Legal News for Tues 5/20 - State AGs as AI Policymakers, Trump v. Letitia James, Trump Cutting off Investments in Red States Podcast Por arte de portada

Legal News for Tues 5/20 - State AGs as AI Policymakers, Trump v. Letitia James, Trump Cutting off Investments in Red States

Legal News for Tues 5/20 - State AGs as AI Policymakers, Trump v. Letitia James, Trump Cutting off Investments in Red States

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 This Day in Legal History: Blue Jeans PatentedOn May 20, 1873, the U.S. Patent and Trademark Office granted Patent No. 139,121 to Jacob Davis and Levi Strauss for an innovation that would revolutionize American workwear and fashion: the use of copper rivets to reinforce the stress points on men's work pants. Davis, a tailor from Reno, Nevada, originally developed the concept after customers complained about the durability of their trousers. He lacked the funds to file for a patent on his own, so he partnered with Strauss, a San Francisco dry goods merchant who had been supplying him with fabric. The riveted pants were constructed from denim—a sturdy cotton twill that Strauss already sold—which was tough enough for laborers, miners, and cowboys during the American Westward Expansion.The legal protection granted by the patent secured exclusive rights for Strauss and Davis to produce the reinforced trousers, giving them a significant advantage in the market. This protection enabled Levi Strauss & Co. to expand rapidly and establish itself as a dominant force in durable clothing for manual laborers. The patent also illustrates how intellectual property law can incentivize practical innovation by providing a framework for commercial exclusivity.While the original patent expired in 1890, the riveted jean had by then become an entrenched part of American identity. The evolution of the product—from utilitarian workwear to a global fashion staple—highlights how a simple legal instrument can underpin lasting commercial success. The legal recognition of their invention helped formalize what would become a uniquely American contribution to the world’s wardrobe. Strauss and Davis's patent remains one of the most iconic examples of how intellectual property law intersects with design, utility, and culture.As federal AI regulation lags, state attorneys general (AGs) are stepping into the void by using existing laws—such as consumer protection, privacy, and anti-discrimination statutes—to govern the use of generative AI technologies. Although only California, Colorado, and Utah have passed AI-specific legislation, AGs across other states are issuing formal guidance and taking enforcement actions to address AI misuse. Key concerns include the use of personal data, deepfakes, fraudulent representations, and algorithmic bias in sectors like hiring, healthcare, and lending.California AG Rob Bonta has warned that AI tools causing misleading or discriminatory outcomes may violate state law, especially in sensitive fields like health and employment. Massachusetts AG Joy Campbell cautioned that misrepresenting AI capabilities or using AI-generated content to deceive consumers could breach the state’s Consumer Protection Act. Oregon’s guidance focuses on transparency, privacy, and anti-discrimination concerns, requiring consent for data use and allowing opt-outs from significant AI-based decisions. New Jersey’s AG launched a Civil Rights and Technology Initiative targeting algorithmic bias, noting that even third-party tools can trigger liability under anti-discrimination laws. Texas AG Ken Paxton reached a settlement with an AI health tech firm over potentially misleading marketing, marking the first known AG enforcement action under consumer protection law involving generative AI.A Reuters column by Ashley Taylor of Clayton Friedman and Gene Fishel of Troutman Pepper Locke LLP emphasizes that companies cannot assume regulatory immunity simply because AI tools are new or complex. Liability can arise from disparate impacts alone, even absent intent to discriminate. Firms must carefully audit their AI systems, clarify marketing claims, and ensure fair and secure implementation across jurisdictions. Given the fragmented legal landscape, businesses should involve legal and technical leadership early in AI deployment to reduce risk exposure.State AGs fill the regulatory voidThe long-running feud between Donald Trump and New York Attorney General Letitia James has escalated sharply with a federal investigation now targeting James herself. Trump, having returned to the White House, now has the Justice Department behind him, while James continues to lead Democratic opposition through lawsuits challenging his policies. Both known for their combative styles, the two have clashed over ideology, politics, and Trump's business practices.The new front in their battle involves allegations that James committed mortgage fraud, based on documents where she allegedly misrepresented her primary residence and misstated details about her Brooklyn property. The Justice Department, acting on a referral from a federal housing agency, is investigating the claims through its offices in Virginia and New York. James’s lawyer denies wrongdoing, saying the filings were accurate in context and reflect long-standing property use.James has framed the investigation as retaliation for her successful legal actions against Trump, including a...
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