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TECHNOLOGY, OUTSOURCING, AND COMMERCIAL TRANSACTIONS
NEWS FOR LAWYERS AND SOURCING PROFESSIONALS

The World Intellectual Property Office (WIPO) held its third “Conversation on Intellectual Property and Artificial Intelligence” on November 4, 2020, to discuss its revised issues paper on Intellectual Property Policy and Artificial Intelligence. This session identified the following issues:

  1. Defining artificial intelligence (AI) and future-proofing its definition as the technology evolves, exploring what is AI inputted and AI generated.
  2. The impact of AI on trademarks and the implications of human perception to determine registration and infringement of trademarks.
  3. The role of intellectual property (IP) policy in bridging the capacity gap.
  4. The policy implications of using AI in IP administration.

The California Privacy Rights Act of 2020 (CPRA), which expands consumer privacy rights, passed as California Proposition 24 on November 3, 2020. The CPRA expands the existing California Consumer Privacy Act by creating additional consumer privacy rights, such as new rights for personal information correction, expanded rights for personal information deletion, and new personal data retention and proportionality requirements. It also establishes the California Privacy Protection Agency as California’s privacy regulator.

Most of the CPRA’s provisions will become operative on January 1, 2023, and will apply to personal information collected by businesses on or after January 1, 2022. The CPRA will be enforced beginning July 1, 2023.

Please see our recent LawFlash about the CPRA, and reach out to the LawFlash authors or your Morgan Lewis contacts if you have additional questions.

You signed a deal with the US subsidiary of an India-based service provider, and the Indian parent issued a guaranty. Several years later, you are now amending the original master services agreement (MSA) to add to the scope or extend the term, and you are faced with the question of whether you need the guarantor to reconfirm that the guaranty continues in effect to the MSA, as amended— the best course of action is that you do.

When a company desires to develop technology, it has two options: develop the technology in-house by its employees, or contract with a third-party developer to develop the technology. Any time a company contracts with a third party to develop technology for the company, one of the key issues in the agreement should be allocation of intellectual property ownership.

We are kicking off our Tech & Sourcing webinar series on October 13 with our first event, Service Engagements and Business Continuity: A Fresh Look. Morgan Lewis partners Barbara Melby and Michael Pillion will address the evolving approaches in services engagements, including how to address and allocate responsibility for unanticipated business interruptions and business continuity requirements. Barbara and Michael will discuss the following topics:

  • Industry views on business continuity and the current challenges
  • Current thinking on contract terms and considerations relating to business continuity
  • A fresh look at force majeure and excused event clauses

We hope you'll join us on Tuesday, October 13, 2020, from 12:00 to 1:00 pm ET.

Register for the webinar now >>

With the world in various states of lockdown, your organization’s online presence is more important than ever…even more so with official enforcement of CCPA beginning last month. It may be a good time to spend an afternoon reviewing and updating the legal boilerplate on your organization’s website. Here is what we recommend for a basic three-part review to get you started:

  • Privacy Policy. Many clients updated their policy earlier this year to reflect changes required by CCPA. If you fall into this category, then ensuring that the proper version of your privacy policy is reflected on your website, typically in the footer, is a good idea. You would be surprised to know how many clients update their policy, but then fail to actually post the correct version publicly. If you did not recently review your privacy policy, it may be a good time to do so. In addition to seeking advice on changes recommended in light of CCPA, it is also good hygiene to pull the policy and give it a fresh read. Has your organization’s collection practices changed? Has your organization began using or disclosing data differently than it has in the past? A privacy policy only protects your organization to the extent that it is accurate and complete, so periodically spending an hour or so to ensure its accuracy is typically time well spent.

The UK Financial Conduct Authority (FCA) announced on July 8 that the guidelines issued by the European Insurance and Occupational Pension Authority (EIOPA) on outsourcing to cloud service providers are not applicable to regulated activities (in this instance, insurance and reinsurance undertakings) within the UK jurisdiction.

In its statement, the FCA noted that this is due to the fact that the EIOPA guidelines will enter into force on January 1, 2021, which is after the end of the EU withdrawal transition period.

The European Securities and Markets Authority (ESMA) published its draft guidelines on outsourcing to cloud service providers on June 3. Steven Maijoor, the chair of ESMA, indicated that the purpose of the guidelines is to “help firms understand and mitigate the risks that they are exposed to when outsourcing to cloud service providers.”

Although many companies are already revisiting contractual provisions relating to nonperformance, like force majeure clauses, as the coronavirus (COVID-19) pandemic continues to wreak havoc on public health and the economy, other proactive (but less publicized) contractual measures can facilitate early discovery and mitigation of potential nonperformance.

In the wake of the reinvigorated call for equality and greater diversity and inclusion, many companies—largely through their procurement organizations—are taking the opportunity to revisit their diversity supplier programs, including assessing impact and reevaluating best practices for pursuing supplier diversity and tracking the impact of these programs.

Most major companies include a supplier diversity program or mission statement as part of their procurement guidelines, often highlighting such programs on their external supplier portals. Some companies flow these guidelines down to their vendors in large procurement/services contracts, requiring compliance by such vendors with respect to their subcontractors.