The Federal Trade Commission (FTC) on September 25, 2024 announced Operation AI Comply. The initiative is a response to potential misuse of artificial intelligence (AI) for “deceptive or unfair conduct that harms consumers” and represents the latest in a series of actions taken by the FTC in this space. The enforcement actions target false claims and representations by services providers, and touch upon the use of generative AI tools for competition. The FTC described these cases as “just the latest” in its “ongoing work to combat AI-related issues in the marketplace from every angle.”
Tech & Sourcing @ Morgan Lewis
TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
The European Data Protection Board (EDPB), the umbrella group of the EU’s data protection authorities, has issued new Guidelines 01/2024 of October 9, 2024 on the processing of personal data based on the legitimate interest legal basis in the EU’s General Data Protection Regulation (GDPR).
As more and more purchases of digital content happen online, without delivery of any physical media to the purchaser, consumers may not be able to access their purchased content in situations where vendors have removed such content from their online libraries, platforms, or apps unilaterally as the result of the expiration or revocation of the content rights. In response to numerous consumer complaints about this occurred or threatened loss of access rights to content purchased online, California Governor Gavin Newsom signed AB-2426 into law on September 24, 2024. The bill will come into effect on January 1, 2025.
On October 30, Morgan Lewis will be hosting the annual Tech & Sourcing Summit in New York. This full-day event will bring together our lawyers and industry leaders and conclude with a keynote speech by best-selling author and renowned futurist Dr. Daniel Susskind and a networking reception.
By way of update to our recent reporting on the California legislative efforts to regulate artificial intelligence (AI), on September 29, 2024 California Governor Gavin Newsom vetoed SB 1047, a bill imposing new AI safety regulations, while approving AB 2013, a law mandating transparency in generative AI.
Mere months after the Federal Trade Commission (FTC) approved a final rule banning almost all worker noncompete clauses, the US District Court for the Northern District of Texas granted in Ryan LLC v. Federal Trade Commission the plaintiffs’ preliminary injunction motions, halting the noncompete rule for just those plaintiffs in that case. The court found that the FTC likely exceeded its statutory authority and acted arbitrarily and capriciously.
When a contracting party decides that the counterparty is worth an exclusive commitment, such a decision often rests on some minimum expectations and basic assumptions. But, in light of Murphy’s law, it may be worthwhile to put the proposed union through a stress test.
Partner Andrew Gray will be a featured panelist at the upcoming Licensing Executives Society event titled AI and the Law: What You Need to Know Today. In this discussion, Andrew and fellow panelists will explore how artificial intelligence (AI) continues to transform intellectual property law, licensing, and strategy.
Please join us for the next installment of our Startup & Accelerate webinar series, focusing on key artificial intelligence considerations for emerging companies. In this webinar, partner Michael S. Ryan and of counsel Brian P. Slough will explore important legal and technology issues and questions that startups and emerging companies should consider with respect to the development, licensing, and use of AI technologies.
How are intellectual property (IP) and data rights allocated when a particular dataset is a key to unlocking a powerful new artificial intelligence/machine learning (AI/ML) model or use case? To find a balance, contracting parties may end up trading a black box for Pandora’s box.