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Jim Gatto is a partner in the Intellectual Property Practice Group in the firm’s Washington, D.C. office. He is Co-Leader of the Artificial Intelligence Team, the Blockchain & Fintech Team, and Leader of the Open Source Team.

We previously reported on the groundbreaking AI Fair Use ruling in the Thomson Reuters Ross Intelligence case, where the court found that based on the facts of this case fair use was not a defense. Ross Intelligence moved, pursuant to 28 U.S.C. § 1292(b), for certification of the Court’s Order, for interlocutory appeal and for a stay pending that appeal. The Court has now granted that request.Continue Reading Court Grants Interlocutory Appeal on AI Fair Use Issue

The power of large language models (LLMs) that enables generative AI derives from vast quantities of data. Much of this data comes from scraping all forms of content from the internet. Despite the benefits, this practice raises numerous legal issues, some of which implicate IP issues. Dozens of pending lawsuits in the US alone include claims involving IP issues with data scraping. The recent OECD report titled “Intellectual Property Issues in AI Trained on Scraped Data” (Report) explores the intricate relationship between AI and IP rights, particularly focusing on data scraping practices used in AI training. It aims to provide policymakers with insights into the legal challenges posed by data scraping and potential policy approaches to address these issues. The following is an overview of the Report.Continue Reading OECD Report on Data Scraping and AI – What Companies Can Do Now as Policymakers Consider the Issues

While AI has many people uptight, Aescape has developed technology to help you relax – AI robotic massage. Aescape touts that it combines the timeless art of massage with robotics and artificial intelligence to deliver an exceptional massage experience every time. The “Aertable” (i.e., the massage table) has bolsters, headrests, and armrests that are all adjustable to provide a customized fit during each session. It also has continuous feedback which allows for real-time adjustments to optimize comfort. The “Aerscan” system captures 1.2 million data points, precisely mapping your body’s muscle structure to create a unique blueprint for a highly personalized massage experience. “Aerpoints” replicate the seven touch techniques of a skilled therapist, simulating the knuckle, thumb, cupped hand, blade of hand, palm, forearm, and elbow. The “Aerview” provides personal control so you can adjust the pressure, manage the music, or customize the display to create a session tailored to your preferences, needs and mood. The company has developed “Aerwear” a high-compression performance fabric that enhances body detection for the system and allows Aerpoints to move smoothly over your body. Wearing it is mandatory during the massage. The tables are equipped with advanced safety features, including force sensors and pause and emergency stop features to prevent or abate issues if things go wrong. Aescape is a classic example of an application of AI and robotics that will interact with humans. We will see many more such applications from this point forward. While Aescape seems to have anticipated some of the potential problems that can arise, any AI robotic application that interacts with humans has the potential for a variety of legal issues. The following are some of the general legal issues that may be relevant to AI robotic applications that interact with humans. But the actual issues will vary by application.Continue Reading If You Are Uptight About AI, This May Relax You

Individually, AI and blockchain are among the hottest, most transformative technologies. Collectively, they are incredibly synergistic – hence the 1+1=3 concept in the title. We are seeing more examples of how the two will interact. Over time, the level of interaction will be extensive. Many projects are being developed that bring the power of AI to blockchain applications and vice versa. One of these projects that has garnered significant attention is the Virtuals Protocol. The project launched in October 2024 via integration with Base, an Ethereum layer-2 network. Just recently, the project announced that it is expanding to Solana. Continue Reading AI and Blockchain – 1+1 =3

In one of the most closely-watched copyright cases this year, a Delaware court rejected defendant, ROSS Intelligence’s (“ROSS”), fair use and other defenses by vacating its previous stance and granting summary judgement in favor of plaintiff, Thomson Reuters (“Reuters”). The case stems from allegations that ROSS used copyrighted material from Reuters’ legal research platform, Westlaw, to train its artificial intelligence (“AI”)-driven legal research engine. While the decision will certainly be informative to the dozens of pending lawsuits against AI developers, it is important to note the scope of the opinion is limited to the specific facts of this case. Specifically, generative AI was not involved, and the court’s analysis of the fair use factors was heavily focused on the fact that the parties are direct competitors.Continue Reading Court Definitively Rejects Fair Use Defense in AI Training Case

Defendant Lovo has moved to dismiss an amended complaint alleging that the voice actor Plaintiffs’ voices were unlawfully cloned by Defendant Lovo’s AI Voice Generator. Plaintiffs allege that Lovo’s CEO stated on a podcast that: “voice cloning refers to a virtual copy of a real person’s voice. Rather than using machine learning to synthesize an original AI voice, voice cloning technology replicates an existing human voice.” Allegedly, in a little over a year, LOVO users have created over seven million voice-overs including many based on narrations allegedly “stolen” from real actors.Continue Reading Lovo “Voices” Opposition to Suit Over “Kitchen-Sink” Approach to Alleged AI Voice Cloning

In a strategic move to preserve their right to seek reconsideration of previously dismissed DMCA § 1202(b) claims, the plaintiffs in Andersen v. Stability AI have voluntarily dismissed with prejudice all DMCA claims. The opportunity to seek reconsideration of the dismissed claims will come if a reversal occurs in the Doe 1 v. Github interlocutory appeal. We covered more of the decisions in the Github case in this prior post.Continue Reading Andersen Plaintiffs Strategically Dismiss § 1202(b) Claims Pending Interlocutory Appeal in Github Case

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.Continue Reading Court Dismisses AI Scraping Claim, But Grants Leave to Amend

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.Continue Reading CFPB Warns Employers Regarding FCRA Rules for AI-Driven Worker Surveillance

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:Continue Reading California Takes Action Against Deepfakes: Five New Bills Signed Into Law

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