AI Law Newsletter Edition 7

Content for this Newsletter:

1. AI in Healthcare: Texas AG’s Landmark Settlement
2. AI and the First Amendment
3. California Takes Bold Steps: New AI Laws
4. AI and Google Trademark Lawsuit

1. My ABA Publication and AI Webinar Recording

My article “The Price of Emotion: Privacy, Manipulation, and Bias in Emotional AI” has been published in the American Bar Association’s peer-reviewed Business Law Today. To read the full article and learn more about compliance strategies, please visit and subscribe to my blog at https://lklawfirm.net/ai-law-advisor/

I’m thrilled to hear that many of you found our AI law webinar valuable! You can now access the webinar slide deck and recording on my website under the “Speaking Engagements” page.

b. New Q&A Initiative: 

To further support in-house legal counsel with AI, intellectual property, and data privacy issues, I’m excited to announce a new Q&A initiative. Drawing on my extensive experience in these areas, I’ll answer one question weekly. Scroll to the bottom for more details on how to participate!

Now, let’s move on to the latest developments in AI law.

1. AI in Healthcare: Texas AG’s Landmark Settlement

Texas Attorney General Ken Paxton reached a settlement with Pieces Technologies, a Dallas-based generative AI company, over claims that it made deceptive statements about the accuracy of its AI tools used in hospitals. The company’s AI summarizes real-time patient data from electronic health records, but its accuracy claims, such as a “severe hallucination rate” of less than one in 100,000, were questioned. While Pieces denied wrongdoing, it agreed to clarify how this metric was calculated or have third-party audits of its AI performance. The company committed to following the settlement for five years and supported increased oversight of clinical AI. This settlement is described as “first-of-its-kind” and sets a precedent for increased oversight of clinical AI.

As AI tools become more prevalent in healthcare, concerns over accuracy and transparency have grown, especially in clinical settings. Research has shown that AI-generated medical summaries often contain errors. Texas Attorney General Ken Paxton emphasized two key points regarding AI in healthcare:

1. AI companies providing products for high-risk settings have an obligation to be transparent about their AI tools’ risks, limitations, and proper usage.
2. Healthcare institutions, including hospitals, should carefully evaluate the appropriateness of AI products and ensure their staff receives adequate training on their use.

2. AI and the First Amendment

Christopher Kohls is suing the state of California after Governor Gavin Newsom signed laws regulating AI-generated political deepfakes. Kohls, who posted an AI-generated parody video mimicking Kamala Harris, argues that the new laws violate his First and 14th Amendment rights by restricting political satire. The video, which was shared by Elon Musk, portrayed Harris as the “ultimate diversity hire” without clear parody labeling, prompting criticism from Newsom.

One of the new laws, the Defending Democracy from Deepfake Deception Act, requires online platforms to label or remove deceptive, altered media near election periods but exempts satire and parody. Kohls seeks a permanent injunction against the law, arguing that it unlawfully restricts political expression. A spokesperson for Newsom clarified that Kohls had already labeled the post as parody on X and that the law merely ensures the content is properly marked to avoid public confusion.

3. California Takes Bold Steps: New AI Laws

Governor Gavin Newsom has signed three key laws addressing AI ethics and the misuse of digital content. SB 942, authored by Senator Josh Becker, requires generative AI systems to include hidden provenance disclosures to identify AI-generated content, promoting transparency. SB 926, by Dr. Aisha Wahab, criminalizes the creation and distribution of AI-generated sexually explicit deepfake content intended to cause harm. SB 981, also by Dr. Wahab, mandates that social media platforms provide reporting mechanisms for sexually explicit deepfakes, requiring temporary removal during investigation and permanent removal if verified. These laws aim to protect Californians’ digital identities and privacy.

However, the bill (SB 1047) that would regulate AI development and deployment is still pending. Despite support from some tech leaders, major tech companies like Google, Meta, and OpenAI oppose the bill. Please see my newsletter #6 for key points on the bill.

4. AI and Google Trademark Lawsuit

Gemini Data, an enterprise AI platform provider, is suing Google for using the same name for its AI service. Google rebranded its generative AI service to “Gemini” in February 2024, despite Gemini Data holding trademark rights to the name. Google’s attempt to trademark “Gemini” was provisionally rejected by the U.S. Patent and Trademark Office (USPTO) in May 2023 due to the similarity with existing marks, including Gemini Data’s.

The lawsuit, filed in San Francisco federal court, accuses Google of knowingly infringing on Gemini Data’s trademark rights. The complaint also alleges that Google, after its trademark attempt failed, secretly tried to acquire the name through an anonymous entity. Interestingly, Gemini Data claims that Google’s Gemini chatbot acknowledges the trademark conflict when asked about it.

This legal dispute is reminiscent of previous cases, such as Google’s controversial decision to name its programming language “Go” in 2009.

New Q&A Initiative:

How it works:

1. Submit your question: In-house legal counsel are invited to submit one question using their company’s official email address to ensure confidentiality. Please note that we cannot accept submissions from personal accounts like Gmail, Yahoo, or Hotmail.
2. Get a personalized response: I’ll select one question each week and provide a tailored response within a week.
3. Access the answer: Your question and my response will be publicly posted on my website and social media, but your name and company will remain confidential.  If you still don’t feel comfortable, I will not publish the answer.

To participate, simply send your question to lkempe@lklawfirm.net.

Join the conversation and explore pressing legal challenges around AI, intellectual property, and data privacy. 

Learn more about my services and client testimonials at www.lklawfirm.net.