Who’s Afraid of the Big Bad Gen-AI Model?
Yelena Ambartsumian Yelena Ambartsumian

Who’s Afraid of the Big Bad Gen-AI Model?

Developers use artists’ works to train their generative AI models. Those models can then create new visual works, even in the style of a specific artist. So, is this copyright infringement, fair use, or something else entirely? Here, AMBART LLC examines the claims and motions to dismiss in Andersen v. Stability AI and explains not just the law but also how these AI models are trained.

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SEC Imposes Almost $7 Million in Penalties on Four Tech Companies with Half-Truth Cybersecurity Disclosures
Yelena Ambartsumian Yelena Ambartsumian

SEC Imposes Almost $7 Million in Penalties on Four Tech Companies with Half-Truth Cybersecurity Disclosures

The SEC recently charged four companies (Unisys Corp., Avaya Holdings Corp., Check Point Software Technologies Ltd., and Mimecast Limited) for making misleading cybersecurity disclosures, in enforcement actions that saw a total of $6.985 million in penalties. The critical issue here is not that these companies suffered cybersecurity attacks—as breaches today are almost impossible to prevent—but that their cybersecurity disclosures downplayed the impact of the attacks. Each company learned in 2020 or 2021 that the threat actor behind the SolarWinds Orion cyberattacks had accessed their systems without authorization, but instead minimized the impact of the breach and/or the quantity of files and credentials that had been accessed.

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Click-to-Cancel or Be Cancelled? It’s no longer a question.
Yelena Ambartsumian Yelena Ambartsumian

Click-to-Cancel or Be Cancelled? It’s no longer a question.

FTC's New Click-to-Cancel Rule for Negative Option Marketing: Understand how the FTC's new Click-to-Cancel rule impacts negative option marketing, automatic renewals, and B2B transactions. Find out key compliance requirements for your business.

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SEC Takes a Stand Against Artificial Intelligence (“AI”) Washing: Two Investment Advisories That Exaggerated AI to Attract Investors Settled For Making Deceptive Claims
Yelena Ambartsumian Yelena Ambartsumian

SEC Takes a Stand Against Artificial Intelligence (“AI”) Washing: Two Investment Advisories That Exaggerated AI to Attract Investors Settled For Making Deceptive Claims

With their promise of revolutionizing investment strategies and decision-making processes, it’s no wonder that AI-powered models are attractive to both companies and investors. In fact, certain investment advisers realized that they could benefit from AI without even possessing the technology; simply pretending that their investment strategies were driven by a proprietary deep-learning model was enough to create buzz and attract new clients.

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The European Union’s AI Act and What It Means for U.S. Businesses
Yelena Ambartsumian Yelena Ambartsumian

The European Union’s AI Act and What It Means for U.S. Businesses

The EU's Artificial Intelligence Act, which came into force on August 1, 2024, is a comprehensive law designed to regulate AI technologies within the EU, focusing on ensuring AI systems are safe, transparent, and respect fundamental rights. It categorizes AI systems based on risk levels—unacceptable, high-risk, and low-risk—prohibiting those applications it considers unacceptable and imposing strict requirements on higher-risk categories. The Act also emphasizes AI literacy, the promotion of trustworthy AI, and the need for clear responsibilities across the AI lifecycle, from development to deployment.

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The FCC's Proposed New AI Disclosure Rules: What They Mean for Political Advertising
Yelena Ambartsumian Yelena Ambartsumian

The FCC's Proposed New AI Disclosure Rules: What They Mean for Political Advertising

As Generative AI tools grow increasingly capable of creating realistic images and voices, the Federal Communications Commission (FCC) proposed new rules to enhance transparency in political advertising, particularly regarding AI-generated content. Instead of outright banning AI-generated political ads, however, the rules would require disclosures from cable TV, radio, and some online platforms.

(Image Accessibility Description: Feature photo shows a person wearing a suit with a red tie and a mask, resembling Donald Trump's face, as the person points toward the camera)

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