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ARTICLE · 01 AUGUST 2024

When Algorithms Meet Regulators - The Unexpected Vulnerability Of AI Trade Secrets

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Companies deploying and developing Artificial Intelligence ("AI") face a critical intellectual property dilemma: How should I protect AI trade secrets in a regulatory landscape that demands transparency? Indeed...

United StatesIntellectual Property
Joseph Cahill
Joseph Cahill

Companies deploying and developing Artificial Intelligence ("AI") face a critical intellectual property dilemma: How should I protect AI trade secrets in a regulatory landscape that demands transparency? Indeed, while the Trade Secrets Act (18 U.S.C. § 1905) criminalizes the unauthorized disclosure of trade secrets or confidential information by federal government personnel, it has an important exception—it applies only to disclosures "not authorized by law." 18 U.S.C. § 1905. On the other hand, federal AI regulations are expected to demand "transparency" and "explainability," requiring businesses to disclose various aspects of their AI technology.1,2 Consequently, new AI regulation mandating transparency may effectively 'authorize by law' the disclosure of AI trade secrets, potentially bringing such disclosures within the exception to § 1905's prohibitions.

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