AI, Robotics and Quantum

Sheppard advises companies in the artificial intelligence industry on complex data and content licensing agreements. These agreements are vital for developing, deploying and commercializing AI systems. Our work includes global partnerships that use both proprietary and third-party datasets for model training, fine-tuning, grounding, retrieval-augmented generation, evaluation, and output display. We also assist in distributing and monetizing AI-enabled products and services. 

We routinely structure licenses that separate training and non-training uses, address temporary versus ongoing data access, and allocate rights for model weights, outputs and downstream commercialization. Our approach helps mitigate legal risks tied to copyright, database rights, privacy, publicity and contractual obligations. 

With deep experience in media, technology and regulated industries, we help clients build sound data strategies that support innovation while meeting business goals, regulatory standards and litigation risks in a fast-changing legal landscape.

While many lawyers are trying to get up to speed on AI issues, we routinely prepare and deliver customized presentations to clients across many industries to explain the range of legal issues and risks that can arise based on how they are using or planning to use AI, including both determinative AI and generative AI applications. To minimize the risk of liability, we assist clients in developing a policy on employee and contractor use of AI. We also help clients develop policies on responsibly developing AI tools.

Sheppard is a leader in the protection of IP rights with lawyers who have handled AI patents for over 20 years.

Patents: We advise on and implement patent strategies to protect AI inventions and sort through the inventorship issues that can arise with AI-assisted inventions. We leverage our understanding of AI technology, the intricacies of patent law, and the new patent-eligibility guidelines resulting from the Alice decision, to provide strategic advice to clients on: 

• Assessing the patentability of AI inventions, including thinking creatively about the various aspects of an AI system that may be patentable 
• Drafting patent applications and claims for AI inventions with an understanding of the level of disclosure needed for Section 112 support and to build in the predicate for patent-eligibility under Section 101 
• Leveraging our experience, including those of former Patent Examiners, to overcome any objections or rejections made by the USPTO and expedite the allowance of the applications 

Copyrights: In addition to covering traditional copyright issues, we have attorneys who are thought leaders on cutting edge copyright issues with generative AI, including:

• Copyright issues with training AI models, which includes legal issues with the collection of data and other content, whether the use of copyright protected content to train AI constitutes infringement and if so, is “fair use” a defense 
• Whether the output of generative AI tools can be copyright protected, including if the level of human involvement with the output of generative AI is sufficient for the human to be an author 
• Infringement issues with works produced by generative AI and the respective liability of users and AI tool providers 

Open Source and DMCA: We have in depth knowledge on open source issues and the legal issues with AI code generators, including the DMCA issues with removal of copyright management information. 

Other IP Issues: We also handle all other aspects of AI-related IP including trade secrets, trademark, deep Fakes and right of publicity.

Our team provides strategic guidance on the design and implementation of AI-driven products, prioritizing legal compliance and building consumer trust. We advise clients on effective disclosure practices within user interfaces and product experiences, especially when introducing AI features. We help clients navigate complex requirements related to fairness, transparency and consumer protection. Our counseling addresses federal and state regulations, including the FTC Act, CFPB standards, and state unfair and deceptive acts and practices statutes, helping manage regulatory risk and support ethical product development. 

Our AI team includes members with experience across the spectrum of regulatory issues that impact AI, including with the FTC, DOJ, EEOC, Departments of Commerce, State, and Treasury, DOE and FDA. 

Our Corporate Transactions and Diligence team pairs deep technology and transactional experience to support clients throughout the business lifecycle. We regularly negotiate complex technology agreements to protect clients’ interests on issues such as data use and ownership, governance, privacy, data security, intellectual property and regulatory compliance. Our team has significant experience in M&A transactions involving AI and technology-focused companies, representing buyers and sellers alike. Our diligence process identifies and addresses unique risks related to data-driven assets and AI business models, providing clear guidance and practical solutions.

We represent both privately held and public companies, startups, emerging ventures and multinational corporations. Our Emerging Growth and Venture Capital practice serves as a strategic partner to investors and innovative companies, drawing on wide-ranging experience with transactions involving AI and advanced technologies.

Our litigation team is at the forefront of AI-related litigation, defending clients in chatbot, consumer protection and data privacy cases. We help businesses navigate disputes, regulatory investigations and emerging risks involving AI tools, using deep courtroom experience and innovative legal technology to deliver results in this rapidly evolving field.

Sheppard leverages deep technical and regulatory knowledge to help clients innovate, manage risk and capitalize on opportunities in blockchain, digital assets and AI-driven financial solutions. 

We help fintech clients address the legal and regulatory risks of AI-driven products, including algorithmic transparency, automated decision-making and compliance—bridging innovation and consumer finance regulation as fintech solutions increasingly integrate artificial intelligence. 

We develop robust AI governance programs, negotiate with AI vendors and create safe, compliant strategies to deploy transformative technologies. Our firm was among the first to launch a “Healthy AI” forum for C-suite executives to foster conversation around emerging risks and opportunities as AI reshapes the sector.