the cambridge handbook of the law of algorithms Algorithmsareafundamentalbuildingblockofartificialintelligence–and,increasingly,society– butourlegalinstitutionshavelargelyfailedtorecognizeorrespondtothisreality.TheCambridge HandbookoftheLawofAlgorithms,whichfeaturescontributionsfromUS,EU,andAsianlegal scholars,discussesthespecificchallengesalgorithmsposenotonlytocurrentlaw,butalso–as algorithms replace people as decision-makers – to the foundations of society itself. The work includeswidecoverageofthelawasitrelatestoalgorithms,withchaptersanalyzinghowhuman biases have crept into algorithmic decision-making about who receives housing or credit, the length of sentences for defendants convicted of crimes, and many other decisions that impact constitutionally protected groups. Other issues covered in the work include the impact of algo- rithmsonthelawoffreespeech,intellectualproperty,andcommercialandhumanrightslaw. Woodrow Barfield holds a PhD in engineering, a JD, and an LLM. A recipient of the NSF Presidential Young Investigator Award, Dr. Barfield is the editor of Fundamentals of Wearable ComputersandAugmentedRealityandco-editorofResearchHandbookontheLawofArtificial Intelligence. He is currently an associate editor of the Virtual Reality Journal, review editor for Frontiers in Artificial Intelligence, and an editorial board member for Delphi: Interdisciplinary ReviewofEmergingTechnologies. The Cambridge Handbook of the Law of Algorithms Editedby WOODROW BARFIELD UniversityPrintingHouse,CambridgeCB28BS,UnitedKingdom OneLibertyPlaza,20thFloor,NewYork,NY10006,USA 477WilliamstownRoad,PortMelbourne,VIC3207,Australia 314–321,3rdFloor,Plot3,SplendorForum,JasolaDistrictCentre, NewDelhi–110025,India 79AnsonRoad,#06–04/06,Singapore079906 CambridgeUniversityPressispartoftheUniversityofCambridge. ItfurtherstheUniversity’smissionbydisseminatingknowledgeinthepursuitof education,learning,andresearchatthehighestinternationallevelsofexcellence. www.cambridge.org Informationonthistitle:www.cambridge.org/9781108481960 DOI:10.1017/9781108680844 ©CambridgeUniversityPress2021 Thispublicationisincopyright.Subjecttostatutoryexception andtotheprovisionsofrelevantcollectivelicensingagreements, noreproductionofanypartmaytakeplacewithoutthewritten permissionofCambridgeUniversityPress. Firstpublished2021 AcataloguerecordforthispublicationisavailablefromtheBritishLibrary. LibraryofCongressCataloging-in-PublicationData NAMES:Barfield,Woodrow,editor. TITLE:TheCambridgehandbookofthelawofalgorithms/editedbyWoodrowBarfield, UniversityofWashington(Emeritus). DESCRIPTION:Cambridge,UnitedKingdom;NewYork,NY:CambridgeUniversityPress,2021.| Series:Cambridgelawhandbooks|Includesindex. IDENTIFIERS:LCCN2020039007(print)|LCCN2020039008(ebook)|ISBN9781108481960(hardback)| ISBN9781108680844(ebook) SUBJECTS:LCSH:Law–Automation.|Artificialintelligence–Lawandlegislation.|Computer networks–Lawandlegislation.|Technologyandlaw.|Decisionmaking–Mathematicalmodels. CLASSIFICATION:LCCK87.C3542021(print)|LCCK87(ebook)|DDC343.09/99–dc23 LCrecordavailableathttps://lccn.loc.gov/2020039007 LCebookrecordavailableathttps://lccn.loc.gov/2020039008 ISBN978-1-108-48196-0Hardback CambridgeUniversityPresshasnoresponsibilityforthepersistenceoraccuracyof URLsforexternalorthird-partyinternetwebsitesreferredtointhispublication anddoesnotguaranteethatanycontentonsuchwebsitesis,orwillremain, accurateorappropriate. Contents ListofFigures pageix ListofTables x NotesonContributors xi Foreword:AlgorithmsandtheLaw LordPatrickHodge xix Preface WoodrowBarfield xxiii Acknowledgements xxv ListofAbbreviations xxvi part i introduction and setting the stage for a law of algorithms 1 AnIntroductiontoLawandAlgorithms 3 WoodrowBarfieldandJessicaBarfield 2 TheOpinionofMachines 16 CurtisE.A.Karnow 3 PrivateAccountabilityinanAgeofArtificialIntelligence 47 SoniaK.Katyal 4 AlgorithmicLegitimacy 107 AriEzraWaldman 5 UnderstandingTransparencyinAlgorithmicAccountability 121 MargotE.Kaminski part ii business, regulations, and decision-making with algorithms 6 AlgorithmsandContractLaw 141 LaurenHenryScholz v vi Contents 7 Algorithms,Agreements,andAgency 153 ShawnBayern 8 AlgorithmicGovernanceandAdministrativeLaw 162 StevenM.AppelandCaryCoglianese 9 DiscriminationintheAgeofAlgorithms 182 RobinNunn 10 AlgorithmicCompetition,Collusion,andPriceDiscrimination 199 SalilK.Mehra 11 TheRuleofLawandAlgorithmicGovernance 209 Ro´na´nKennedy 12 GovernanceofAlgorithms:RethinkingPublicSectorUse ofAlgorithmsforPredictivePurposes 233 AnjanetteH.RaymondandCiabhanConnelly 13 FromRuleofLawtoStatuteDrafting:LegalIssuesfor AlgorithmsinGovernmentDecision-Making MonikaZalnieriute,LisaBurtonCrawford,JaninaBoughey, 251 LyriaBennettMoses,andSarahLogan 14 AlgorithmicDecisionSystems:AutomationandMachine LearninginthePublicAdministration 273 DavidRestrepoAmariles 15 FromLegalSourcestoProgrammingCode:AutomaticIndividualDecisions inPublicAdministrationandComputersundertheRuleofLaw 301 DagWieseSchartum part iii intellectual property and algorithms 16 InventiveAlgorithmsandtheEvolvingNatureofInnovation 339 RyanAbbott 17 SoftwarePatentingandSection101’sGatekeepingFunction 374 AndrewChin 18 IntellectualPropertyataCrossroad:AwardingIPProtectionforAlgorithms 391 AvivGaon part iv criminal law, tort issues, and algorithms 19 TheUseofAlgorithmsinCriminalAdjudication 407 AndreaRoth Contents vii 20 AssessingtheRiskofOffendingthroughAlgorithms 432 ChristopherSlobogin 21 InjurybyAlgorithms 449 SeemaGhatnekarTilak 22 WhenDoAlgorithmicTortfeasorsthatCausedDamage WarrantUniqueLegalTreatment? 471 KarniChagal-Feferkorn 23 Tort-Law:ApplyingA“Reasonableness”StandardtoAlgorithms 493 KarniChagal-Feferkorn part v constitutional law, human rights, and algorithms 24 HumanRights-BasedApproachtoAIandAlgorithms: ConcerningWelfareTechnologies 517 Je˛drzejNiklas 25 FourModesofSpeechProtectionforAlgorithms 543 KyleLangvardt 26 AlgorithmsandFreedomofExpression 558 Manasvin(Veenu)Goswami 27 ArtificialMindsinFirstAmendmentBorderlands 579 MarcJonathanBlitz 28 TheFirstAmendmentandAlgorithms 606 StuartMinorBenjamin 29 AlgorithmicAnalysisofSocialBehaviorforProfiling, Ranking,andAssessment 632 NizanGeslevichPackinandYafitLev-Aretz 30 AlgorithmicStagesinPrivacyofDataAnalytics:ProcessandProbabilities 654 RonaldP.Loui,ArnoR.Lodder,andStephanieA.Quick part vi applications and future directions of law and algorithms 31 MoralMachines:TheEmergingEUPolicyon“TrustworthyAI” 667 AndreaRenda 32 LawinTuring’sCathedral:NotesontheAlgorithmicTurnoftheLegal Universe 691 NicolaLettieri viii Contents 33 ArguingoverAlgorithms:MappingtheDilemmasInherentin Operationalizing“Ethical”ArtificialIntelligence 722 Mariano-FlorentinoCue´llarandRobertJ.MacCoun 34 EmbodimentandAlgorithmsforHuman–RobotInteraction 736 Yueh-HsuanWengandChih-hsingHo 35 OnBeingTrans-Human:CommercialBCIsandtheQuestforAutonomy 757 ArgyroP.Karanasiou Index 775 Figures 2.1 Afive-layernetwork page22 2.2 Mymodelofstockprices 42 2.3 Mymodelwithfreshdata 43 14.1 MethodsandtechniquesofAI 276 15.1 Mainaspectsoflawanddigitalgovernment 305 15.2 Overviewofthetransformationprocess 306 15.3 Mainphasesandactivitiesinthetransformationprocess 311 15.4 Deductionoflegalrules 313 15.5 Deductionoffacts 314 15.6 Deductionofoperations 317 15.7 Processingindividualcasesinthreesteps 318 15.8 Surveyofstrategiesforgeneratingdecisiondata,fromrelevantfactstobasesfor decisions 325 15.9 Connectionbetweenlegislativeprocessesandsystemsdevelopmenttoimple- mentthem 332 17.1 FlowchartrepresentationofPatentOfficeguidancesince2014forexamination ofclaimsunderthe§101patent-eligiblesubjectmatterrequirement 386 22.1 Autonomylevelasaclassifierforthinkingalgorithms 488 22.2 Purposiveinterpretationasaclassifierforthinkingalgorithms 489 ix