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

Mealey's Artificial Intelligence

June 21, 2023
Class Accuses Software Company, Others Of Using AI To Inflate Rental Housing Prices

NASHVILLE, Tenn. — Renters filed an amended putative class complaint in a federal court in Tennessee accusing a software company and managers of large-scale apartments buildings of using machine learning and artificial intelligence to generate rental prices that they then adhere to “collectively raise market prices and avoid price competition.”
June 20, 2023
School District Claims Social Networks Use AI To Create Addictive Environment

SAN FRANCISCO — A Maryland school district became the latest in a long string of school districts nationwide to bring suit against the most popular social media companies for mental health issues that it says spring from minors’ addiction to social media that the defendants stoke with algorithms fueled by artificial intelligence (AI), which is used to make appealing content suggestions for kids.
June 15, 2023
Directors Want T-Mobile AI-Based Data Breach Securities Case Dismissed

WILMINGTON, Del. — Current and former company directors asked the Delaware Chancery Court to dismiss a derivative securities action claiming that T-Mobile US Inc.’s largest shareholder implemented a “hurriedly” enacted data mining plan designed to feed the owner’s machine learning and artificial intelligence platform, resulting in customer data breaches.
June 15, 2023
On Heels Of Infringement Complaint, Tesla Seeks Review Of AI Patent

ALEXANDRIA, Va. — A recent request for inter partes review (IPR) filed by Tesla Inc. seeks cancellation of 20 claims of a patent directed to a system for autonomous device operation.
June 05, 2023
COMMENTARY: Embracing AI: Why Small Law Firms Must Leverage Competitive Advantage

By Luis Salazar
June 13, 2023
AI Marketing Company Sues AI Ad Firm For Contract, Trade Secret Violations

SAN ANTONIO — An artificial intelligence (AI) marketing firm filed suit against a company with which it had a business agreement, telling a Texas federal court that the company “lured [it] into providing access to its platform and proprietary assets” for the purpose of misappropriating them.
June 12, 2023
With Eye Toward Confidential Business Info, Judge Imposes AI Restrictions

NEW YORK — Hoping to prevent the disclosure of confidential or propriety business information, a judge in an international trade court issued courtroom rules governing the “novel risks” posed by generative artificial intelligence.
June 12, 2023
Copyright Owners Amend Complaint Against OpenAI Over GitHub AI Tool

OAKLAND, Calif. — Copyright owners filed an amended class action complaint alleging, among other things, violation of the California unfair competition law (UCL), saying OpenAI Inc. and others employed an artificial intelligence program for use on software hub GitHub that reproduces licensed code.
June 12, 2023
Punish Conduct, Not Lawyer’s Use Of Tool Like ChatGPT, Amici Tells Court

NEW YORK — Courts should exercise caution in sanctioning attorneys and imposing rules surrounding the use of artificial intelligence to avoid negative fallout including impaired growth of the tool and its usage, a company representative says in an amicus brief after an attorney told a court that he was “truly mortified” to learn artificial intelligence ChatGPT simply made up the legal research he asked it to perform.
June 08, 2023
ChatGPT’s Use In Brief Stemmed From Misunderstanding, Lawyer And Firm Say

NEW YORK — Counsel’s reliance on ChatGPT stemmed from a “fundamental misunderstanding” and at most demonstrates poor judgment, not bad faith or an intent to deceive the court, a lawyer and his law firm tell a federal judge in New York, responding to an order to show why sanctions shouldn’t be imposed.
June 08, 2023
Georgia Man Claims ChatGPT Made Up Lawsuit Details, Defamed Him

LAWRENCEVILLE, Ga. — Artificial intelligence ChatGPT told a reporter that a lawsuit involved allegations that Mark Walters committed financial misconduct — going so far as to produce a fabricated complaint — even though Walters wasn’t employed by the company in question and isn’t involved in the case, Walters says in a state court complaint seeking damages from the program’s parent, OpenAI LLC.
June 06, 2023
Parties Brief Dismissal In AI Lending Platform Securities Class Action

CINCINNATI — Optimistic statements about how an artificial intelligence lending platform would perform cannot form the basis of a securities class action, and the class never shows that the alleged misrepresentations were false, let alone false when they were made, defendants argue in a pair of reply briefs in support of motions to dismiss filed in an Ohio federal court.
June 06, 2023
Lawyer Cites ChatGPT Responses In Declaration Supporting Attorney Fees

NEW YORK — An attorney in a federal court in New York supported his claim for fees by citing a conversation he had with artificial intelligence ChatGPT, saying in part that it was important to know what consumers with access to the technology would expect to pay.
June 06, 2023
Judge: Lawyers Must Certify Whether They Used AI, Checked Its Accuracy

DALLAS — Lawyers must either certify that ChatGPT and other similar generative artificial intelligence played no role in the creation of a filing or that any language drafted by such programs was checked for accuracy against print reporters or traditional legal databases, a federal judge in Texas said.
June 05, 2023
Stay Derivative Action, AI Lending Securities Defendants Say

WILMINGTON, Del. — Staying a derivative action pending the outcome of a securities class action involving allegations that a company overstated the ability of its artificial intelligence lending system would conserve both party and court resources, defendants tell the Delaware Chancery Court.
June 02, 2023
Magistrate Quotes ‘2001: A Space Odyssey’ In Setting AI Court Rules

CHICAGO — Any party relying on artificial intelligence for a filing must inform the court of the use and the specific tool used for research or writing, a federal magistrate judge in Illinois said in a new standing order.
May 22, 2023
COMMENTARY: Intellectual Property Legal Issues Impacting Artificial Intelligence

By Edward D. Lanquist and Dominic Rota
May 30, 2023
Judge Threatens Sanctions After ChatGPT-Produced Brief Cites Fake Cases

NEW YORK — An attorney and his law firm must appear at a June hearing to show why they should not be sanctioned for submitting an opposition brief with fake cites created through the use of artificial intelligence software ChatGPT, a federal judge in New York said May 26.
May 30, 2023
Judge Denies Certified Question, Says Parties Must Unwind AI Merger Software Sale

COLUMBUS, Ohio — A company may rescind the sale of artificial intelligence software that analyzes mergers, acquisitions and other investments after prevailing on a fraudulent inducement claim, a federal judge in Ohio said after declining to certify a question to the Ohio Supreme Court.
May 26, 2023
Magistrate: AI Concerns Among Reasons To Preclude Evidence Release In ERISA Case

SALT LAKE CITY — Citing in part potential concerns that competitors could use artificial intelligence and machine learning to create derivative products if a vendor’s health care guidance information were publicly released, a federal magistrate judge in Utah granted a motion for a protective order and rejected the argument that the Employee Retirement Income Security Act mandated release of the evidence.
May 16, 2023
DMCA, UCL Claims Against Microsoft, GitHub Over AI Tools Largely Dismissed

SAN FRANCISCO — A California federal judge dismissed most of the claims brought by two John Doe plaintiffs against Microsoft Corp., GitHub Inc. and OpenAI LP over the purported misuse of open-source code in artificial intelligence (AI) tools, including alleged violations of the Digital Millennium Copyright Act (DMCA) and California’s unfair competition law (UCL), with the judge finding failures to establish standing and plead injuries, among other things.
May 03, 2023
Match Group’s Discovery, Seal Motions Denied In FTC Enforcement Action

WASHINGTON, D.C. — Match Group Inc. failed to establish that the Federal Trade Commission initiated an action to enforce a civil investigative demand (CID) with improper motives, a District of Columbia federal magistrate judge ruled, denying the dating website operator’s motion to conduct related discovery, while also denying the company’s motion to seal the proceedings in which the FTC seeks documents related to its investigation of the purported sharing of users’ pictures and information with a facial recognition firm.
April 24, 2023
SCOTUS Passes On Question Of Patent Inventorship For AI

WASHINGTON, D.C. — The U.S. Supreme Court in its April 24 order list denied a petition for writ of certiorari that posed the question of whether the term “inventor” is limited to a human being, in a blow to the artificial intelligence (AI) industry.
April 21, 2023
Generative AI Firms Move To Dismiss Artists’ Unfair Competition, Copyright Claims

SAN FRANCISCO — Three companies involved in the field of content-generation artificial intelligence (AI) filed motions to dismiss putative class copyright infringement and unfair competition claims, telling a California federal court that the plaintiff artists fail to allege that any images created by their respective programs are derivative of their copyrighted works that were purportedly used to “train” their technology.
April 17, 2023
Professors Urge High Court To Recognize Inventorship Of Artificial Intelligence

WASHINGTON, D.C. — Filing an amicus curiae brief in support of a petitioner who sought registration of two patents he attributed to his artificial intelligence (AI) system, a group of four professors ask the U.S. Supreme Court to grant the petition for certiorari and “recognize that AI systems have been producing inventions constituting patentable subject matter for decades,” asserting that the practice of the U.S. Patent and Trademark Office (PTO) to deny patent registration to AI systems is “unwarranted” under the Patent Act.