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submitted 3 weeks ago by misk@sopuli.xyz to c/technology@lemmy.world

On Monday, X filed an objection in The Onion’s bid to buy InfoWars out of bankruptcy. In the objection, Elon Musk’s lawyers argued that X has “superior ownership” of all accounts on X, that it objects to the inclusion of InfoWars and related Twitter accounts in the bankruptcy auction, and that the court should therefore prevent the transfer of them to The Onion. 

The legal basis that X asserts in the filing is not terribly interesting. But what is interesting is that X has decided to involve itself at all, and it highlights that you do not own your followers or your account or anything at all on corporate social media, and it also highlights the fact that Elon Musk’s X is primarily a political project he is using to boost, or stifle, specific viewpoints and help his friends. In the filing, X’s lawyers essentially say—like many other software companies, and, increasingly, device manufacturers as well—that the company’s terms of service grant X’s users a “license” to use the platform but that, ultimately, X owns all accounts on the social network and can do anything that it wants with them.

“Few bankruptcy courts have addressed the issue of ownership of social media accounts, and those courts that have were focused on whether an individual or the individual’s employer owned an account used for business purposes—not whether the social media company had a superior right of ownership over either the individual or the corporation,” Musk’s lawyers write. 

The case Musk’s lawyers are referencing here is Vital Pharm’s bankruptcy case, in which a supplement company filed for bankruptcy and the court decided that the Twitter and Instagram accounts @BangEnergyCEO, which were primarily used by its CEO Jack Owoc to promote the brand, were owned by the company, not Owoc. The court determined that the accounts were therefore part of the bankruptcy and could not be kept by Owoc.

Except in exceedingly rare circumstances like the Vital Pharm case, the transfer of social media accounts in bankruptcy from one company to another has been routine. When VICE was sold out of bankruptcy, its new owners, Fortress Investment Group, got all of VICE’s social media accounts and YouTube pages. X, Google, Meta, etc did not object to this transfer because this sort of thing happens constantly and is not controversial. (It should be noted that social media companies regularly do try to prevent the sale of social media accounts on the black market. But they do not usually attempt to block the sale of them as part of the sale of companies or in bankruptcy.)

But in this InfoWars case, X has decided to inject itself into the bankruptcy proceedings. Jones has signaled that Musk has done this in order to help him, and his tweet about it has gone incredibly viral. On a stream of his show after the filing, Jones called this “a major breaking Monday evening news alert that deals with the First Amendment and the people's fight to reclaim our country from the clutches of the globalists.”

"Elon Musk X Corp entered the case with a lawsuit within it to defend the right of X to not have private handles of people like Alex Jones stripped away. It violates the 13th Amendment against slavery, there are many issues. Today they filed a major brief in the case,” Jones said. “Elon Musk’s X comes to Alex Jones’ defense against democrat attempts to steal Jones’ X identity.”

Musk famously unbanned Jones, then appeared on the same Twitter Spaces broadcast with him. Musk has also tweeted occasionally that he believes The Onion is not funny. Jones, meanwhile, has been ranting and raving about some sort of conspiracy that he believes led a judge via the Deep State to sell InfoWars to The Onion at auction. 

X calls itself “the sole owner” of X accounts, and states that it “does not consent” to the sale of the InfoWars accounts, as doing so would “undermine X Corp.’s rightful ownership of the property it licenses to Free Speech Systems [InfoWars], Jones, or any other account holder on the X platform.” Again, X accounts are transferred in bankruptcy all the time with no drama and with no objection from X.

“Looming over the framework [in the Vital Pharm case] was the undeniable reality that social media companies, like X Corp., are the only parties that have truly exclusive control over users’ accounts,” the lawyers write. “X CORP. OWNS THE X ACCOUNTS.”

That a corporate social media company says it owns the social media accounts on its service is probably not surprising. Meta, Twitter, Google, LinkedIn, and ByteDance have run up astronomical valuations by more or getting people to fill their platforms with content for free, and have created and destroyed countless businesses, business models, and industries with their constantly-shifting algorithms and monetization strategies. But to see this fact outlined in such stark terms in a court document makes clear that, for human beings to seize any sort of control over their online lives, we must move toward decentralized, portable forms of social media and must move back toward creating and owning our own platforms and websites.

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[-] Rentlar@lemmy.ca 50 points 3 weeks ago* (last edited 3 weeks ago)

Ok. The accounts can be withheld, suspended or whatever.

The Onion is therefore entitled to due compensation from X Corp., as this was considered to be included in the bid. X can have that NFT for just 47 billion dollars, what a deal! /s

[-] r00ty@kbin.life 19 points 3 weeks ago

No. If valve cancel your steam account, you lose your games and they owe you a big fat zero.

Same goes for all accounts with assets attached.

Sad to say, but in this case it is musk's platform and his rules.

If he wants to go home and take his ball too. Tough luck.

Doesn't seem right, but it is legal and already happened on multiple platforms multiple times.

[-] Rentlar@lemmy.ca 15 points 3 weeks ago* (last edited 3 weeks ago)

Perhaps, but it all depends on the judge's decision whether X corp's argument is completely bullshit or not.

For your Valve example, in the Subscriber Agreement you can terminate the agreement, or Valve can terminate it for a violation of the Agreement rules, with no refunds. For a termination without a valid reason, "no refunds" does not necessarily apply. I'm not saying it would be hard for Valve to come up with a bullshit reason to cancel anyone's account on a whim or to change the terms so that they get broken easily, but it's not automatic and courts can assign value to a specific license you have access to, based on the jurisdiction, in particular in places like Quebec, Australia, and the EU.

9C. Termination by Valve

Valve may restrict or cancel your Account or any particular Subscription(s) at any time in the event that (a) Valve ceases providing such Subscriptions to similarly situated Subscribers generally, or (b) you breach any terms of this Agreement (including any Subscription Terms or Rules of Use). In the event that your Account or a particular Subscription is restricted or terminated or cancelled by Valve for a violation of this Agreement or improper or illegal activity, no refund, including of any Subscription fees or of any unused funds in your Steam Wallet, will be granted.

Addendum: I wasn't totally serious with the second paragraph, nothing may stop X from banning The Onion/Infowars or whatever after the transfer is complete. But trying to disrupt the transfer itself over it seems a little ridiculous.

[-] r00ty@kbin.life 6 points 3 weeks ago

And twitter / x most likely have a similar rule. And musk could have achieved similar by just banning the account.

There's no reason to give it to Jones. He doesn't own any of the applicable ip any more. Maybe there's an argument if he tried that.

[-] dan@upvote.au 13 points 3 weeks ago* (last edited 3 weeks ago)

If valve cancel your steam account, you lose your games and they owe you a big fat zero.

That really depends on how good the consumer protection laws are in your jurisdiction. Not every country is as bad as the USA in terms of consumer protection... Some countries have laws that priorize people over corporations.

this post was submitted on 26 Nov 2024
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