On January 29, 2024, the Department of Commerce (“Department”) published a proposed rule (“Proposed Rule”) to require providers and foreign resellers of U.S. Infrastructure-as-a-Service (“IaaS”) products to (i) verify the identity of their foreign customers and (ii) notify the Department when a foreign person transacts with that provider or reseller to train a large artificial intelligence (“AI”) model with potential capabilities that could be used in malicious cyber-enabled activity. The proposed rule also contemplates that the Department may impose special measures to be undertaken by U.S. IaaS providers to deter foreign malicious cyber actors’ use of U.S. IaaS products. The accompanying request for comments has a deadline of April 29, 2024.Continue Reading Department of Commerce Issues Proposed Rule to Regulate Infrastructure-as-a-Service Providers and Resellers
Micaela McMurrough has represented clients in high-stakes antitrust, patent, trade secrets, contract, and securities litigation, and other complex commercial litigation matters, and serves as co-chair of Covington’s global and multi-disciplinary Internet of Things (IoT) group. She also represents and advises domestic and international clients on cybersecurity and data privacy issues, including cybersecurity investigations and cyber incident response. Micaela has advised clients on data breaches and other network intrusions, conducted cybersecurity investigations, and advised clients regarding evolving cybersecurity regulations and cybersecurity norms in the context of international law.
In 2016, Micaela was selected as one of thirteen Madison Policy Forum Military-Business Cybersecurity Fellows. She regularly engages with government, military, and business leaders in the cybersecurity industry in an effort to develop national strategies for complex cyber issues and policy challenges. Micaela previously served as a United States Presidential Leadership Scholar, principally responsible for launching a program to familiarize federal judges with various aspects of the U.S. national security structure and national intelligence community.
Prior to her legal career, Micaela served in the Military Intelligence Branch of the United States Army. She served as Intelligence Officer of a 1,200-member maneuver unit conducting combat operations in Afghanistan and was awarded the Bronze Star.
Technology companies are grappling with unprecedented changes that promise to accelerate exponentially in the challenging period ahead. We invite you to join Covington experts and invited presenters from around the world to explore the key issues faced by businesses developing or deploying cutting-edge technologies. These highly concentrated sessions are packed with immediately actionable advice. Each…
Earlier this month, the New York Department of Financial Services (“NYDFS”) announced that it had finalized the Second Amendment to its “first-in-the-nation” cybersecurity regulation, 23 NYCRR Part 500. This Amendment implements many of the changes that NYDFS originally proposed in prior versions of the Second Amendment released for public comment in November 2022 and…
Following up on the recent release by the New York Department of Financial Services (“NYDFS”) of an updated Proposed Second Amendment to its “first-in-the-nation” Cybersecurity Regulation, 23 NYCRR Part 500 (Proposed Second Amendment released June 28, 2023), it is not too late for companies to submit comments on the most recent version of the proposed…
According to a recently-released meeting agenda, the Securities and Exchange Commission’s (“SEC”) upcoming July 26, 2023 meeting will include consideration of adopting rules to enhance disclosures regarding cybersecurity risk management, governance, and incidents by publicly traded companies.
The SEC initially proposed these rules in March 2022. If adopted as proposed, the new rules would…
On July 13, 2023 the White House issued the National Cybersecurity Strategy Implementation Plan (“NCSIP”). The NCSIP identifies 65 initiatives – to be led by 18 different departments and agencies – that are designed as a roadmap for implementing the U.S. National Cybersecurity Strategy released earlier this year. This is the first iteration of the plan, which is intended to be an evolving document that the Administration plans to update annually. Consistent with the Strategy, the NCSIP contemplates five broad lines of effort (“pillars”):
- Defending critical infrastructure;
- Disrupting and dismantling threat actors;
- Shaping market forces to drive security and resilience;
- Investing in a resilient future; and
- Forging international partnerships to pursue shared goals.
Among the many initiatives, the Administration has outlined several specific efforts over the next three years that will be of interest to technology companies, federal contractors, and critical infrastructure owners and operators.Continue Reading White House Releases Implementation Plan for the National Cybersecurity Strategy
Earlier this week, the Securities and Exchange Commission (“SEC”) published an update to its rulemaking agenda indicating that two previously-proposed cyber rules might not be approved until October 2023 (although the agenda’s timeframe is an estimate and the rules could be finalized sooner, or later). The proposed rules in question address disclosure requirements regarding cybersecurity…
On April 25, 2023, four federal agencies — the Department of Justice (“DOJ”), Federal Trade Commission (“FTC”), Consumer Financial Protection Bureau (“CFPB”), and Equal Employment Opportunity Commission (“EEOC”) — released a joint statement on the agencies’ efforts to address discrimination and bias in automated systems. Continue Reading DOJ, FTC, CFPB, and EEOC Statement on Discrimination and AI
The New York City Department of Consumer and Worker Protection (“DCWP”) recently issued a Notice of Adoption of Final Rule (“Final Rule”) relating to the implementation of New York City’s law regulating the use of automated employment decision tools (“AEDT”) by NYC employers and employment agencies.
NYC’s Local Law 144 now takes effect on July 5, 2023. As discussed in our prior post, Local Law 144 prohibits employers and employment agencies from using certain Artificial Intelligence (“AI”) tools in the hiring or promotion process unless the tool has been subject to a bias audit within one year prior to its use, the results of the audit are publicly available, and notice requirements to employees or job candidates are satisfied.
The issuance of DCWP’s Final Rule follows the prior release of two sets of proposed rules in September 2022 and December 2022. The Final Rule’s most significant updates from the December 2022 proposal include an expansion of the definition of AEDTs and modifications to the requirements for bias audits. Key provisions of the Final Rule are summarized below.Continue Reading NYC Artificial Intelligence Rule to Take Effect July 5, 2023: New York City Issues Final Rule Regulating the Use of AI Tools by Employers
Last week, the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”) released guidance on Security-by-Design and Security-by-Default principles for technology manufacturers that was jointly developed by the Federal Bureau of Investigation and the National Security Agency, as well as cybersecurity authorities in Australia, Canada, United Kingdom, Germany, Netherlands, and New Zealand. While similar principles have been published in the past, such as those released by the U.S. Federal Trade Commission, this guidance builds on the White House’s recent roll-out of the U.S. National Cybersecurity Strategy and is in line with efforts to encourage a consistent, international approach to software security that emphasizes the responsibilities of software manufacturers across various jurisdictions. While the guidance primarily focuses on recommendations for technology manufacturers, it also includes recommendations for enterprise customers to “hold their supplying technology manufacturers accountable for the security outcomes of their products.” CISA and the authoring agencies are seeking feedback on the guidance, and indicated plans to hold future listening sessions to collect feedback. Continue Reading CISA Publishes International Guidance on Implementing Security-by-Design and Security-by-Default Principles for Software Manufacturers and Customers