Top Ten Risk Management Exercises For Governing Boards of Libraries & Cultural Institutions During the 2025 Federal Shift; Western New York Library Resources Council, February 4, 2025

Western New York Library Resources Council; Top Ten Risk Management Exercises For Governing Boards of Libraries & Cultural Institutions During the 2025 Federal Shift 

"Question:

Early 2025 has brought changes to stability of certain federal programs, funding, and governance. This instability is creating concern about access to grants, federal programs, and legal frameworks. What can our board do to address this?

Answer:

2025 has INDEED started off with a great deal of instability to federal programs, funding, and governance. In this answer, we’ll call this phenomenon the “2025 Federal Shift.”[1]

During such times as the 2025 Federal Shift, it is the role of a governing board to assess factors that could risk the achievement of an institution’s mission and develop plans to address them. This is a process called “enterprise risk management.”[2]

While confronting risk can be intimidating, it can also be empowering. And while not every risk can be avoided, it can often be mitigated.[3]

So, whether you’re on the board of a small public library or helping to lead a library within a large institution, now is a good time to inventory newly emerging risks and develop a response plan.

While the array of risks may seem infinite, below please find a chart of risks created by the 2025 Federal Shift. Following that is a chart of institution-specific risks.

Neither chart lists everything facing your institution, but these charts are provided to inspire the start of an orderly, meaningful, and impactful risk management strategy to assist governing boards in performing their fiduciary duties to their institutions.

Top Ten Risk Management Exercises

For Governing Boards of 

Libraries and Cultural Institutions

During the 2025 Federal Shift"

Library cancels Harry Potter programming over copyright issue; Buckrail, October 4, 2024

 Marianne Zumberge, Buckrail; Library cancels Harry Potter programming over copyright issue

"It’s a sad day for little witches and wizards in Jackson Hole. The Teton County Library’s (TCL) slate of Harry Potter programming has been canceled due to copyright infringement. 

TCL announced the news on Wednesday, Oct. 2. TCL said it had received a cease-and-desist letter from Warner Bros. Entertainment Inc., which owns and controls all things Potter.

“Prior to receiving the letter, Library staff was unaware that this free educational event was a copyright infringement,” TCL’s announcement reads. “In the past, libraries had been encouraged to hold Harry Potter-themed events to promote the books as they were released.”

Three events had been planned for October: A Night at Hogwarts, Harry Potter Trivia for Adults and Harry Potter Family Day."

Introducing CopyrightCatcher, the first Copyright Detection API for LLMs; Patronus AI, March 6, 2024

 Patronus AI; Introducing CopyrightCatcher, thefirst Copyright Detection API for LLMs

"Managing risks from unintended copyright infringement in LLM outputs should be a central focus for companies deploying LLMs in production.

• On an adversarial copyright test designed by Patronus AI researchers, we found that state-of-the-art LLMs generate copyrighted content at an alarmingly high rate 😱
• OpenAI’s GPT-4 produced copyrighted content on 44% of the prompts.
• Mistral’s Mixtral-8x7B-Instruct-v0.1 produced copyrighted content on 22% of the prompts.
• Anthropic’s Claude-2.1 produced copyrighted content on 8% of the prompts.
• Meta’s Llama-2-70b-chat produced copyrighted content on 10% of the prompts.
• Check out CopyrightCatcher, our solution to detect potential copyright violations in LLMs. Here’s the public demo, with open source model inference powered by Databricks Foundation Model APIs. 🔥

LLM training data often contains copyrighted works, and it is pretty easy to get an LLM to generate exact reproductions from these texts1. It is critical to catch these reproductions, since they pose significant legal and reputational risks for companies that build and use LLMs in production systems2. OpenAI, Anthropic, and Microsoft have all faced copyright lawsuits on LLM generations from authors3, music publishers4, and more recently, the New York Times5.

To check whether LLMs respond to your prompts with copyrighted text, you can use CopyrightCatcher. It detects when LLMs generate exact reproductions of content from text sources like books, and highlights any copyrighted text in LLM outputs. Check out our public CopyrightCatcher demo here!

Testing Ethical Boundaries. The New York Times Sues Microsoft And OpenAI On Copyright Concerns; Forbes, December 29, 2023

  Cindy Gordon, Forbes; Testing Ethical Boundaries. The New York Times Sues Microsoft And OpenAI On Copyright Concerns

"We have at least seen Apple announce an ethical approach to discussing upfront with the US Media giants their interest in partnering on AI generative AI training needs and finding new revenue sharing models.

Smart Move by Apple...

The court’s rulings here will be critical to advance ethical AI practices and guard rails on what is “fair” versus predatory.

We have too many leadership behaviors that encroach on others Intellectual Property (IP) and try to mask or muddy the authenticity of communication and sources of origination of ideas and content.

I for one will be following these cases closely and this also sends a wake -up call to all technology titans, and technology industry leaders that respect, integrity and transparency on operating practices need an ethical overhauling.

One of the important leadership behaviors is risk management and looking at all stakeholder views and appreciating the risks that can be incurred. I am keen to see how Apple approaches these dynamics to build a stronger ethical brand profile."

Ethics Webinar: When an Attorney or Expert Screws Up; American Bar Association (ABA), Thursday, January 24, 2019

AMBAR.ORG     |      CAREER CENTER     |      MEMBERSHIP     |      CALENDAR     |      CLE     |   PUBLISHING

Oops: What To Do When an Attorney or Expert Screws Up Webinar | January 24, 2019 1:00 PM — 2:00 PM ET 1.00 Ethics/Professionalism CLE Credit   LEARN MORE

This program will address the ethical rules governing attorneys when they make a mistake or discover that someone else has made a mistake. The program also provides:

Practical tips for identifying mistakes Strategies for addressing mistakes with clients Practical solutions for resolving mistakes and avoiding malpractice claims Adverse consequences of not addressing mistakes early Practical tips to comply with ethical obligations and avoid malpractice claims Sponsor(s): Section of Litigation; Solo, Small Firm and General Practice Division; Senior Lawyers Division; Young Lawyers Division; Standing Committee on Paralegals; ABACLE Panelist(s): David Benkert (Ankura Consulting, Inc); Latoyia Watkins Pierce (AXA); Michael Leboff (Partner, Klein & Wilson); and Selena E. Molina (Associate, Saul Ewing Arnstein & Lehr LLP) (Moderator)

Convercent CEO: Encourage Employees to Speak Up on Ethics Issues; Fortune, August 1, 2018

Damanick Dantes, Fortune; Convercent CEO: Encourage Employees to Speak Up on Ethics Issues

"The risk of an ethics scandal is far too great for a CEO to ignore. The conventional approach is to publish a list of ethics guidelines and expect everyone in an organization to follow—but if there’s one thing we’ve learned this year, it’s simply not enough. At risk: the image of an organization and the finances of its stakeholders.

Call it the post-Harvey Weinstein era. The court of public opinion holds corporations accountable for saying one thing and doing another, says Patrick Quinlan, CEO of compliance management software company Convercent. Quinlan’s company operates a compliance and ethics cloud platform—think of it as a 21st century whistleblower hotline—for employees of businesses and governments around the world."

The Real Deal: Using Found Content ; Lexology, August 1, 2018

Frankfurt Kurnit Klein & Selz PC - Terri Seligman, Lexology; The Real Deal: Using Found Content

[Kip Currier: Informative article with tips on deciding how and when to use images found on the Net.

In my IP course I've shared the "teachable moment" story of a savvy business friend who was getting a start-up up and running about a decade ago and asked me "if it's OK to just scrape images from the Internet to use on the company's website?" You can anticipate my response, which always elicits a knowing laugh from the students--and reinforces the importance of considering potential copyright and risk management issues.]

"As reported by MediaPost, replacing the use of stock images with crowdsourced photos from real people is gaining popularity with major brands. The attraction is obvious: photos from real consumers can be more "authentic, local and real" than stock imagery.

But it's important to keep some rules of the road in mind to avoid the potential of liability for use of found content."

What Harley Davidson’s $19.2M Throttling Of Sunfrog REALLY Means… And It’s Not The Money; Above The Law, April 23, 2018

Tom Kulik, Above The Law; What Harley Davidson’s $19.2M Throttling Of Sunfrog REALLY Means… And It’s Not The Money

When it comes to intellectual property rights, companies ignoring their impact do so at their own risk.

"The point here is that rapid growth and success makes being proactive even more essential to the business.   Rather than follow-through with significant steps to stop the printing of infringing products, something got lost in the process and Sunfrog simply couldn’t get its arms around the scope of the problem.  In effect, Sunfrog’s failure to effectively address this problem  made Sunfrog a counterfeiter — it permitted the printing of infringing designs on T-shirts sold through its website, making Sunfrog a nice profit in the process. Of course, this was never Sunfrog’s intent — it set out to create a highly successful platform for printing custom T-shirts online, and in fact, succeeded in doing so.  That said, it also underestimated the extent to which a sizable part of its business model required intellectual property oversight — an oversight that is now costing them in both monetary and reputation damages.

Ultimately, the Sunfrog case is highly instructive on a number of levels, but the failure to appreciate the scope and extent of intellectual property oversight by Sunfrog is telling.  Whether your company or client is a startup or an already successful going concern, the use of intellectual property can never be taken for granted. When it comes to intellectual property rights, companies ignoring their impact do so at their own risk.  The good news is that warning signs usually present themselves at some point.  The bad news is that such signs can be ignored or otherwise under-appreciated.  That is the real point here, and a risk that your company (or client) shouldn’t take — just ask Sunfrog."