Antitrust and tech is in the legal news almost daily, and often multiple times a day. Here are a few recent developments with notable implications that may have flown under the radar: 1) renewed focus on gig economy issues; 2) potential enforcement efforts regarding director overlaps; and 3) challenges to MFN pricing.
Use of Technology for Advocacy
To Register a “Generic.com” Term, Show that Consumers Perceive It As Not Generic
The U.S. Patent and Trademark Office has issued guidance on how it will treat applications to register “generic.com” terms in the wake of the Supreme Court’s June 30, 2020 decision in United States Patent and Trademark Office v. Booking.com.
We previously wrote about the Supreme Court’s Booking.com decision, which affirmed the Fourth Circuit’s decision that the mark BOOKING.COM was registrable and not generic. The Supreme Court’s decision tracked the arguments in an amicus brief we submitted on behalf of consumer perception specialists and academics from leading U.S. universities.
Use of Technology Assisted Review Finds Support in Northern District of Illinois
In a recent order from Livingston v. City of Chicago, Magistrate Judge Young Kim of the Northern District of Illinois provided useful guidance to litigants in the use of technology assisted review, or TAR. Importantly, Judge Kim affirmed what is known as “Sedona Principle Six,” the notion that a responding party is in the best position to design and evaluate procedures for preserving and producing its own electronically stored information, or ESI.
A New Frontier or Back to Basics? FTC Issues New Guidance on Artificial Intelligence Technology
In the latest piece to come out of the FTC’s new focus on emerging technologies, the FTC Bureau of Consumer Protection issued new guidance on the use of artificial intelligence (“AI”) and algorithms. The guidance follows up on a 2018 hearing where the FTC explored AI, algorithms, and predicative analysis. As the FTC recognizes, these technologies already pervade the modern economy. They influence consumer decision making – from what video to watch next, to what ad to click on, or what product to purchase. They make investment decisions, credit decisions, and, increasingly, health decisions, which has also sparked the interest of State Attorneys General and the Department of Health & Human Services. But the promise of new technologies also comes with risk. Specifically, the FTC cites an instance in which an algorithm designed to allocate medical interventions ended up funneling resources to healthier, white populations.
A Shot in the Arm: Second Circuit Holds Flu Shot Text Messages Didn’t Violate TCPA
Earlier this month, the Second Circuit ruled that Mount Sinai Health System did not violate the Telephone Consumer Protection Act (TCPA) when it sent automated flu shot text message reminders to patients. The three-judge panel in Latner v. Mount Sinai Health Systems, Inc. affirmed the dismissal of the putative class action, finding that the lead plaintiff, Daniel Latner, had consented to receiving the messages. As companies in the healthcare industry and beyond increasingly rely on automated communication systems, this case highlights the consumer privacy implications of using mass text messages to contact patients and consumers.
Billable Bitcoins: Lawyers Accepting Cryptocurrency
With bitcoin and other cryptocurrencies reaching shocking new prices seemingly every day, some people have finally started putting the new payment systems to real use – paying lawyers. Earlier this fall Nebraska became the first state to hand down a formal ethics ruling on the propriety of lawyers charging their clients using bitcoin and other cryptocurrencies. In allowing lawyers to charge their clients via cryptocurrencies, so long as they then instantly exchange the virtual currency for U.S. dollars, the decision may be indicative of a larger trend in the legal industry.
LinkedOut: Court finds Ex-Employee Likely Violated Non-Solicitation Provision with LinkedIn Post
The use of social media sites, like LinkedIn, can be a helpful tool to reach a customer base. But a recent district court case out of Minnesota exemplifies the need to ensure that LinkedIn usage complies with the user’s employment agreement. Specifically, in late July 2017, a Minnesota court in Mobile Mini, Inc. v. Vevea granted a preliminary injunction preventing a LinkedIn user from soliciting customers through the website in violation of non-solicitation clause in the employment agreement of her prior employer. The opinion differentiates between posting mere status updates and posting solicitations, the latter of which can trigger violations of non-solicitation clauses.
Robotic Review: The Use of Artificial Intelligence in Contract Review
Through the help of artificial intelligence (“AI”), your smartphone can act as a GPS that adjusts its recommended route in real-time based on emerging traffic patterns. By adapting to changes in traffic, the smartphone is able to redirect a driver to a faster route. Now imagine these adaptive capabilities in the legal field. With the potential of AI growing rapidly, the use of AI technology, though still in its infancy, is gaining traction with law firms, helping to provide better outcomes for clients, faster. According to a recent survey by management consulting firm Altman Weil, law firms are beginning to explore AI’s potential. While only 7.5% of surveyed law firms are currently making use of AI, nearly a third of the surveyed law firms have begun to explore opportunities to use AI as a legal tool. The capabilities of AI, whether currently available or on the horizon, suggest that both lawyers and clients can benefit from the legal field’s embrace of AI. This is particularly true with respect to the use of AI in the many phases of contract review: contract creation, contract analysis, and contract due diligence.