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Technology Replacement Clause Requires Actual Replacement

Client Alert | less than 1 min read | 09.28.10

Some technology contracts have included "replacement" clauses which put limits on the agency's use of its termination for convenience power to flip to another vendor simply to get a better price. The Federal Circuit in McHugh v. DLT Solutions, Inc. (Sept. 23, 2010), held that, when the agency in such a clause had only agreed not to "replace" the leased software with "functionally similar equipment and/or software" for one year after termination or expiration of the lease, it did not breach when it did not install the leased software and continued to use its prior software.

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Client Alert | 4 min read | 12.08.25

California’s AB 2013 Requires Generative AI Data Disclosure by January 1, 2026

California continues its blistering pace in enacting artificial intelligence regulations. In 2024 alone, California enacted 18 AI-related bills seeking to regulate AI tools and increase transparency around AI data disclosure....