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
AI Law and Policy
Legal Considerations Involving Artificial Intelligence
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USPTO Roundtable: AI and Right of Publicity
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…
USPTO Issues AI Subject Matter Eligibility Guidance
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…
Court Rules in Landmark AI Code Generator Case – DMCA Claims Dismissed but Breach of Contract Claims Remain
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…
NJ Bar Association Warns the Practice of Law Is Poised for Substantial Transformation Due To AI
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…
Appellate Judge Proposes Possible Use of GenAI for Contract Interpretation – Recognizes That AI Hallucinates but Flesh-And-Blood Lawyers Do Too!
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.…
Lawsuits Against Web Scraping to Train AI
Plaintiff’s attorneys have filed a wave of lawsuits against various AI tools under a variety of legal theories. Most have had no success so far. Many of the asserted claims have been dismissed for lack of sufficiently pleaded facts to state a claim or for being legally untenable claims. Some of these dismissals have been…
Jobiak’s Opposition to Motion to Dismiss Copyright Infringement Claims on AI-Created Database
We recently posted about the Jobiak case which raises the interesting question of whether scraping an AI-generated database of job listings constitutes copyright infringement (among other claims). Plaintiff has submitted its opposition, in which it raises the substantive arguments to the copyright claim set forth below.…
Court to Decide Whether AI-scraped Job Database Is Subject to Copyright Protection and Is Infringed?
A pending lawsuit raises an interesting copyright infringement question – does scraping an AI-generated database of job listings constitute copyright infringement?
In Jobiak v. Botmakers, Jobiak is an AI-based recruitment platform that offers a service for quickly and directly publishing job postings online and leverages machine learning technology to optimize third party job descriptions…
M&A Transactions: Drafting AI Representations and Warranties for Non-AI Companies
Is your M&A target a manufacturing company with automated production, a consumer products business with online sales and marketing or an education company that creates content for students? The increasing use and development of artificial intelligence (“AI”) systems and products, particularly generative AI, has created risks for businesses using such tools. AI plays a role in…