By Courtney L. Baird and Ryan S. Crawford
In an issue of first impression, a federal court held that information a defendant input to a consumer generative AI system on his own initiative is not protected by the attorney-client privilege or the work product doctrine. That holding extended to documents the defendant generated using AI and later shared with counsel.
By Sharon Caffrey and Seth H. Dawicki
Duane Morris Partner Sharon L. Caffrey and Associate Seth H. Dawicki co-authored the article “AI Transcription Tools: Privacy, Privilege and Ethical Pitfalls” for Law.com. Sharon and Seth discuss the privacy and ethical pitfalls of the widespread adoption of artificial intelligence transcription tools.
Read a reprinted version of the article on the Duane Morris LLP website.
By J. Colin Knisely and Michael S. Zullo
On January 26, 2026, the U.S. Supreme Court granted certiorari in Salazar v. Paramount Global to resolve a growing circuit split over who qualifies as a “consumer” under the Video Privacy Protection Act. The petition asks whether the VPPA protects individuals who subscribe only to nonaudiovisual content—such as a free newsletter—from a company that also offers video programming.
Read the full Alert on the Duane Morris LLP website.
The USPTO’s new director has singled out AI, distributed ledger technologies and diagnostics as prime areas of innovation that merit patent protection. Companies, investors and other stakeholders are closely watching how the USPTO’s active guidance may better align patent practice with the ingenuity and societal benefits these technologies represent.
Last week, Duane Morris kicked off a new multipart webinar series—What’s Watt— taking a deep dive into the critical relationship between energy and modern data centers and highlighting the trends and technologies reshaping digital infrastructure. The series launched with a state-of-the-market discussion with DigitalBridge’s Jeff Ginsberg and Duane Morris’ Robert Montejo, moderated by Brad Molotsky. The panel offered insights on the industry’s key trends.
Here’s Watt you missed:
1. Power Is Key
Watt’s Old: Smaller-scale developments with traditional grid access.
Watt’s New: A mix of utility power, onsite generation, and creative energy strategies to meet a much greater demand.
AI’s explosive growth is reshaping the energy landscape, driving an unprecedented need for reliable, large-scale power. Training and operating advanced AI models requires massive compute clusters that draw far more electricity than traditional cloud workloads, pushing data centers into power ranges once associated with heavy industry. As organizations race to deploy AI capabilities, the demand for high-density facilities, fast interconnection, and resilient energy infrastructure is outpacing what many utilities can deliver on typical timelines. This surge is forcing developers, operators, and policymakers to rethink how and where digital infrastructure is built—prioritizing power availability, alternative generation sources, and innovative grid partnerships to keep pace with AI’s accelerating requirement.
2. Infrastructure Is Expensive
Watt’s Old: Traditional loan structures with shorter maturities.
Watt’s New: Large-scale, multilayered financing with longer terms and institutional investors capable of absorbing significant risk.
The next wave of data center development—driven by AI-scale power and capacity requirements—will require hundreds of billions of dollars in capital. Whether this growth ultimately forms a bubble remains unclear, but its scale is already reshaping credit markets and stretching the capacity of conventional lenders. As banks reach concentration limits and face regulatory constraints, developers increasingly rely on institutional investors, sovereign funds, infrastructure platforms, and hyperscalers with trillion-dollar balance sheets to support long-duration projects. These deals frequently involve complex capital stacks, special purpose vehicles, and financing horizons of 15–25 years to match the lifecycle of large campuses and energy assets.
3. Focus on Execution
Watt’s Old: Out of sight, out of mind.
Watt’s New: Plan deliberately and anticipate environmental, regulatory, and community challenges.
Ambitious AI-driven demand has raised the stakes for planning and execution in large-scale data center and energy projects. Power generation—whether grid-supplied or onsite—introduces thermal loads, water requirements, land-use impacts, and transmission needs that must be addressed early to keep projects viable. In many regions, particularly in the Western U.S., water constraints, aquifer depletion concerns, and limited cooling alternatives can quickly challenge site feasibility. Local infrastructure pressures, such as noise, construction logistics, easements, and grid constraints, often converge with environmental and community concerns, creating conditions ripe for pushback or organized resistance. Effective execution now means proactive engagement, rigorous resource planning, and transparent mitigation strategies to avoid delays and ensure that projects scale responsibly amid real and growing demand for AI infrastructure.
Find a recording of the full-length discussion here.
Watt’s Next: Our webinar series continues with What’s Watt: Nuclear Power and the Future of Data Center Construction
A UK government petition demanding changes to consumer law around the sale of video games has passed 100,000 signatures. This milestone triggers consideration for a debate in Parliament and throws the spotlight on a growing international issue. The petition calls for a change in the law to prevent publishers from disabling or removing access to games after they have been sold, unless consumers are given the right to retain or repair them.
It is part of the wider Stop Killing Games campaign, a grassroots consumer movement gaining traction globally. Alongside the UK petition, a European Citizens’ Initiative has also surpassed the required one million signatures, meaning it will now be formally reviewed by the European Commission (subject to verification) and brought before the European Parliament for a public hearing. Read the full post on the Duane Morris London Blog.
The New York Department of Financial Services (DFS) published an alert directed to all DFS-regulated entities specifically warning of a widespread cybersecurity threat involving social engineering of regulated institutions’ IT help desk personnel and call center personnel.
According to the alert, DFS has detected a trend in which threat actors have targeted IT personnel as a part of schemes to gain system access through password resets and diversion of multi-factor authentication (MFA) to new devices. According to DFS, threat actors have employed tactics including voice-altering technology and leveraging information found online about identities of individuals, in attempts to convince IT personnel at help desks and call centers to comply with fraudulent access requests.
DFS cautions all regulated entities to be on “high alert for suspicious communications” based on the observed threat actors’ recent activity. Entities are encouraged by DFS to:
DFS included a link to guidelines published by the U.S. Department of Homeland Security’s Cybersecurity & Infrastructure Security Agency (CISA). The guidelines from CISA (CISA: Avoiding Social Engineering and Phishing Attacks) identify best practices to protect against these cyber threats, including:
In addition to the CISA guidelines, NYDFS has a publicly available Cybersecurity Resource Center with more information and guidance for DFS-regulated individuals and entities.
For More Information
If you have any questions about this blog post, please contact Michelle Hon Donovan, Ariel Seidner, Milagros Astesiano, any of the attorneys in the Privacy and Data Protection Group, or the attorney in the firm with whom you are regularly in contact.
Disclaimer: This blog post has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm’s full disclaimer.
While the Colorado Privacy Act (CPA) has already been in effect, as of July 1, 2024, companies that meet the threshold compliance criteria for CPA and that engage in the processing of personal data for purposes of targeted advertising or the sale of personal data (“covered entities”) must implement a universal opt-out mechanism, which allows users to more easily exercise their opt-out rights with these covered entities. Specifically, a universal opt-out mechanism allows a user to configure their internet browser settings, and as a result, the websites the user visits from that browser automatically receive the user’s opt-out signal. As of July 1, 2024, covered entities must recognize and honor a user’s opt-out preferences where communicated through a universal opt-out mechanism.
Read the full Alert on the Duane Morris LLP website.
Duane Morris LLP will present a webinar, The Data Privacy and Security Landscape: Privacy Class Action Litigation Trends, on Thursday, May 30, 2024, from 12:30 p.m. to 1:30 p.m. Eastern time.
Continue reading “Webinar: Privacy Class Action Litigation Trends”
A replay of Tech Sector Sanctions, Export Controls and Foreign Investment Rules in the U.S., the U.K. and the EU is available for viewing.
