Issue 12
Elvis Presley rights holders sue Anthropic over 274 songs used to train AI
Rights holders of Elvis Presley's musical estate have sued Anthropic for copyright infringement, alleging the company used 274 songs to train its models. Reports say the suit seeks more than $41 million in damages.
Who is affected and how
- corporate lawyer
- Customers of AI providers need to reassess copyright damages risk and contractual indemnification clauses.
- lawyer
- Lawyers representing music rights holders should follow the evidentiary method used in the complaint.
Family sues OpenAI over alleged fatal medical advice from ChatGPT; epilepsy drug class action also filed
The family of a Seattle woman has sued OpenAI for wrongful death, alleging that ChatGPT gave deadly medical advice. A separate class action (Wan v. OpenAI) has also been filed over responses related…
lawyerA new line of liability for chatbot advice: product liability and negligence claims are being tested.corporate lawyerAI providers offering health content should review warnings and restrictions at contract and product level.compliance specialistDocumented rules for handling medical questions reduce risk.data protection · European UnionNoyb files five GDPR complaints against Scale AI over worker surveillance
The privacy group noyb has filed five complaints in four EU countries against Scale AI, alleging that it unlawfully tracks contractors working on its Outlier platform. The allegations include…
compliance specialistCompanies running AI-trainer platforms should review the legal basis and proportionality of worker monitoring.corporate lawyerClients of AI data-supply vendors should also examine the GDPR liability chain.citizenPlatform workers can invoke their GDPR rights to request access to their data and lodge complaints.regulation · European UnionEU AI Act: Digital Omnibus pushes high-risk deadlines to 2027 as Article 50 transparency rules apply
Under the Digital Omnibus, the deadline for obligations on high-risk AI systems has slipped to 2027, while the transparency rules of Article 50 already apply. The longer lead time gives companies…
compliance specialistDespite the delay, transparency obligations must already be met, and preparation of high-risk systems should continue.corporate lawyerContracts need updating to reflect the applicable deadlines and the allocation of liability.lawyerClient preparation should be based on the changes made by the Omnibus.lawsuit · United StatesPublishers file amicus brief against OpenAI's fair use defense in copyright case
The Association of American Publishers and other publishing organizations have asked a US court in an amicus brief to reject OpenAI's fair use defense. OpenAI, for its part, has pointed on its own…
lawyerThe arguments in the fair use debate should be tracked on both sides for use in similar cases.Hungary
More key stories of the week
Fake AI citations: first strike-off, sanctions and court criticism across several countries
England's Solicitors Disciplinary Tribunal has for the first time struck off a foreign lawyer over fake AI citations, and courts in other countries have also criticised filings containing AI errors…
lawyerFake citations can lead to sanctions, including professional disbarment.case · United StatesAnthropic flags insurance gaps and copyright risk after $1.5bn settlement
Anthropic says copyright litigation could pose a major threat to its business and warns of insurance coverage gaps after the $1.5 billion settlement. Reports say its accrued legal expenses rose 69%…
corporate lawyerLiability insurance for AI developers and users should be checked to confirm whether copyright claims are actually covered.compliance specialistGiven the risk disclosure, a supplier's litigation exposure should be treated as a separate item in vendor risk assessments.case · United StatesFifth Circuit rebukes Mississippi judge over AI errors; judge removed from anti-DEI case
The Fifth Circuit called a Mississippi federal judge's ruling, riddled with AI errors, a "botch job" and the judge was removed from the case over the anti-DEI law. The DEI ban was ultimately allowed…
lawyerA flawed AI-based ruling can serve as a ground for appeal.regulation · globalCourts and AI: Geoffrey Vos's proposal, judicial guidelines and the debate over AI judges
Geoffrey Vos, the Master of the Rolls in England and Wales, says AI could decide simpler civil cases, guidelines are being prepared in Malaysia, and the Law Society has issued a report on agentic AI…
lawyerAutomated decision-making in simpler civil cases raises new procedural questions.tool · United StatesAnthropic launches Claude for Legal Artifacts, interactive tools for lawyers
Anthropic has released Claude for Legal Artifacts, a set of interactive tools. Harvey and Bloomberg Law announced data integrations, and the system checks sources before handing the document to a…
lawyerUsable in contract workflows, but the output must be checked.corporate lawyerCan also be applied to contract review at smaller companies.compliance specialistData-handling and confidentiality terms should be reviewed before signing a contract.regulation · United StatesNew York courts and state bar issue guidance on AI use in legal filings
The New York court system has issued guidance on the use of AI in filings; according to Chief Administrative Judge Joseph Zayas, lawyers remain responsible. The New York State Bar Association has…
lawyerCitations and content in filings must be verified by a human.lawsuit · United StatesWikimedia warns a bad AI copyright ruling could threaten the open web
The Wikimedia Foundation has filed a brief in New York Times v. OpenAI, arguing that a ruling favoring publishers could turn rights holders into gatekeepers. The organization distinguishes between…
lawyerThe brief offers a new argument for defending transformative use.law · United States115 new state AI laws in 30 states, with chatbot safety at the centre
According to a Transparency Coalition report, 115 new AI laws were passed in 30 states in 2026. Key themes include protecting children from harmful chatbots and preserving human decision-making in…
compliance specialistWithout a federal law, the patchwork of state rules must be tracked state by state.corporate lawyerFor multi-state clients, it is worth planning around the strictest rule.law · United StatesNew York governor signs law protecting children from AI chatbots
New York Governor Kathy Hochul has signed a law that bars companion chatbots aimed at children from producing content in 12 prohibited categories. The state's attorney general, Letitia James, will…
compliance specialistContent filters and age verification for chatbots that interact with minors must be aligned with the law.corporate lawyerProviders must prepare for enforcement by the authorities.citizenParents can invoke the new protective rules.profession · United StatesClio report: billable hours rise with AI as another analysis warns of an AI bubble
Clio's 2026 report finds that law firms' billable time has grown alongside AI use. Another analysis warns that the AI bubble in the US legal market may burst.
lawyerClients expect time savings, so firms must also stress verification.corporate lawyerFee models may change.tool · United StatesLatham & Watkins and Harvey to develop AI tool for investment fund formation work
Latham & Watkins is developing AI tools with Harvey for the formation of investment funds. The partnership comes months after K&E launched a project with Palantir.
lawyerIn fund formation documentation, standardizable steps can be automated.corporate lawyerClients can expect efficiency from large firms.regulation · United StatesHouse Democrats criticize Justice Department support for OpenAI in copyright suit
Democratic members of the House Judiciary Committee have urged the court to reject the Justice Department's arguments in The New York Times's copyright case. They say the department would back…
lawyerThe weight of the government's brief should be factored into fair use arguments.