Using biometric identifiers and information continues to be a “go-to” method for authentication. Likewise, the Illinois Biometric Information Privacy Act (BIPA) continues to garner attention throughout Illinois and nationally as other states adopt differing biometric privacy laws. In response to growing public concern about the increased commercial use of biometric data, the Illinois General Assembly enacted BIPA in 2008. BIPA regulates collecting, using, and storing biometric information, such as fingerprints, retina scans, and facial recognition data. The goal of BIPA is to prevent the misuse of biometric identifiers. BIPA provides a private right of action and remedies for violations. It
Continue Reading The BIPA Landscape Continues to Evolve

Major Portions Go Into Effect March 31, 2024, Including Its Private Right of Action

Washington’s “My Health, My Data Act” is a new data privacy statute that regulates the collection, sharing, selling, and processing of “consumer health data” by certain entities. The act is intended to protect health data not otherwise protected by federal health care privacy regulations, such as entities not regulated by HIPAA. Despite its name, the act broadly encompasses the regulation of personal data beyond traditional health care data. In certain circumstances, it regulates the collection of non-Washington residents’ data and businesses outside of Washington. “Regulated entities,”
Continue Reading Is Your Business Ready for Washington’s New Data Privacy Statute?

In recent years, Illinois has become a focal point for privacy litigation, thanks in large part to the Biometric Information Privacy Act (BIPA), which has been the subject of numerous class action lawsuits. However, another Illinois privacy law, the Genetic Information Privacy Act (GIPA), has begun to attract attention from plaintiffs’ attorneys, raising concerns for employers across the state.

Enacted in 1998, GIPA, in part, regulates the collection and use of genetic information by employers in Illinois. Genetic information, as defined by GIPA, includes details from genetic tests, the presence of diseases or disorders, and genetic services. The law prohibits
Continue Reading Illinois’ Genetic Information Privacy Act – The Next Big Thing?

The EU’s pioneering AI Act, set to take effect in two years, aims to establish Europe as a global leader for trustworthy AI. It provides for enforcement of unified rules, emphasizing safety and fundamental rights. And it applies to providers and users globally, so long as the AI output is intended for EU use.

The Act defines an AI system as software that “can, for a given set of human-defined objectives, generate outputs such as content, predictions, recommendations, or decisions influencing the environments they interact with.”

The Act uses the above definition to categorize systems based on the amount of
Continue Reading EU Artificial Intelligence Act

An owner of a trade secret that has been misappropriated may seek remedies of injunctive relief and monetary damages, to compensate it for the economic harm  resulting from the party that stole and benefitted from the theft of the trade secret. While injunctive relief is the gravamen of any trade secret misappropriation claim, the available monetary damages often drive litigation strategy and often drive a plaintiff’s business, commercial, or market response to the misappropriation.

The trade secret owner may seek injunctive relief and monetary damages under the Uniform Trade Secrets Act (“USTA”), and if applicable, the federal Defend Trade Secrets
Continue Reading Remedies for Trade Secret Misappropriation

On May 18, 2023, the Federal Trade Commission (the “FTC”) issued a policy statement on the use of biometric information under its regulatory powers in Section 5 of the FTC Act (the “Statement”). The Statement is the strongest message the FTC has ever issued regarding how certain uses of biometric technology may, depending on the circumstances, constitute unfair and deceptive trade practices under Section 5.

The Statement provides significant insight into the FTC’s shifting priorities and focus on the regulation of the use of biometric technology, a topic that so far has been regulated by state and local law –
Continue Reading The FTC Expands Its Regulatory Watch Over the Use of Biometric Technology

On June 14, 2023, European Union (EU) parliament members passed the Artificial Intelligence Act (the “EU AI Act”) which, if enacted, would be one of the first laws passed by a major regulatory body to regulate artificial intelligence.  It would also potentially serve as a model for policymakers here in the United States as Congress grapples with how to regulate artificial intelligence.

The EU AI Act would, among other things, restrict use of facial recognition software and require artificial intelligence developers to disclose details about the data they use with their artificial intelligence-powered software.  Artificial intelligence developers would be required
Continue Reading EU Passes Artificial Intelligence Legislation

We have often heard that mantra “digitize to survive.” Businesses initiate a digital transformation to drive growth, improve business processes, and enhance the customer experience. According to Gartner, digital transformation is an organizational priority for 87% of senior executives.

A number of studies from academics, consultants, and analysts indicate anywhere from 70% to 95% of organizations fail to realize the expected business benefits of their digital transformations and ERP software implementations. Some studies found that 70% of digital transformations failed due to employee resistance.

The challenges of successfully implementing ERP software or a having a successful digital transformation are daunting. The
Continue Reading Digital Transformation – The Statistics Are Not on Your Side

A new, fun, and fast way to generate words and images has exploded in popularity. The hero (or villain, depending on whom you ask) is a high-powered, complex form of computer programming called generative artificial intelligence (AI). OpenAI, a company riding on a multi-billion dollar investment from Microsoft, has popularized generative AI with ChatGPT, a now-viral platform allowing users to generate seemingly anything the mind can imagine in text form. Other companies have created platforms like Midjourney or Adobe Firefly, allowing people to do the same but with images.

Copyright issues surrounding generative AI are unsettled. Courts and the United
Continue Reading Six Best Practices for Companies Using Generative AI (like DALL-E or ChatGPT) for Marketing Purposes

Taft Chicago partner Marcus Harris will be a featured speaker for Pemeco Consulting’s webinar, “SaaS Contract Negotiations: A Winning Playbook,” on April 27. The webinar will provide insights on the typical negotiation cycle, key contract terms, how to build a strong bargaining position, and how to master negotiation strategies. 

For more information or to register, click here.

Harris has established one of the country’s leading practices devoted to drafting and negotiating Enterprise Software related license, implementation, and SaaS agreements, as well as litigating failed software implementations in courts and before arbitration panels across the country. He is one of the
Continue Reading Harris to Speak on SaaS Contract Negotiations during Pemeco Webinar

Section 365(n) of the United States Bankruptcy Code (11 U.S.C. Title 11) protects the rights of intellectual property (IP) non-debtor licensees.  Section 365 of the Bankruptcy Code allows a debtor –in-possession, or a trustee (e.g., a software vendor) to: (a) assume, (b) assign, or (c) reject certain executory contracts – which would typically include software licenses.  A debtor in possession’s decision to assume, assign, or reject an executory contract is subject to court approval, certain deadlines and other requirements detain Section 365 of the Bankruptcy Code.  Section 365(n) is a carve-out to that broad right that allows a non-debtor counterparty
Continue Reading What If Your Software Provider Goes Bankrupt? Navigating Section 365(n) and Software Licensing Agreements

ERP software continues evolving, and digital transformation remains as relevant as ever for modern commercial enterprises. Keeping up-to-date is essential for your business. Post-COVID, there have been non-stop developments in ERP software trends, pushing IT leaders to reprioritize constantly. Here is a breakdown of the latest ERP trends we expect to see in 2023:

  • Cloud ERP
    • Upon initial thought, cloud may not be the first cutting-edge trend individuals think of when looking forward to 2023. Companies continue to move to the cloud due to its perceived flexibility, lower cost, and supposed ease of implementation. The cloud allows integration, composability, and

Continue Reading Top ERP Trends of 2023

With so many companies switching to a cloud solution, it is difficult to imagine it any other way than good. However, that is far from the truth.
Cloud ERP is unquestionably great for vendors. It shortens the sales cycles, decreases contract negotiations, and above all increases software vendor profits. For vendors it results in a consistent revenue stream. Because of the perpetual nature of cloud payments, the cost of cloud solutions for customers over the long term is much higher than traditional on-premise solutions – and the profits for vendors can be exponentially higher.
For customers, the ease of implementation,
Continue Reading Migrating To The Cloud – Don’t Believe The Hype

From modernizing business processes, accelerating workflows, and increased profitability, there are plenty of upsides to an ERP software implementation or full scale digital transformation. However, there are many things that can go wrong during and after the implementation process that can result in an implementation train wreck. In the cases we litigate on behalf of ERP customers victimized by software failures, the reason for the failure almost always lies squarely with the ERP vendor or integrator.
Failure can take a multitude of forms, from not realizing expected business benefits, blown budgets, extended timelines, and the failure of deliverables to conform
Continue Reading Why ERP Software Implementations and Digital Transformations Fail

Oversold and misrepresented software, missed deadlines, inexperienced consultants, and budget overruns are all common occurrences in a digital transformation. The reality is that as a customer, the odds of a successful ERP implementation, or digital transformation, are stacked against you.
When clients come to us in the midst of an ERP or digital transformation train wreck, they are overwhelmed and frustrated. Many times they are convinced they have a case, and want to sue their ERP vendor. Our response is almost always the same: “have you done everything you can – within reason – to make sure that the project
Continue Reading The Question You Need To Ask Yourself Before Filing A Lawsuit Against Your ERP Software Vendor:

While the ERP contract negotiation process is dependent on the facts of the particular transaction, all negotiations have a similar process and a similar trajectory. The cost of the software and implementation, the importance of the software being licensed, the number of vendors, and the risk presented by the technology will all impact the length and difficulty of the contract negotiation process.

  • Dollar Amount of the Deal. Smaller sized deals usually demand less of an investment in attorney time and attorney review than larger sized deals. There is also the issue of risk; smaller deals usually (though not always) present

  • Continue Reading The ERP Contract Negotiation Process – How Long Does It Really Take?