Steve Gannon

Supporters of PACE Reforms Urge Adoption of Final Rule A coalition of consumer organizations—including the National Consumer Law Center (on behalf of its low-income clients) and the Center for Responsible Lending—and attorneys have sent a letter to Rohit Chopra, Director of the Consumer Financial Protection Bureau, urging adoption of a final rule concerning Property Assessed Clean Energy (PACE) loans. PACE loans provide consumer protections for homeowners seeking clean energy financing. PACE lending. PACE loans are secured through a property tax lien on the borrower’s home and are used to finance clean energy improvements, such as solar panels or projects to prepare homes for natural disasters. A 2023 CFPB report found that homeowners with PACE loans had an increase in negative credit outcomes, primarily mortgage delinquency. Moreover, many PACE borrowers live in underserved communities. This story can be read in its entirety on the Wolters Kluwer Vital Law site at https://lnkd.in/gCR5d7Mh. As reported George Gullo. #PACELoans #CFPB #CleanEnergyFinancing #CenterForResponsibleLending #UnderservedCommunities

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The USPTO issued guidance on the use of AI-based tools. MBHB Partner Manav Das shares 10 key takeaways. Read more here.

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Broker-dealer friends: Check out our take on FINRA's recently issued cybersecurity case. As we say in the piece, it seems like the gloves are off. #finra #enforcement #brokerdealers

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#BusinessLawToday | Antitrust enforcement agencies and private plaintiffs are pursuing notable challenges to companies within the same industry using common pricing algorithms. Read: https://lnkd.in/e6sV3AP2 #BusinessLaw #BusinessRegulation #RegulatedIndustries

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Want to sound erudite? Begin your next memo or brief with: "The Federal Circuit’s decision that the PTO is not subject to notice-and-comment requirements when issuing rules pursuant to 35 U.S.C. § 2(b)(2) conflicts with this Court’s interpretive precedents applying the anti-superfluity cannon." What's this really about? Whether you have to tell the U.S. Patent and Trademark Office (PTO) your home address if you apply for a trademark as an individual and your physical office address as a business. I have bumped into this issue directly in the past year. Even if the Supreme Court agrees to hear the case, I expect there is a low likelihood that the PTO will change its requirements even if it is required to take notice and comment before the rulemaking because the PTO need only show that its rule is not arbitrary and capricious. The PTO will argue that checking domicile helps prevent fraud and that's a good enough (non-arbitrary and non-capricious) reason. So what's the solution for those who want to protect their physical address from the PTO? A giant trademark owning entity that licenses the trademarks out to the "real" trademark owners. It will be just like MERS for mortgages. You read it here first....

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It might seem odd to bestow the title of “titan” upon someone once described in the New York Times as standing five-foot-two and weighing 100 pounds wet. But if you know anything about banking M&A and regulatory work, you know that H. Rodgin Cohen, senior chair of Sullivan & Cromwell LLP, is a true giant of the field. For more than 50 years, Rodge Cohen has practiced at the pinnacle of financial-services law. He’s played a role in many historical events over the decades, including New York City’s fiscal crisis, where he helped rescue the city from the brink of bankruptcy in 1975; the Iran hostage crisis, where he counseled American banks that released frozen Iranian funds, part of the deal that led to the 1981 release of the hostages; the 2008 financial crisis, where he represented the buyer or the seller in seemingly every major bank deal; and efforts last year to save Silicon Valley Bank and First Republic Bank. In my latest podcast episode, I interview Rodge about his remarkable career, including his involvement in the aforementioned, headline-making events. But we also cover his childhood in West Virginia, his advice for how to succeed as a deal lawyer, and even his theater and reading recommendations—because despite his demanding practice, Rodge somehow finds the time to see numerous shows and read tons of books. (One recent work we both recommend is Paula Vogel’s Mother Play, which yesterday snagged four Tony Award nominations, including Best New Play.) For my first-ever interview of a corporate or transactional attorney (as opposed to a litigator), I wanted to get a big name—and Rodge Cohen is one of the biggest and best in the business. I guessed that he would be “too big to fail”—and if you listen to our enjoyable and wide-ranging conversation, I hope you’ll agree that I was right. Thanks to Rodge for joining me, and thanks to NexFirm for sponsoring! https://bit.ly/3wg7Nmu #law #lawyer #lawyers #legalcareer #legalcareers #attorney #attorneys #inspiration #inspirational #podcasting #podcast #podcasts #success #advice #careeradvice #Biglaw #lawfirm #lawfirms #lawfirmlife Second Stage Theater

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Interesting. New term of art--"AI washing." "The U.S. Securities and Exchange Commission’s crusade against “AI washing” has led to charges against the founder and former CEO of a now-defunct recruiting firm that claimed to use artificial intelligence to match businesses with diverse job candidates. The agency says Ilit Raz pitched Joonko as “the only automated sourcing platform focused solely on underrepresented candidates,” a tactic the agency says helped draw in millions of dollars from customers and financial backers. The eight-year-old firm—which wound down last year and recently filed for bankruptcy—claimed it could help companies meet their diversity, equity and inclusion hiring goals by using AI to automatically match them with a pool of “silver medalist” candidates from underrepresented groups who previously had reached the final stages of the hiring process but not received an offer. The SEC claims Raz defrauded at least 27 investors—a group that includes individuals, private equity firms and venture capital firms—out of $21 million by making false claims about Joonko’s technological capabilities, the size of its customer base and the amount of its revenue. ... “Joonko did not actually use these processes. Raz oversaw the buildout of the Joonko platform and therefore knew, or recklessly disregarded, that the platform did not work as she described it to investors. For example, Joonko did not have the aforementioned capabilities to connect customers with diverse candidates, and its technology was not as advanced as Raz claimed.” In a statement Tuesday, SEC enforcement division director Gurbir Grewal said the SEC believes Raz “engaged in an old school fraud using new school buzzwords like ‘artificial intelligence’ and ‘automation,’” and that investors should be wary of such bold claims. “As more and more people seek out AI-related investment opportunities, we will continue to police the markets against AI washing and the type of misconduct alleged in today’s complaint,” Grewal said. “But at the same time, it is critical for investors to beware of companies exploiting the fanfare around artificial intelligence to raise funds.” According to the SEC, her scheme came to light in June 2023 when Raz’s refusal to provide investors with company documents spurred an investigation by Joonko’s board of directors. She resigned as CEO, and the company wound down its operations. Joonko filed for bankruptcy in May amid demands for repayment from investors. ... Legal observers expect AI washing scams to mushroom as awareness of the technology grows, tempting businesspeople to make unsubstantiated marketing claims." ...

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What a privilege (and honor of course) to host Carole House for an hour-long discussion on cybersecurity, digital assets and US policy on her last day in the private sector. As we all know, a one-hour conversation with Carole is more like a three-hour conversation with a mere mortal. The breadth and depth of her knowledge and experience with both the issues and the underlying technologies as well as her sensitivities to the nuanced discussions they warrant make us hopeful that the increasing polarization we have been witnessing can be dialed back in the interest of meaningful progress. (Hint - if you like to listen to podcasts at 1.5x, be prepared for a very fast ride.) https://lnkd.in/gp8keZ77

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In Securitization: Legal and Regulatory Issues by ALM, my Alston & Bird partner, Tara Eliza Castillo examines certain operational readiness, legal and regulatory considerations specific to the U.S. auto and consumer loan #securitization market. #finance

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FINRA on Managing Generative AI Risks -- Our latest Debevoise & Plimpton Data Blog post by Charu Chandrasekhar, Jeff Robins, Kristin Snyder, Matthew Kelly and me (Avi Gesser)

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Thanks Bloomberg Law for including my thoughts in this piece. https://lnkd.in/g3c7_3tz

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Epic ODP/Proposed New Rule Presentation for Strafford on July 2 Join me for an epic, upcoming Strafford live webinar, "Obviousness-Type Double Patenting and Terminal Disclaimers" on Tuesday, July 2, 1:00pm-2:30pm EDT. Click this link for more information: https://lnkd.in/gcsAhHbX. I am certainly nothing to write home about, but I am appearing with legal superstars Amanda Murphy of Finnegan, Henderson, Farabow, Garrett & Dunner, LLP and my law partner, Michelle O'Brien of The Marbury Law Group, PLLC. We just turned in about 100 substantive slides for the presentation. In the set, we go over every Cellect Amicus Brief filed so far, as well as the Cellect cert. petition itself. Of all the wonderful arguments presented on behalf of Cellect, I like best the statutorily based argument focused on 35 USC Section 154(b)(2)(B). In a nutshell, that statute provides one and only one exception to granting PTA, and that is if there is a Terminal Disclaimer filed that curtails that PTA. Congress did not create an exception providing for loss of statutorily guaranteed PTA based on Obviousness-Type Double Patenting. That argument, so artfully made by among others, Sophie Wang for American Intellectual Property Law Association (AIPLA) and Paul Berghoff for Intellectual Property Owners Association (IPO), resonates with me, and hopefully with the Court. Also, the BioPhama Committee of Intellectual Property Owners Association (IPO), under the masterful direction of two extremely diligent geniuses, Sarah Tully of Genentech and Emily Johnson of Amgen, has sent an amazing proposal to the IPO Board to oppose the PTO's ill-advised proposed rule on Terminal Disclaimers. I can't share the document but have permission to share on July 2 ideas embodied therein. As a spoiler alert, e.g., among the many ideas developed by Intellectual Property Owners Association (IPO), are: •The USPTO has no statutory authority to issue the proposed rule •The proposed rule exceeds the USPTO’s procedural rulemaking authority •The USPTO’s statutory authority does not encompass the power to impose such new substantive limits regarding the filing and processing of terminal disclaimers, particularly limits that substantively impact the rights of a patent owner by reducing the term of a validly granted patent, which would require clear legislative backing. I excel at doing nothing and contributed next to nothing to the Intellectual Property Owners Association (IPO). I was, however, an excellent cheer leader. But for Strafford, I have developed and will present many substantive slides pointing out the EXTREMELY PROBLEMATICAL nature of the proposed rules. I hope you will join. We will do our best to rock. 😎 Not legal advice, no attorney client relationship, educational and entertaiment purposes only, does not reflect past, present, or future views of clients of The Marbury Law Group, PLLC; liability is disclaimed for any errors or omissions.

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Caveat issuers: A cyber breach - or just about any other problem - may result in an SEC "books and records" enforcement action. Stay informed: https://lnkd.in/gciZehiy #SEC #CyberSecurity #EnforcementAction

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The Consumer Financial Protection Bureau (CFPB) has issued a new report examining the financial and privacy risks to consumers in video gaming marketplaces. Find out the key findings and trends in this rapidly evolving industry in this Perkins Coie LLP blog post. #VideoGamingIndustry #Privacy #Fintech #ConsumerProtection #CFPB

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🔦 Shining the spotlight on AI in banking 🔦 A lawsuit filed last week against Navy Federal Credit Union highlights the potential risks banks and credit unions face when using third-party AI tools. The suit alleges that NFCU allowed Verint, an AI software company, to intercept, analyze, and record customer calls without proper consent. According to the suit, this puts members' confidential information at risk. ☑ NFCU's uses Verint's AI for real-time assistance and speech analysis during customer calls. ☑ The lawsuit claims that Verint also uses the intercepted calls to train its AI model, Verint Da Vinci, without customer knowledge or consent. ☑ The NFCU member represented in the class action says he expected his conversations with Navy Federal to remain private. He claims he was unaware that a third party was involved, as NFCU only disclosed that calls were recorded "for quality assurance purposes." Financial institutions are going to continue to be challenged that their AI tools are not compliant with privacy laws and transparency to customers. Another vendor management and risk assessment for them to make? Is the vendor offering indemnification in their contract? And where are customer expectations going to land on this? #AI #Governance #Banking #CreditUnions #Privacy #Compliance #RiskManagement #CustomerTrust

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If Congress doesn't act on data brokers, the CFPB might. The Consumer Financial Protection Bureau is considering new regulations that would require data brokers to comply with the Fair Credit Reporting Act. CFPB Director Rohit Chopra said the CFPB is considering policies to “ensure greater accountability” for companies that buy and sell consumer data, citing an executive order President Biden issued in February. The CFPB is serious. It sees trafficing in consumer data not just as a privacy issue, but as a national security. Foreign adversaries have illicitly obtained Americans’ personal data to effect data breaches, and could use them the attack critical infrastructure. #databrokers #nationalsecurity #privacy #personalinformation #databreach #consumerdata  

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The Strategic CLO Podcast - July 23, 2024 - AI and the Law: Navigating t… In this cutting-edge episode of The Strategic CLO Podcast, we dive deep into the intersection of artificial intelligence and the law. As AI reshapes the business landscape, growth-stage companies face a new frontier of legal challenges and opportunities. Host Noel Bagwell explores the rapidly evolving world of AI adoption and its legal implications. You'll discover: • Eye-opening statistics on AI's current and projected impact on businesses • Critical legal considerations for AI integration, including data privacy, intellectual property, and liability • A real-world case study of a growth-stage company successfully navigating AI-related legal hurdles • Practical strategies for developing a robust AI governance framework • The vital role of a Fractional CLO in turning AI challenges into competitive advantages Whether you're a CEO, legal professional, or techno…

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We have done some number crunching and analysis regarding the current proxy season at the SEC, and its handling of shareholder proposal challenges. Tldr: Evaluation of SEC Staff no action decisions on shareholder proposals from November 1, 2023 to May 1, 2024 demonstrates that the SEC has supported company requests for exclusion of proposals roughly 68% of the time. Companies also sharply increased the number of requests filed with the SEC compared with last year, with these two developments combining to produce a surge of proposal exclusions. I know just how important these proposals are to investors, and how much work was put into filing many of these proposals that will not be voted upon. These numbers represent lost opportunities for investors to consider what I regard as in many if not most instances, highly material issues for the companies that received the proposals. Nevertheless, the data show that SEC staff takes account of feedback from the issuers as well as proponents.The process is not broken and does not need radical fixes or reforms proposed by critics of the shareholder proposal rule. https://lnkd.in/eDY5GPQ8

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