Given the introduction of the ‘NO FAKES’ Act by a bi-partisan group of senators within days of U.S. Copyright Office’s release of its digital replicas report asserting an “urgent need” for more cohesive protections at the federal level, it’s clear that momentum is building for federal oversight in the realm of deepfake and digital replication technology. This legislative effort is intertwined with broader national and global discussions about AI’s impact on privacy, intellectual property, and personal identity, alongside existing gaps in enforceable protections.
Continue Reading Closer to a Federal Right of Publicity – Senate Introduces NO FAKES Act

After almost 2 years of negotiations over a new interactive media agreement with video game industry giants such as Activision, Electronic Arts, Warner Bros. and Walt Disney Co., video game performers voted to strike as of Friday, July 26, 2024. The crux of the issue being negotiated surrounds artificial intelligence (“AI”) and performers’ fears that its unbridled use could provide game makers with a means to replace them by training AI to replicate an actor’s voice, or to create a digital replica of their likeness without consent and without fair compensation.[1]…
Continue Reading Game On: SAG-AFTRA’s Video Game Performer Members Strike Over AI Concerns

As general interest and investment in AI has accelerated since the initial public launch of ChatGPT, so too has the U.S. federal government both increased its spending in the area[i] and the speed with which it adopted guidelines on the utilization of AI more generally.[ii] This tracks other actions outside the U.S.,[iii] and anticipates corresponding initiatives at the state and municipal levels.[iv]…
Continue Reading AI Considerations in Government Contract-Related M&A Transactions

As we stand on the cusp of transformation in the commercial real estate industry, one cannot help but recall the sage words: “With great power comes great responsibility.” In an era marked by technological advancements occurring at a blistering pace, the real estate industry (commercial, industrial, residential, office, hotel and every other class of real estate) stands on the brink of transformation and the seemingly limitless promise and power of generative artificial intelligence (AI) looms large as both a disruptor and a savior. There is no ignoring it, just like virtually every other industry, the real estate industry is changing rapidly…
Continue Reading AI is Changing the Real Estate Industry. How Will It Impact Your Business?

Is your M&A target a company that develops or uses artificial intelligence (“AI”) tools? AI, and generative AI technologies specifically, are powerful business tools but present novel legal issues in the context of M&A transactions. It is increasingly important to identify and understand the unique legal risks associated with the use of AI technologies, tailor your diligence to investigate them and include AI-specific reps and warranties in your deal documents. To effectively do this, it is important to have someone well-versed in AI technology and the associated legal issues on the deal team. Many subtle issues, if not properly understood and…
Continue Reading M&A Transactions: Diligencing AI Issues with Target Companies

The United States Patent and Trademark Office (USPTO) is holding a roundtable discussion, on August 5, 2024, about the intersection of AI technology and legal protections for individuals’ reputations and name, image, voice, likeness (NIL), and other indicators of identity. These rights of publicity are currently protected by a patchwork of inconsistent laws and common law rights in dozens of states. In addition to addressing whether existing legal protections for individuals’ NIL and reputations are sufficient and how these legal protections intersect with other IP laws, the USPTO is specifically interested in how AI technology impacts existing legal protections for NIL…
Continue Reading USPTO Roundtable: AI and Right of Publicity

The USPTO has published updated patent eligibility guidance (effective July 17, 2024) for AI-related inventions to help determine subject matter eligibility under 35 § U.S.C. 101. This guidance is timely as roughly 20% of all recent patent filings are AI related. It is important to note that based on prior guidance from February 2024, if an AI tool itself invents something, that is not patentable. Only inventions with significant human contribution are patentable. Thus, this does not preclude AI-assisted inventions. This February guidance was supplemented in April 2024 with AI guidance for practitioners and a request for comments on the…
Continue Reading USPTO Issues AI Subject Matter Eligibility Guidance

The battle between open source software developers and the leading AI code generators will rage on. Despite the Court dismissing Plaintiffs’ Digital Millennium Copyright Act (DMCA) Section 1202(b) claims with prejudice, it declined to dismiss Plaintiffs’ claims for breach of contract of open source license violations by Defendants. However, the Court also dismissed Plaintiffs’ request for of unjust enrichment and punitive damages.
Continue Reading Court Rules in Landmark AI Code Generator Case – DMCA Claims Dismissed but Breach of Contract Claims Remain

On June 24, the OCC, Federal Reserve Board, FDIC, NCUA, CFPB, and FHFA approved a final rule to implement the quality control standards mandated by the Dodd-Frank Act to address the use of artificial intelligence in estimating home values. The Bureau noted that over the years, the real estate and mortgage industry have made use of computer models to estimate a property’s value. As these AI-based models grow in complexity and include more variables, they can produce inaccurate or discriminatory results.
Continue Reading Federal Regulators Finalize Rule Enacting Safeguards for AI-Driven Home Valuations

At last week’s America’s Physician Group Spring conference in San Diego, California, our team heard firsthand how physicians are leading efforts to integrate Artificial Intelligence (AI) applications in ambulatory and inpatient settings in major healthcare systems across the nation. Physician and IT leaders described in detail their organizations’ efforts to identify safe, cost-effective, desirable ways to leverage AI to enhance the efficiency and quality of patient care and reduce physicians’ administrative workload. Here, we highlight key approaches that have generated early success for various health systems and physician groups, as well as key pitfalls that participants looking to adopt these…
Continue Reading How Physicians are Pioneering Use of AI Applications in Ambulatory and Inpatient Care

If your organization has not updated its policies to comply with Utah’s Artificial Intelligence Policy Act (the “Act”), now is the time. As we noted in a prior blog post, this law took effect on May 1st. While it imposes certain AI-related disclosure obligations on businesses and individuals as a whole, the obligations for regulated occupations (which include those licensed by the Utah Division of Professional Licensing, such as clinical services provided by a licensed healthcare provider, including a physician or nurse), are stricter.
Continue Reading Utah Providers – Are You Complying with the AI Policy Act?

The number of bar associations that have issued AI ethics guidance continues to grow, with NJ being the most recent. In its May 2024 report (Report), the NJ Task Force on Artificial Intelligence and the Law made a number of recommendations and findings as detailed below. With this Report, NJ joins the list of other bar associations that have issued AI ethics guidance, including Florida, California, New York, DC as well as the US Patent and Trademark Office. The Report notes that the practice of law is “poised for substantial transformation due to AI,” adding that…
Continue Reading NJ Bar Association Warns the Practice of Law Is Poised for Substantial Transformation Due To AI

By now, most lawyers have heard of judges sanctioning lawyers for misuse of generative AI, typically for not fact checking the outputs. Other judges have issued local rules governing use of or prohibiting AI. These actions have become prevalent. What has not been prevalent is judges encouraging the possible use of AI in interpreting contracts. Perhaps that will change because of a very thoughtful concurring opinion in an appeal to the 11th Circuit Court of Appeals in insurance coverage dispute matter. In that opinion, Judge Newsom penned a 31-page concurrence which focused on whether and how AI-powered large language models…
Continue Reading Appellate Judge Proposes Possible Use of GenAI for Contract Interpretation – Recognizes That AI Hallucinates but Flesh-And-Blood Lawyers Do Too!