California’s challenge of the Trump administration’s military deployment in Los Angeles returned to a federal courtroom in San Francisco on Friday for a brief hearing after an appeals court handed President Donald Trump a key procedural win.

U.S. District Judge Charles Breyer put off issuing any additional rulings and instead asked for briefings from both sides by noon Monday on whether the Posse Comitatus Act, which prohibits troops from conducting civilian law enforcement on U.S. soil, is being violated in Los Angeles.

The hearing happened the day after the 9th Circuit appellate panel allowed the president to keep control of National Guard troops he deployed in response to protests over immigration raids.

California Gov. Gavin Newsom said in his complaint that “violation of the Posse Comitatus Act is imminent, if not already underway” but Breyer last week postponed considering that allegation.

Vice President JD Vance, a Marine veteran, traveled to Los Angeles on Friday and met with troops, including U.S. Marines who have been deployed to protect federal buildings.

According to Vance, the court determined Trump’s determination to send in federal troops “was legitimate” and he will do it again if necessary.

“The president has a very simple proposal to everybody in every city, every community, every town whether big or small, if you enforce your own laws and if you protect federal law enforcement, we’re not going to send in the National Guard because it’s unnecessary,” Vance told journalists after touring a federal complex in Los Angeles.

Vance’s tour of a multiagency Federal Joint Operations Center and a mobile command center came as demonstrations have calmed after sometimes-violent clashes between protesters and police and outbreaks of vandalism and break-ins that followed immigration raids across Southern California earlier this month. Tens of thousands have also marched peacefully in Los Angeles since June 8.

National Guard troops have been accompanying federal agents on some immigration raids, and Marines briefly detained a man on the first day they deployed to protect a federal building. The marked the first time federal troops detained a civilian since deploying to the nation’s second-largest city.

Breyer found Trump acted illegally when, over opposition from California’s governor, the president activated the soldiers. However, the appellate decision halted the judge’s temporary restraining order. Breyer asked the lawyers on Friday to address whether he or the appellate court retains primary jurisdiction to grant an injunction under the Posse Comitatus Act.

California has sought a preliminary injunction giving Newsom back control of the troops in Los Angeles, where protests have calmed down in recent days.

Trump, a Republican, argued that the troops have been necessary to restore order. Newsom, a Democrat, said their presence on the streets of a U.S. city inflamed tensions, usurped local authority and wasted resources.

The demonstrations appear to be winding down, although dozens of protesters showed up Thursday at Dodger Stadium, where a group of federal agents gathered at a parking lot with their faces covered, traveling in SUVs and cargo vans. The Los Angeles Dodgers organization asked them to leave, and they did.

On Tuesday, Los Angeles Mayor Karen Bass lifted a downtown curfew that was first imposed in response to vandalism and clashes with police after crowds gathered in opposition to agents taking migrants into detention.

Trump federalized members of the California National Guard under an authority known as Title 10.

Title 10 allows the president to call the National Guard into federal service when the country “is invaded,” when “there is a rebellion or danger of a rebellion against the authority of the Government,” or when the president is otherwise unable “to execute the laws of the United States.”

Breyer found that Trump had overstepped his legal authority, which he said allows presidents to control state National Guard troops only during times of “rebellion or danger of a rebellion.”

“The protests in Los Angeles fall far short of ‘rebellion,’ ” wrote Breyer, a Watergate prosecutor who was appointed by President Bill Clinton and is the brother of retired Supreme Court Justice Stephen Breyer.

The Trump administration argued that courts can’t second-guess the president’s decisions. The appellate panel ruled otherwise, saying presidents don’t have unfettered power to seize control of a state’s guard, but the panel said that by citing violent acts by protesters in this case, the Trump administration had presented enough evidence to show it had a defensible rationale for federalizing the troops.

For now, the California National Guard will stay in federal hands as the lawsuit proceeds. It is the first deployment by a president of a state National Guard without the governor’s permission since troops were sent to protect Civil Rights Movement marchers in 1965.

Trump celebrated the appellate ruling in a social media post, calling it a “BIG WIN” and hinting at more potential deployments.

Newsom, for his part, has also warned that California won’t be the last state to see troops in the streets if Trump gets his way.

Getty Images is facing off against artificial intelligence company Stability AI in a London courtroom for the first major copyright trial of the generative AI industry.

Opening arguments before a judge at the British High Court began on Monday. The trial could last for three weeks.

Stability, based in London, owns a widely used AI image-making tool that sparked enthusiasm for the instant creation of AI artwork and photorealistic images upon its release in August 2022. OpenAI introduced its surprise hit chatbot ChatGPT three months later.

Seattle-based Getty has argued that the development of the AI image maker, called Stable Diffusion, involved “brazen infringement” of Getty’s photography collection “on a staggering scale.”

Tech companies have long argued that “fair use” or “fair dealing” legal doctrines in the United States and United Kingdom allow them to train their AI systems on large troves of writings or images. Getty was among the first to challenge those practices when it filed copyright infringement lawsuits in the United States and the United Kingdom in early 2023.

“What Stability did was inappropriate,” Getty CEO Craig Peters told The Associated Press in 2023. He said creators of intellectual property should be asked for permission before their works are fed into AI systems rather than having to participate in an “opt-out regime.”

Getty’s legal team told the court Monday that its position is that the case isn’t a battle between the creative and technology industries and that the two can still work together in “synergistic harmony” because licensing creative works is critical to AI’s success.

“The problem is when AI companies such as Stability AI want to use those works without payment,” Getty’s trial lawyer, Lindsay Lane, said.

She said the case was about “straightforward enforcement of intellectual property rights,” including copyright, trademark and database rights.

Getty Images “recognizes that the AI industry is a force for good but that doesn’t justify those developing AI models to ride roughshod over intellectual property rights,” Lane said.

Stability AI had a “voracious appetite” for images to train its AI model, but the company was “completely indifferent to the nature of those works,” Lane said.

Stability didn’t care if images were protected by copyright, had watermarks, were not safe for work or were pornographic and just wanted to get its model to the market as soon as possible, Lane said.

“This trial is the day of reckoning for that approach,” she said.

Stability has argued that the case doesn’t belong in the United Kingdom because the training of the AI model technically happened elsewhere, on computers run by U.S. tech giant Amazon.

The judge’s decision is unlikely to give the AI industry what it most wants, which is expanded copyright exemptions for AI training, said Ben Milloy, a senior associate at UK law firm Fladgate, which is not involved in the case.

But it could “strengthen the hand of either party – rights holders or AI developers – in the context of the commercial negotiations for content licensing deals that are currently playing out worldwide,” Milloy said.
In the years after introducing its open-source technology, Stability confronted challenges in capitalizing on the popularity of the tool, battling lawsuits, misuse and other business problems.

Stable Diffusion’s roots trace back to Germany, where computer scientists at Ludwig Maximilian University of Munich worked with the New York-based tech company Runway to develop the original algorithms. The university researchers credited Stability AI for providing the servers that trained the models, which require large amounts of computing power.

Stability later blamed Runway for releasing an early version of Stable Diffusion that was used to produce abusive sexual images, but also said it would have exclusive control of more recent versions of the AI model.

Stability last year announced what it described as a “significant” infusion of money from new investors including Facebook’s former president Sean Parker, who is now chair of Stability’s board. Parker also has experience in intellectual property disputes as the co-founder of online music company Napster, which temporarily shuttered in the early 2000s after the record industry and popular rock band Metallica sued over copyright violations.

Financial markets welcomed a U.S. court ruling that blocks President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.

U.S. futures jumped early Thursday and oil prices rose more than $1. The U.S. dollar rose against the yen and euro.

The court found the 1977 International Emergency Economic Powers Act, which Trump has cited as his basis for ordering massive increases in import duties, does not authorize the use of tariffs.

The White House immediately appealed and it was unclear if Trump would abide by the ruling in the interim. The long term outcome of legal disputes over tariffs remains uncertain. But investors appeared to take heart after the months of turmoil brought on by Trump's trade war.

The future for the S&P 500 was up 1.5% while that for the Dow Jones Industrial Average gained 1.2%.

In early European trading, Germany's DAX gained 0.5% to 24,160.75. The CAC 40 in Paris jumped 0.9% to 7,860.67. Britain's FTSE was nearly unchanged at 8,722.63.

Japan's Nikkei 225 index jumped 1.9% to 38,432.98. American's largest ally in Asia has been appealing to Trump to cancel the tariffs he has ordered on imports from Japan and to also stop 25% tariffs on steel, aluminum and autos.
A U.S. Customs and Border Protection technician examines overseas parcels after they were scanned at the agency's overseas mail inspection facility at Chicago's O'Hare International Airport on Feb. 23, 2024.

The ruling also pushed the dollar sharply higher against the Japanese yen. It was trading at 145.40 yen early Thursday, up from 144.87 yen late Wednesday.

A three-judge panel ruled on several lawsuits arguing Trump exceeded his authority, casting doubt on trade policies that have jolted global financial markets, frustrated trade partners and raised uncertainty over the outlook for inflation and the global economy.

Many of Trump's double-digit tariff hikes are paused for up to 90 days to allow time for trade negotiations, but the uncertainty they cast over global commerce has stymied businesses and left consumers wary about what lies ahead.

"Just when traders thought they'd seen every twist in the tariff saga, the gavel dropped like a lightning bolt over the Pacific," Stephen Innes of SPI Asset Management said in a commentary.

The ruling was, at the least, "a brief respite before the next thunderclap," he said.

Elsewhere in Asia, Hong Kong's Hang Seng added 1.3% to 23,561.86, while the Shanghai Composite index gained 0.7% to 3,363.45.

Australia's S&P/ASX 200 gained 0.2% to 8,409.80.

In South Korea, which like Japan relies heavily on exports to the U.S., the Kospi surged 1.9% to 2,720.64. Shares also were helped by the Bank of Korea's decision to cut its key interest rate to 2.5% from 2.75%, to ease pressure on the economy.
Taiwan's Taiex edged 0.1% lower, and India's Sensex lost 0.2%.

On Wednesday, U.S. stocks cooled, with the S&P 500 down 0.6% but still within 4.2% of its record after charging higher amid hopes that the worst of the turmoil caused by Trump's trade war may have passed. It had been roughly 20% below the mark last month.

The Dow industrials lost 0.6% and the Nasdaq composite fell 0.5%.

Trading was relatively quiet ahead of a quarterly earnings release for Nvidia, which came after markets closed.

The bellwether for artificial intelligence overcame a wave of tariff-driven turbulence to deliver another quarter of robust growth thanks to feverish demand for its high-powered chips that are making computers seem more human. Nvidia's shares jumped 6.6% in afterhours trading.

Like Nvidia, Macy's stock also swung up and down through much of the day, even though it reported milder drops in revenue and profit for the latest quarter than analysts expected. Its stock ended the day down 0.3%.

The bond market showed relatively little reaction after the Federal Reserve released the minutes from its latest meeting earlier this month, when it left its benchmark lending rate alone for the third straight time. The central bank has been holding off on cuts to interest rates, which would give the economy a boost, amid worries about inflation staying higher than hoped because of Trump's sweeping tariffs.

Arizona prosecutors pressing the case against Republicans who are accused of trying to overturn the 2020 election results in President Donald Trump’s favor were dealt a setback when a judge ordered the case be sent back to a grand jury.

Arizona’s fake elector case remains alive after Friday’s ruling by Maricopa County Superior Court Judge Sam Myers, but it’s being sent back to the grand jurors to determine whether there’s probable cause that the defendants committed the crimes.

The decision, first reported by the Washington Post, centered on the Electoral Count Act, a law that governs the certification of a presidential contest and was part of the defendants’ claims they were acting lawfully.

While the law was discussed when the case was presented to the grand jury and the panel asked a witness about the law’s requirements, prosecutors didn’t show the statute’s language to the grand jury, Myers wrote. The judge said a prosecutor has a duty to tell grand jurors all the applicable law and concluded the defendants were denied “a substantial procedural right as guaranteed by Arizona law.”

Richie Taylor, a spokesperson for Arizona Attorney General Kris Mayes, a Democrat whose office is pressing the case in court, said in a statement that prosecutors will appeal the decision. “We vehemently disagree with the court,” Taylor said.

Mel McDonald, a former county judge in metro Phoenix and former U.S. Attorney for Arizona, said courts send cases back to grand juries when prosecutors present misleading or incomplete evidence or didn’t properly instruct panel members on the law.

“They get granted at times. It’s not often,” said McDonald, who isn’t involved in the case.

In all, 18 Republicans were charged with forgery, fraud and conspiracy. The defendants consist of 11 Republicans who submitted a document falsely claiming Trump won Arizona, two former Trump aides and five lawyers connected to the former president, including Rudy Giuliani.

Two defendants have already resolved their cases, while the others have pleaded not guilty to the charges. Trump wasn’t charged in Arizona, but the indictment refers to him as an unindicted coconspirator.

Most of the defendants in the case also are trying to get a court to dismiss their charges under an Arizona law that bars using baseless legal actions in a bid to silence critics.

They argued Mayes tried to use the charges to silence them for their constitutionally protected speech about the 2020 election and actions taken in response to the race’s outcome. Prosecutors said the defendants didn’t have evidence to back up their retaliation claim and that they crossed the line from protected speech to fraud.

Eleven people who had been nominated to be Arizona’s Republican electors met in Phoenix on Dec. 14, 2020, to sign a certificate saying they were “duly elected and qualified” electors and claimed Trump had carried the state in the 2020 election.

President Joe Biden won Arizona by 10,457 votes. A one-minute video of the signing ceremony was posted on social media by the Arizona Republican Party at the time. The document later was sent to Congress and the National Archives, where it was ignored.

Prosecutors in Michigan, Nevada, Georgia and Wisconsin have also filed criminal charges related to the fake electors scheme.