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Legal News for Fri 12/15 - Deepfake Protections in CA, US Naval Academy Race-Conscious Admission Remains, Dentons With a New CEO and J&J Execs Lose Appeal

Legal News for Fri 12/15 - Deepfake Protections in CA, US Naval Academy Race-Conscious Admission Remains, Dentons With a New CEO and J&J Execs Lose Appeal

CA pursuing deepfake protection, race-conscious admission in US Naval Academy hangs on, Dentons to have a new CEO in 2024 and Johnson and Johnson execs lose appeal of conviction.

This Day in Legal History: Eugene Debs Sentenced 

On December 15, 1894, a significant event unfolded in the annals of American labor history. Eugene V. Debs, a prominent labor leader and later a key figure in the American socialist movement, faced the legal consequences of his role in the Pullman railroad strike. The strike, which began in May 1894, was a pivotal moment in labor relations and marked a significant clash between workers' rights and corporate interests.

The Pullman Strike had its roots in the economic depression of the 1890s. The Pullman Palace Car Company, known for manufacturing luxury railroad cars, drastically cut wages while maintaining high rents in the company town where workers lived. This led to widespread discontent and eventually, under the leadership of Debs and the American Railway Union (ARU), a massive strike that paralyzed rail traffic in the Midwest.

The federal government's response to the strike was severe. It viewed the strike as a direct challenge to federal authority and the mail system, as many railroads carried mail. The government obtained an injunction against the strike leaders, invoking the Sherman Antitrust Act, traditionally used against monopolies, in an unprecedented manner against a labor union.

Debs, refusing to comply with the injunction, was arrested and charged with conspiracy to obstruct mail delivery and interstate commerce. His trial brought national attention to the plight of the working class and the legal boundaries of labor disputes. On December 15, he was found guilty and sentenced to six months in prison.

His imprisonment marked a turning point in his life and career. It was during his time in jail that Debs began to shift his views, moving from a more traditional labor leader to a dedicated socialist. He read extensively, including the works of Karl Marx, and emerged from prison a changed man, eventually running for President of the United States as a Socialist candidate multiple times.

The Pullman Strike and Debs' subsequent trial and imprisonment highlighted the growing tensions in American society over industrialization, workers' rights, and corporate power. It also set precedents for the use of federal power in labor disputes and marked the beginning of a more militant phase in the American labor movement.

Today, December 15, serves as a reminder of Eugene V. Debs' impact on labor history and the ongoing struggle for workers' rights. His dedication to improving the conditions of the working class and his transformation during his incarceration remain key chapters in the legal and labor history of the United States.

California is taking proactive steps to enhance its deepfake protections, especially with the looming threat of these technologies in upcoming elections and their misuse in pornography. The state, a leader in anti-deepfake legislation since 2019, already has laws allowing victims of deepfakes to sue distributors. However, lawmakers, recognizing the rapid advancements in AI, are considering expanding these laws.

The current legislation in California, spearheaded by Assemblymember Marc Berman, focuses on two areas: pornography and political elections. Both laws provide victims with legal recourse, but there's a growing consensus that more needs to be done. Assemblymember Gail Pellerin emphasizes the urgency, given the ease with which AI can spread misinformation.

While these measures are seen as important, their enforcement and effectiveness have been questioned. Critics, like Brandie Nonnecke from UC Berkeley, argue that the laws don't prevent the initial harm caused by deepfakes. She points out the difficulty in enforcing the laws, such as the challenge of proving 'actual malice' in cases.

A significant challenge to California's efforts is the potential conflict with federal law, particularly Section 230 of the Communications Decency Act, which protects social media platforms from liability for user-generated content. California's current law does not hold these platforms accountable for monitoring deepfakes, a stance that could change with new legislation.

Any new laws will also need to navigate First Amendment concerns, especially regarding satire and parody. Drew Liebert of the California Institute for Technology and Democracy suggests reevaluating traditional interpretations of the First Amendment in light of AI's risks to democracy.

Proposed solutions include outright bans on AI in political communications and stricter guidelines for identifying altered content. Nonnecke suggests that technical solutions exist for social media platforms to flag AI-generated content. Enforcement mechanisms in new bills could range from the threat of lawsuits to criminal penalties, a path other states have followed.

Assemblymember Tri Ta proposed a bill criminalizing the distribution of sexual deepfake content, but it saw little progress. Meanwhile, Berman is considering legislation to strengthen the existing deepfake laws.

As AI technology continues to evolve, California's approach to regulating deepfakes remains a critical issue, particularly with the 2024 election poised to be a significant test of these laws and their effectiveness in the face of advanced AI threats.

California Looks to Boost Deepfake Protections Before Elections

A U.S. federal judge has refused to block the U.S. Naval Academy's race-conscious admissions policy. This decision came after Students for Fair Admissions (SFFA), a group opposing affirmative action, requested a preliminary injunction against the Naval Academy's consideration of race in admissions. The judge, Richard Bennett, appointed by former President George W. Bush, ruled that SFFA failed to demonstrate that the Academy's policy was discriminatory and violated the Fifth Amendment's equal protection rights.

The judge's decision acknowledges the Supreme Court's June ruling, which invalidated similar admissions policies at Harvard University and the University of North Carolina. However, the Supreme Court's decision contained an exemption for military academies, recognizing their potentially distinct interests. This exemption was a key factor in Judge Bennett's decision to reject SFFA's request.

During the court proceedings, the U.S. Department of Justice argued that the military has valid reasons for considering race in admissions to ensure a diverse officer corps for an increasingly diverse armed force. The judge, with over 20 years of military service, cited the history of racial tensions in the military as a context for the current policy.

The judge plans to issue a written ruling soon and expedite the trial on the merits of the case, anticipating that it could eventually reach the Supreme Court. SFFA's lawyer indicated a possible appeal, while Edward Blum, founder of SFFA, has not commented yet.

The case highlights ongoing debates about race-conscious admissions policies in the U.S., particularly in military academies, and the Biden administration's defense of these policies as crucial for addressing the underrepresentation of minority officers in the military. The Naval Academy's current demographics show disparities in racial representation among officers, underscoring the policy's relevance.

US judge won't block US Naval Academy's race-conscious admissions policy | Reuters

Elliott Portnoy, the CEO of Dentons, one of the world's largest law firms, has announced he will step down from his role in November next year. This decision marks a significant leadership change at the firm, which has experienced a period of aggressive international expansion and restructuring. Under Portnoy's tenure, Dentons has grown substantially through global mergers, including a notable combination with Chinese mega-firm Dacheng in 2015, which later ended due to new Chinese national security restrictions.

Portnoy's departure follows other recent leadership changes at Dentons, including the replacement of the U.S. branch CEO and the retirement of the global chairman role. Despite losing about half of its attorneys after parting with its Chinese branch, Dentons has continued its expansion strategy, recently combining with Philippine law firm PJS Law to establish a presence in Southeast Asia.

Dentons, which employs a Swiss verein business structure, allows its international branches to operate independently while sharing a common brand. Portnoy emphasized that his successor would need to be committed to the firm's global growth strategy, a key differentiator for Dentons in the legal market.

The firm is currently in the process of hiring an executive search firm to identify Portnoy's replacement, considering both internal and external candidates. Despite the leadership transition, Dentons aims to maintain its strong performance and growth, particularly in the United States, where it has integrated several local and regional firms since 2020.

Law firm Dentons' CEO to step down next year | Reuters

The 1st U.S. Circuit Court of Appeals in Boston upheld the convictions of two former executives of Acclarent Inc, a medical device company now part of Johnson & Johnson. William Facteau, the ex-CEO, and Patrick Fabian, former vice president of sales, were found guilty of distributing a medical device for unapproved uses. The product in question was the Relieva Stratus MicroFlow Spacer, or Stratus, which the U.S. Food and Drug Administration (FDA) had only cleared for delivering saline after sinus surgery, not for delivering steroids as the executives promoted.

Facteau and Fabian were convicted in 2016 on misdemeanor charges for introducing adulterated and misbranded medical devices into interstate commerce. However, they were acquitted of more serious felony fraud charges. Last year, they were fined $1 million and $500,000, respectively, following a four-year sentencing delay. Acclarent, acquired by J&J in 2010, had previously settled related civil claims for $18 million in 2016.

On appeal, the defense argued that their convictions violated free speech and due process rights and were based on a misinterpretation of an FDA regulation about a device's "intended use." However, the court rejected these arguments, with U.S. Circuit Judge Kermit Lipez stating that the law was clear enough to indicate when distributing a device with an unapproved intended use would be criminally liable.

Former medical device execs at J&J unit lose appeal of convictions | Reuters

Minimum Competence - Daily Legal News Podcast
Minimum Competence
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