Reminders for AI Companies from FTC

On January 9, the Staff in the Office of Technology of the Federal Trade Commission (“FTC”) posted a reminder to AI companies, enumerating the ways that they can run afoul of the laws enforced by the FTC. In particular, FTC Staff called out Model-as-a-Service companies, and impressed the importance of safeguarding individual and proprietary data involved in creating the models. FTC Staff indicated that there could be both consumer protection and competition concerns associated with a failure to do so. Further, FTC Staff warned that AI companies need to be forthcoming in how data is being used, and companies that omit material facts that would affect whether customers buy a particular product or service may run afoul of competition laws.

Webinar: International Developments in Privacy

Duane Morris LLP will present a webinar, The Data Privacy and Security Landscape: International Developments in Privacy, on Wednesday, January 17, 2024, at 11:00 a.m. Eastern time/11:00 p.m. Vietnam time.

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About the Program

The web of data protection laws being introduced across the world continues to become ever more complex. Businesses operating at an international level face serious compliance challenges. This program will present a discussion of data protection laws in countries that present some of the most significant risks. Beginning in Europe, we will discuss the new rules around cross-border transfers, trends and approaches from the regulator to the enforcement of the GDPR and its interaction with proposed AI laws. Our discussion of Asia will recap the position in a number of the major jurisdictions in the region (Japan, Singapore and China) and compare and contrast these with new law in Vietnam. For Latin America, we will focus on Mexico’s federal law on the Protection of Personal Data Held by Private Parties, Argentina’s Personal Data Protection Act and the Brazilian Data Protection Act. The discussion will include the privacy principles of each law, approaches to transfer and enforcement.

Continue reading “Webinar: International Developments in Privacy”

Comment Period Open for Defense Department’s Cybersecurity Maturity Model Certification Program Proposed Rule

On December 26, 2023, the Department of Defense (DoD) published its long-awaited proposed Cybersecurity Maturity Model Certification (CMMC) Program rule, which will impose comprehensive cybersecurity and compliance affirmation requirements on DoD contractors and subcontractors. Given that the eventual final rule could result in CMMC clauses in some DoD contracts as early as the first quarter of fiscal year 2025, interested parties are encouraged to submit comments on the proposed rule by February 26, 2024.

Ready the full Alert on the Duane Morris LLP website.

FTC and DOJ’s Merger Guidelines Include Technology Guidance

On December 18, 2023, the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) jointly issued new Merger Guidelines. The new guidelines amend, update and replace the numerous versions of merger guidelines previously issued by both agencies.

Big tech platforms will likely continue to be in the agencies’ crosshairs, including by looking back or forward at smaller acquisitions that may enhance or extend dominant positions based on technology platforms or arguably eliminate potential competition.

Read the full Alert on the Duane Morris website. 

Trade Secret Law and Artificial Intelligence

Duane Morris partner Jeremy Elman authored the article “AI and Trade Secrets: A Winning Combination” for IPWatchdog.

“Let’s say a company has created new confidential methods for cancer treatments, but they are not really effective. They ask a Gen AI to come up with a cure for cancer using these new methods.  … Who owns this cure? Is it the company that had some ineffective methods they input into the Gen AI, is it the developer of the Gen AI who ingested that information and conceived of the effective cure, or is the information now public because it has been disclosed to a Gen AI?” Read the full article on the IPWatchdog website.

Benefits and Risks of AI in California’s Generative AI Report

Following Governor Newsom’s September 2023 Executive Order on Artificial Intelligence, the California’s state administration released a report analyzing the potential benefits and risks surrounding the use of Generative Artificial Intelligence (“GenAI”) within the state government (“Report”). This is the first of many steps called for under the Executive Order.  

To read the full text of this post by  Milagros  Astesiano and Ariel Seidner, ,please  visit the Duane Morris Artificial Intelligence Blog.

AI Executive Order Impacts Different Sectors

The White House’s October 30, 2023, Executive Order on Safe, Secure and Trustworthy Artificial Intelligence signals increased governmental regulation over the development and use of artificial intelligence models. While the United States currently does not have a comprehensive AI regulation regime, many federal government agencies already regulate the use and development of AI through a complex framework of rules and regulations. President Biden’s order promises to add a new layer of complexity by introducing sweeping changes affecting a wide variety of industries.

Read the Duane Morris Alert on the most significant changes stemming from the White House’s AI executive order.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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