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| Welcome to the latest edition of Inside Tech's newsletter! Here are today's top stories: - Twitter's rebranding to X could face legal challenges over trademarks.
- EU member states greenlight $47B Chips Act.
- TikTok to launch U.S. e-commerce platform next month.
Beth
p/beth-duckett | |
| 1 | | Twitter, now rebranded as "X," could face legal challenges over its new name and logo, per a Reuters report. Companies like Meta and Microsoft already own trademarks related to the letter "X." More: - Trademark attorney Josh Gerben predicts that Twitter is likely to be sued by someone over the rebranding.
- According to Gerben, there are over 900 live trademark registrations for "X" across industries in the U.S., making it a likely target for legal challenges.
- Microsoft, for example, has held an "X trademark" for its Xbox video game system since 2003.
- Meta owns a 2019 federal trademark for a blue-and-white letter "X" used in software and social media.
- Companies might only take legal action if they perceive Twitter's use of "X" as a threat to their own brand equity, Gerben noted.
Zoom out: - Elon Musk's X Corp, which now owns Twitter, has applied for a trademark on the Twitter name itself.
- If faced with major legal challenges, Musk could have the option to revert to the original branding.
- Musk's decision to rebrand Twitter as "X" reportedly resulted in a value loss estimated between $4B and $20B, as noted in a Time article.
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| 2 | | What happened: European Union member states have signed off on a €43B ($47B) plan to boost semiconductor production in the region. Details: Once signed by council and parliament presidents and published in the Official Journal, the act will become law. The EU Chips Act seeks to reduce dependencies on Asia production and prevent potential chip shortages. Approved by the EU's Council's ministers on Tuesday, the plan allows for major investments in chip fabs and research, and includes state subsidies for "first-of-a-kind" chips, attracting companies like Intel to establish new sites in Europe. Why it matters: The U.S. introduced its $52B Chips Act last year, while the U.K. recently announced a smaller $1.2B chip investment. With its own act, the EU wants to grow its share of the world's microchip production to at least 20% by 2030, doubling the current 10%. 
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| 3 | | TikTok is gearing up to launch an e-commerce platform in the U.S. in early August, competing with Chinese shopping apps Shein and Temu, according to The Wall Street Journal. TikTok's platform will operate similarly to "Sold by Amazon," storing and shipping mostly Chinese goods such as clothing, electronics, and gadgets. More: - The "TikTok Shop Shopping Center" combines various channels on a single page for users to browse and purchase goods.
- Users will be able to shop and leave reviews via a dedicated e-commerce tab within the TikTok app.
- TikTok will handle storage and shipping for manufacturers and merchants in China, along with marketing, transactions, and after-sale services.
- The company aims to avoid holding inventory for unpopular items and will only pay Chinese suppliers once they find U.S. buyers.
Zoom out: - TikTok's e-commerce strategy seeks to diversify beyond ad sales and increase revenue from its video app.
- The company aims to quadruple its gross merchandise value to $20B this year, up from $5B in 2022.
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| 4 | | A new study projects a shortfall of 67,000 skilled workers in the U.S. semiconductor industry by 2030. The report by the Semiconductor Industry Association (SIA) and Oxford Economics warns that the current rate of graduates won't be enough to fill demand. More: - The study coincides with efforts to fortify the U.S. chip sector through the U.S. CHIPS Act, which allocates funds for new chip manufacturing sites and R&D.
- The legislation will create job opportunities, and the projected worker shortage includes computer scientists, engineers, and technicians; with engineers accounting for about half of the future industry jobs.
- The study projects a growth of around 115,000 jobs in the U.S. semiconductor industry by 2030, reaching about 460,000 jobs from the current 345,000.
Zoom out: - The shortage is part of a broader deficit in STEM graduates in the U.S., with an estimated 1.4 million positions potentially remaining unfilled by the end of 2023.
- To address the talent gap, the study makes policy recommendations, such as attracting more international students with advanced degrees and boosting support for regional partnerships and programs for skilled technicians.
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| 5 | | Amazon and iRobot have revised their acquisition deal, lowering the price by 15% to about $1.42B. iRobot, the manufacturer of Roomba robotic vacuums, secured a $200M financing facility to bolster its operations. As a result, Amazon slashed the acquisition price to account for the anticipated increase in iRobot's net debt. More: - The new price is $51.75 per share in cash, down from the original $61 per share.
- The financing facility was provided by Carlyle Group Inc., a private equity firm.
- During the pandemic, iRobot saw a surge in sales as more people sought efficient ways to clean their homes while staying indoors.
- However, demand for iRobot's products has declined, and in May, the company reported lower-than-expected sales and earnings per share.
Zoom out: - Amazon's acquisition of iRobot has faced scrutiny since it was unveiled last August.
- Both the FTC and European regulators are now investigating the transaction over competition concerns.
- The European Commission recently extended the deadline and will decide by Dec. 13 whether to approve or block it.
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| 6 | | Several major media publishers are coming together to consider taking legal action against AI giants like Google and OpenAI. A Semafor report reveals that the media companies are worried about a decline in website traffic, as AI chatbots are using information from their news stories without links or attribution. More: - Participating in this effort are notable companies like IAC, owned by Barry Diller, along with The New York Times, Axel Springer, and News Corp., the owner of The Wall Street Journal.
- Joey Levin, the CEO of IAC, expressed concerns about how traditional search engines showcase the best content on the internet, while large language models seem to be appropriating it without permission.
- The coalition could potentially file a lawsuit against companies like OpenAI, as well as push for legislation,
Zoom out: - Prior to this, OpenAI, Google, and others had engaged in talks with media outlets to forge agreements for using their news content to train AI models. Recently, OpenAI and the Associated Press (AP) reached a licensing deal.
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- Meta's Threads app now features a chronological feed for followed users, which was seen as a vital addition for competing with Twitter.
- Apple has opened up Vision Pro developer kit applications, gearing up for the 2024 launch of its $3,499 headset.
- GM's Chevrolet plans to introduce a next-generation Bolt electric vehicle.
- The U.S. Subcommittee on National Security, the Border, and Foreign Affairs will hold a UFO hearing on July 26, streaming at 10 a.m. ET. It will include "firsthand accounts" of unidentified anomalous phenomena (UAP) and address legislation for transparency.
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 | AI and technology writer | | Beth is a writer and editor at Inside.com covering artificial intelligence and daily technology news. She has written the Inside AI newsletter since 2019. You can reach her at Beth.Duckett@inside.com. | | This newsletter was edited by Eduardo Garcia | |
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