#75 Legal Advice #75

  Legal Implications of Prompt Hacking in AI-Based Law Firms Last week, a colleague from another firm forwarded a contract template that had been partially drafted using their AI assistant. It looked clean. Too clean. A few of us read it over and noticed something chilling: a clause lifted straight from a different M&A deal — one involving completely unrelated parties. No one had copied and pasted anything. It was the AI. Turns out, their prompt-based assistant had somehow cached or recalled that old data. And just like that, a confidentiality breach occurred without anyone realizing it until the draft was almost finalized. This isn’t just a fluke — it’s becoming a pattern. Welcome to the strange new frontier of prompt hacking in law firms. Below, we’ll explore what it is, why it matters to lawyers, and what it could mean for your clients — and your license. 📌 Table of Contents What is Prompt Hacking? Why Law Firms Are Vulnerable Confidential...

  DNS Hijacking Liability in Domain Leasing Contracts A few months ago, I helped a client recover from a DNS hijack that completely derailed their SaaS launch. That case got me thinking—how prepared are we, really, when leasing a domain? Imagine leasing a domain name for your startup’s product launch. You’ve built brand assets, run paid ads, and scheduled press releases—all pointing to this domain. Then, one night, your domain is hijacked via a DNS exploit and begins redirecting users to a phishing site. Brand damage? Severe. Client trust? Eroded. But the biggest question remains: Who’s legally responsible? 📌 Table of Contents Understanding DNS Hijacking How Domain Leasing Agreements Address Security So… Who’s On the Hook When DNS Goes Sideways? Case Study: A Real-World Dispute Best Practices for Mitigating DNS Liability 🔍 Understanding DNS Hijacking DNS hijacking, or DNS redirection, involves intercepting or manipulating DNS queries to redir...

  How to Use SCINs (Self-Canceling Installment Notes) in Estate Freezes Estate planning professionals are constantly seeking strategies to reduce estate tax exposure for high-net-worth individuals. One powerful yet often underused tool is the Self-Canceling Installment Note (SCIN). When structured properly, a SCIN allows the transfer of assets to heirs while removing them from the taxable estate—without triggering a gift tax. 📌 Table of Contents (Click to Navigate) What Is a SCIN and How Does It Work? When Should You Consider Using a SCIN? Tax Treatment and IRS Scrutiny Best Practices for Structuring a SCIN What Is a SCIN and How Does It Work? A Self-Canceling Installment Note (SCIN) is a type of promissory note used in the sale of assets from a senior family member to a younger generation. The “self-canceling” feature means that if the seller dies before the end of the payment term, the remaining balance is forgiven—and excluded from the estate. Th...

  Fair Use Defense for YouTubers Using AI-Generated Audio YouTube creators are increasingly turning to AI-generated voices and soundscapes to power skits, commentary, and remixes. From presidential parodies to deepfaked celebrity voiceovers, these tools offer incredible creative potential—but also raise copyright and publicity right concerns. Can YouTubers claim fair use when using AI-generated audio that imitates real people or mimics copyrighted works? This post unpacks the legal risks and potential defenses, especially around parody, commentary, and transformative use. 📌 Table of Contents 1. What Makes AI-Generated Audio Legally Risky? 2. When Does Fair Use Apply on YouTube? 3. The Right of Publicity and Synthetic Voices 4. Key Legal Cases and YouTube Precedents 5. Guidelines for Safe AI Audio Usage ⚠️ What Makes AI-Generated Audio Legally Risky? AI-generated audio that mimics real voices or incorporates copyrighted songs may be seen as deriva...

  The Legality of Smart Contracts Without Jurisdiction Clauses Smart contracts—self-executing code stored on a blockchain—are reshaping how agreements are made. They’re automated, transparent, and immutable. But one thing they often lack? A jurisdiction clause. That seemingly small omission can create major legal headaches when disputes arise across borders or platforms. This post explores what happens when smart contracts are silent on jurisdiction—and how to mitigate the risks. 📌 Table of Contents What Is a Jurisdiction Clause? Why Smart Contracts Often Skip It Legal Risks of Omitting Jurisdiction Notable Legal Disputes Involving Smart Contracts Best Practices for Legal Clarity What Is a Jurisdiction Clause? A jurisdiction clause specifies which court or legal system will handle disputes if they arise from the contract. In traditional contracts, this helps avoid confusion and forum shopping. Without it, parties may battle over which country’s...