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Ex-Eminem employee pleads guilty to copyright infringement

A Michigan man and former studio engineer is facing the music for his theft of rapper Eminem’s unreleased works.

Joseph Strange, a 48-year-old Michigan resident, pleaded guilty to criminal copyright infringement and will be sentenced to prison in January, the Department of Justice announced Thursday. He faces up to five years in prison. Federal prosecutors accused Strange in March 2025 of stealing and selling unreleased work by Eminem (legal name Marshall Mathers III).

An attorney for Strange did not immediately respond Friday to The Times’ request for comment, but told Variety in a statement that his client is a “good” man and his “children have suffered greatly in all of this.” The attorney said the case is “far more complicated and nuanced matter” beyond the theft.

“Nevertheless, my client has taken accountability for what he has done, has tremendous remorse for what has happened to his family,” the attorney reportedly added, “and has great faith, as do I, in the judges of our district to see this case for what it is.”

A spokesperson for 15-time Grammy winner, maker of hits “The Monster” and “Lose Yourself,” did not comment.

Strange was charged in 2025 with copyright infringement and interstate transportation of stolen goods, federal prosecutors announced. Investigators said at the time that more than 25 songs had been played or distributed online without permission from Eminem or the group that owns his music, Capitol Labels Group. Investigators discovered the music on password-protected hard drives stored in a safe at Eminem’s studio in Ferndale, Mich., an FBI affidavit said. At the time, an attorney for Strange denied the “untested allegations.”

The charges against Strange arose after studio employees alerted the FBI of the theft in January 2025, alleging the unfinished releases were shared to a number of online platforms. Files from a hard drive in a safe were transferred to an external hard drive in October 2019 and January 2020, around the time when Strange was working at the studio.

A Canadian resident informed investigators that he purchased 25 unreleased Eminem songs from Strange for about $50,000 in Bitcoin and that he raised the funds through the support of a group of Eminem fans. He also claimed Strange also put some of Eminem’s handwritten lyrics up for sale.

The affidavit says a federal search of Strange’s home in January 2025 led to the discovery of numerous lyric sheets and notes handwritten by Eminem, a VHS tape of an unreleased video and hard drives with about 12,000 audio files.

“Joseph Strange abused a position of trust to unlawfully copy and sell unreleased music belonging to Eminem, profiting from works that were not yet authorized for public distribution,” said A. Tysen Duva, assistant attorney general for the Department of Justice Criminal Division. “His conduct undermined both legal and artistic rights.”

The Associated Press contributed to this report.

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Ex-OpenAI employee accused of planting device has Saudi backing: Prosecutor | Business and Economy News

US federal prosecutors allege the defendant was in frequent contact with unnamed member of royal family.

An ex-OpenAI engineer accused of planting a recording device in an executive conference room at the AI company appears to have received considerable support from the Saudi government, United States prosecutors have said in a court filing.

Federal prosecutors allege that the defendant, Abdulrahman Alfozan, 35, was in frequent communication with an unnamed member of the Saudi royal family and that a Saudi military official paid for a one-way plane ticket for Alfozan’s wife and young son to return to Saudi Arabia after his arrest, according to the court document, made public late on Sunday.

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Prosecutors made those allegations as they asked a federal judge to keep Alfozan in US custody to await trial, arguing he is a flight risk. Alfozan, a Saudi national and lawful permanent resident in the US, is scheduled to appear in federal court in San Francisco later on Monday.

The case has highlighted security challenges around sensitive AI research as companies and governments compete fiercely for an edge in the transformational technology.

“The defendant went to significant lengths to create customized, encrypted recording devices to secretly record highly sensitive meetings involving senior OpenAI personnel and executives, high-level business counterparts, and government officials, all while communicating with individuals of significance in Saudi Arabia and pursuing opportunities in — and making plans to travel to — Saudi Arabia,” prosecutors wrote in a detention memo.

The Saudi government media office did not immediately respond to a request for comment. A lawyer for Alfozan did not immediately respond to a request for comment.

The lawyer, William Pernik, previously asked for Alfozan to be released from custody, subject to conditions including location monitoring and surrendering his passport, and said Alfozan had spent the last 15 years in the US and had applied to become a citizen.

The lawyer said a planned trip by Alfozan to Saudi Arabia this month was booked before he was under investigation and was for “family and immigration reasons”, according to a court filing.

Investigation remains active

US prosecutors charged Alfozan last week with using an electronic device to intercept oral communications. Alfozan plugged a recording device into the back of a television in an executive conference room at one of OpenAI’s San Francisco buildings, according to a criminal complaint.

Meetings involving government officials took place in the conference room around the time the device was installed, according to the prosecutors’ detention memo.

Prosecutors said the investigation remains active and additional charges could be brought against Alfozan.

A member of the Saudi royal family sought to recruit Alfozan for an AI-focused role in Saudi Arabia, writing in one message, “Saudi needs you more then [sic] the US!” Alfozan replied, “100,” according to messages cited by prosecutors.

Before his arrest, Alfozan was scheduled to fly to Riyadh during a planned two-month parental leave. His wife told investigators that she and their son planned to move permanently to Saudi Arabia and that Alfozan eventually intended to join them, according to prosecutors.

In an Arabic-language interview on the Identity Capital podcast last month, Alfozan said that he visits Saudi Arabia three or four times a year, follows developments there and advises or mentors Saudi startups.

He said meeting Prince Mohammed bin Salman, then deputy crown prince, during a 2016 gathering with young Saudi tech workers in Silicon Valley persuaded him to learn at a top tech company before bringing those skills back home.

While Alfozan was working at Facebook, he and other Saudis in Silicon Valley formed a consulting initiative that linked Saudi public- and private-sector organisations with expertise in big data, the internet of things and machine learning.

OpenAI previously said it discovered the device on September 30 and referred the matter to the FBI.

Al Jazeera has reached out to the Saudi embassy for comment.

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FBI agents and others fired for roles in Trump classified files inquiry sue for reinstatement

FBI employees fired for their roles in the investigation of President Trump’s retention of classified documents at his Florida estate sued on Thursday to get their jobs back, calling their terminations unlawful acts of “political retribution.”

The complaint adds to the growing list of legal challenges to the mass terminations under FBI Director Kash Patel of agents who participated in investigations of the Republican president or are seen as opposed to Trump administration interests.

The suit was filed in federal court in Washington on behalf of nine agents, intelligence analysts and staff operations specialists who were fired in February after dismissals of agents who had worked on the investigation into Trump’s efforts to overturn his 2020 presidential election loss to Democrat Joe Biden.

Patel has said in congressional testimony that employees he has fired had “weaponized” the FBI. But the agents deny that claim in the lawsuit, noting that between them they had more than a century of distinguished and apolitical FBI service that involved responding to the Boston Marathon bombing, hostage recoveries and the investigation into the 2024 assassination attempt of Trump in Butler, Pa.

Their firings, the lawsuit says, create an “immeasurable loss” to “America’s national security.”

“In return for their service, they were fired because they did their jobs, as they always did to follow the facts and law without bias or favor. To this administration, this is an offense. To the rest of us, it is heroic,” said a statement from their attorneys, Margaret Donovan, Abbe Lowell and Rebecca Tinio.

“This lawsuit will prove their unlawful dismissal and hold the administration accountable for this blatant attack on the rule of law,” the statement added.

The Mar-a-Lago investigation produced criminal charges against Trump

The suit lays out a detailed recitation of the allegations against Trump, describing how he improperly stored dozens of classified documents at his Mar-a-Lago estate in Palm Beach, Fla., that he took with him after leaving the White House, showed them off to people not authorized to see them and obstructed FBI efforts to get them back.

The investigation resulted in a dramatic 2022 FBI search of Mar-a-Lago that recovered classified records and later produced an indictment in federal court in Florida charging Trump with dozens of felony counts.

Trump denied wrongdoing, and the case was dismissed in 2024 by a Trump-appointed judge, Aileen Cannon, who ruled that the special counsel who filed the charges, Jack Smith, had been illegally appointed by the Biden administration Justice Department.

The nine fired FBI employees did not volunteer for the investigation but were rather assigned to it as part of their work on specialized counterintelligence and counterespionage squads, according to the lawsuit, which says they were nonetheless terminated because of baseless perceptions that the performance of their law enforcement duties had run “afoul of the political and personal loyalty to Trump that Defendants demanded.”

“By casting Plaintiffs’ work on the Plasmic Echo investigation as ‘politically weaponized,’ Defendants incorrectly presumed to know the personal political convictions of Plaintiffs and took unlawful action based on that presumption,” the lawsuit says, using the FBI code name for the classified documents investigation. “Worse still, Defendants incorrectly concluded that those personal political convictions affected or drove their work.”

The lawsuit seeks, among other remedies, reinstatement to the FBI, an awarding of back pay and a court order declaring that the firings were unlawful.

The suit says the firings were the culmination of a retribution campaign

Lawyers for the fired employees suggest their clients’ “fate was sealed” well before the February terminations, casting the ousters as the culmination of a long-running retribution campaign that kicked into gear once Trump returned to the White House in 2025.

The lawsuit notes how Patel, in his capacity as a conservative podcaster before becoming Trump’s FBI director, had derided the FBI’s Mar-a-Lago search as “unlawful” and had accused the agents who had participated in it as being “corrupt government gangsters.”

Days after Trump was inaugurated, a top Justice Department official demanded that the FBI turn over a list of bureau employees who had participated in Trump-related investigations, an order that the then-director, Brian Driscoll, resisted and that was seen within the workforce as a potential prelude to mass firings.

Over the following year, the FBI and the Justice Department fired waves of employees involved in investigations of Trump, without hearings or proper notice that the plaintiffs’ lawyers say are required by law.

The lawsuit says that the Mar-a-Lago agents and analysts were fired in February after Patel disclosed to Reuters that the FBI, as part of the investigation, had subpoenaed his toll records, which show the date, time and length of a phone call but not the content of the communications.

“The Plaintiffs were unlawfully terminated not for any cause or any legitimate reason, but only to satisfy the President’s personal vendetta,” the lawsuit states. “The firings did not follow any internal investigation or disciplinary process within the FBI, and Plaintiffs were not given any notice, a hearing, or an opportunity to appeal.”

Tucker writes for the Associated Press.

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After nearly buying Warner Bros., Netflix is laying off 1,000 workers. What happened?

It was a crowning moment. Netflix appeared to have prevailed in an audacious $82.7-billion deal to scoop one of the industry’s most prestigious studios: Warner Bros. The move seemed to cement Netflix’s status as the ultimate Hollywood gate-crasher and its dominance as the leading new player in media.

Now, nearly a year later, the plotline for Netflix has dramatically changed. The streaming giant lost out to Paramount Skydance in its bid for Warner Bros. Discovery and is facing headwinds on multiple fronts.

That was underscored this week when the streaming giant Netflix began shedding 6% of its workforce, or about 1,000 jobs — believed to be the largest layoff in the company’s history and exceeding the last round of job cuts in 2022, when it reported subscriber declines.

On Wednesday morning, Ted Sarandos and Co-Chief Executive Greg Peters sent a note to employees confirming the job losses, adding that the bulk of the cuts would affect the tech, product, legal and human resources teams.

“Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” wrote Sarandos and Peters in the memo obtained by The Times.

The cuts mark the latest reductions across the film and TV industry. Other entertainment and media companies have slashed their payrolls, including Walt Disney Co., Paramount and Sony Pictures Entertainment during a period of economic uncertainty in Hollywood.

But the scale of such downsizing is unusual for Netflix. Industry analysts and insiders chalk up the reversal of fortune to several factors. Although it still dominates the television business, the Los Gatos company hasn’t been able to produce enough new hit franchises to replace culture-defining shows from years past such as “Stranger Things” and “Squid Game.”

At the same time, Netflix faces rising competition from rivals such as HBO Max, Apple TV, Hulu and others that have upped their game. Free, ad-supported streaming platforms such as YouTube are increasingly taking a larger slice of consumer streaming hours. And Netflix’s efforts to diversify its business into new areas such as games have yielded mixed results.

A Netflix building on Sunset Boulevard in Los Angeles.

A Netflix building on Sunset Boulevard in Los Angeles in 2025.

(Myung J. Chun / Los Angeles Times)

The upshot: Netflix continues to be the dominant video subscription streaming player with more than 325 million subscribers, but the time that consumers spend on the platform is growing at a slower pace than what investors want. In the first half of this year, consumer watch time on Netflix increased only 2% compared with a year earlier, even as content spending increased 11% to $20 billion this year. Netflix also narrowed its annual revenue forecast last summer, disappointing some investors.

“Netflix’s layoffs show that even the top streaming companies are not immune to stagnation and financial difficulties,” said Ross Benes, senior analyst at research firm Emarketer.

Amid the sobering signs, investors have grown restless. Netflix shares, which closed at $70.57 on Wednesday, have plummeted 42% in the last year. Part of that decline was fueled by anxiety among investors over Netflix’s deal to buy Warner Bros. Discovery, but the share price hasn’t rebounded even after that deal fell apart.

“They need to better prepare their balance sheet and economics since engagement has plateaued,” said Brandon Katz, director of insights and content strategy at Greenlight Analytics.

Katz said that Netflix’s five most-watched English-language scripted summer movie releases in their first eight weeks posted the lowest average hours watched compared with the streamer’s top five summer releases in 2025, 2024 and 2023, citing Nielsen data.

Sarandos acknowledged concerns about engagement at a Bloomberg Screentime event Sept. 30.

“Overall we’re not growing as fast as I want us to, and we’re working on making that move faster,” Sarandos said.

Netflix declined to comment on the layoffs.

“We’ll continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation,” Sarandos and Peters said in their memo to employees.

In some ways, Netflix has been victim of its own success. It has produced a string of shows and movies that have hit the cultural zeitgeist such as “KPop Demon Hunters” and “Squid Game.” But finding enough new popular shows that continue to drive subscriptions has been a challenge.

“A lot of these major hits are coming to an end at similar times, and they don’t yet really have heir apparents to replace them,” Katz said.

Sci-fi hit “Stranger Things” released its finale last year, followed by the young-adult drama “Outer Banks” and “Emily in Paris,” which ends this year. Netflix also announced that “The Witcher” and “The Lincoln Lawyer” will wrap after their next seasons.

What’s more, the second seasons of some shows with big followings have seen large view drop-offs compared with their first seasons. For example, the fantasy series “Avatar: The Last Airbender” season 1 debuted with 21.2 million views, but views for its second season dropped 59% to 8.7 million, according to Netflix data.

New series from Netflix also haven’t captured as much consumer demand as other competing shows from rival streamers, according to Parrot Analytics.

Last year, Netflix had just one show — the Japanese anime and manga series “Sakamoto Days” — that made it in Parrot’s top 10 list of first season original series on streaming platforms. Parrot’s ranking measures consumer demand in the U.S. and is based on digital interactions such as social media chatter and Google searches. By comparison, Netflix had three titles in 2022 alone: the true crime show “Monster,” the documentary series “Harry & Meghan” and the sci-fi mystery show “1899,” Parrot said.

Sarandos told investors in July that such declines are typical and that second season falloff is slightly improved this year. But popular shows on rival streaming services such as the medical drama “The Pitt” on HBO Max have not seen such declines. “The Pitt” drew even more viewers in its second season than the first.

To diversify its business, Netflix has expanded its programming offerings beyond TV shows and movies to include live sports, such as football and baseball games.

Although live programs have helped to spur significant subscription sign-ups, they still represent just 1% of watch time on Netflix while costing 5% of the company’s content budget, Sarandos has said.

Netflix also has added video podcasts that have helped to boost daytime viewing on the platform, and has made deals with YouTube creators to bring their content to the streaming service.

But some of the new content hasn’t clicked, particularly in games, analysts said. In August, Netflix shut down Hollywood-based Night School, the maker of supernatural adventure game “Oxenfree,” and said it was closing a Helsinki-based games studio.

“They are spending on a lot of things that haven’t necessarily proven to be effective yet,” said Rob Rosenberg, a partner at law firm Moses & Singer and former Showtime Networks general counsel. “It feels a lot like they’re trying to send a message to Wall Street that ‘we’re re-examining how we do business.’”

Meanwhile, Netflix continues to face more competition from rivals such as YouTube, which offers a free, ad-supported version of its video library.

Unlike Netflix, YouTube does not pay for the creation of many of the videos on its platform. Instead, creators or companies upload and produce the programs themselves and YouTube shares ad and subscription revenue.

YouTube’s share of streaming watch time in the U.S. on TVs has steadily increased. In July, YouTube represented 14.2%, compared with Netflix’s 7.8%, according to Nielsen.

The pressure to boost engagement on Netflix has caused tension within the company, particularly between the teams of people responsible for how programs are promoted on the platform and the employees responsible for bringing shows and movies on Netflix, according to people familiar with the matter who were not authorized to speak publicly.

Some blame the content for not being enticing enough, while others contend that the programs could be promoted better on Netflix.

“It’s a bit of a quagmire,” said one of the sources familiar with the matter. “There is a tension when things aren’t working. People tend to point fingers.”

In their staff memo, Sarandos and Peters said Netflix is on track to deliver its full-year forecast and will continue to invest in areas that improve its service and drive growth and innovation.

“Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors,” they wrote.

Despite the downsizing, Netflix remains highly profitable. In the second quarter, the company generated $3.4 billion in net income, up 9% from a year earlier. Revenue rose 13% to $12.6 billion last quarter, including double-digit revenue growth in all of its regions. Next week, the company will share its third-quarter results.

The streamer is expected to get a boost from new seasons of popular shows — including season 4 of the political drama “The Diplomat” and spy series “Lupin: Part 4,” as well as Thanksgiving Eve and Christmas Day NFL games.

Having new seasons of popular shows such as “Lupin” and “The Diplomat” will help boost Netflix’s engagement, said Alejandro Rojas, vice president of applied analytics at Parrot Analytics.

“The new season is like a catalyst for people to watch the previous seasons,” Rojas said.

On the theatrical side, Netflix also has high hopes for upcoming movies including La Bola Negra, starring Penelope Cruz; and “The Further Mis-Adventures of Cliff Booth” featuring Brad Pitt. Next year, Netflix will release the Greta Gerwig-directed film, “Narnia: The Magician’s Nephew” on Imax screens.

Netflix has not signaled any changes to its strategy for releasing movies or TV shows. But some analysts said it could benefit from having more theatrical releases and by dropping episodes of shows once a week, instead of all at once, to generate more buzz for programs. They also expect that Netflix will be more disciplined in its content spending.

“While the company will expand its sports roles, it’s cutting back at a time when revenue matters much more than subscriber additions,” said Benes of Emarketer. “With pressure mounting, Netflix will look to turn the tide by getting a boost from low-cost content. The battle for top creators will become more pitched.”

Times staff writer Samantha Masunaga contributed to this report.

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