On October 22, 2025, Reddit filed a lawsuit against the AI startup Perplexity, accusing it and several data-scraping companies of stealing its data. The complaint, filed in a New York court, alleges that the companies created a scheme to bypass Reddit's restrictions and scrape its data from Google's search results for use in training AI models. This lawsuit is part of a growing trend of copyright and scraping litigation as AI companies train their large language models on internet data. For AI entrepreneurs this lawsuit is a wake-up call that the "move fast and break things" approach to data scraping is a dead-end strategy with catastrophic financial and legal risks. ***Building automation tools on a foundation of unlawfully scraped data—whether the data is public or behind a paywall—exposes your business to significant liability for copyright infringement and breach of contract.*** Your long-term success depends on building a robust, defensible data strategy that prioritizes licensed, consented, and transparently sourced data, or you risk your entire operation being shut down by a lawsuit.

If you missed the legal office hours today, here is a little flavor of what we talked about. You can view the full training under the Classroom tab (you must be Level 2).

Do you own a domain name for your business? I run across so many business owners who own their business' domain in their own personal name. It's ok at the very beginning, when you're just starting--you might be a sole proprietor with no business entity. But once you form your business entity, it should own all of its IP, include the business domain name. How do you accomplish that? 1. Execute a domain name assignment agreement 2. Change ownership with the registrar -- Attorney Tatyana

Hey, crew... Remember to submit your questions for our upcoming Legal Office Hours (on Tuesday). You can DM me if you need privacy or post your questions in the comments below. Our topic on Tuesday is going to be business taxation, but your questions can be from other areas.

As I sit here, at the estate planning conference for my state's bar, I am pretty sure 99% of the lawyers in the room don't have voice AI agents answering their phones, scheduling appointments, or following up with clients for them. The field is ripe for the taking!