Lessons to Learn from the FTC Complaint Against Cognosphere and Genshin Impact – Part I: Background of COPPA and Loot Boxes

On January 17, 2025, the Department of Justice filed a complaint upon referral from the Federal Trade Commission (FTC) against Singapore-based Cognosphere Pte. Ltd and its Californian subsidiary Cognosphere LLC, which collectively does business under the name “HoYoverse”. The complaint consists of five counts split into essentially two major prongs against HoYoverse and their game, …

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Reverse Trademark Infringement: The OpenAI Case and Its Implications

Trademark disputes are common in business. Most cases involve a smaller entity allegedly infringing upon a well-known brand. However, reverse trademark infringement flips this dynamic. It occurs when a larger, more prominent company is accused of infringing upon the already existing trademark of a smaller, lesser-known entity, leading to brand dilution and consumer confusion. Understanding …

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The U.S. Copyright Office’s AI Report Part II: AI Creations May Be Copyrightable (With Enough Human Involvement)

After months of anticipation, the U.S. Copyright Office (USCO) has published the second part of its three-part report on the copyright issues raised by artificial intelligence (AI). Titled “Copyrightability,” this part focuses on whether AI-generated content is eligible for copyright protection in the U.S. The key takeaway? AI-generated works can be eligible for copyright protection—if …

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Convertible Notes vs SAFEs

Convertible notes and SAFEs (Simple Agreements for Future Equity) are two common instruments used by startups to raise early-stage capital. While they share similarities, they also have distinct features that may make one more suitable than the other depending on the situation. Here’s a quick comparison to help understand the key differences and why a …

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Legal Relationships and Agreements for Corporate VTubers

In the world of VTubers, content creators who use animated avatars as their online persona, there is a distinction between independent VTubers who (as the name suggests) operate independently and “corporate” or “corpo” VTubers who are part of a VTuber agency. In exchange for a certain percentage of their profits, corporate VTubers may receive promotional …

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The Games Industry in 2025: Our Optimistic Perspective

The past couple of years have been a rollercoaster for the games industry, with significant layoffs and economic challenges dampening spirits. However, 2025 brings a sense of optimism. Many have managed to “survive to 25.” The industry is poised for recovery, with growth opportunities across emerging markets, cultural shifts, and technological advancements. Political uncertainty may …

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Trademark: USPTO 2025 Fee Hikes

The USPTO is raising its trademark-related fees beginning January 15, 2025. TL;DR: Anyone considering filing a trademark application should assess whether the new fees will apply to them. If so, they could consider filing before January 15, to save on fees. Also, Trademark Registration holders who need to submit maintenance documents, should do so before …

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Convertible notes are a tool for early-stage fundraising

Unlike a traditional priced equity round, a convertible note is a type of debt that converts into equity (typically during a future financing round). Essentially, it’s a loan made to a startup by an investor, with the expectation that the loan will convert into shares of the company’s stock at a later date. This instrument …

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Understanding Stock Incentive Plans and Rule 701

When it comes to employee compensation, companies can offer more than wages and salaries. One of the most popular choices is granting employees equity, giving them a sense of ownership and aligning their interests with the success of the business. For interested companies, one of the best ways to accomplish that goal is through a …

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