We have previously reported on the Jobiak case which raises the interesting issue of whether an AI-scraped job database is subject to copyright protection and is infringed. We were hoping that the court would make substantive rulings on some of the AI issues. Instead, the court has granted Defendant’s motion to dismiss for lack of personal jurisdiction, but granted Plaintiff leave to amend. So perhaps we will get some substantive rulings after an amended complaint is filed.
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AI Law and Policy
Legal Considerations Involving Artificial Intelligence
At Long Last, Final Rule for Outbound Investment Regulations Published
On October 28, 2024, the U.S. Department of Treasury released a pre-publication version of its final rule containing the outbound investment regulations.
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Commerce Takes on AI: Recent Developments from BIS on AI
In two recent rules, the Department of Commerce, Bureau of Industry and Security (BIS) has begun to take significant steps to monitor, and potentially control access to, U.S. artificial intelligence (AI) technology. AI continues to pose a unique challenge for regulators due to its rapid expansion as a consumer product and potential defense applications.
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CFPB Warns Employers Regarding FCRA Rules for AI-Driven Worker Surveillance
On October 24, the CFPB issued Circular 2024-06, which warns companies using third-party consumer reports, particularly surveillance-based “black box” or AI algorithmic scores, that they must follow the Fair Credit Reporting Act with respect to the personal data of their workers. This guidance adds to the growing body of law that protects employees from potentially harmful use of AI.
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The Double-Edged Sword of AI in Patent Drafting and Prosecution
*prepared with the assistance of artificial intelligence
In the rapidly evolving landscape of intellectual property law, artificial intelligence (AI) has emerged as a powerful tool for attorneys and inventors alike. AI drafting software, with promise of efficiency and innovation, has been increasingly adopted for drafting patent application and aiding in patent prosecution. However, this technological advancement is not without its pitfalls. Below, we explore both the risks and benefits of leveraging AI in a patent prosecution practice, providing an overview for practitioners considering its adoption.
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YouTube Unveils AI Detection Tools: Advancing ContentID for the AI Era
YouTube has announced a slate of new AI detection tools to enhance its ContentID system. The tools are designed to address the challenges posed by AI-generated content, which is becoming increasingly prevalent and sophisticated. The announcement coincides with industry-wide calls for more robust detection mechanisms as the lines between AI-generated and human-produced content continue to blur.
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California Takes Action Against Deepfakes: Five New Bills Signed Into Law
Governor Gavin Newsom has made waves by signing five new bills aimed at tackling the challenges posed by deepfakes in California, with two bills covering digital replicas of performers and three focused on elections and transparency in digital advertising. Below is a summary of the key provisions of each bill:…
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FCC Proposes New Rules Governing AI-Generated Robocalls
On August 8, 2024, the Federal Communications Commission (“FCC”) issued a Notice of Proposed Rulemaking (“NPRM”) to address the growing use of AI-generated robocalls. The FCC’s NPRM follows a 2023 inquiry proceeding into how the FCC could use its authority under the Telephone Consumer Protection Act (“TCPA”) to better protect consumers from unwanted or illegal robocalls.
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California’s AI Safety Bill: A Groundbreaking Move Amidst Industry Controversy and What AI Developers Can Do to Prepare
In a historic turn of events, California is poised to become the first state to enact comprehensive AI safety legislation with the introduction of SB 1047. This bill, designed to address the potential risks associated with advanced AI technologies, has ignited intense debate within the tech community and among policymakers.
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Navigating the Complex Landscape of AI Governance: Principles and Frameworks for Responsible Innovation
In an era where artificial intelligence (AI) is reshaping landscapes in the healthcare industry and beyond, understanding the governance of AI technologies is paramount for organizations seeking to utilize AI systems and tools. AI governance encompasses the policies, practices, and frameworks that guide the responsible development, deployment, and operation of AI systems and tools within an organization. By adhering to established governance principles and frameworks, organizations can ensure their AI initiatives align with ethical standards and applicable law, respect human rights, and contribute positively to society. Various international organizations have set forth AI governance principles that provide organizations with a…
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Key Elements of an AI Governance Program in Healthcare
On August 21, 2024, Sheppard Mullin’s Healthy AI team conducted a CLE webinar on what hospitals, health systems and provider organizations should consider in building an artificial intelligence (“AI”) governance program. As they discussed, key elements of an AI governance program include: (1) an AI governance committee, (2) AI policies and procedures, (3) AI training, and (4) AI auditing and monitoring. These components of an AI governance program will help healthcare organizations embrace the complexities of AI use in healthcare by establishing appropriate guardrails and systematic practices to encourage its safe, ethical, and effective use. This post reviews each of the…
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Closer to a Federal Right of Publicity – Senate Introduces NO FAKES Act
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.
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Game On: SAG-AFTRA’s Video Game Performer Members Strike Over AI Concerns
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]…
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AI Considerations in Government Contract-Related M&A Transactions
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]…
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AI is Changing the Real Estate Industry. How Will It Impact Your Business?
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…
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M&A Transactions: Diligencing AI Issues with Target Companies
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…
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