Ping® by Adlerlaw May 2026 – Navigating AI Liability in Business Contracts

Twelve Point Contract Drafting Checklist, plus Business Contracts & AI – What You Need To Know

Key Stat

Companies are deploying AI faster than they are updating contracts to address AI-generated risk. According to a recent Cost of a Data Breach Report 2025 by IBM, 63% of organizations lacked formal AI governance policies. (IBM)

AI & Governance Risk

Businesses or every size and industry operate at the intersection of technology, data, and regulation. As advanced technologies — including cloud services, SaaS platforms, and AI-enabled analytics — become core to service delivery, legal and regulatory challenges have grown in complexity. Employees may be introducing AI-related liability before legal departments even know the tools are being used. Business professionals face challenges to proactively manage legal risk, strengthen AI use practices, and align compliance strategies with operational goals.

Businesses seeking guidance on contract clauses and service agreements that protect both providers and clients must to navigate intellectual property risks tied to proprietary software, integrations, and third-party platforms, AI tools that generate and distribute all manner of content, and always changing regulatory considerations for delivering services across state and national jurisdictions.

We are seeing more clients requests analysis of how AI tools impact operational liability and contracts in particular. Key AI Disclosure considerations should include:

  1. Client Content Warranty
  2. Disclosure of AI Usage
  3. IP Ownership and Rights
  4. Accuracy Disclaimer
  5. Disclosure of Confidential Information
  6. Indemnification
  7. Limitation of Liability & Third-Party AI Tools and Terms

Don’t hesitate to contact us for help with AI-related concerns in your contracts and business operations.

Contract Drafting Tips for Cybersecurity

I recently presented Contract Drafting Tips for Cybersecurity: Protecting Monitoring Companies from Legal and Operational Risk to the 2026 TMA Mid-Year Meeting.

Participants walked away with a 12 point Cybersecurity Contract Drafting Checklist. Please contact Adler Law Group here to request a copy.

Ping® by Adlerlaw March 25, 2026 Do Interior Designers Need Contracts?

Yes! Here Are Six Ways To Make Your Contracts Actually Work For You

Your contracts are not just paperwork; they are one of the most important tools you have to protect your ideas, client relationships, and team. A clear, current, and well-drafted agreement reduces misunderstandings, keeps projects on track, and helps you avoid costly disputes or litigation. Below are six practical ways to improve the contracts you use every day.

  1. Always Use a Real Written Contract

If your “contract” is just an email thread or a one-page letter of intent, you are inviting a “he said / she said” fight when something goes wrong. A proper written agreement should spell out at least:

  • Scope of services or deliverables
  • Pricing and payment terms
  • Timeline, milestones, and acceptance criteria

Even a short, well-structured contract is better than a vague letter that says you “look forward to working together.”

  1. Clean Up Ambiguous and Contradictory Terms

Over time, many businesses end up with “Franken-contracts” patched together from online forms, trade association templates, and snippets lifted from cases or other people’s documents. The result is often inconsistent language about pricing, scope, or risk allocation that confuses clients and gives a judge plenty to argue about. Ambiguity can do more than fuel a breach of contract claim; in some situations, unclear or misleading language can open the door to fraud or unfair business practices claims, which are harder and more expensive to defend. In other words, clarity is risk management.

  1. Build a Simple Change Mechanism

Projects evolve. Products go out of stock, costs shift, clients add features months after the original proposal. If your contract has no clear way to document changes, you end up renegotiating scope and pricing by text message. Add a straightforward change order clause that requires:

  • Written documentation of changes in scope, price, or schedule
  • Client initials and dates for any post-signature additions or revisions

This small step creates a clean paper trail that supports your invoice and your story if the relationship sours.

  1. Consider Intellectual Property Rights

For many design and creative businesses, the most valuable asset is the design itself: concepts, drawings, specifications, and digital files. If your contract does not clearly say who owns what, when rights transfer, and what the client can and cannot do with your work, you risk accidentally giving away core Intellectual Property Rights. At a minimum, your agreement should address:

  • Ownership of pre-existing materials and tools
  • Ownership of project deliverables
  • License scope (where, how, and for how long the client can use the work)
  • Rights to portfolio and marketing use

Being explicit about IP keeps clients happy and protects your future revenue streams.

  1. Keep Up With Changing Laws and Regulations

Laws affecting contracts evolve constantly—from technology regulations (social media, e‑commerce, privacy) to employment-related restrictions like non-compete and non-solicitation rules. An annual contract review can catch these developments and adjust your forms so they remain enforceable instead of becoming expensive dead weight.

  1. Define How the Relationship Ends

Not every client or vendor relationship is meant to last forever. A good contract anticipates the breakup. It should clearly answer:

  • When can either party terminate (nonpayment, nonperformance, convenience)?
  • How much notice is required?
  • What happens to fees, work-in-progress, and deliverables if the project ends early?

Including wind-down procedures and responsibility transfer language reduces chaos when things do not work out and can prevent a dispute from turning into a lawsuit.

Ping® by Aderlaw March 2026 – NFTs show creative application of traditional trademark, unfair competition, and reputational-control doctrines

Lawsuit in the Southern District of New York Settles $69 Million NFT Claim over Beeple’s “Everydays: The First 5000 Days

According to Artnet, in March 2021, Beeple’s Everydays: The First 5000 Days sold for $69.3 million, “sending an earthquake through the art world.” The lawsuit matters because it shows how traditional trademark, unfair competition, and reputation control doctrines are used. These doctrines police identity and authorship claims in the NFT/crypto space. This happens despite all the tech novelty.

The lawsuit settlement confirms a single person purchased the NFT. A former independent contractor denied any role in the sale. The NFT market has since sharply declined.

The settlement ends one of the few long-running sagas over NFTs.

When your brand, reputation, or creative work is on the line, you need counsel who understands both the traditional rules and how they apply to fast‑moving technologies. Trademarks and digital branding go hand in hand. If you’re facing a dispute or want to proactively tighten your assets, reach out to discuss your situation and explore practical strategies tailored to your business.

Ping® by Adlerlaw – January 2026

Looking Back, Looking Forward

Ping® by Adlerlaw January 2026 Looking Back, Looking Forward

Beyond Transactions: Building Solid Businesses

In 2025 Adler Law Group:

*Registered over a dozen New Federal Trademarks, including:

  • BLOOMA – consulting
  • MORE THAN JUST BANKING -banking
  • CEO – corporate events
  • LIFEFORCE BREATH – consulting
  • CALM ON THE GO – consulting
  • E9 – Golf events
  • AV=ADDED VALUE – audio visual production services
  • CORPORATE EVENTS ONLINE – online streaming services
  • MAKE MARS GREAT AGAIN – various novelty goods
  • PLAY LIFE DIFFERENTLY – financial services
  • US IMMIGRATION SUPPORT – immigration services
  • ROSE HILL DESIGN STUDIO – interior design services

*Helped a Medical Services start-up secure $10,000,000 in start up funding.

*Assisted an ecommerce services business acquire assets out of a bankruptcy and turn it into a 7 figure services business.

*Counseled several Independent Filmmakers on starting and successfully producing their first feature film.

WHERE WE WERE THIS YEAR

As always, I continue to share my knowledge and experiences with entrepreneurs across a wide range of industries, and 2025 was no exception.

These are just a couple events wher I was a featured speaker:

  • NAMA Show 2025, Las Vegas – Build Brands and Customer Loyalty
  • KBIS VFTI 2025, Las Vegas – Protecting Original Design and Authenticity in an Age of Knock-Offs
  • DESIGN CHICAGO 20205 – Contract Basics For Interior Designers

Learn more about these events here.

Ping® by Adlerlaw October 2025 – Navigating AI in Creative Contracts

Third-party generative artificial intelligence systems (AI) are rapidly transforming creative work, introducing new opportunities and real legal and business risks. Many contracts do not yet cover how AI tools are used, who owns resulting intellectual property, or what happens if errors or unlicensed materials are incorporated into your final product. Creative professionals should strongly consider reviewing their contracts and adding provisions for AI use to tackle evolving risks and responsibilities for your industry. This article looks at contractual issues affected by use of AI tools and suggests specific terms to consider. While not exhaustive, the topics in this article target major areas for attention.

Copyright & Intellectual Property (IP) Rights

AI-generated work can pose challenges for copyright protection, licensing, and third-party rights. Many platforms and tools have uncertain or shifting approaches to ownership and proper licensing.

Read more here.

Ping® by Adlerlaw August 2025 Don’t Monkey With NFTs & Nintendo’s Aggressive IP Tactics

Yuga Labs NFT Trademark Dispute Continues.

A jury must decide if the spoofed monkey-themed NFTs misled consumers in the case against Ryder Ripps. NFTs are digital assets. Yuga Labs launched Bored Ape Yacht Club in April 2021. These NFTs are digital images of cartoon apes with various traits and accessories, residing on the Ethereum blockchain. BAYC is known for its exclusivity, limited access, and influence within the NFT space. NFT trading has surged recently, reaching Billion Dollar valuations. Read more here: [LINK]

Nintendo Demonstrates Aggressive IP Tactics

Digital content creators should pay attention to Nintendo’s ongoing lawsuit against Palworld alleging the Pokemon-inspired survival game had infringed on several of Nintendo’s patents revolving around various game mechanics. Nintendo just recently filed corrections on three of the patents involved in a lawsuit with the Japan Patent Office revising the wording of game mechanics Nintendo. Nintendo’s last-minute patent changes have provoked outrage. Read more here: [LINK]

AV Voice Text Clones & Copyright Law

On a related note, AV voice text clones do not violate copyright laws. The Southern District of New York issued ruled in Lehrman et al v. Lovo, Inc., 1-24-cv-03770 (SDNY Jul. 10, 2025) that actors’ voice recordings used to create AI-generated voice clones “identical to” the Plaintiffs’ voices as part of a text-to-speech service was not copyright infringement.

Boost Your Legal Knowledge with Ping® by Adlerlaw

Hi! Welcome to Ping®! I hope you stay with us.

Ping® started over 25 years ago. It grew from my experiences running the Entrepreneurial & Start-up Ventures Committee and the Media, Arts & Entertainment Committee of the Chicago Bar Association. I also gained insights from public speaking in the areas of intellectual property, information technology, privacy, security, and social media.

Every forum meeting or presentation ended with in-depth questions from the audience. Since I rarely had time to answer these questions or provide any depth to my response, I decided to publish Ping®. These articles share my knowledge and educate creative professionals to be better consumers of legal services.

This month Ping® by Adlerlaw looks at new laws in Illinois, as well as upcoming Interior Design CEUs. See more here.

Ping® by Adlerlaw – Ultimate Guide to Google Ads Suspension Solutions

Has your Google Ads account been suspended? Do you find the suspension notice to be vague and unsubstantiated? You’re not alone! Do you want to know what to do when Google Ads shuts you down? Here are some suggestions.

First, read the Notice! Google’s Policies are intentionally vague and cover a broad range of conduct.

Second, review the response guidelines. Determine what type of response is required and gather “evidence” in support of your position before you respond.

Third, Consult your lawyer!. It’s easy to make mistakes. Presenting your best case in the first instance will improve efficiency and effectiveness.

To learn more about specific steps and responses to Google Ads Account Suspension Notices, please read the full article on the Adler Law website here.

For more information, contact an attorney at the Adler Law Group.

Eagle Rare Unable to Claw Away Eagle Trace in Battle Over Eagle Park. 

Eagle statue

Applicant, Eagle Trace Brewing Company LLC, applied to register the following standard-character marks on the Principal Register: EAGLE PARK DISTILLING for “distilled spirits; alcoholic beverages, except beer” in International Class 33;1 and EAGLE PARK BREWING COMPANY for “alcoholic beverages, namely beer” in International Class 32.

Sazerac Brands, opposed both applications on the ground of likelihood of confusion under Section 2(d) of the Trademark Act, 15 U.S.C. § 1052(d), asserting prior rights in and ownership of marks registered on the Principal Register: EAGLE RARE (standard characters) for “bourbon whiskey” in International Class 33;3 and for “whiskey” in International Class 33.

Despite some similarities, including the presence of the word Eagle in the marks, the Board dismissed the opposition.

Read the USPTO TTAB decision here: 

Get In Touch

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Riverwoods, IL 60015
Toll free Phone & Fax: (866) 734-2568

https://www.adler-law.com/contact/

Ping® by Adlerlaw Should My LLC Be Taxed As An S Corporation And Why?

It has become customary for many businesses to set up a limited liability company (LLC). Especially when it is a 1 or 2-person business.  Among the many advantages of LLCs are simple default tax classifications: sole proprietor for 1 member, partnership for more than 1 member, also known as “pass-through.” This is the same regardless of the type of member. However, have you asked your lawyer, accountant, or business advisor if it makes sense to simply take the default classification? Small businesses should consider whether making the election to be treated as a “S-corporation” makes sense.

Read the full article here.

If you are unsure about the benefits or the choices discussed above, feel free to contact us by email or by calling 1-866-734-2568. For over 27 years, we have guided business owners in this important depiction-making process.