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Recent proposals to amend the UK’s national security investment screening regime mean that investors may in future be required to make mandatory, suspensory, pre-closing filings to the UK Government when seeking to invest in a broader range of companies developing generative artificial intelligence (AI). The UK Government launched a Call for Evidence in November 2023 seeking input from stakeholders on a number of potential amendments to the operation of the National Security and Investment Act (NSIA) regime, including whether generative AI, which the Government states is not currently directly in scope of the AI filing trigger, should expressly fall within the mandatory filing regime. The Call for Evidence closes on 15 January 2024.

This blog sets out how the NSIA regime operates, how investments in companies developing AI are currently caught by the NSIA, and the Government’s proposals to refine the scope of AI activities captured by the regime, including potentially directly encompassing generative AI.Continue Reading UK Government Consults on Amending Mandatory Filing Obligations for AI Acquisitions

Earlier this week, the Federal Communications Commission (“FCC”) announced a limited exemption from the obligation that holders of international Section 214 authority respond to a forthcoming one-time information request concerning their foreign ownership.  The narrow exemption provides relief from the reporting obligation for international Section 214 licensees that have made foreign ownership disclosures to the Executive Branch agencies known as “Team Telecom” within the last three years, subject to certain conditions.Continue Reading FCC Announces Limited Exemption from Forthcoming One-Time Foreign Ownership Disclosure for International Section 214 Licensees

Updated August 8, 2023.  Originally posted May 1, 2023.

Last week, comment deadlines were announced for a Federal Communications Commission (“FCC”) Order and Notice of Proposed Rulemaking (“NPRM”) that could have significant compliance implications for all holders of international Section 214 authority (i.e., authorization to provide telecommunications services from points in the U.S. to points abroad).  The rule changes on which the FCC seeks comment are far-reaching and, if adopted as written, could result in significant future compliance burdens, both for entities holding international Section 214 authority, as well as the parties holding ownership interests in these entities.  Comments on these rule changes are due Thursday, August 31, with reply comments due October 2.Continue Reading Comments Due August 31 on FCC’s Proposal to Step Up Review of Foreign Ownership in Telecom Carriers and Establish Cybersecurity Requirements

Last week, Chairwoman Jessica Rosenworcel of the Federal Communications Commission (FCC) announced that she expects to circulate a proposal shortly that will authorize the FCC and/or certain national security agencies to periodically evaluate the foreign ownership of FCC licensees in light of national security considerations.  She made this announcement in a speech that focused on

Technology equity markets took a sharp turn in the last two months of Q1 2022, with S&P Technology Index reaching to over 18% in the red in mid-March, before closing the quarter at 7% off.  In the last month, across all sectors, Russia’s attack on Ukraine has rattled markets and dented investor appetite amid increased

            On April 28, 2022, Covington convened experts across our practice groups for the Covington Robotics Forum, which explored recent developments and forecasts relevant to industries affected by robotics.  The global robotics market has been experiencing a significant transformation, with robotics growing beyond traditional industrial uses and taking on an ever-increasing amount of new roles

On Friday, April 22, 2022, the National Telecommunications and Information Administration (NTIA), which is part of the Department of Commerce, issued a request for comment (RFC) on the state of competition in the mobile app marketplace.  According to the RFC, the record developed will be used to inform the Biden Administration’s competition agenda, including a report on competition in the mobile app ecosystem.  Comments are due on May 23, 2022.
Continue Reading NTIA Seeks Comment on Competition in the Mobile App Marketplace

Yesterday, the Federal Communications Commission (“FCC”) unanimously adopted an order formalizing the referral and review process associated with “Team Telecom”—the group of national security and law enforcement agencies responsible for assessing foreign investment in U.S. telecommunications, submarine cable licensees, and broadcast licensees. The order adopts rules and procedures that will govern what has long been an informal process at the agency, both in connection with the issuance of such licenses and with respect to transfers of control.

The FCC’s action is consistent with the agency’s increased focus on, and involvement in, questions around national security and foreign investment in the telecommunications and media sectors. This attention to national security at the FCC is likely to continue regardless of the outcome of the election in November, given that both Republicans and Democrats at the agency have supported the agency’s heightened role in national security matters under its jurisdiction.Continue Reading FCC Formalizes Foreign Investment Reviews; More National Security Actions Likely to Follow

Last week, the Federal Communications Commission circulated a draft order that will formalize its coordination with what has been known as “Team Telecom”—the national security review process for foreign investments in U.S. telecommunications companies.  The draft order, which the FCC will consider for adoption at its September 30 Open Meeting, includes rules and procedures governing what has long been an informal process.

The FCC’s draft order adopts rules consistent with an April 4, 2020 Executive Order that rebranded the group of executive branch authorities long referred to as “Team Telecom” as the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector.  Despite the name change, Team Telecom will largely follow the existing review process; however, the new FCC rules do make a few key changes.  We highlight some of the basic changes below.Continue Reading FCC Releases Draft Order Formalizing “Team Telecom” Process

City leaders across the globe are predicted to spend upwards of $41 trillion by 2020 to deploy smart city technologies within their locales. From Toronto to Tokyo, cities are vying to harness the benefits of the Internet of Things (“IOT”) in order to help make their streets safer, transportation more efficient, and their environments greener. While exciting, there are a number of challenges facing cities on their quest to get smart. Resources are scarce, building the required infrastructure is expensive and obtaining the necessary consensus and cooperation amongst municipal stakeholders can be downright impossible. For vendors looking to capitalize on this momentum, learning from successful smart city projects and planning around the common conflicts that tend to arise is crucial. Below are a number of best practices gleaned from the strategies and progress of a number of cities who have found success in implementing smart city solutions.
Continue Reading Covington IoT Update: Best Practices for Outsmarting Common Pitfalls in Smart City Projects