Internet & Social Media Law Blog
Thieves loot some Ethereum; chat apps and the IoT attract unwanted attention; AI detects viruses … and password sharing; and more …
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Artificial Intelligence and Money Laundering: Would AI Catch Marty Byrde?
In the popular Netflix series Ozark, money launderer Marty Byrde expends a lot of time and energy mitigating the risks that relate to his work, including his drug cartel client, a pair of farmers, the local pastor, and his own employee and her relatives—but financial regulators never appear to be a blip on his radar. Would the series turn out differently if Marty’s bank had used artificial intelligence to examine his deposits?
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The Dangers of Tweeting at the Intersection of Social Media and Securities Laws
In a time when information is increasingly shared through social media, companies—particularly publicly traded ones—must recognize and consider the potential legal ramifications that could arise from statements made by executives, board members, and/or other employees about the company on social media. Though the actions of a certain well-known technology entrepreneur have provided perhaps the most prominent example of these ramifications, there are plenty of other cautionary tales reminding us that a powerful marketing tool that allows company CEOs to connect directly with consumers carries a host of possible legal consequences. Among the most potentially damaging—time-consuming and costly securities-related litigation, both with complaints involving the SEC and private shareholder litigation.
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Twibel Warfare: To Retweet or Not to Retweet Is Still the Question
Earlier this month, we discussed the ways in which companies should navigate negative critiques and reputation management in the Age of Social Media. One option includes the pursuit of litigation, often demonstrated through claims for defamation. This course of action can typically be found in the context of a negative review: a company provides a service, customer is unhappy with the service, customer posts negative review about company online. In California, a company that wishes to claim said review has crossed a line must then prove (1) the customer made a false, defamatory statement concerning the company, (2) the customer made an unprivileged publication to a third party, (3) the publisher of the false statements acted at least negligently in its publication, and (4) the statement had a natural tendency to injure or cause special damage.
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News of Note for the Internet-Minded – 9/13/18 – Alexa the Witness, Copyright’s Taste Test and ToSDR
Algorithms behave pretty much as they are programmed to (for good and ill); augmented reality continues to seep into the auto industry; humans strive for immortality; and more …
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Critics, Trolls and the Disgruntled Few: Reputation Management in the Age of Social Media
Managing reputation is tough when every person with a social media account is a potential critic with global reach. Organizations must contend with the concern that one negative social media posting could destroy hard-earned goodwill built up through years of thoughtful investments and interactions. While social media platforms allow for organizations to efficiently engage with their target audience, they also allow users to easily become the targets of reputational attacks, such as unfounded complaints or smear campaigns. The potential for posts to go viral, the ability for posts to remain with seeming permanence on the internet and the capacity for social media users to mask their identities make it difficult for organizations to mitigate the consequences of an online reputational attack. The good news is that victims of such an attack are not without recourse. Generally, there are four options for responding to a negative social media post:
- Do Not Respond to the Post
- Respond Directly to the Author
- Contact the Social Media Platform
- Litigation
If, when and how to respond are decisions that must be made by each organization individually after considering several factors, including those discussed below.
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California Allows Some Corporations to Use the Blockchain to Record Stock Issuance and Transfers
The journey by which the blockchain and its underlying distributed ledger technology (DLT) becomes an everyday aspect of doing business is one of a thousand small steps, many of them legislative and regulatory. In “California’s New Law on Corporate Blockchain Use,” Riaz A. Karamali examines California’s recently signed SB-838, which amends Cal. Corp. Code § 204 (General Corporation Law) and Cal. Corp. Code § 2603 (Social Purpose Corporation Act) to allow certain corporations to use blockchain technology for certain corporate records. (Legislation triggering the formation of a “blockchain working group” that will evaluate the risks and legal implications associated with the use of the technology by state government and California-based businesses was also signed into law.)
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Are Your Patents Covered?
Too often, a company with a new, promising product is caught by surprise when a competitor asserts an infringement claim against it on the technology underlying the product. Sometimes, the surprise isn’t that such a claim has been made, but rather that the company’s CGL insurance doesn’t have—or expressly excludes—patent coverage. Over at Policyholder Pulse, our colleague Sean Williams examines this all-too-common quandary and looks at some options for “Plugging the Patent Coverage Gap.”
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Of Memes and Monetizing: Could the EU Directive on Copyright Change the Way We Speak Internet?
Do you like getting your news online, sharing videos or tweeting memes? A little piece of legislation known as The European Union Directive on Copyright in the Digital Single Market may signal the end of some of the internet’s simple pleasures. On September 13, the European Parliament approved new legislation that would overhaul the region’s approach to copyright law. As with the EU’s privacy regulations, the legislation could have an impact far beyond Europe, redrawing the lines of liability that exist between poster, publisher and platforms. Not surprisingly, technology companies and publishers like Google, Amazon, and Wikipedia strongly opposed the legislative changes.
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Hiring, Firing and HR Rewiring: Human Resources in the Age of Social Media
In the last decade, social media platforms have embedded themselves in the human resources function in companies worldwide. Companies like LinkedIn and Indeed have built empires based on clever deployment of social media to assist in the hiring and networking processes, even as human resource professionals use social media for more than finding the next great executive or software engineer to propel the business forward. Social media plays a key role in hiring, firing and all aspects of employee management and relations. Various studies and surveys have shown that up to 80% of all companies make some use of social media platforms in human resource decisions.