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EU Unveils Draft AI Code of Practice Focusing on Copyright and Safety for Companies

The European Commission revealed a draft code of practice on Thursday aimed at helping companies comply with the European Union’s evolving artificial intelligence regulations. The voluntary code emphasizes safeguarding copyright-protected content and implementing measures to reduce systemic risks linked to AI technologies.

Developed by 13 independent experts, the code is part of the broader EU AI regulatory framework. While signing up is optional, companies that do not join will miss out on the legal certainty offered to adherents. The rules will apply to major AI providers including Alphabet (Google), Meta (Facebook), OpenAI, Anthropic, Mistral, and others.

Under the code, signatories must publish summaries detailing the data sources used to train their general-purpose AI models. They are required to ensure that copyright-protected materials are only used appropriately, especially when employing web crawlers, and must take steps to prevent outputs that infringe copyright.

To address systemic risks, companies will also need to establish frameworks to identify and analyze potential hazards. While transparency and copyright guidelines apply to all general-purpose AI providers, specific safety and security provisions target providers of advanced models like OpenAI’s ChatGPT, Meta’s Llama, Google’s Gemini, and Anthropic’s Claude.

The EU’s AI Act, effective since last June, imposes strict transparency rules on high-risk AI systems and lighter obligations for general-purpose AI models. It also regulates AI use in military, crime, and security contexts. The new AI rules for large language models will become legally binding on August 2, with enforcement beginning a year later for new models. Existing models will have until August 2, 2027, to comply.

Henna Virkkunen, the EU’s technology commissioner, encouraged AI stakeholders to adopt the code, highlighting its collaborative design and its role in simplifying compliance with the EU AI Act. The code’s final approval by EU member states and the Commission is expected by the end of the year.

Anthropic CEO Criticizes Proposed 10-Year Ban on State AI Regulation as ‘Too Blunt’

Dario Amodei, CEO of Anthropic, argued in a New York Times opinion piece that a Republican proposal to block states from regulating artificial intelligence for 10 years is an overly blunt approach. Instead, he called for a coordinated federal effort by the White House and Congress to establish transparency standards for AI companies.

Amodei warned that a decade-long moratorium on state regulations would leave a regulatory gap with “no ability for states to act, and no national policy as a backstop,” especially given how rapidly AI technology is advancing.

The proposed ban, included in former President Donald Trump’s tax cut bill, seeks to preempt recent AI laws passed in several states. However, it has faced pushback from a bipartisan coalition of attorneys general who support state-level oversight of high-risk AI applications.

Amodei recommended a federal transparency standard requiring AI developers to implement rigorous testing and evaluation policies, disclose risk mitigation plans, and publicly share how they ensure the safety of their models before release.

He noted that Anthropic, supported by Amazon, already publishes such transparency reports, and competitors like OpenAI and Google DeepMind have adopted similar practices. Amodei suggested that legislation might be necessary to maintain transparency as AI models grow more powerful and corporate incentives to disclose risks may wane.

Google and Character.AI Must Face Lawsuit Over Teen Suicide, U.S. Judge Rules

Google and AI startup Character.AI must face a lawsuit brought by a Florida mother who alleges that a chatbot interaction led to her 14-year-old son’s suicide, a U.S. federal judge ruled on Wednesday.

U.S. District Judge Anne Conway rejected the companies’ efforts to dismiss the case, stating they had failed to prove at this early stage that free speech protections shield them from liability. The decision allows one of the first U.S. lawsuits targeting an AI company for alleged psychological harm to move forward.

“This historic decision sets a new precedent for legal accountability across the AI and tech ecosystem,” said Meetali Jain, attorney for plaintiff Megan Garcia.

Background: The Case

  • Garcia’s son, Sewell Setzer, died by suicide in February 2024.

  • The lawsuit alleges that he had become deeply obsessed with an AI chatbot created by Character.AI, which represented itself as a real person, a licensed therapist, and an adult romantic partner.

  • The complaint cites one chilling interaction where Setzer told a chatbot imitating “Daenerys Targaryen” from Game of Thrones that he would “come home right now,” shortly before taking his own life.

Legal and Corporate Response

  • Character.AI argued its chatbots were protected by the First Amendment, and that it had built-in safety features to block conversations around self-harm.

  • Google, which was also named in the suit, argued it should not be held liable, saying it “did not create, design, or manage” the Character.AI app. A spokesperson emphasized that Google and Character.AI are entirely separate entities.

  • However, the court noted that Google had licensed Character.AI’s technology and re-hired the startup’s founders, a fact the plaintiffs cite in arguing Google’s involvement as a co-creator.

Judge Conway dismissed the free speech argument, saying the companies failed to explain “why words strung together by an LLM (large language model) are speech” under constitutional protections. She also denied Google’s request to be cleared of aiding in any alleged misconduct by Character.AI.

What This Means

This ruling opens the door for a landmark case examining:

  • The legal accountability of AI firms for harm caused by chatbot interactions

  • The limits of free speech when applied to AI-generated content

  • Tech platform liability for emerging technologies not fully governed by existing law

With rapidly expanding deployment of LLM-powered chatbots, particularly among youth, this lawsuit is likely to set important legal precedents for AI safety, responsibility, and regulatory oversight in the U.S. and beyond.