Legal News
OpenAI is potentially undergoing a major corporate restructure, considering a shift to a Public Benefit Corporation (PBC) to balance its mission of developing ethical AI with the need for substantial funding. This follows the departure of key executives, including CTO Mira Murati and VP of Research Barret Zoph, signaling significant internal changes.
A federal judge in Texas has officially blocked the U.S. Federal Trade Commission (FTC) from enforcing a nationwide ban on non-compete agreements in the United States. This means that the provisions of the FTC’s ban – which were scheduled to take effect nationwide on September 4, 2024 - will no longer take effect for the time being.
The FTC proposed a nationwide ban on non-compete agreements, arguing they limit job mobility, suppress wages, and hinder entrepreneurship. While many states and worker advocacy groups support the ban, businesses have filed lawsuits, claiming the FTC lacks the authority for such a sweeping rule. Courts have issued conflicting rulings, with some supporting the ban and others questioning the FTC’s power. The outcome of these legal challenges could reshape U.S. labor practices.
The FTC has banned non-compete agreements in the U.S., marking a major shift in employment law. This move enhances job mobility, wage potential, and entrepreneurship, though NDAs and trade secret protections remain in force. Non-competes previously restricted employees from working for competitors or starting similar businesses post-employment. The ban supersedes state laws, requiring employers to pivot to stronger NDAs, trade secret protections, and improved employee retention strategies.
New York has updated its LLC laws to enhance corporate transparency, effective January 1, 2026. These changes require LLCs to disclose beneficial ownership information to the state, mirroring the federal Corporate Transparency Act (CTA) and FinCEN's Beneficial Ownership Information Reporting (BOIR). The CTA, effective January 1, 2024, mandates that most entities report their beneficial owners' details to FinCEN.
As of January 1, 2024, the Corporate Transparency Act (CTA) mandates certain entities to report beneficial ownership information to FinCEN. Concurrently, financial institutions must gather similar information under AML regulations during account opening. The CTA focuses on combating money laundering by requiring entities to report owners with significant control or a 25% stake, while financial institutions must verify owners to prevent misuse of financial systems.
A new US law mandates ByteDance, valued at $270B, to divest TikTok as alternative to banning the app in the United States due to national security concerns, amplifying US-China tech tensions.
ByteDance's Douyin dominance in China contrasts TikTok's US influence, highlighting regulatory challenges for global tech giants amid geopolitical rivalries.
The Countering CCP Drones Act aims to add DJI to the FCC Covered List citing national security concerns.
This would in effect ban DJI drones and products in the United States.
Privacy concerns for Sam Altman's eye-ball scanning Crypto Project that will allow the internet to differentiate a human being on the internet from Artifical Intelligence or Bots.
OpenAI announced that with Open AI LP's "capped for-profit" company structure - a Limited Partnership business structure where a capped for-profit entity will be controlled by the Nonprofit Corporation - OpenAI will be able to stay true to its mission of ensuring the creation and adoption of safe and beneficial Artificial General Intelligence (AGI) - ahead of generating returns for investors.
Do you Agree that Open AI may remain true to its original mission as a Non-Profit?