Contractors interested in offering federal agencies artificial intelligence (AI) can now glean insight into how agencies are expected to conduct AI acquisitions. On September 24, 2024, the Office of Management and Budget (OMB) issued Memorandum M-24-18, Advancing the Responsible Acquisition of Artificial Intelligence in Government (the Memorandum), providing guidance and directing agencies “to improve their capacity for the responsible acquisition of AI” systems or services, including subcomponents. The Memorandum builds on the White House’s Executive Order 14110, Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, and OMB Memorandum M-24-10, Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence. Taking effect on March 23, 2025, M-24-18 will apply to all solicitations and contract option exercises for AI systems covered under the Memorandum.Continue Reading OMB Issues Guidance to Agencies on Responsible Artificial Intelligence Acquisitions
Intellectual Property
Coming Soon? The American Data Privacy and Protection Act (SPOILERS)
Sure, America has the Grand Canyon, baseball, and apple pie, but you know what it doesn’t have? A nationwide data protection law. Instead, data protection has been left up to a pastiche of state laws, regulations, and enforcement actions that demand many companies choose one state law to rule them all. California led the pack, being the first to pass a data protection law, the California Consumer Privacy Act of 2018, going into effect January 1, 2020. Following California, only four other states have successfully enacted a data protection law, with Colorado and Virginia passing such laws in 2021 and Utah and Connecticut in 2022.Continue Reading Coming Soon? The American Data Privacy and Protection Act (SPOILERS)
The Supreme Court Limits Government Agencies’ Ability to Deflect Infringement Claims Through the PTO: A Preamble for Government Contractors
Here’s another reminder of limitations that exist when there is a third party claim of infringement against a U.S. Government agency. In such a case, the patent owner must sue in the United States Court of Federal Claims and may recover only “reasonable and entire compensation” for the unauthorized use. See 28 U.S.C. Section 1498(a). No injunctive relief is afforded the plaintiff. Within the context of that proceeding, the Government agency is free to seek a determination that the patent is invalid, and if the claimed invention does not meet one or more of the patentability requirements, the Government agency will have no liability.
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IP Rights Under NASA and DoD “Other Transaction” Agreements—Inventions and Patents
In the August 2018 publication of Thomson Reuters’ Briefing Papers, McCarter & English Government Contracts and Export Controls Partner Dan Kelly provides a comprehensive review of patent rights under “Other Transaction Agreements” (OTAs) with DoD and NASA. Heavily promoted by Congress, and only partially understood by industry, OTAs are quickly becoming DoD’s and NASA’s contractual vehicle of choice to lure commercial companies to sell the Government their latest and greatest technologies. However, OTAs are not governed by standard government contracts laws and regulations, meaning there are significant changes to the common provisions of ownership and license rights incident to government contracts and grants. The Briefing Paper should be required reading before entities enter into an OTA as a vehicle for developing new technologies for NASA and DoD to ensure their company’s intellectual property efforts are properly protected.
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