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THE HOT STORY
AI copyright rulings reshape future
Recent rulings by federal judges in Northern California have significant implications for the intersection of artificial intelligence and copyright law. In separate cases involving Meta Platforms Inc. and Anthropic PBC, both judges determined that the use of copyrighted books to train large language models (LLMs) fell under fair use. Judge Vince Chhabria described Meta's Llama LLM as “highly transformative,” while Judge William Alsup praised Anthropic's Claude chatbot as “exceedingly transformative.” However, the judges acknowledged potential risks in acquiring content without proper authorisation, with Alsup noting that licensing for LLM training is “not one the Copyright Act entitles Authors to exploit.” The decisions also introduced a market dilution theory, which could challenge fair use in future cases. As Alsup warned, should LLMs produce outputs similar to the original works, “this would be a different case.” The evolving landscape of AI copyright law remains uncertain as new lawsuits emerge.
ARTIFICIAL INTELLIGENCE
Law firms embrace data-driven future
Top law firms are increasingly adopting data analytics and AI to enhance productivity and client services. Danny David, managing partner of Baker Botts, said: “Today, in the year 2025, if you're not using data analytics, you're not in the game.” A recent Bloomberg Law survey revealed that over 60% of nearly 100 firms are utilising data analytics tools, while nearly half are employing generative AI technologies. Firms like Seyfarth Shaw and McDermott Will & Emery are leading the way in innovation, using these technologies to improve efficiency and differentiate themselves in a competitive market. Maureen Naughton from Lowenstein Sandler emphasised that not leveraging these tools is “bad business practice.” The integration of data analytics and AI is becoming essential for law firms aiming for future success.
INDUSTRY
Litigation jobs surge amid uncertainty
The demand for litigation roles is surging, with 1,861 job postings reported, as economic uncertainty favours this sector over corporate law. Kate Reder Sheikh, a partner at Major Lindsey & Africa, noted that “a witch's brew” of factors has made M&A practices less appealing, while litigation remains robust. Bloomberg Law's Leading Law Firms data indicates that 42 firms are expanding in litigation, compared to only 24 in corporate law. Mark Hendricks, managing partner at Lydecker LLP, described litigation as “recession-proof,” highlighting its resilience during economic downturns. Mid-size firms are increasingly focusing on litigation to compete with larger firms, as clients value its visibility in a politically charged environment. The rise in litigation funding and a new wave of idealistic law graduates are also contributing to this growth.
Pro bono rankings reflect firm values
Law students seeking to differentiate firms may look to 2024’s pro bono rankings, where the Am Law 200 collectively contributed 5.12m hours. Top firms include Jenner & Block, Covington & Burling, and WilmerHale, each averaging over 100 pro bono hours per lawyer. Scores were based equally on average hours and the percentage of attorneys doing 20+ hours. Though slightly down from pandemic-era highs (5.45m hours in 2020), legal professionals remain engaged in causes like immigration, racial justice, and reproductive rights. Amid political tension, pro bono work has become a moral marker, with some firms wary, while others heavily fund conservative causes. Separately, Law.com looks at how President Trump's shadow over Big Law has thrown the tensions between pro bono and private client work into stark relief.
FIRMS
McDermott's merger: a bold move
McDermott Will & Emery is finalising a merger with Schulte Roth & Zabel, resulting in a formidable 1,750-lawyer firm with nearly $3bn in gross revenue. In a recent episode of the On The Merits podcast, McDermott Chairman Ira Coleman discussed the firm's ambitious plans, emphasising the necessity of scale for technological investments. “If you're going to put $30m in AI this year, you have to have scale,” Coleman said. This merger is part of the Leading Law Firms project, which evaluates firms beyond traditional metrics.
LAWSUITS
DOJ takes on Maryland judges
The Department of Justice (DOJ) has initiated a lawsuit against the entire federal district court in Maryland, challenging a temporary hold on deportations. Retired federal judge Andre Davis expressed concern, stating: "It's outrageous that they actually named individually in their official capacities all 15 judges on the court." The DOJ argues that the court's order represents judicial overreach, while the Maryland court implemented the pause to address a surge in habeas petitions from migrants facing abrupt deportation. The case, which has drawn attention to the tensions between the executive and judicial branches, may ultimately reach the Supreme Court. Legal experts, including Emily Chertoff from Georgetown University Law Center, highlight the implications for judicial independence amid rising threats against judges. The case has been reassigned to U.S. District Judge Thomas Cullen in Virginia to avoid conflicts of interest.
Nebraska sues GM and OnStar over alleged sale of driver data
The Nebraska Attorney General's Office has filed a lawsuit against General Motors and its subsidiary OnStar, accusing them of unlawfully collecting, processing, and selling sensitive driving data from Nebraska residents without their consent. The lawsuit alleges that the companies violated privacy rights by monetizing data collected through vehicle technology. This case highlights growing concerns over data privacy and the legal responsibilities of corporations in handling consumer information.
CalTech cuts ties with Simplilearn
CalTech announced it will terminate its partnership with e-learning company Simplilearn following a class-action lawsuit that accused both parties of misleading students about the cybersecurity boot camp. President Thomas F. Rosenbaum and Provost David A. Tirrell stated that the university would cease its association after current courses conclude in November. The lawsuit, initiated by former student Elva Lopez, claimed that the programme was marketed as being closely linked to CalTech, despite minimal connections. The settlement includes a refund of $2.4m to 263 students and mandates that Simplilearn will not misrepresent its instructors' qualifications.
LAW
SCOTUS backs Trump’s staffing cuts
The Supreme Court lifted a federal judge's order that had paused the Trump administration's significant staffing cuts and agency restructuring. The justices stated that the district judge was incorrect in halting the administration's plans, although they did not rule on the legality of the reorganisation itself. Justice Ketanji Brown Jackson dissented, arguing it was the "wrong decision at the wrong moment," while Justice Sonia Sotomayor noted that any changes must adhere to previous congressional directives. A coalition of unions and local governments has challenged the cuts, claiming they jeopardise essential government services. They stated, "the court's decision has dealt a serious blow to our democracy." Attorney General Pam Bondi praised the ruling, asserting it allows for greater efficiency in federal agencies.
CASES
Apple appeals ban on blood sensor feature in Apple Watches
Apple is challenging a federal trade ruling that mandated the removal of blood-oxygen sensing features from its latest Apple Watch models and halted their import into the United States. The tech giant appeared before the U.S. Court of Appeals for the Federal Circuit, seeking to overturn the decision. This appeal underscores the ongoing legal battles tech companies face over patent and trade issues, with significant implications for product innovation and market competition.
OpenAI poised for trademark victory
In a recent hearing, Judge Yvonne Gonzalez Rogers indicated her inclination to rule in favour of OpenAI Inc. regarding its trademark dispute with Open Artificial Intelligence Inc., which holds the trademark for “Open AI.” The judge suggested that OpenAI's request to cancel the registration of Open Artificial Intelligence could be granted due to a false representation made during the application process.
REGULATION
Court overturns FTC's 'click-to-cancel' rule
A U.S. court has nullified the Federal Trade Commission's 'click-to-cancel' rule, which mandated straightforward cancellation methods for subscriptions. The court found that the FTC failed to adhere to the necessary rulemaking procedures as required by U.S. law. This decision highlights the importance of procedural compliance in regulatory actions and may influence future rulemaking processes by federal agencies.
TAX
Trump's order targets green energy subsidies
President Trump has signed an executive order aimed at eliminating subsidies for wind and solar energy projects, titled “Ending Market Distorting Subsidies for Unreliable, Foreign Controlled Energy Sources.” This order aligns with the recently passed One Big Beautiful Bill Act, mandating the Treasury Department to enforce the termination of clean electricity production and investment tax credits within 45 days. Trump stated that reliance on “green” subsidies threatens national security, asserting that “ending the massive cost of taxpayer handouts to unreliable energy sources is vital to energy dominance.” Legal challenges to this order are anticipated, particularly under World Trade Organization rules and the Administrative Procedure Act, as energy companies and environmental groups prepare to contest the changes.

 

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