Compliance Stuff

Aside from potential legal trouble, new obligations could spark business and operational friction Executive Order 14398 represents a significant expansion of the government’s enforcement posture on DEI and creates an environment where the cost of delay could substantially exceed the cost of preparation, Andrew Turnbull of Morrison Foerster writes. Contractors should consider implementing certain steps to mitigate risks related to these new requirements. Federal contractors and subcontractors face sweeping new obligations under Executive Order 14398 that prohibit them from engaging in “racially discriminatory DEI activities” and requires reporting any “reasonably knowable” violations by subcontractors . The FAR Council has already issued a mandatory contract clause, FAR 52.222-90 . Agencies have begun inserting it into new solicitations, targeting a completion date of July 24 for modifying existing contracts. Enforcement is not waiting. With a $17 million DOJ DEI settlement already on...

Trade secrets are a pivotal element in the competitive strategies of businesses, fostering innovation and providing a f lexible, cost-effective means to safeguard valuable business information . They are an instrumental part of both corporate  governance  and  compliance .  Anything that is safeguarded and has independent economic value can be a trade secret, including business processes, advances in technology, secret formulas, algorithms and more. The protection of trade secrets is fundamental for maintaining a competitive edge, spurring investment in research and development and driving economic growth.  This is particularly salient in the age of AI, where organizations are using generative AI prompts and outputs to improve operations and are, in some cases, creating new AI-based technologies.  Trade secrets are subject to certain  risks  and compliance obligations as a result of new AI-related laws and regulations in the  EU  and the...