Articles Posted in Technology

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Laws against forgery of documents have existed for almost as long as writing itself has existed. For most of that time, forgery techniques did not change very much. However, modern digital technology has significantly expanded opportunities for people to create fraudulent documents. Real estate transactions are making increasing use of “paperless” applications, but most areas of real estate remain firmly rooted in paper. This is particularly true of public real property records. While the media in California might report on how blockchain and other digital tools are changing the real estate business, yet real estate forgery is still mostly rooted in creating documents that could be printed onto paper.

Forgery Laws in California

California’s forgery statute, found in California Penal Code § 470 covers a broad range of activities. In addition to signing another person’s name to various documents without authority, the statute makes it a crime to intentionally “alter, corrupt, or falsify any record of any … conveyance” which includes real estate documents like grants or deeds. Under California Penal Code § 115, a person commits a felony when they knowingly file “any false or forged instrument” with a government agency, such as a county recorder’s office. State law allows county recorders to accept “digitized images, digital images, or both” of a recordable document for filing.

In fact, Section 502(c)(1) prohibits altering or deleting data stored on another person’s computer or computer network as part of “any scheme or artifice to defraud, deceive, or extort.” This can include attempts to falsify or forge digital documents affecting real estate transactions.
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The world is growing increasingly “paperless” as more documents move into digital spaces. People born in this decade might only know terms like “sign on the dotted line” and “before the ink is dry” as something their grandparents would explain. Without hard copies of important documents, though, our legal system needs new ways to indicate that a person has agreed to a contract. Now, electronic signatures (a/k/a “digital signatures” or “e-signatures”) provide evidence of assent without the need for a pen and printer. Federal and state laws, such as the Electronic Signatures in Global and National Commerce (E-SIGN) Act, establish standards for proving the legitimacy of electronic signatures. In real estate transactions, electronic signatures are allowed in any situation where the law does not specifically require otherwise.

What Is an “Electronic Signature”?

The E-SIGN Act defines an electronic signature as any “electronic sound, symbol, or process” that meets the following criteria:

1. It is “attached to or logically associated with” a document (e.g., contract); and
2. The person who “executes or adopts” it intends to do so.

Electronic signatures are possible with hardware, such as the signature pads at many retail checkout counters; and software, such as the signature features in applications like Adobe Acrobat or services like DocuSign. The signature must meet the standards set by federal or state laws and an electronic signature must be acceptable for that document.
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Internet of Things is more extensive than the Internet itself. It constitutes the combination of all electronic devices that are connected on the web and are able to communicate with each other. It is different from the Internet because it is essentially governed by information that is stored by electronic devices without human intervention. Now, smart devices can be connected through complex network systems and embedded sensors. These smart devices include, phones, refrigerators, thermostats, automobiles, or pills that allow medical professionals monitor a patient’s health status. These technological advancements enable smart devices to communicate in real time and promote the process of developing a more intelligent environment.

Artificial Intelligence is the intelligence demonstrated by machines in contrast to the natural intelligence displayed by humans and other animals. It allows machines to learn from experience, adjust to new inputs, and perform human-like tasks.  It relies heavily on deep learning and natural language processing. It uses neural networks which are a combination of software and hardware devices that are designed to emulate the operation of neurons in the human brain.

Smart Dust is a system of tiny microelectromechanical systems (MEMS) such as sensors or robots that detect light, temperature, vibration, magnetism, or chemicals. They are usually operated on a computer network wirelessly and distributed over an area to perform tasks by sensing through radio-frequency identification. This technology is able to collect and transmit data which can be uploaded to the cloud or other remote location.

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Virtual reality (VR) is an experience taking place within simulated and immersive environments that can be similar to or completely different from the real world. It can be used for educational and entertainment purposes.  Also, augmented reality or mixed reality are other types of this technology.

The current systems use some kind of device (e.g., headsets or multi-projected environments) to create images, sounds, or other sensations in order to take the user into the virtual environment. The users can submerge themselves into the virtual environment and interact with the virtual features as if they are real.  The effect is generated by special headsets that yield a head-mounted display with a tiny screen before the eyes, but can also be created through specially designed rooms with big screens. This technology includes visual and auditory feedback, and can also permit other types of senses or feedback through haptic technology.

What are the potential legal issues?

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Smart Dust is a system of tiny microelectromechanical systems (MEMS) which include sensors or robots that are able to detect light, temperature, vibration, magnetism, or chemicals. They are usually operated on a computer network wirelessly and are distributed over an area to perform tasks by sensing through radio-frequency identification.

The concept for this technology came from the Research and Development Corporation (RAND) and a series of governmental studies for potential military applications. This technological advancement was influenced by science fiction authors who mentioned microrobots, artificial swarm intelligence, or necroevolution. Now, this new technology is capable of collecting and transmitting data to and from specific locations. These tiny electronic devices, which are also known as motes, can detect light, vibration, and temperature. Also, the data that is collected by these devices can be uploaded to the Cloud or other remote location for processing.

Smart Dust v. Internet of Things

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The Internet of Things is a relatively new development that has changed the world. However, the laws were either non-existent or archaic. Now, it’s important to inform our readers that Jerry Brown has signed a cybersecurity law covering “smart” devices. The bill, SB-327, was introduced last year and states in relevant part that:

Existing law requires a business to take all reasonable steps to dispose of customer records within its custody or control containing personal information when the records are no longer to be retained by the business by shredding, erasing, or otherwise modifying the personal information in those records to make it unreadable or undecipherable. Existing law also requires a business that owns, licenses, or maintains personal information about a California resident to implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the personal information from unauthorized access, destruction, use, modification, or disclosure. Existing law authorizes a customer injured by a violation of these provisions to institute a civil action to recover damages.

This bill, beginning on January 1, 2020, would require a manufacturer of a connected device, as those terms are defined, to equip the device with a reasonable security feature or features that are appropriate to the nature and function of the device, appropriate to the information it may collect, contain, or transmit, and designed to protect the device and any information contained therein from unauthorized access, destruction, use, modification, or disclosure, as specified.

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Artificial Intelligence, or AI, has evolved rapidly over the past couple of decades.  The uses of AI have extended to different segments of our society, and humans have benefitted from it in various ways.  Lawyers and legal researchers have also found ways to harness the power of AI.  AI has enabled them to sort through month’s, or even year’s, worth of information in minutes.  This is especially helpful when considering how, according to IBM, over 90% of all data was created in the last two years.  However, AI in the law goes far beyond its practical uses by lawyers for information gathering and discovery.  The rise of AI has presented a number of issues and questions in the legal field, especially involving products liability.

AI and Products Liability

Recently, companies have used AI both in their creation of products, and in the products themselves.  A major issue regarding this is who should be held liable in the event the AI product causes an accident or an injury.  There is debate on whether the programmer or manufacturer of the AI product should be held liable, as well as which legal standard should apply in cases involving AI.  A main reason for this issue is the rapidness that AI has developed over the recent decades.  The government and other regulatory bodies have had difficulty keeping up with how quickly AI has evolved.  This has left people who develop AI and manufacture products from it unsure on how AI will be regulated in the future.  Adding to this issue is how there are a number of different definitions used to describe AI, as well as how it has a wide variety of usages.  While companies have benefitted greatly from AI, they also must recognize the risks its use may create for them.

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Isaac Asimov’s three laws of robotics are important factors in the development of artificial intelligence laws. They are as follows:

  1. First Law: A robot may not injure a human being or, through inaction, allow a human being to come to harm.
  2. Second Law: A robot must obey the orders given it by human beings except where such orders would conflict with the First Law.
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We are continuing our look at the impact of artificial intelligence on copyright laws. In general, copyright’s underlying theory—to protect property rights as defined by the labor a person puts into an object, and to incentivize economic progress by entitling people to the fruits of their labor—will come to bear in face of this new technology.  It will happen in ways equally as novel as the technology at issue.

Although, copyright protection usually requires that a work be original and created by a human being, however, the fruits of artificial intelligence are becoming increasingly original.  It might prove unfair in some circumstances not to afford protection to a highly-complex and refined work of literature, music, or journalism simply because its creator is not human. It could likewise disincentivize the use of such innovation.  On the other hand, the argument is made that the market will disincentivize a human being from going through the laborious task of copying something that was previously made by a computer more efficiently.  The law really comes to a finer point when the issue is one of computer-generated copying of computer-generated works.  This thing intuitively feels unethical, but it is tricky to get the legal outcome that feels right under the current copyright regime. Another argument to be made in favor of not affording protection to works not created by human beings is that employing artificial intelligence to tackle time-consuming endeavors could really help the economy.

Another legal option besides denying copyright protection is to simply attribute authorship to the creator of the program that made the work being copied.  This manner of addressing the issue is practiced in places like Hong Kong, India, Ireland, New Zealand, and United Kingdom. The United Kingdom has a slightly different definition of authorship from that of places whose jurisprudence indicate that a human being is required: “In the case of literary, dramatic, musical or artistic work which is computer-generated, the author shall be taken to be the person by whom the arrangement necessary for the creation of the work are undertaken.”  This seems to allow for computer programmers to be characterized as authors, where in other countries, they may not be.

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This month, our plan is to shift our focus on copyright laws, which at this time, is at a juncture of its own. Artificial intelligence is quickly sweeping across many areas of life.  Google, for example, has just started funding a program that will write local news articles. Perhaps more stirringly, depending on who you are, a group of Dutch museums and researchers unveiled The Next Rembrandt, a portrait created by a computer that had analyzed thousands of the artist’s works.  Google has its hand in the realm of art as well and is working on “Deep Mind” which is a subsidiary-developed software that can generate music by listening to recordings.

For many years computers have been able to generate crude works of art, as though they were tools like many others.  But today, artificial intelligence has reached new technological heights.  It is capable of learning on its own.  Autonomous systems may program themselves based on information they perceive, without the need of being programmed by human beings.  They can evolve and make independent decisions.  With regards to art, machines have not quite achieved the ability to “learn” something so subjective, but the neural networks softwares can generate highly-refined works. You may research Recurrent Neural Networks for more information.

One of the traditional requirements for copyright protection is that a work be original. One of the criteria used to determine whether a work is original is whether it was created by a human being. In fact, Europe and the United States of America have their rationale for this rule. In Europe, where copyright law is based more on a moral theory, centering on the rights of authors and the work, and even parts of their person they put into a piece.  In the United States of America, copyright law is based more on a utilitarian theory – i.e., society and government want to incentivize people to put in the labor and create valuable things with the knowledge that they will be rewarded with the fruits of their efforts, and others won’t be able to steal or unjustly piggyback off the work.

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