Tech & Sourcing @ Morgan Lewis

As artificial intelligence (AI) becomes increasingly embedded in outsourced services, companies are facing a new and growing challenge: digital dependency on their vendors. Modern outsourcing relationships are no longer limited to staffing support or standardized technology platforms.

In the first post in our AI & Outsourcing series, we observed how artificial intelligence (AI) is transforming the outsourcing industry in ways that extend far beyond operational efficiency. This second post in the series discusses the need to rethink legal and commercial terms that govern outsourcing relationships, as companies increasingly incorporate AI-enabled tools and automation into outsourced services.

Digital transformation initiatives across Europe, the Middle East, and the United States are accelerating at a remarkable pace. As multinational companies expand cloud adoption, AI deployment, data-sharing ecosystems, and managed technology services across jurisdictions, technology transactions are increasingly becoming instruments of geopolitical strategy, regulatory compliance, and regional market access—not simply procurement exercises.

Software-as-a-service (SaaS) agreement renewals are often viewed as routine procurement exercises focused primarily on pricing and continued access to services. In practice, however, renewals present an important opportunity for customers to reassess legal, operational, and compliance risks that may have evolved since the agreement was originally negotiated.

Welcome to the first blog in our AI and Outsourcing series, where we explore the disruptive and transformative impact of artificial intelligence (AI) on outsourcing and managed services transactions.

While morals clauses have long been common in athlete endorsement agreements, their importance to sponsorship agreements between teams and sponsors is mounting as brands seek greater protection against reputational harm tied to their association with a team. In the team sponsorship context, however, the analysis will differ.

Please join partner Marie Davy and of counsel Emily Lowe on Thursday, April 30, 2026 from 12:00 to 1:00 pm ET for a discussion on current issues and key contractual provisions in global distribution agreements. Topics will include territory and exclusivity, compliance, and intellectual property protection.

World Intellectual Property Day on April 26, 2026 provides a timely lens through which to examine the increasingly complex role that intellectual property (IP) and commercial rights play across the sports industry. Far beyond traditional questions of trademark, copyright, patent, and design protection, the modern sports ecosystem is shaped by layered rights and contractual structures governing athlete branding, sponsorships, media distribution, data, venue technology, and emerging artificial intelligence (AI)-driven uses.

While stadium naming rights agreements have traditionally focused on the core commercial points one would expect—category exclusivity, signage rights, use of trademarks, media integration, hospitality benefits—as more stadiums host global events such as the FIFA World Cup and the Olympics, temporary obscuring signage language has become an increasingly important consideration in naming rights negotiations.

The White House’s April 3, 2026 executive order, Urgent National Action to Save College Sports, signals a sharp expansion of federal involvement in college sports by moving beyond broad policy statements and toward an enforcement-focused framework tied to federal funding.