News From the Innovation Law Center

Venture to Victory… a Success  

On February 13th, the Syracuse University College of Law hosted a Symposium featuring five alumni panelists: James Kelly, Luke Cooper, Kevin Whittaker, Peter Alfano, and Lon Levin (as pictured from left to right above). The panelists considered issues startups and maturing companies face when considering venture capital (VC) investment and private equity (PE) acquisition. The panelists provided insight on issues that included what the VC and PE industries look for in a company, tackling the challenges of founding a startup company, good practices for in-house counsel, and navigating big law VC and PE practices.   

The panelists engaged in a mock negotiation simulating a CEO of a hypothetical start-up company, a VC investor in the company, in-house counsel, a private equity firm, and counsel for the private equity firm. Each panelist’s role illustrated the myriad of issues companies face when bringing on VC or PE.   

The panelists also provided personal anecdotes on post-graduation struggles and challenges in finding their way toward their successful careers in innovation. For takeaway advice, many of the panelists noted the importance of creating a reliable network, and developing and dedicating oneself to a culture that would reflect the values and beliefs they wanted to embody and portray as a professional. 

Read more about the Symposium here.  

Continuing Challenges to OpenAI 

Last month Syracuse law professor Shubha Ghosh wrote about the lawsuit between the New York Times and OpenAI. This month he discusses another dispute between two authors and OpenAI. Read his article here. 

Professor Ghosh quoted on Need for Legal Recourse on AI Fakes  

Earlier this year, fake explicit imagery of American singer-songwriter, Taylor Swift, was released on social media site ‘X’ (formerly known as ‘Twitter’) using artificial intelligence (AI). This is just one example of the growing problems with AI applications. In an article addressing  the dearth of legal options available, Professor Ghosh was quoted on the potential legal recourse Swift and others affected by AI created fake explicit imagery, could pursue – including  a defamation suit against  X for sharing it.   

Professional Development Workshop: ‘Introduction to Intellectual Property’ 

On January 31st, the BioInspired Graduate & Postdoctoral Professional Development Program hosted a workshop centered on intellectual property protection and the innovation process. It was presented by ILC Executive Director Brian Gerling and 3L law student and research associate, Kalen Sullivan. The NYS STLC at the ILC is available to provide similar workshops on IP issues relating to tech commercialization. For more information, contact the nysstlc@syr.edu.  

Innovation Law Center  
The ILC is the designated NYS Science & Technology Law Center. It is funded by the Empire State Development Corp. to provide information and research on legal issues relevant to the technology commercialization process. Research is available to early-stage companies, research centers, economic development agencies, technology transfer offices and researchers throughout New York State.  Research on the intellectual property, competitive and market landscapes relevant to a new technology are completed by law and business students under supervision of faculty.   
If you are interested in having the ILC complete research, please submit a request here.  

IP / Regulatory Law Watch

European Union Drafts AI Act  

At the end of 2023, the European Parliament and Council reached an agreement on a European Union Artificial Intelligence Act (EU AI Act). This proposed legislation is the first of its kind as the governments try to establish a legal framework to regulate the development and use of AI. The challenge is to keep creators and users of AI systems safe and compliant with fundamental rights and values without discouraging AI innovation. The  EU AI Act takes  a ‘risk-based’ approach, classifying AI systems into 4 categories according to an assessment of their risk. The categories are: acceptable risk, high risk, limited risk, and minimal to no risk.  
 
The text of the uniform legal framework proposed EU AI Act is available on the EUR-Lex website.  Some aspects of the EU AI Act proposal include:    

1. AI systems are defined as “a machine-based system designed to operate with varying levels of autonomy that may exhibit adaptiveness after deployment and that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.” (Title I Article 3)
2.  The Scope of the EU AI Act includes all “providers, deployers, importers, distributors, manufacturers, and affected persons” of AI. The Scope of the EU AI Act also emphasizes preexisting EU laws concerning data protection, intellectual property, and alike communications.  
3. AI systems are divided into four categories. For AI systems deemed ‘high risk’, unless they fall into one of the exemption criteria, they must strictly comply with their intended purpose and pass a fundamental rights impact assessment.  
4. Some AI practices are prohibited. (Title II, Article 5) Prohibitions include the use of AI systems to manipulate or distort a person’s behavior in a manner that leads to significant harm, and prohibition of exploitation based on age, disability, or other social/economic indicators.  
5. The Act imposes disclosure obligations and for non-EU providers wishing to utilize their AI systems within the EU, they will be required to appoint an EU-based representative and meet the criteria of additional obligations if their AI system meets the definition of high risk.  
6. The Act outlines various violations and their consequences. Fines for non-compliance range from 7.5 million to 35 million euros.  
    
   If the proposal is enacted, it could provide an incentive for implementation of similar legislation in other countries.   

AI Guidance in the US 

The Biden Administration drafted a Blueprint for an AI Bill of Rights to provide guidance on legislation for the creation and use of AI. It delineates five categories: safe and effective systems, algorithmic discrimination protections, notice and explanation; and human alternatives, consideration, and fallback. Building upon these principles, President Biden issued an Executive order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. As with data privacy, states are enacting AI legislation, nearly 50% of the states having proposed or have successfully enacted legislation regarding AI. Here in New York State, a recent  New York City law set forth various auditing and disclosure requirements for AI in employment use. 

Around NY State

Upstate New York Tech Hub Designations 

In October of last year, the White House announced funding for 31 technology hub programs around the country. Two of the hub designations were made to upstate New York applicants. Each hub will focus on a different technology with the goal of giving an economic boost to the local community, and stimulate growth in places out of the traditional economic investments concentrated in cities. “Each hub will have the goal of strengthening a region’s capacity to manufacture, commercialize, and deploy technology that makes the United States more competitive in the global economy.” One of the technology hubs, New Energy New York (NENY) Battery Tech Hub, will be situated in Binghamton, New York. It will specialize in battery manufacturing and research. The other tech hub, NY Smart I-Corridor Tech Hub, will focus on semiconductor manufacturing. It will be situated within greater Syracuse, Rochester, and Buffalo.  
 

CNY Biotech Accelerator Hosts Medical Device Innovation Challenge  

For the sixth year, the Central New York Biotech Accelerator (CNYBAC) is hosting a 6 month program to help mentor early to mid aged startup companies. The program, the Medical Device Innovation Challenge (MDIC), assists in bio-technology related programs and assists by providing resources, mentorship, and network connections for start-ups across the nation. Applications are being accepted now until March 31, 2024. After all applications are submitted, teams will be selected in June 2024 by the MDIC Committee. The mentorship program then officially begins August 1, 2024. Participation in the six month program can be in person or virtual. For more information or to apply, please click here. 

Upcoming Events

AIPLA Spring Meeting  
What: American Intellectual Property Law Association (AIPLA) Spring Meeting will address the emerging issues concerning Patent law and AI. Additionally, there will be a portion of the conference dedicated to copyright and music and current Trademark trends. 
Where: Austin, Texas. More information, here.   
When: May 16-18, 2024  
 
What I Wish I Knew as an Academic Before Starting a Company 
What: The last workshop of a 3-part series hosted by the BioInspired Graduate & Postdoctoral Professional Development Group meant to address the challenges young entrepreneurs face when trying to start a new business and provide theoretical and practical solutions to increase potential for success.  
Where: Syracuse University, Bowne Hall Room 414 
When: March 4, 2024 at 3:30p.m. to 4:30p.m.  
 
American Bar Association Intellectual Property Law (ABA-IPL) Annual meeting 
What: The IPLPSPRING is an annual conference held annual to address cutting edge topics such as updates in the Copyright Office, advancements in AI technology, pending and recently passed legislation, the discourse surrounding patents and inventions involving AI, cultural and social responsibility in Trademark branding, many other topics.    
Where: Bethesda North Marriott Hotel and Conference Center – 5701 Marinelli Road, Rockville, MD 20852. Register here.  
When: April 17-19, 2024  
 
Do you have an event or schedule you would like to advertise? Contact Karen Scullion at nysstlc@syr.edu to share it in our next monthly newsletter. 

Funding Opportunities

From early-stage non-dilutive funding to tax benefits and investment funds, NYS has a number of funding resources for inventors and entrepreneurs. Check out the links below for more information:  

• USPTO Law School Clinic Certification Program
  • The USPTO has a directory for participating law schools throughout the U.S.
• VLA Patent Pro Bono Program
  • Volunteer Lawyers of the Arts helps inventors in the NYC area with drafting patent applications. 
• Empire State Development 
  • ESD offers several resources, including: Start-UP NY, the Innovate NY Fund, NY Ventures, and the Small Business Credit Initiative (SSBCI).  
• FuzeHub 
  • This company points to a collection of resources for manufacturing and technology start-ups. 
• 43North 
  • 43North annually invests in startup companies located in Buffalo, NY. 
• Pursuit Lending 
  • Pursuit provides loans and information for small business owners in NY. 
• America’s Seed Fund 
  • The National Science Foundation (NSF) invests in early-stage projects with this fund.
• NYS Investment Entities, Including:  
  • Cayuga Venture Fund
  •  Excell Partners 
  • ff Venture Capital 
  • Golden Seeds 
  • Partnership Fund for NYC 
  • SCP Incubators / Z80 Labs 
  • Stonehenge Capital 
• SBIR/STTR Assistance Program. A NYSTAR funded program to help eligible NYS-based companies hire a qualified SBIR/STTR consultant to help them develop an SBIR/STTR proposal.

Questions or Suggestions: Contact Innovation Review Editor Beatrice Nkansah at nysstlc@syr.edu