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⦿ Drafting and Negotiating a Virus Protection Warranty in SaaS Agreements
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...
✍️ Understanding the Legal Impact of “Material” or “Substantial” Conformance in Performance Warranties
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...
🛡️ Harnessing AI for National Security: Biden Administration’s New Directive
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...
📲 Navigating the Legal Landscape of Ephemeral Messaging
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...
💸 Errors Have Costs: Delta’s $500M Case Against CrowdStrike
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,...
🔍 Employer Beware: CFPB’s FCRA Guidance on AI-Driven Employee Reports
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...
📢 FTC Finalizes “Click-to-Cancel” Rule: What You Need to Know
📅 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...
🔥 Copyright Wars: NYT vs. AI and the Battle for News Content
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...
🔍 FTC’s Largest CAN-SPAM Action: What Every Email Marketer Should Know
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...
🌟 🌟 Nobel Laureate Geoffrey Hinton Sounds the Alarm on AI: Are We Ready?
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
💼 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 Lose the “Super Hero” Trademark
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...
🎨AI Art & Copyright: Can Human Creativity Shine Through the Code?
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."...
🔍 A Vendor v. Customer Perspective on the Assignment Clause in SaaS Agreements
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...
🚨 FTC’s “Operation AI Comply”: Cracking Down on Deceptive AI Schemes
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...
🌩️ Force Majeure in SaaS Contracts: Preparing for Unexpected Disruptions
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...
🕵️♂️ Navigating Due Diligence in SaaS Acquisitions
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...
🏢𝗪𝗵𝘆 𝗬𝗼𝘂𝗿 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗡𝗲𝗲𝗱𝘀 𝗮 𝗣𝗼𝗹𝗶𝗰𝘆 𝗳𝗼𝗿 𝗔𝗜 𝗨𝘀𝗲
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...
💼 SaaS Pricing Strategies
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...
🧠 AI Models and National Security: How New Reporting Rules May Impact Big Tech
📜 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...
🚨TikTok’s Legal Reckoning: Is Section 230 Crumbling?
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"...
🚨 Have You Hired a North Korean Spy for that IT Job? Better Check!
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 is Poised to Become a National Intelligence Priority
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...
🌐 A Look at Telegram and Potential of CEO Liability
📰 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 Need for a Clear Definition of “Open Source AI”
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....
🔍 AI in Crime Solving: A New Era of Justice
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,...
🔄 Model Collapse: A Growing Concern for AI Models
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...
🛠️Blueprint for Successful Software Implementation: Essential Negotiation Points
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...
🚨 Good News for Business, Bad News for Workers: FTC’s Non-Compete Ban Struck Down
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...
🔍 FTC’s New Rule Cracks Down on Fake Reviews and Misleading Testimonials
🔍 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....
Negotiating a Force Majeure Clause in a SaaS Agreement
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...
🌐 International Authorities On Guard Against an Insatiable AI Industry
📜 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...
Beware of Dark Patterns: How Deceptive Designs Influence Your Online Decisions
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...
🕵️ Surveillance Pricing: Is the Price You See Tailored to Who You Are?
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...
ABA’s Formal Opinion 512: Ethical Concerns for Lawyers Using AI
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...
Copyright Showdown: Risks of AI-Generated Music
🎶⚖️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...
FCC Proposal on AI-Generated Content in Political Ads
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
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...
AI In Real Estate Transactions: Summary and Legal Implications
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...
Main Points of New AI Act & Possible Impact on U.S. Companies
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...
Using Synthetic Data for AI Training: A Legal and Practical Overview
Understanding issues relating to Synthetic Data is important when implementing an AI Governance Program 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐒𝐲𝐧𝐭𝐡𝐞𝐭𝐢𝐜 𝐃𝐚𝐭𝐚? Synthetic data refers to artificially generated information that closely mimics real-world data but is not derived from actual events....
Understanding the Right of Publicity in the Age of AI
𝗗𝗲𝗳𝗶𝗻𝗶𝗻𝗴 𝘁𝗵𝗲 𝗥𝗶𝗴𝗵𝘁 𝗼𝗳 𝗣𝘂𝗯𝗹𝗶𝗰𝗶𝘁𝘆 The right of publicity is a legal concept that allows individuals to control and profit from the commercial use of their identity, including their name, likeness, voice, and other distinctive characteristics. It prevents unauthorized...
How to obtain copyright in AI output
You have of course heard that AI output is not protectable by copyright in the U.S. – or is it?? 𝟏. 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐒𝐭𝐚𝐭𝐞 𝐨𝐟 𝐂𝐨𝐩𝐲𝐫𝐢𝐠𝐡𝐭 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 𝐟𝐨𝐫 𝐀𝐈–𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐞𝐝 𝐖𝐨𝐫𝐤𝐬: In the United States, current law does not recognize copyright ownership for works generated solely...
Checklist for SaaS Providers to limit liability exposure
𝐍𝐨𝐭 𝐚𝐥𝐥 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐜𝐚𝐧 𝐛𝐞 𝐥𝐢𝐦𝐢𝐭𝐞𝐝. 𝐇𝐨𝐰𝐞𝐯𝐞𝐫, 𝐡𝐞𝐫𝐞’𝐬 𝐚 𝐪𝐮𝐢𝐜𝐤 𝐜𝐡𝐞𝐜𝐤𝐥𝐢𝐬𝐭 𝐭𝐡𝐚𝐭 𝐒𝐚𝐚𝐒 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐫𝐬 𝐜𝐚𝐧 𝐫𝐞𝐯𝐢𝐞𝐰 𝐭𝐨 𝐬𝐞𝐞 𝐰𝐡𝐞𝐫𝐞 𝐭𝐡𝐞𝐲 𝐦𝐢𝐠𝐡𝐭 𝐛𝐞𝐭𝐭𝐞𝐫 𝐥𝐢𝐦𝐢𝐭 𝐞𝐱𝐩𝐨𝐬𝐮𝐫𝐞 𝐭𝐨 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲: 𝐄𝐧𝐬𝐮𝐫𝐞 𝐈𝐏 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐌𝐢𝐭𝐢𝐠𝐚𝐭𝐢𝐧𝐠 𝐈𝐏 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐧𝐯𝐨𝐥𝐯𝐞𝐬: Due Diligence: Thoroughly vet third-party software...
AI Hallucinations and Legal Consequences
AI has recommended adding glue to bind cheese to pizza, staring at the Sun for 30 minutes and eating a rock for health once a day. AI hallucinations can be humorous, frustrating and dangerous. 𝗪𝗵𝘆 𝗔𝗜 𝗛𝗮𝗹𝗹𝘂𝗰𝗶𝗻𝗮𝘁𝗲𝘀 AI hallucinations occur when an AI system generates...
Negative Impact on the Tech Industry of FTC Ruling Banning Most Non-Compete Agreements
The FTC issued a final rule banning non-compete clauses on April 23, 2024. The FTC’s ruling banning non-compete agreements is intended to promote competition and employee mobility, but it could have several negative impacts on the tech industry. However, there have...
Potential Downfall of FTC’s Rulemaking Authority to Ban Non-Competition Agreements?
As of May 2024, several lawsuits have been filed in federal court challenging the Federal Trade Commission’s (FTC) authority to ban non-compete agreements in employee contracts. The FTC issued a final rule banning non-compete clauses on April 23, 2024. The lawsuits...
Little Red Riding Hood’s Guide to Protect Against Deep Fake Fraud
𝐓𝐨 𝐡𝐞𝐥𝐩 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐲𝐨𝐮𝐫𝐬𝐞𝐥𝐟 𝐟𝐫𝐨𝐦 𝐝𝐞𝐞𝐩 𝐟𝐚𝐤𝐞 𝐟𝐫𝐚𝐮𝐝, 𝐥𝐞𝐭’𝐬 𝐭𝐚𝐤𝐞 𝐬𝐨𝐦𝐞 𝐚𝐝𝐯𝐢𝐜𝐞 𝐟𝐫𝐨𝐦 𝐋𝐢𝐭𝐭𝐥𝐞 𝐑𝐞𝐝 𝐑𝐢𝐝𝐢𝐧𝐠 𝐇𝐨𝐨𝐝 𝐡𝐞𝐫𝐬𝐞𝐥𝐟, 𝐭𝐡𝐞 𝐚𝐫𝐜𝐡𝐞𝐭𝐲𝐩𝐢𝐜𝐚𝐥 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐯𝐢𝐜𝐭𝐢𝐦 𝐨𝐟 𝐝𝐞𝐞𝐩 𝐟𝐚𝐤𝐞 𝐟𝐫𝐚𝐮𝐝. In today’s digital age, technology has reached new heights, offering convenience and advancements...
The Implications of Liability for SaaS Vendors from Cyber Attacks
SaaS vendors need to seriously consider the consequences of cyber attacks. As the ongoing systems outage at software provider CDK Global stretches into its second week, car dealerships are racking up millions of dollars in losses. According to an estimate by Anderson...
Tips for Negotiating SaaS Vendor Liability for Data Breaches: From a Customer’s Perspective
In the digital age, Software as a Service (SaaS) platforms are the lifeblood of many businesses. They streamline operations, enhance productivity, and foster collaboration. However, with great power comes great responsibility—or in this case, great risk. Data breaches...
Legal Issues to Consider: Toys “R” Us has created a video ad using generative artificial intelligence
Toys “R” Us has created a video ad using generative artificial intelligence, depicting its late founder, Charles Lazarus, as a child dreaming of a toy store and Geoffrey the Giraffe. The ad, made with OpenAI’s Sora tool, has elicited mixed reactions, being praised as...
The Critical Role of Copyright Registration for Taking Action for Copyright Infringement
In the United States, copyright law provides robust protections to authors and creators, ensuring their rights are safeguarded and that they can control and benefit from their creative works. One critical aspect of this legal framework is the process of copyright...
Anatomy of a SaaS Vendor’s IP Infringement Indemnification
𝐃𝐫𝐚𝐟𝐭𝐢𝐧𝐠 𝐚𝐧 𝐢𝐧𝐟𝐫𝐢𝐧𝐠𝐞𝐦𝐞𝐧𝐭 𝐢𝐧𝐝𝐞𝐦𝐧𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐜𝐥𝐚𝐮𝐬𝐞 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 𝐨𝐟 𝐚 𝐒𝐚𝐚𝐒 (𝐒𝐨𝐟𝐭𝐰𝐚𝐫𝐞 𝐚𝐬 𝐚 𝐒𝐞𝐫𝐯𝐢𝐜𝐞) 𝐯𝐞𝐧𝐝𝐨𝐫 𝐫𝐞𝐪𝐮𝐢𝐫𝐞𝐬 𝐜𝐚𝐫𝐞𝐟𝐮𝐥 𝐜𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧 𝐭𝐨 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐭𝐡𝐞 𝐯𝐞𝐧𝐝𝐨𝐫’𝐬 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭𝐬 𝐰𝐡𝐢𝐥𝐞 𝐛𝐚𝐥𝐚𝐧𝐜𝐢𝐧𝐠 𝐭𝐡𝐞 𝐧𝐞𝐞𝐝𝐬 𝐚𝐧𝐝 𝐞𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫. 𝐇𝐞𝐫𝐞’𝐬 𝐚 𝐬𝐭𝐞𝐩-𝐛𝐲-𝐬𝐭𝐞𝐩 𝐚𝐩𝐩𝐫𝐨𝐚𝐜𝐡 𝐭𝐨...
A Humorous View: AI and Autonomous Vehicles Liability
𝐘𝐨𝐮 𝐞𝐯𝐞𝐫 𝐰𝐨𝐧𝐝𝐞𝐫 𝐰𝐡𝐨’𝐬 𝐭𝐨 𝐛𝐥𝐚𝐦𝐞 𝐰𝐡𝐞𝐧 𝐚𝐧 𝐚𝐮𝐭𝐨𝐧𝐨𝐦𝐨𝐮𝐬 𝐜𝐚𝐫 𝐦𝐞𝐬𝐬𝐞𝐬 𝐮𝐩? Is it the 🚘 car? The 👨💻 programmer? The person who decided to eat a 🥪 sandwich instead of paying attention? I mean, if your car runs a red light, are you gonna say, “Hey, it wasn’t me, 👮♂️ officer....
Rules and Restrictions for AI Platform Outputs:
Introduction As AI technology advances, platforms that utilize AI to generate content based on user prompts have become increasingly popular. However, to ensure the responsible use of these powerful tools, AI platforms often implement rules and restrictions on the...
Legal Challenges in Implementing AI for Supply Chain Management
Trade Compliance Supply chain management is an area where we can expect to see AI deeply implemented. However, supply chain management is probably one of the most complex applications – where errors can result in a series of cascading problems. Implementing AI in...
Using AI for Medical Diagnosis
As artificial intelligence (AI) continues to revolutionize the healthcare industry, its application in medical diagnosis offers significant promise. AI can enhance diagnostic accuracy, speed up processes, and enable more personalized patient care. However, integrating...
Let Me Count the Ways: Exploring Methods for Charging for SaaS Usage
In the Software as a Service (SaaS) industry, determining the right pricing model is crucial for maximizing revenue, maintaining customer satisfaction, and ensuring scalability. There are various metrics you can use to charge end users for SaaS usage, each with its...
The 3 Biggest Issues Vendors Fail to Manage Properly in SaaS End User Agreements
Software as a Service (SaaS) has revolutionized how businesses operate, offering flexibility, scalability, and cost-efficiency. However, SaaS vendors often face significant challenges in managing end user agreements. These agreements are crucial in defining the...
Potential Impact on AI of Antitrust Investigations Involving Microsoft, Nvidia, and OpenAI
The impending antitrust investigations by the DOJ and FTC into Microsoft, Nvidia, and OpenAI signify a pivotal moment for the AI industry. While these actions aim to prevent anticompetitive practices and preserve market fairness, they also pose potential challenges...
Colorado AI Act: Imposing Heavy Compliance Requirements
The Colorado AI Act, formally known as “Senate Bill 24-205: Concerning Consumer Protections in Interactions with Artificial Intelligence Systems,” represents a significant legislative step towards regulating the use of artificial intelligence (AI) in consumer...
FTC Puts AI on Trial – Recent Actions
The FTC’s enforcement actions underscore the agency’s commitment to ensuring that AI technologies are developed and deployed in a manner that protects consumers and maintains fair competition. This is particularly important as AI systems become increasingly...
10 Recent Legal Developments Affecting AI
Over the past year, several significant legal developments in the United States have impacted AI businesses and developers. Here are the ten most important ones. I’ll cover each one of these in more detail with posts over the next several weeks. Follow me on LinkedIn...
The 10 Most Common Errors Found in SaaS End User Agreements
Software as a Service (SaaS) has become a cornerstone for businesses of all sizes, offering flexibility, scalability, and ease of use. However, the end user agreements (EUAs) associated with these services often contain critical errors that can lead to confusion,...
Making Sure End User and Other Online Agreements are Binding
In today’s fast-paced, digitally driven world, the adoption of electronic signatures has revolutionized the way we conduct business. As organizations and individuals seek more efficient and secure methods to validate agreements, electronic signatures have become an...
Legal Issues Arising from Scarlett Johansson’s Dispute with OpenAI over Voice Similarity in ChatGPT 4.0
The intersection of artificial intelligence and intellectual property law has once again made headlines, as Scarlett Johansson recently compelled OpenAI to remove a voice from their ChatGPT 4.0 chatbot, “Sky,” that bore a striking resemblance to hers. This development...
AI and Healthcare Law
The rapid integration of Artificial Intelligence (AI) into healthcare is transforming the landscape of medical services, diagnostics, and treatment options. However, this innovation also brings complex legal challenges, particularly around consent, medical...
AI Impact on Contract Law
Artificial intelligence (AI) is transforming the landscape of traditional contract law, introducing new complexities in contract formation, performance, and enforcement. As AI systems increasingly negotiate and perform contracts on behalf of humans, legal...
AI and Consumer Protection: Navigating New Frontiers in Transparency, Consent, and Behavior
Just how intrusive can/will AI be in the lives of the average person? Well, we are all consumers, and that makes us all targets, and as you will see below, the sky is the limit. As artificial intelligence (AI) becomes increasingly embedded in consumer products—from...
Regulating AI Across Borders: The Quest for Global Governance
As artificial intelligence (AI) continues to reshape industries and societies globally, the urgency for a cohesive regulatory framework that can address the complexities of AI deployment across different jurisdictions has never been clearer. However, harmonizing...
The Double-Edged Sword: Legal Concerns of AI in Criminal Justice
The integration of artificial intelligence (AI) into the criminal justice system promises advancements in efficiency and objectivity. However, this integration is not without significant legal and ethical concerns. As AI technologies like predictive policing, risk...
The Intrusive Eye: Navigating Privacy Concerns in an Era of AI Surveillance
In the digital age, artificial intelligence (AI) has revolutionized countless industries, offering both unprecedented convenience and powerful capabilities. However, this technological advancement has also brought with it significant privacy concerns, particularly...
Ethical AI: Steering Corporate Governance Toward Responsible Innovation
In the rapidly evolving landscape of artificial intelligence (AI), companies are increasingly required to navigate complex ethical terrains as they integrate these technologies into their operations. The role of AI ethics in corporate governance has never been more...
Your Personal AI Therapist: Balancing Legal Risks v. Health Benefits
The development of AI-generated personal companion applications specifically designed to supplement therapy introduces unique challenges and heightened liability concerns. These applications, which can offer conversation, support, and even mental health advice,...
Reps and Warranties when Purchasing a Business with AI Assets
When purchasing a business that includes artificial intelligence (AI) assets, it’s essential from the buyer’s perspective to carefully consider the representations and warranties included in the acquisition agreement. These serve as the seller’s assurances regarding...
Negotiating Data License for AI Training: Key Considerations
The data used to train artificial intelligence (AI) models plays a crucial role in determining the effectiveness, efficiency, and fairness of these systems. As businesses and researchers seek to acquire data through licensing, understanding the intricacies of data...
Navigating Copyright Fair Use for AI Training: A Guide to Using Publicly Available Internet Data
The need for diverse and extensive datasets to train large language models (LLMs) is becoming increasingly crucial. The internet, with its vast reservoir of data, is an attractive source for this training material. However, the use of publicly available information...
How to Keep IP ownership out of the hands of AI
How to protect intellectual property (IP) rights has become a critical concern for developers and businesses alike when the development process involves use of artificial intelligence. AI’s capability to generate outputs independently can complicate IP rights,...
The FTC’s Landmark Decision: Banning Non-Compete Clauses for Employees
Introduction In a very bold move, on April 23, 2024, the Federal Trade Commission (FTC) issued a transformative rule that bans almost all non-compete clauses in employment contracts across the United States. This sweeping move aims to enhance worker mobility, boost...
First State Law Takes Effective Regulating Generative AI
The Utah Artificial Intelligence Policy Act, which takes effect on May 1, 2024, marks a pioneering move in AI regulation within the United States, particularly focusing on consumer protection and transparency in the use of generative AI. Here’s a summary of the key...
UN General Assembly Adopts Historic Resolution on Artificial Intelligence
On March 21, 2024, in a groundbreaking move, the United Nations General Assembly unanimously adopted its first-ever resolution dedicated to the management and ethical regulation of artificial intelligence (AI). This resolution marks a significant milestone in...
Criticism of Biden’s use of the Defense Production Act to Monitor AI
The use of the Defense Production Act (DPA) by President Biden to regulate artificial intelligence (AI) has attracted considerable criticism, centered mainly on concerns of executive overreach, stifling innovation, and the appropriateness of applying this specific...
Fear of the Unknown: Or an Update on Biden’s Executive Order for AI and Subsequent Actions Taken
Fear of the unknown potential impact of AI on society is, understandably, rattling those in power. President Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, signed on October 30, 2023, aims to establish...
HOW AI CAN STEAL YOUR TRADE SECRETS
Samsung lost trade secret protection when its engineers used ChatGPT. These incidents happened last year, but now that artificial intelligence (AI) systems are stampeding into businesses at a breakneck speed, it’s important to first review what happened as a very...
Addressing the Legal Challenges of Artificial Intelligence in the Workplace
The integration of Artificial Intelligence (AI) into the workplace is transforming how businesses operate, bringing about significant efficiencies and innovations. However, this rapid adoption also raises several legal challenges that organizations need to address to...
NAVIGATING LEGAL CONCERNS WHEN TRAINING AI MODELS
As artificial intelligence (AI) continues to evolve and integrate into various industries, the legal considerations surrounding the training of AI models become increasingly complex and crucial. Businesses and developers must navigate a myriad of legal issues to...
IMPLEMENTING AI GOVERNANCE IN BUSINESS: AN ESSENTIAL PROCESS
The integration of artificial intelligence (AI) into business operations can drive innovation, enhance efficiency, and create significant competitive advantages. However, the deployment of AI also introduces complexities that require thoughtful governance to ensure...
NAVIGATING WARRANTIES: PROTECTING LICENSEES OF ARTIFICIAL INTELLIGENCE PLATFORMS
In today’s rapidly evolving technological landscape, the integration of artificial intelligence (AI) into various industries has become increasingly commonplace. From finance to healthcare, AI-powered platforms offer a myriad of benefits, ranging from efficiency gains...
Unpacking the Security Threats Posed by Artificial Intelligence Models
As artificial intelligence (AI) continues to evolve and integrate into various aspects of our lives, it brings not only remarkable advancements but also new security challenges. This post explores the multifaceted security threats posed by AI models, emphasizing the...
The Artificial Intelligence Act: The EU Paves the Way for Regulation of AI
On March 13, 2024, the European Parliament made a significant stride in the regulation of Artificial Intelligence (AI) by adopting the Artificial Intelligence Act. This legislation is aimed at ensuring safety, protecting fundamental rights, and fostering innovation...
Personal Data at Risk by AI: Challenges Posed by Surveillance versus Consent
In the digital age, artificial intelligence (AI) has become a transformative force, powering innovations and efficiencies across numerous sectors, including healthcare, finance, and security. However, as AI applications, particularly those involving big data and...
Navigating the Complex Terrain of AI in Decision-Making: A Closer Look at Ethics and Law
In recent years, artificial intelligence (AI) has rapidly advanced, infiltrating various sectors, including healthcare, criminal justice, and employment. These technologies promise efficiency, objectivity, and the ability to process vast amounts of data beyond human...
Legal Accountability in AI Failures and Malfunctions
In today’s rapidly evolving technological landscape, artificial intelligence (AI) systems are increasingly integral to various facets of daily life and industry operations. From healthcare diagnostics to autonomous vehicles and personalized digital assistants, AI’s...
Navigating the Maze: The Current State of U.S. Copyright Protection for Generative AI
In recent years, the emergence of generative artificial intelligence (AI) has not only revolutionized the way we create content but also brought forth a slew of legal and ethical questions, particularly in the realm of copyright protection. As we stand in 2024, the...
AI Licensing and Liability
The rapid advancement of artificial intelligence (AI) has propelled its integration into various sectors, making it a crucial component of many products and services. As businesses increasingly incorporate AI into their offerings, the complexities of licensing...
Negotiating License Terms for Artificial Intelligence Platform
Negotiating license terms for an artificial intelligence (AI) platform involves a complex interplay of technical, legal, and business considerations. As AI technologies continue to evolve and permeate various sectors, the importance of crafting well-balanced licensing...
Critical Warranties for Artificial Intelligence Platform Licenses
In the swiftly evolving realm of artificial intelligence (AI), the intricacies of license agreements take on a pivotal role. As developers and corporations navigate the uncharted territories of AI innovation, understanding the essential warranties within these...
Tennessee Paves the Way to Protect Artists from AI
The music industry has been particularly concerned about negative consequences that can result from unauthorized artificial intelligence impersonation. To address this issue, on March 21, 2024, The Ensuring Likeness Voice and Image Security Act (ELVIS Act) was signed...
10 KEY ISSUES TO CONSIDER BEFORE LAUNCHING YOUR APP
All of the below issues should be considered and worked out early on. Sometimes, in the frenzy and thrill of developing a new business, it’s easy to overlook the housekeeping issues. However, dealing with these issues farther down the road might become a major...
GUIDE TO NEGOTIATING AN IP INFRINGEMENT INDEMNITY CLAUSE
If you are a vendor of software, online (SaaS) services, content of any kind, or anything else that can be the subject of an intellectual property infringement claim, then sooner or later (probably sooner), your customers will demand that you indemnify them from any...
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