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Your Company Uses And Trains AI Tools. Here Is What the New Wave of Lawsuits Means for You
The rapid growth of generative AI has created a set of unresolved legal questions, the most consequential being whether training large language models on copyrighted works constitutes infringement. Companies that develop and deploy AI tools face real exposure as courts, regulators, and rights holders test how existing copyright rules apply to these technologies. The core question is whether ingesting copyrighted material to train a model is permissible or whether it requires a license from the rights holder. That issue remains unsettled, and the litigation is accelerating. A new lawsuit filed on May 5, 2026, highlights the immediacy of this risk.
30 Days, 30 Pages: USPTO's New Pre-Order Procedure Changes the Ex Parte Reexamination Calculus
The USPTO has announced a new pre-order procedure that, for the first time, gives patent owners a formal opportunity to weigh in before the Office decides whether to order ex parte reexamination. Signed by Director John A. Squires on April 1, 2026, the Official Gazette Notice takes effect for all reexamination requests filed on or after April 5, 2026.
California Increases Gift Card Cash-Out Threshold to $15 Starting April 1, 2026
Since January 1, 2008, California law has required retailers to redeem remaining gift card balances of less than $10 for cash when a consumer requests it. This threshold is about to change. Effective April 1, 2026, gift cards with a remaining balance of less than $15 must be redeemable for cash in California. This change, enacted through California Senate Bill 22, marks the first adjustment to the cash-out requirement since the current $10 threshold was established.
Companies that sell goods or services in California should be aware of this change. Gift cards are widely used across various industries and channels. According to Bankrate, Americans currently hold up to $27 billion in unused gift card balances. Therefore, even this seemingly small adjustment in the law can lead to significant compliance, litigation, and financial implications if businesses do not update their policies and systems in advance.
Companies that sell goods or services in California should be aware of this change. Gift cards are widely used across various industries and channels. According to Bankrate, Americans currently hold up to $27 billion in unused gift card balances. Therefore, even this seemingly small adjustment in the law can lead to significant compliance, litigation, and financial implications if businesses do not update their policies and systems in advance.