Hospitality Performance Tests In the Real World
December 01, 2024
Hotel management agreements often contain language permitting a hotel owner to terminate if the hotel’s performance fails to meet certain financial metrics. This provision, colloquially referred to as the “performance test,” is touted as a form of protection for owners by providing a right to terminate (or to receive a “cure payment”) if the hotel underperforms. But the reality is performance tests are generally structured to make them difficult, if not impossible, to fail, leaving hotel owners without the financial protection they thought they bargained for — or worse.
An NDA Is Not a ‘Magic Talisman’ for Trade Secret Protection
December 01, 2024
An NDA can cover information that would not qualify as a trade secret under state or federal law, and it can provide limited contractual protection to that information. But it is not a “magic talisman” for the protection of intellectual property, and it cannot create trade secret protection where it would not otherwise exist.
The Increase in Artificial Intelligence-Related Securities Class Actions
December 01, 2024
While the full scope of AI-related legal risks is still developing, both the SEC and FTC have revealed the kinds of AI-related corporate behaviors they consider problematic. The problematic corporate behavior the agencies emphasized the most is “AI Washing” — the practice of making unfounded claims about AI capabilities.
Compliance and Third-Party Risk Management
November 01, 2024
To gauge the level of risk and uncover potential gaps, compliance and privacy leaders should collaborate to consider how often they are monitoring third parties, what intelligence they are gathering with and about their partners and vendors, and whether their risk management practices have been diminished due to cost and resource constraints.
How Secure Is Your Firm's AI System?
November 01, 2024
What Law Firms Need to Know Before Trusting AI Systems with Confidential Information
As artificial intelligence continues to revolutionize industries, the legal profession is no exception. Every authority agrees about the transformative impact AI is having on legal services. As law firms and corporate legal departments adopt AI technologies to streamline their practices, they must face the inevitable question: How secure are these AI systems?
How Secure Is the AI System Your Law Firm Is Using?
November 01, 2024
In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.
Addressing the Overlap Between AdTech and Third-Party Risk Management
October 01, 2024
Effective third-party risk management means data is being considered differently. There is an extra layer requiring management and response for data privacy. The landscape is complicated, but if organizations are proactive, and review obligations as soon as they are published, there will be less room for missteps.
Examining the Extraterritoriality of the DTSA
October 01, 2024
Can a company's trade secrets misused abroad give recourse on the extraterritoriality of the Defend Trade Secrets Act? Yes, said the 7th Circuit in an important new case in which a claim under the DTSA was asserted.
