The rapid growth of generative AI (GAI) has taken the world by storm. The uses of GAI are many as are the legal issues. If your employees are using GAI, they may be subjecting your company to many unwanted and potentially unnecessary legal issues. Some companies are just saying no to employee use of AI.
Law of the Ledger
Legal Issues with Blockchain and Cryptocurrency
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The SEC’s Sudden Impact on NFTs!
On August 28, 2023, the Securities and Exchange Commission (“SEC”) instituted cease-and-desist proceedings under Section 8A of the Securities Act against Impact Theory, a Los Angeles media and entertainment company, alleging that the company’s sale of non-fungible tokens (“NFTs”) violated the registration requirements under the Securities Act of 1933 (the “Act”). …
Solving Open Source Problems with AI Code Generators – Legal Issues and Solutions
By James Gatto
AI-based code generators are a powerful application of generative AI. These tools leverage AI to assist code developers by using AI models to auto-complete or suggest code based on developer inputs or tests. These tools raise at least three types of potential legal issues:…
Valve Rejects Games with AI Assets Over Copyright Concerns
By James Gatto
Valve has reportedly adopted a policy to reject games that use AI-generated content over infringement concerns. A developer posted on the “aigamedev” subreddit that in response to submitting a game with some assets that were obviously AI-generated, he received a rejection notice from Valve stating:…
Congress Proposes National Commission to Create AI Guardrails
By James Gatto
The U.S. Congress has introduced a bipartisan bill that would create a National AI Commission (“Commission”). A focus of the Commission will be to ensure that through regulation, the United States is mitigating the risks and possible harms of AI, protecting its leadership in AI innovation and ensuring that the United States takes a leading…
Training AI Models – Just Because It’s Your Data Doesn’t Mean You Can Use It
By James Gatto
Many companies are sitting on a trove of customer data and are realizing that this data can be valuable to train AI models. However, what some companies have not thought through, is whether they can actually use that data for this purpose. Sometimes this data is collected over many years, often long before a company…
Solving Open Source Problems with AI Code Generators – Legal Issues and Solutions, Part 2
By James Gatto
AI-based code generators are a powerful application of generative AI. These tools leverage AI to assist code developers by using AI models to auto-complete or suggest code based on developer inputs or tests. These tools raise at least three types of potential legal issues:…
New York Settles with Crypto Company, Proposes Crypto Legislation
On May 1, NYDFS settled with a cryptocurrency trading platform over the company’s cybersecurity deficiencies, resulting in a consent order and $1.2 million fine for the crypto company. NYDFS alleged “multiple deficiencies in the Company’s cybersecurity program” discovered during NYDFS examinations in 2018 and 2020. The examinations prompted an investigation, ultimately leading to the consent order…
NYAG Bill Seeks to “Bring Order” to Crypto Industry
On May 3, 2023, New York Attorney General Letitia James introduced legislation that, if passed, would substantially increase oversight and regulation of the cryptocurrency industry in New York. James touts the bill as the “Crypto Regulation Protection, Transparency and Oversight Act,” also to be known as the “CRPTO Act.” (the “Bill”).…
Solving Open Source Problems with AI Code Generators – Legal Issues and Solutions, Part 1
By James Gatto
AI-based code generators are a powerful application of generative AI. These tools leverage AI to assist code developers by using AI models to auto-complete or suggest code based on developer inputs or tests. These tools raise at least three types of potential legal issues:…