The Federal Circuit partially refuted the long held assumption that the trademark applicant has the burden of proving third party marks were in use when determining the strength of the applicant mark. The panel led by Judge Dyk found that when determining the conceptual strength of trademarks, “absent proof of non-use [of registered marks], use

The deal market reached historic levels in recent years, with record-setting merger and acquisition activity in 2021. Markets have since cooled, with capital becoming harder to find. But any company preparing to sell within the next five years should consider the more common IP issues that arise during the legal due diligence process.

IP Ownership

Several U.S. courts are addressing lawsuits brought by artists alleging that AI-generated art infringes on copyrights held by the artists for their artwork. In one of those cases, a California federal judge recently indicated that he would dismiss the bulk of the plaintiffs’ complaint, while giving them a chance to re-plead their claims. A written decision from the court is forthcoming, and that decision could be an important one for plaintiffs and defendants alike in current and future AI-related copyright cases.

In Andersen, et al. v. Stability AI Ltd., et al., Case No. 3:23-cv-00201-WHO (N.D. Cal.), three artists—Sarah Andersen, Kelly McKernan, and Karla Ortiz—brought suit against Stability AI Ltd., Stability AI, Inc., Midjourney, Inc., and DeviantArt, Inc. Plaintiffs alleged that Stability AI “copied and scraped” billions of images to train an AI tool called “Stable Diffusion.” These images allegedly included those originally created by the plaintiff artists. Meanwhile, the other two defendants created programs allowing users to access Stability AI’s tool, which generates images in response to text prompts entered by users. Plaintiffs asserted that the defendants’ conduct resulted in, among other things, copyright infringement of the plaintiffs’ artwork. Plaintiffs also argued that the defendants engaged in vicarious copyright infringement by permitting their users to enter text prompts that resulted in infringing images.

Continue Reading California Court Casts Doubt on Copyright Claims Relating to AI Images

The new social media platform Threads was launched on July 5, 2023. Reports indicate that within the first day of launch, more than 30 million users have signed up. The app is designed for text-based conversations instead of photo updates. As users rush to join the platform, brands should also prioritize claiming accounts in order

We previously wrote about the widely-publicized Southern District of New York case involving lawyers who submitted papers citing non-existent cases generated by the artificial intelligence program ChatGPT, Mata v. Avianca, Inc. The judge overseeing the matter held a lengthy, and tense, hearing on June 8, 2023, before a packed courtroom, and then issued a decision on June 22, 2023 sanctioning the lawyers involved. The case has grabbed attention by highlighting some of the real risks of using AI in the legal profession, but the case’s primary lessons have nothing to do with AI.

The June 8 Hearing

On June 8, 2023, the judge in the Mata case held a hearing on the issue of whether to sanction two of plaintiff’s lawyers, and the law firm at which they worked, for their conduct. The courtroom was filled to capacity, with many would-be observers directed to an overflow courtroom to watch a video feed of the hearing. 

As set forth in our prior update, the plaintiff’s first lawyer submitted an affirmation on March 1, 2023, in opposition to the defendant’s motion to dismiss, which was written by the second lawyer, but contained citations to non-existent cases. Thereafter, the defendant pointed out that it could not find these cases in a filing on March 15, and the Court issued an order on April 11 directing the plaintiff’s lawyer to submit an affidavit attaching the identified cases. The first lawyer did so on April 25 (attaching some of the “cases”, and admitting he could not find others), but did not reveal that all of the identified cases were obtained via ChatGPT.  Only after the Court issued a further order on May 4 directing the lawyer to show cause as to why he should not be sanctioned for citing non-existent cases did the first lawyer finally reveal the involvement of the second lawyer and the role of ChatGPT in the preparation of the submissions.

Continue Reading Update on the ChatGPT Case: Counsel Who Submitted Fake Cases Are Sanctioned

On Tuesday, June 13 at 1:00 p.m. Eastern, Seyfarth attorneys Kristine Argentine, John Tomaszewski, and Paul Yovanic will present at the Association of National Advertisers webinar,  “Emerging Issues Surrounding Privacy Class Actions and Compliance in 2023.”

The webinar will address the recent surge in consumer class actions, compliance considerations, and recent developments

You may have recently seen press reports about lawyers who filed and submitted papers to the federal district court for the Southern District of New York that included citations to cases and decisions that, as it turned out, were wholly made up; they did not exist.  The lawyers in that case used the generative artificial