Justia Connect Webinars Beyond Copyright Training: 10 Interesting AI Issues Being Litigated

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Overview AI Webinar Summary

Beyond Copyright Training: 10 Interesting AI Issues Being Litigated

Over 100 lawsuits have been filed alleging copyright infringement due to training AI models on copyrighted content. These lawsuits are dominating the headlines. However, many other important AI legal issues are being litigated, but are not garnering the same attention. This webinar will look beyond the copyright training lawsuits and cover 10 other important AI legal issues that are being litigated.

Topics covered include:

Artificial Intelligence (AI) Business Law Intellectual Property Personal Injury Privacy Law

Agenda:

Overview of AI Litigation

A high level overview of the AI litigation landscape

Circumvention of Technical Measures

The growing number of AI lawsuits under the CFAA and DMCA

Trade Secret/Prompt Injection

AI trade secret cases, including ones from classic fact patterns (e.g., employee misappropriation, corporate espionage) and AI-unique issues such as prompt injection and AI model distillation

AI Agents

An army of agents are autonomously transacting on websites, and the site operators are not ready for this
Pending litigation and potential future issues with AI agents

AI Voice Recorders

How AI notetakers and recorders put a new spin on wiretapping and intrusion on seclusion claims, and the resulting lawsuits

Biometric Privacy/Voiceprints

Lawsuits involving biometric privacy, including misuse of voice prints, facial recognition, and other biometric data

Deep Fakes/NIL

AI can easily recreate users’ voices, appearance, and other identifiers, leading to various lawsuits

DMCA/Removal of Copyright Management Information (CMI)

Several cases involve removal of CMI and one has reached the 9th Circuit Court of Appeals
How courts address these issues and where there are circuit splits

Defamation

What happens when AI outputs false information about a person?
Issues with AI-based defamation claims

False Advertising

Some companies have been sued for falsely advertising AI capabilities or benefits

Negligence/Product Liability

Many users have experienced physical and mental harms based on use of AI
Pending cases where AI companies are accused of negligence or product liability based on these harms

Q&A (As Time Permits)

Duration of this webinar: 60 minutes

Originally broadcast: June 10, 2026 10:00 AM PT

Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

00:00 Copyright and AI Litigation

James Gatto, the speaker, discusses the prevalence of copyright lawsuits against AI tool companies, emphasizing the issue of whether training on copyrighted content constitutes infringement. The fair use test is discussed, focusing on transformative use and market impact, with examples from recent court cases. James highlights the importance of understanding the legal implications of using AI tools, particularly in relation to copyright infringement and fair use.

10:38 Anti-Circumvention and Trade Secrets

James discusses anti-circumvention laws, including the Computer Fraud and Abuse Act (CFAA) and the Digital Millennium Copyright Act (DMCA). He highlights AI-specific issues, such as data scraping and prompt injection, which may bypass system prompts and access protected information. He outlines the DMCA's anti-circumvention provisions and the pending cases related to bypassing paywalls or CAPTCHAs for AI training. Trade secret concerns are raised, particularly regarding model distillation and prompt injection, which can reveal proprietary information.

23:29 AI Agents and Voice Recorders

James discusses AI agents and their ability to perform tasks autonomously, raising legal questions about liability and agency. He highlights the Amazon lawsuit against Perplexity, which involved unauthorized access to Amazon's platform by AI agents. James addresses AI voice recorders and the legal issues surrounding consent and privacy, particularly in relation to recording meetings. He emphasizes the importance of developing AI policies to address specific legal issues associated with different AI tools.

33:51 Biometric Privacy and Deepfakes

James discusses biometric privacy, focusing on voiceprints and the legal implications of analyzing voice recordings. He highlights the Microsoft case, which questions whether routine transcription constitutes voiceprint collection under BIPA. Deepfakes and the right of publicity are addressed, with examples of AI-generated imitations of public figures. James mentions the Elvis Act in Tennessee, which extends the right of publicity to AI-generated voice replicas.

45:25 Regulatory Issues and Product Liability

James discusses regulatory issues, particularly the FTC's focus on false advertising related to AI capabilities. He highlights the DoNotPay case, where the FTC targeted false claims about AI-based legal advice. James mentions class action lawsuits against software vendors for unsubstantiated claims about AI tools. He addresses negligence and product liability concerns, questioning whether AI tools are considered products or services. The Garcia v. Character Technologies case is discussed, highlighting the tragic consequences of inadequate safeguards in AI chatbots.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Speaker

James Gatto AI Team Leader
Sheppard Mullin

Jim Gatto is a partner in Sheppard Mullin’s Washington D.C. office, where he founded and co-leads the firm's 120+ person Artificial Intelligence, Robotics and Quantum Team. With a robust technical background and over 35 years of experience, Jim provides strategic, business-focused advice on all aspects of intellectual property, technology transactions, regulatory issues, and litigation, particularly those driven by innovative business models and disruptive technologies. Read More ›

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Alabama CLE

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Earn Credit Until: December 31, 2026

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Earn Credit Until: June 10, 2031

West Virginia CLE

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Earn Credit Until: December 31, 2029

This presentation is approved for one hour of General CLE credit in Alabama, one hour of General CLE credit in Alaska, one hour of General CLE credit in California, one hour of General CLE credit in Hawaii, one hour of General CLE credit in Illinois, one hour of General CLE credit in Louisiana, one hour of General CLE credit in Nebraska, one hour of General CLE credit in North Carolina, one hour of General CLE credit in Ohio, one hour of Substantive Law, Practice, and Procedure CLE credit in Pennsylvania, one hour of General CLE credit in South Carolina (all levels), one hour of General CLE credit in Utah, one hour of General CLE credit in Vermont, and one hour of General CLE credit in West Virginia. This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.20 hours of total CLE credit. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours.

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