Tag: AI

Five Stories That Matter in Michigan This Week – March 28, 2025

  1. FinCEN Update: U.S. Companies No Longer Needed to Report

On Friday, March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule regarding the Corporate Transparency Act (CTA), revising the definition of “reporting company” such that entities formed under the laws of any U.S. State or Tribal jurisdiction likely will not have to file a beneficial owner information report (BOIR).

Why it Matters: Through this interim final rule, all entities created in the United States, including those previously known as “domestic reporting companies,” and their beneficial owners will be exempt from the requirement to report BOI to FinCEN. Read more.

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  1. U.S. Court of Appeals Rules on AI-Generated Copyright Eligibility

On March 18, 2025, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision for Thaler v. Perlmutter, which addressed whether a work created autonomously by artificial intelligence (AI) is eligible for copyright protection.

Why it Matters: This case reaffirms the prevailing legal principle that copyright protection is reserved for works created by humans. As AI continues to evolve, questions about the extent of human involvement necessary for copyright eligibility remain open for future consideration. ​ Indeed, the question will be directly addressed in the upcoming case in Allen v. Perlmutter in the District Court of Colorado. Read more.

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  1. Michigan CRA Publishes February ’25 Data: Average Price Decreases

Per data released by the Cannabis Regulatory Agency (CRA), the average retail price for adult-use sale of an ounce of cannabis in February 2025 was $65.21, a decrease from $66.50 in January 2025. This is a decrease from February 2024, where the average price was $91.94.

Why it Matters: While the prices of cannabis and cannabis-related products continue to decrease and make consumers happy, growers on the other hand are seeing profits decrease resulting in them seeking ways to halt new licenses to be granted in an effort to steady prices.

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  1. Business Education Series: Anatomy of a Data Breach

Data breaches can wreak havoc on your company and almost always lead to litigation. With each new breach, we gain valuable insight into what companies could have done better. Your legal, contractual, and business obligations can sometimes be confusing and in conflict with each other.

Why it Matters: During the April Business Education Series facilitated by Nate Steed and Kelly R. Hollingsworth, this session will examine recent cases and best practices to protect your company from a breach including: lessons learned from recent data breaches; proactive strategies to insulate your business. Learn more.

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  1. Elizabeth M. Siefker Selected as a Member of Michigan Lawyers Weekly “Up & Coming Lawyers Class of 2025”

Fraser Trebilcock attorney ​Elizabeth M. Siefker has been selected as a member of Michigan Lawyers Weekly’s “Up & Coming Lawy​ers Class of 2025.” This special award recognizes those who have excelled in the profession and are standouts among their peers — all in their first 10 years of practice.

Why it Matters: Ms. Siefker focuses her practice on estate planning, elder law, guardianships and conservatorships, probate litigation, and tax planning. With experience assisting clients in every aspect of the estate planning process, she understands that each plan will be unique to the client’s situation. Ms. Siefker is included in Super Lawyers® as a “Michigan Rising Star” in Estate & Probate, and received the American Jurisprudence Award for civil procedure, contracts, first amendment, and torts. She is an active member of several legal organizations, having previously served on the Board of Directors of the Women Lawyers Association of Mid-Michigan as the Regional Representative. Read more.

Related Practice Groups and Professionals

Business & Tax | Robert D. Burgee
Intellectual Property | Andrew Martin
Cannabis Law | Sean Gallagher
Elizabeth Siefker

U.S. Court of Appeals Rules on AI-Generated Copyright Eligibility

On March 18, 2025, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision for Thaler v. Perlmutter, which addressed whether a work created autonomously by artificial intelligence (AI) is eligible for copyright protection.

Background

Dr. Stephen Thaler developed an AI system known as the “Creativity Machine,” which produced an artwork titled “A Recent Entrance to Paradise.” He applied for copyright registration in 2018 identifying the author of the images as the “Creativity Machine,” with Thaler listed as the claimant with a transfer statement: “ownership of the machine.” In his application, Thaler stated that the work “was autonomously created by a computer algorithm running on a machine” and he was “seeking to register this computer-generated work as a work-for-hire to the owner of the Creativity Machine.” The U.S. Copyright Office denied the application, citing the necessity of human authorship for copyright eligibility.

Dr. Thaler challenged this decision, arguing that the human authorship requirement was unconstitutional and unsupported by statute or case law. The district court upheld the Copyright Office’s denial, emphasizing that human authorship is a fundamental requirement under the Copyright Act. The court referenced the U.S. Supreme Court’s 1884 decision in Burrow-Giles Lithographic Co. v. Sarony, which upheld the copyrightability of a photograph due to the human creator’s conception and design of the image.

On appeal, the D.C. Circuit affirmed the lower court’s ruling, reiterating that the Copyright Act necessitates human authorship for a work to be eligible for copyright protection. The court noted that while AI-assisted works may be considered for copyright if a human provides creative input or intervention, works generated entirely by non-human entities without human involvement do not qualify. The court did not address the constitutionality of the human authorship requirement, as it was unnecessary for the decision.

What This Means

The outcome of this case is not surprising. It is well settled law that non-human authorship is not recognized by the US Copyright Act. see Naruto v Slater, 888 F3d 418 (CA 9, 2018) (9th Circuit Court of Appeals holding that a monkey cannot be an “author”). However, it should be noted that this opinion only addressed whether a machine with no human intervention could be considered an author of a work. The Court clarified that amount of human intervention for AI created works was not at issue in this case stating, “[t]hose line-drawing disagreements over how much artificial intelligence contributed to a particular human author’s work are neither here nor there in this case. That is because Dr. Thaler listed the Creativity Machine as the sole author of the work before us, and it is undeniably a machine, not a human being.”

This case reaffirms the prevailing legal principle that copyright protection is reserved for works created by humans. As AI continues to evolve, questions about the extent of human involvement necessary for copyright eligibility remain open for future consideration.​ Indeed, the question will be directly addressed in the upcoming case in Allen v. Perlmutter in the District Court of Colorado. Fraser attorneys will continue to monitor any developments and update our clients.

This alert serves as a general summary and does not constitute legal guidance. Please contact us with any specific questions. When it matters in Michigan, we are the trusted legal advisors for businesses and individuals.

Andrew G. Martin is an experienced registered patent attorney with history working in the automotive, electrical, and agricultural industries. He regularly advises startups and small businesses on the patent and trademark prosecution process, assisting clients from start to finish. You can reach him at 517.377.0834 or at amartin@fraserlawfirm.com.

Five Stories That Matter in Michigan This Week – August 9, 2024

  1. Michigan Supreme Court Rules on Adopt and Amend: What Businesses Need to Know

In Mothering Justice v Attorney General, a 105-page, 4-3 party-line decision, the Michigan Supreme Court ruled that the state Legislature lacked the authority to “adopt and amend” two employment-related ballot initiatives in 2018. In its ruling, the Court ordered that increases to the state’s minimum wage and tipped wage laws, and the expansion of the state’s earned sick time laws will go into effect February 21, 2025.

Why it Matters: Employers will need to educate their staff on these changes, adjust payroll systems, and ensure their company’s policies are updated to reflect the new laws before the February 21, 2025, deadline to remain compliant. Learn more.

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  1. IRS Resumes Processing Some Employee Retention Credit Claims: What Business Owners Need to Know

The Internal Revenue Service (IRS) recently announced the resumption of processing some Employee Retention Credit (ERC) claims, with a focus on those considered “low risk.” This move comes after a 10-month moratorium implemented to investigate fraudulent activity surrounding these claims. In the same announcement, the IRS communicated its plans to deny tens of thousands of improper high-risk ERC claims.

Why it Matters: According to the IRS, between 10% and 20% of the claims it analyzed fall into what the agency considers the highest-risk group. An estimated 60% to 70% of claims show what the IRS terms an “unacceptable level of risk.” The remaining claims, approximately 10% to 20%, are considered low-risk, and according to the IRS, “some of the first payments in this group will go out later this summer.” Read more.

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  1. Comment Period Ends for Federal Cannabis Rescheduling

On May 20, the U.S. Department of Justice and the Drug Enforcement Administration issued a Notice of Proposed Rulemaking to initiate the proposed rescheduling of cannabis from Schedule I to Schedule II under the Controlled Substance Act. A 60-day public comment period then began, which ended in late July.

Why it Matters: Following the end of the public comment period, the DEA will review the public comments, may incorporate comments as appropriate, and then finalize the rescheduling rule. Typically, a final rule becomes effective 30 days after being published in the Federal Register.

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  1. Michigan Cannabis Regulatory Agency Set to Ban MCT Oil

In a recent technical bulletin from the CRA, effective October 1, 2024, “MCT (medium-chain triglyceride) oil will be added as a target analyte for marijuana vape cartridges as part of the Sampling and Testing Technical Guidance for Marijuana Products.

Why it Matters: MCT oil is commonly used in inhalable cannabis products, such as vapes, and may pose dangers to respiratory health when inhaled. Businesses will need to adhere to the new testing parameters and begin to eliminate MCT oil from their products before October 1, 2024, if not sooner in a proactive manner.

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  1. DOL Issues Bulletin to Wage and Hour Field Staff Regarding AI Use in Workplace

The United States Department of Labor recently issued a Field Assistance Bulletin to its Wage and Hour Division field staff regarding the application of the Fair Labor Standards Act (FLSA) and other federal labor standards as employers increasingly use artificial intelligence (AI) and other automated systems in the workplace. For example, the bulletin advises that, “Reliance on automated timekeeping and monitoring systems without proper human oversight, however, can create potential compliance challenges with respect to determining hours worked for purposes of federal wage and hour laws.”

Why it Matters: As AI use becomes more pervasive across businesses, employers must be aware that their use of AI can create legal compliance challenges, and that regulatory agencies are paying attention to these issues.

Related Practice Groups and Professionals

Labor, Employment & Civil Rights | David Houston
Business & Tax | Robert Burgee
Business & Tax | Paul McCord
Cannabis Law | Sean Gallagher