republicans are “the party of common sense,” and Democrats are “the party that takes these crazy positions.” (Kevin Dietsch/Getty Images)
“There are legitimate privacy concerns here, and those have been well aired. The less examined issue is national security,” Badger said.
“A backdoor compelled by one ally becomes a standing invitation to Beijing, Moscow and Tehran so once one government can quietly compel access, others will demand the same, and a one-off concession hardens into a permanent vulnerability,” he warned.
According to the Telegraph, a June 5 letter sent by Jordan to U.K. Home Secretary Shabana Mahmood, showed the Trump ally had called for a review.
The report said Mahmood’s decision had been to deny a U.S. company permission to speak with Congress about an alleged encryption backdoor notice.
Jordan was also said to have warned that a lack of bilateral coordination raised concerns about the “trust and effective partnership between our two countries.”
“Five Eyes works because every partner trusts the others not to weaken the systems they all depend on,” Badger, co-author of “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” said.
“If Washington also concludes that U.K. surveillance powers could inadvertently expose Americans and American officials to espionage, it puts real strain on the relationship and makes future cooperation on intelligence and cyber harder to sustain.”
US SPIES URGED TO REFOCUS EFFORTS ON AMERICA’S BACKYARD, NEW HOUSE INTEL CHAIR SAYS
The Thames House headquarters of MI5 in London on Nov. 18, 2025. Britain’s domestic security service has warned of growing state-backed threats, including more than 20 Iran-backed plots uncovered in the UK, as lawmakers consider new legislation targeting foreign state-linked groups. (Betty Laura Zapata/Bloomberg via Getty Images)
On the encryption issue, Badger noted that mainstream encrypted platforms now function as “de facto infrastructure for sensitive communication well beyond the consumer market.”
“Any access point built into them becomes a permanent target. It is not a private key the requesting government gets to keep to itself,” he said.
U.S. and British cyber officials have also repeatedly warned that an axis of hostile states — including Russia, China and Iran — poses threats to Western security and infrastructure.
As previously reported by Fox News Digital, cyberespionage by groups such as Salt Typhoon, linked to China, has carried out operations targeting sensitive communications.
“China is actively running one of the largest state-backed cyberespionage operations ever uncovered. The Salt Typhoon campaign has targeted hundreds of organizations across roughly 80 countries and, through those intrusions, gained access to sensitive communications and networks used by senior Western officials,” Badger warned.
“Chinese state hackers didn’t defeat encryption. They walked straight through the lawful-intercept systems telecom providers had built, reaching the communications of senior officials and even information about surveillance targets.”
CHINESE BIOWEAPON SMUGGLING CASE SHOWS US ‘TRAINS OUR ENEMIES,’ ‘LEARNED NOTHING’ FROM COVID: SECURITY EXPERT
The flag of China is flown behind a pair of surveillance cameras outside the Central Government Offices. (Roy Liu/Bloomberg via Getty Images)
Reports also surfaced that U.K. Foreign Secretary Yvette Cooper used a burner phone during a recent trip to Beijing and raising further concerns about state-sponsored espionage.
Badger noted that the episode reflects a broader pattern of Chinese targeting of British democratic institutions, including the “hacking of senior Downing Street officials’ phones and an Electoral Commission breach that exposed the data of roughly 40 million voters,” he said.
“The telling thing is that no one issues burner phones for a trip to Sweden or Germany,” he said.
“The precaution is itself an admission of the threat environment. The working assumption — correctly — is that anything digital taken into China should be treated as potentially compromised.”
The systemic vulnerability also highlights a fundamental contradiction in Western diplomatic strategy, according to Badger.
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“This case perfectly underscores the contradiction at the heart of the U.K. Labour government’s China policy: chasing positive economic relations and expanded trade with Beijing on one hand, while being forced to take elaborate precautions against a state whose core interests remain fundamentally at odds with its own on the other,” Badger said.
“You can’t simultaneously treat China as a trusted economic partner and a hostile intelligence threat. It’s a fundamental contradiction. The need to use burner phones symbolically underscore this.”
World
Trade and defence top of agenda at EU-South Korea summit
European Commission President Ursula von der Leyen, European Council President Antonio Costa and with South Korean President Lee Jae-myung celebrated the signing of new a digital trade agreement at a ceremony in Brussels on Wednesday.
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The event marked the EU and South Korea’s 11th summit, with everything from security and defence to trade on the agenda.
“Korea is one of Europe’s closest partners in the Indo-Pacific region and on the global stage,” von der Leyen said. “In today’s uncertain world, stable and trusted partnerships like ours are more precious than ever.”
The trio released a joint statement extolling the value of the talks and committing the two sides to a firm and friendly relationship.
“We reaffirm our shared commitment to effective multilateralism, and to a stable and predictable rules-based free and fair economic order,” the statement reads.
The semiconductor factor
Both sides have an interest in diversifying their trade relationships at a time of growing tensions with both China and the US, and the EU-South Korea digital trade agreement comes more than a decade after a landmark free trade deal.
Since 2015, trade between the EU and South Korea has doubled, with goods trade reaching approximately €124.25 billion in 2025, according to figures from the European Commission.
“The European Union-Korea Free Trade Agreement remains one of the European Union’s most successful trade agreements since its entry into enforcement in 2011,” European Council António Costa said on Wednesday.
South Korea is becoming an increasingly important investor in Europe, particularly in strategic sectors such as batteries, electric vehicles and semiconductors.
For the EU, a key objective is to secure semiconductor supply chains while attracting further investment from Korean companies into Europe.
“Korea has a global leadership position in semiconductors,” an EU official said. “This is clearly an area with significant potential for cooperation that would benefit both sides.”
The digital trade agreement concluded on Wednesday is expected to complement the broader trade partnership by reducing “unnecessary barriers to digital trade” and providing greater “legal certainty” for businesses operating across the two markets, according to another EU official. It will facilitate cross-border data flows while prohibiting the mandatory transfer of source code.
The deal is also designed to establish robust online consumer protection rules, though both partners intend to maintain their respective levels of protection for personal data and privacy.
Economic security was also high on the summit agenda, with the two sides agreeing to establish a high-level dialogue on supply chain resilience.
Supply chains came under pressure last year following China’s restrictions on exports of strategic materials, including rare earths – essential for green technologies and the defence sector – as well as products linked to the chip industry, which are critical to automotive manufacturing.
Security and defence
One thing that did not get over the line was a security of information agreement, which had been touted by EU officials prior to the summit as a means of strengthening the flow of classified information between Brussels and Seoul.
“I hope that the security of information agreement will be adopted soon, so that Korea and the EU can share confidential information safely, which will allow the two sides to engage in industrial and research cooperation actively through information exchange exchange,” President Lee said on Wednesday.
The agreement would build on the Security and Defence Partnership agreement that South Korea and the EU signed in 2024. That deal was designed to facilitate cooperation in areas spanning maritime security, countering hybrid threats, fighting foreign information manipulation and interference, and more besides.
In the run-up to this week’s talks, a senior EU official said a key topic of the discussions will be nuclear non-proliferation, as North Korea continues to hold a small but concerning stockpile of nuclear-armed warheads.
North Korea (the DPRK) and Russia were considered “big questions” at the summit, the source said, with Brussels ready to share information on its support for Ukraine with Seoul.
The joint statement from the summit reiterates this, with words of condemnation directed at North Korea and other nations who enable Russia to sustain its war of aggression against Ukraine.
“We urge Russia and the DPRK to immediately cease all such activities and abide by the UN Charter and all relevant United Nations Security Council resolutions,” the statement reads.
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