Decades in Business,
Technology and Digital Law

Library Genesis (LibGen), a well-known online repository of pirated books, academic papers, and other copyrighted materials, has become a flashpoint in the race to develop advanced AI systems. Recent lawsuit filings have revealed that Meta, in its efforts to train its...

The recent December 16, 2024, decision by the Ninth Circuit Court of Appeals in Oracle v. Rimini Street sheds light on the nuanced application of copyright law to technology. The core issue revolved around whether interoperability between software systems constitutes...

The Federal Trade Commission (FTC) explores the risks posed by artificial intelligence (AI) to consumers on a blog post on January 3, 2025, focusing on real-world harm rather than speculative existential threats. AI systems, from chatbots to facial recognition, are...

While the guidance issued by the Oregon Department of Justice on December 24, 2024 focuses on the application of AI to Oregon law (https://www.doj.state.or.us/wp-content/uploads/2024/12/AI-Guidance-12-24-24.pdf), it serves as a valuable primer for businesses...

The Shelf-Life of Information – Tailor the Term to Fit the Data The appropriate confidentiality period for information often depends on the nature of the information itself. Some data becomes obsolete quickly, while other types can remain sensitive for decades....

Jason Allen, a board game designer, spent over 100 hours and used 624 prompts in the AI tool Midjourney to create an award-winning image. Despite his extensive input, the U.S. Copyright Office denied his application, arguing that the work lacked “human authorship.”...

Trade secrets are the crown jewels of many businesses — the proprietary formulas, processes, and insights that provide a competitive edge. To be legally recognized, companies must demonstrate that they’ve taken reasonable measures to maintain the secrecy of their...

When drafting or negotiating a Non-Disclosure Agreement (NDA), one question inevitably comes up: How long should this NDA last? It seems like a simple issue – but it’s not. A common misconception is that the NDA’s “term” is a one-size-fits-all provision. In reality,...

When was the last time you read the “Destroy All Confidential Information” clause in an NDA and thought, Wait… how does this apply to my backups? This often-overlooked provision seems straightforward—until you realize that deleting information from backup systems...

On December 23, 2024, the Biden administration initiated a trade investigation into China's production of "legacy" semiconductors—chips integral to everyday products like automobiles and household appliances. This "Section 301" probe, set to transition to the incoming...

The tragic death of UnitedHealthcare CEO Brian Thompson on December 4, 2024, has intensified scrutiny of the health insurance industry's practices, including the use of artificial intelligence (AI) in decision-making processes. In this fraught period, the Centers for...

In U.S. commercial contracts, limitation of liability (LoL) clauses are common tools used to cap or exclude certain types of damages between businesses. However, U.S. courts generally will not enforce an LoL clause in cases of gross negligence or willful misconduct,...

Termination for convenience clauses can be a double-edged sword in SaaS and other long term tech agreements. They provide flexibility but also create risk, depending on whether you’re the customer or vendor. This post explores key considerations from both perspectives...

The American Bar Association (ABA) has provided guidance on the ethical use of Generative Artificial Intelligence (GAI) tools in legal practice (Formal Opinion 512). While these tools can enhance efficiency and effectiveness, they must be used in a way that aligns...

Integrating artificial intelligence (AI) into Software as a Service (SaaS) platforms offers significant advantages but also introduces complex legal challenges. Addressing these issues within SaaS agreements is crucial to mitigate potential risks. Data Ownership and...

In a landmark move, the Federal Trade Commission (FTC) has taken decisive action against data broker Mobilewalla for unlawfully collecting and selling sensitive location data of millions of Americans. The FTC announced a proposed settlement order with Mobilewalla,...

Medical records are a prime target for cybercriminals due to the wealth of sensitive information they contain. Unlike credit card data, which can be quickly canceled and replaced, medical records offer a comprehensive and enduring profile of an individual, making them...

Australia has enacted groundbreaking legislation prohibiting individuals under 16 from accessing major social media platforms such as Facebook, Instagram, TikTok, Snapchat, Reddit, and X (formerly Twitter). The law, passed by Parliament in late November 2024, mandates...

In August, the U.S. Department of Justice, along with eight state attorneys general, launched one of the broadest legal actions in history against a private company in the rental-housing sector. The defendant? RealPage, a major player in property management software....

The recent Seventh Circuit decision in Motorola Solutions Inc. v. Hytera Communications Corp. Ltd. (decided July 2, 2024) sets a strong precedent for the global reach of U.S. trade secret law, underscoring the importance of compliance and vigilance for businesses...

Why Open Source AI Needs a Definition As artificial intelligence evolves, "open source" has become a buzzword thrown around to describe AI systems, tools, and models. But what does “open source AI” actually mean? For developers, businesses, and policymakers, a lack of...

The FTC recently issued a decision and order against Sitejabber (GGL Projects, Inc.) for misleading practices in how it displayed customer reviews and ratings. The order prohibits Sitejabber from misrepresenting the authenticity of its ratings, ensuring reviews are...

The U.S. Department of Commerce issued the directive on November 11, 2024, ordering Taiwan Semiconductor Manufacturing Co. (TSMC) to halt exports of advanced AI chips to China. This measure targets chips with 7-nanometer and more advanced processors and is aimed at...

In the era of social media, influencers have become powerful voices shaping public opinion on everything from lifestyle tips to the latest election campaigns. But a recent shift in how campaigns leverage influencers has raised an intriguing question: why don’t...

In SaaS agreements, virus protection is a top concern. With increasing risks of malware and other harmful software, customers seek assurances against introducing threats into their systems. Vendors, however, often prefer to limit their obligations, striking a balance...

In software and service agreements, performance warranties play a crucial role in defining the expected quality and functionality of a product or service. These warranties promise that the product will work as described—but the language used in these warranties can...

Purpose and Objectives of the Biden Administration's AI Memo The recent Biden Administration memo, issued on October 24th, "Advancing the United States' Leadership in Artificial Intelligence," is a strategic directive aimed at positioning the U.S. as a global leader...

Ephemeral messaging has surged in popularity, with users and companies alike increasingly turning to apps that offer temporary, self-deleting communications. Whether it's for personal privacy or business confidentiality, these platforms provide a unique approach to...

On October 25th Delta Air Lines sued CrowdStrike, a major cybersecurity firm, for $500m in losses over a software update in July that triggered widespread IT failures. This fault paralyzed operations across sectors, especially impacting Delta with canceled flights,...

𝙎𝙪𝙗𝙨𝙘𝙧𝙞𝙗𝙚 𝙩𝙤 𝙏𝙚𝙘𝙝𝙡𝙖𝙬 𝘽𝙡𝙤𝙜 𝐬𝐨 𝐲𝐨𝐮 𝐝𝐨𝐧’𝐭 𝐦𝐢𝐬𝐬 𝐚𝐧𝐲 𝙥𝙤𝙨𝙩𝙨: http://galkinlaw.com/blog/ ⚖️The CFPB's Circular 2024-06 has put the spotlight on employers using third-party consumer reports, especially those enriched by AI algorithms. This guidance emphasizes compliance with...

📅 Finalization Date: October 16, 2024, marked a significant milestone when the Federal Trade Commission (FTC) finalized the much-anticipated Click-to-Cancel Rule, aiming to simplify the cancellation process for consumers. This new regulation tackles the longstanding...

The New York Times (NYT) has recently sent a cease-and-desist notice to the AI startup Perplexity, accusing it of using their content to generate AI responses without authorization. This move reflects growing tensions between media outlets and AI developers regarding...

Background on the Verkada Case In August 2024, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) took action against Verkada, a California-based security camera company. Verkada was charged with multiple violations, including those under the...

Geoffrey Hinton, a "Godfather of AI," recently won the Nobel Prize for his groundbreaking work on artificial neural networks—technology that helps machines learn and process information like the human brain. While his discoveries form the basis of much of today’s AI,...

💼 How California’s AI Law Could Reshape the Industry 🌟 Who Does This Law Apply To? The new California law, AB 2013, applies to developers of generative artificial intelligence (GenAI) systems or services. This includes anyone who designs, codes, produces, or makes...

Marvel and DC Comics, the kings of capes and cowls, just lost their trademark on the term "super hero." So now anyone can use it. 🍼 The Backstory: A Superbaby Takes on the Super Giants You’d think it would take a superhero to take down Marvel and DC, but nope—it was...

Jason Allen, a board game designer, spent over 100 hours and used 624 prompts in the AI tool Midjourney to create an award-winning image. Despite his extensive input, the U.S. Copyright Office denied his application, arguing that the work lacked "human authorship."...

In SaaS agreements, assignment clauses govern the ability of either party to transfer its rights or obligations to another entity. Both vendors and customers have a vested interest in how this clause is crafted, as it can significantly affect the flexibility and...

AI is everywhere you look – no surprise that with the proliferation of AI come the fraudsters attempting the use the new found technological prodigy for nefarious purposes. The Federal Trade Commission (FTC) has launched Operation AI Comply, a sweeping enforcement...

When operating a Software as a Service (SaaS) business, anticipating the unexpected is key to reducing risks. One way to mitigate disruptions is through a well-drafted force majeure clause in your contract. This provision can protect both SaaS providers and customers...

When acquiring a SaaS business, due diligence is critical to uncover potential risks and ensure a successful transaction. Below are key areas to evaluate during the due diligence process, with each section focused on a specific topic. Ownership of Intellectual...

Companies need a well-defined AI use policy to ensure responsible, transparent, and ethical use of this powerful technology. Without clear guidelines, businesses face legal, ethical, and operational challenges. 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 AI-related laws are evolving...

There are many ways to skin a cat, or to charge for SaaS services. After many years of structuring and negotiating SaaS agreements, here are what I see as the most common options: 🔄 Subscription-Based Pricing Subscription-based pricing is the classic SaaS model. It...

📜 Last week, the Department of Commerce proposed new reporting requirements for companies developing advanced Artificial Intelligence (AI) models. The rule targets "dual-use foundation AI models" with the potential to impact national security, public health, and...

Could a tragic social media trend be the case that finally cracks the legal shield protecting Big Tech? ⚖️ The Facts of the Case In 2021, Nylah Anderson, a 10-year-old girl, tragically died after attempting a viral "blackout challenge" promoted on her TikTok "For You"...

According to a recent Wall Street Journal article, U.S. companies are unknowingly hiring North Koreans for remote IT jobs, putting intellectual property and sensitive information at risk. In an alarming scheme, North Korean operatives are posing as foreign nationals...

Ransomware threats are being made a national intelligence priority – it’s about time. The U.S. Senate will consider the Intelligence Authorization Act (IAA) for 2025, which passed the U.S. Senate Select Committee on Intelligence unanimously. 📝 Summary of the Law The...

📰 Pavel Durov, the founder and CEO of Telegram, is facing serious legal charges in France. But first, let’s understand what Telegram is and why this matters. 💬 What is Telegram? Telegram is a popular messaging app launched in 2013 by Pavel Durov and his brother,...

The term "open source AI" has sparked intense debates in the tech community, mainly due to the ambiguity surrounding its definition. The rise of AI models labeled as "open source," like Meta's Llama 3, has highlighted the need for a clear and consistent standard....

The use of artificial intelligence (AI) in crime-solving has transformed the landscape of law enforcement, providing tools that enhance precision, speed, and effectiveness. 💻 Digital Forensics Traditionally, analyzing digital evidence like emails, social media posts,...

Understanding Model Collapse Model collapse is a degenerative process that occurs when AI models are trained on data generated by other AI models rather than human-created content. This topic was discussed in a recent article “AI models collapse when trained on...

An unsuccessful software implementation is painful, for both the customer and vendor. Where there is either a complex implementation or major software customization, there is also a significant risk of big problems, delays and possible failure. Upon such a failed...

Background The Federal Trade Commission (FTC) has long advocated for the elimination of non-compete agreements, arguing they stifle competition, depress wages, and limit economic mobility for millions of American workers. The FTC's rule, issued in April 2024, aimed to...

🔍 Imagine scrolling through reviews for a product you’re eyeing, only to discover later that many of those glowing testimonials were fake, written by people who never used the product. This is a reality that has eroded consumer trust in online marketplaces for years....

  In the dynamic world of Software as a Service (SaaS) agreements, it's essential to consider the unexpected. This is where a force majeure clause comes into play—a vital contractual element that can shield both parties from liability when unforeseen events occur. But...

📜 Issuing Entities: A Joint Statement on Generative Models was issued by prominent global competition authorities, including the UK Competition and Markets Authority (CMA), the US Federal Trade Commission (FTC), the European Commission’s Directorate-General for...

Dark patterns, also known as deceptive design patterns, are design elements in websites or apps that manipulate users into making decisions that benefit the organization at the user's expense. These patterns can subtly coerce users into actions like sharing more...

Have you ever wondered if the price you see for a product or service is the same as what someone else is seeing? What if that price isn't just based on supply and demand or a store's discount policy but is instead tailored specifically to you? Your location, browsing...

The American Bar Association’s (ABA) Formal Opinion 512 provides critical guidance for attorneys incorporating generative artificial intelligence (GAI) tools into their practice. The opinion highlights several ethical concerns and obligations that lawyers must...

🎶⚖️In the recent lawsuits filed by major music labels, including UMG Recordings, Inc, Sony Music Entertainment, and Warner Records, Inc, against AI developers Suno, Inc and Uncharted Labs, Inc, the plaintiffs allege that the defendants unlawfully used copyrighted...

The upcoming presidential election has amplified worries about AI-generated content in political ads, prompting the FCC to propose new rules requiring disclosures in such ads on platforms under its jurisdiction. Here's a brief summary and key points of the proposed...

Best Practices for SaaS Platforms in the Healthcare Industry As healthcare providers increasingly turn to Software as a Service (SaaS) platforms to manage patient information and streamline operations, ensuring compliance with the Health Insurance Portability and...

  Artificial Intelligence (AI) is revolutionizing various industries, and real estate is no exception. From property management to investment analysis, AI applications are transforming how professionals operate in this field. In this blog post, we'll explore...

𝐑𝐢𝐬𝐤-𝐁𝐚𝐬𝐞𝐝 𝐅𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤: The AI Act categorizes AI systems into four risk levels: unacceptable risk, high risk, transparency risk, and other risk. Each category has specific requirements and obligations. For example, unacceptable risk AI systems, such as those...

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐒𝐲𝐧𝐭𝐡𝐞𝐭𝐢𝐜 𝐃𝐚𝐭𝐚? Synthetic data refers to artificially generated information that closely mimics real-world data but is not derived from actual events. Techniques used to create synthetic data range from statistical models to advanced machine learning...