The UK Competition and Markets Authority (CMA) recently published an update paper outlining its concerns with artificial intelligence (AI) foundation models (FMs). Market players in this space should remain mindful of the CMA’s growing interest as the regulator continues its dedicated program to consider the impact of FMs on markets throughout 2024, with a further update anticipated in August.
Tech & Sourcing @ Morgan Lewis
TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
Please join us on Wednesday, April 10, 2024 from 12:00–1:00 pm ET, as partners Kristin Hadgis and Don Shelkey and of counsel Eric Pennesi discuss the latest trends in commercial contracts negotiations, including negotiating artificial intelligence (AI) provisions and recent trends in privacy and security.
The European Central Bank (ECB) has published data showing that banks are increasingly using third-party providers to support their critical functions. However, more than 10% of outsourcing contracts covering critical functions are not compliant with the relevant regulations. During a key year for EU financial institutions and their critical service providers—with implementation projects for the Digital Operational Resilience Act (DORA) well underway—the ECB signals that outsourcing and resiliency, particularly risks associated with cloud outsourcing and concentration risks, will be a top priority on its supervisory agenda.
Contract Corner
There are many basic contracting principles that can help streamline and create a readable and clear contract, including the proper use of defined terms. Consistent with the phrase, a defined term is a word or term, often capitalized or otherwise distinguished from other text throughout the agreement, that is to be read to include the particular meaning given to it in the agreement.
Contract Corner
An indemnification provision serves as a contractual remedy to redress a party’s (or third party’s) financial loss suffered as a result of a claim, breach, or some other event or condition set forth in the provision. Indemnification serves as a risk allocation mechanism derived originally from insurance law. Each term—“indemnify,” “defend,” and “hold harmless”—has a distinct and important role in an indemnity clause, so it is important to understand the nuances and differences among the three terms.
The EU-US Data Privacy Framework (DPF) became effective on July 10, and on the same day, the European Commission adopted an Adequacy Decision relating to the DPF, as a successor of the EU-US Privacy Shield. While only those companies subject to the jurisdiction of either the Federal Trade Commission or the US Department of Transportation are eligible to self-certify their compliance with the DPF, the scope of eligibility is likely to broaden in the future.
In our prior post in this two-part series on less commonly discussed technology commercialization options, we addressed how open-source software (OSS) providers may make money on their products. In this Part 2, we’ll look at another technology commercialization strategy, white labeling.
When the topic of technology commercialization strategies comes up, the most common options typically mentioned include the sale of a technology or building a business around technology by selling products or providing licenses or subscriptions to technology-based solutions.
In 2023, many companies are looking to get ahead of the issues that are expected to shape the next few years. In our industry outlook, “The Trends—and Traps—That Will Shape 2023,” our lawyers provide a high-level overview of what’s in store for various global industry sectors, highlighting some of the top tech trends and global regulatory developments.
Contract Corner
As we reach the end of the year 2022, we have once again compiled all the links to our Contract Corner blog posts, a regular feature of Tech & Sourcing @ Morgan Lewis. In these posts, members of our global technology, outsourcing, and commercial transactions practice highlight particular contract provisions, review the issues, and propose negotiating and drafting tips.