Mealey's Artificial Intelligence : Mealey's : Legal News & Analysis

Mealey's Artificial Intelligence

August 07, 2024
Judge Relates Pair Of AI Copyright Actions As Briefing On Dismissal Begins

SAN FRANCISCO — Arguments about differences in parties and the specificity of claims in two copyright suits might stand in the way of consolidation of the actions but do not prevent relating the cases, which involve artificial intelligence created by defendant Google LLC, a federal judge in California said in a docket entry.
August 06, 2024
Judge Won’t Rethink Partial Dismissal Of Stock Drop Suit Against AI Lending Firm

CINCINNATI — A federal judge in Ohio on Aug. 5 denied a lending platform’s motion to reconsider a ruling that claims made by shareholders about the platform’s use of artificial intelligence to approve loans are actionable, holding that the lending platform incorrectly argued that the investors’ inability to establish a single factor in a multi-factor test to determine scienter “is so essential that its inapplicability is fatal to Plaintiffs’ claims.”
August 06, 2024
Expert Testimony In AI Copyright Suit Largely Admitted By Judge

WILMINGTON, Del. — That a small portion of an expert’s opinion involves relatively simple math and the availability of statutory damages is not grounds to exclude the testimony, but a defense expert who relies on simplified data and hypotheticals about income for his opinions on disgorgement and lost profits must be excluded from an artificial intelligence copyright suit, a federal judge in Delaware said in ruling on the admissibility of several expert witnesses.
August 06, 2024
Elon Musk Takes 2nd Swing At Suing OpenAI Founders With Contract, UCL Action

SAN FRANCISCO — Former OpenAI Inc. founder Elon Musk on Aug. 5 once again sued the company’s various entities, alleging in a 15-count complaint filed this time in federal court that the company and founders Samuel Altman and Gregory Brockman performed a long-con by selling him on the creation of a safer artificial intelligence only to abandon those principles when associating with Microsoft Corp. The lawsuit reiterates and adds to the violations alleged in the five-count state court action he filed in March, including a claim for violation of the California unfair competition law (UCL).
August 05, 2024
Magistrate, Judge, Appeals Court Confront Potential Use Of AIs By 3 Pro Se Plaintiffs

Judges in three cases have issued concerns about the use of ChatGPT or other artificial intelligences in the crafting of briefs by pro se plaintiffs, with two judges in federal courts noting the difficulties pro se plaintiffs face and that AIs are unreliable but declining to impose sanctions and instead warning the plaintiffs that future infractions could bring penalties.
August 05, 2024
Judge: Investor’s Claim Medical Company Lied About AI To Raise Stock Price Fails

HARTFORD, Conn. — An investor who brought a putative class complaint against a medical company, claiming it misled investors both about its artificial intelligence data platform and its own financial results, failed to illustrate in his amended complaint how some of the alleged misstatements were false and also failed to show that any of them were knowingly made, a Connecticut federal judge held, dismissing the complaint without prejudice.
August 02, 2024
Parties To OpenAI Secondary Meaning Trademark Ruling Wrap Briefing

SAN FRANCISCO — Two entities battling over the rights to the Open AI trademark wrapped up briefing in a Ninth Circuit U.S. Court of Appeals case involving a judge’s ruling finding that the mark acquired a secondary meaning with the release of OpenAI Inc.’s Dall-E website.
August 01, 2024
AI Voice Cloning Company Says Voice Actors’ Claims Lack Basis, Untimely

NEW YORK — Actors who claim they were duped into providing their voices for use in training artificial intelligence “tell a tale filled with pathos and the woes of artificial intelligence” but have not shown that their claims are timely or that their actual voices were used in a way that violates the law, an AI voice company told a federal judge in New York in a motion to dismiss the actors’ class complaint.
July 31, 2024
Authors’ UCL Claim Dismissed From ChatGPT Copyright Case

SAN FRANCISCO — A California federal judge on July 30 granted a motion by OpenAI Inc. and affiliates to dismiss authors’ claims that they violated California’s unfair competition law (UCL) by training artificial intelligence on copyrighted material after finding the claim preempted by federal copyright law.
July 31, 2024
ABA Opinion Expands Guidance On Use Of Artificial Intelligence

WASHINGTON, D.C. — The American Bar Association set guidelines and standards for the use of generative artificial intelligence, including how to properly handle fees and saying lawyers should be prepared to stay abreast of the technology as it emerges, including its benefits and risks.
July 30, 2024
Stability AI Wants Copyright Suit Sent To California

WILMINGTON, Del. — California federal court provides an all-around better location for an artificial intelligence copyright suit, Stability AI Ltd. and related entities told a federal judge in Delaware on July 29, saying that California provides better access to witnesses and evidence, a less congested court and an already pending suit involving similar allegations.
July 25, 2024
California Woman Says Retailer Used AI Company To Illegally Analyze Calls

VENTURA, Calif. — A clothing retailer uses a third-party artificial intelligence company to intercept and analyze customer calls in violation of California law, a woman alleges in a class action filed in California state court.
July 24, 2024
AI Discrimination Claims By Expelled Student Must Be Arbitrated, Judge Says

MIAMI — A testing program company’s user agreement is not unconscionable and requires arbitration of claims alleging that its artificial intelligence program improperly identified a test taker as cheating based on her disability, but the former student has not shown that she can sustain discrimination claims against the university that used the testing program, a federal judge in Florida said.
July 24, 2024
U.S. Senate Passes Legislation Targeting Deepfake Pornography

WASHINGTON, D.C. — The U.S. Senate on July 23 passed by voice vote amended legislation allowing anonymous lawsuits by individuals targeted by intimate artificial intelligence driven digital forgeries and deepfakes.
July 23, 2024
Magistrate Judge Recommends Sending AI Facial Recognition Suit Back To State Court

HOUSTON — A magistrate judge in a federal court in Texas said he would recommend remanding a case, acknowledging that it was a “close call” whether a man who claims that artificial intelligence misidentified him as a suspect in a retail theft had adequately alleged that a Texas resident who identified him provided false reports to the police but that the claim ultimately sufficed.
July 22, 2024
Complaint’s Brush Strokes Sufficiently Specific In AI Copyright Suit, Artists Say

SAN JOSE, Calif. — Allegations that Google LLC and its parent company used copyrighted material to train its artificial intelligence suffices and the plaintiffs need not identify every image at issue in the class action, visual artists tell a federal judge in California in a July 19 brief opposing dismissal.
July 19, 2024
Humana, Insureds Debate Jurisdiction In AI Claims Processing Case

LOUISVILLE, Ky. — Insureds told a federal judge in Kentucky that their lawsuit over the use of artificial intelligence in claims processing does not implicate benefits and therefore does not implicate the court’s jurisdiction. But in reply, Humana said on July 18 that the plaintiffs concede that they have not exhausted their judicial remedies as required by the Medicare Act and their claims are preempted.
July 19, 2024
Judge: AI Defamation Case Jurisdiction Uncertainty Didn’t Warrant Attorney Fees

ATLANTA — A judge who remanded an artificial intelligence defamation case said he did not award attorney fees in the case because diversity jurisdiction appeared clear enough that the plaintiff himself didn’t raise a challenge until alerted to a potential defect by the court.
July 19, 2024
Federal Trade Commission Shutters AI App Claiming To Identify STDs

WASHINGTON, D.C. — Scientific evidence does not support claims that an artificial intelligence-based app can identify sexually transmitted disease (STD) from pictures individuals upload to it with the level of accuracy claimed by its developer, the Federal Trade Commission said in a closing letter issued to the company after an investigation.
July 18, 2024
Man, CVS Settle Claims Employment Interview Included Undisclosed AI Lie Detector

BOSTON — A man who claims that artificial intelligence tools used during a job interview constitute an unlawful lie detector test settled his individual state law claims against two CVS Health Corp. entities, according to a July 17 notice filed in Massachusetts federal court.
July 18, 2024
California Legislation Seeks Creation Of Entity Overseeing AI Developers

SACRAMENTO, Calif. — Legislation winding its way through the California Legislature would require developers training artificial intelligences be able to fully shut down the program, enact separate safety and security measures and prohibit the release of AI models posing an unreasonable risk of critical harm. The California Assembly’s Committee on Judiciary passed the measure on a 9-1 vote.
July 17, 2024
Media’s AI Copyright Suit Supplemental Briefing Focuses On Prompts, Injury

NEW YORK — The Intercept Media Inc. called artificial intelligence ChatGPT a “serial plagiarist” built on thousands of copyrighted works of journalism while urging a federal judge in New York in supplemental briefing to reject arguments about any lack of injury and timeliness and deny a pair of motions to dismiss its copyright case.
July 16, 2024
Portions Of Man’s AI Employment Discrimination Case Survive Dismissal

SAN FRANCISCO — A company that makes an artificial intelligence hiring tool available to employers can be liable under agency theory, and distinguishing between AI hiring and human decision makers could gut anti-discrimination laws and leave no one liable, a federal judge in California said in denying in part a motion to dismiss a man’s case.
July 12, 2024
DMCA Claims In GitHub AI License Dispute Dismissed For 3rd, Final Time

OAKLAND, Calif. — John Doe defendants suing GitHub Inc. and others for a purported lack of attribution of their shared materials in artificial intelligence (AI) products saw their claims under the Digital Millennium Copyright Act (DMCA) dismissed for a third time, this time with prejudice.