1Sinch Innovation+IT for In-house Lawyers Conference Presentation, 30 July 2010

1

Co-production

the client. the lawyer. the technology

Darryl Mountain, J.D.,LL.M.Representative, DirectLaw and

DealBuilder ContractExpressMember, eLawyering Task Force, LPM/ABA

darryl.mountain@ontago.com

2

Jordan Furlong, Partner, Edge International2

“The traditional platform for legal service delivery is giving way…In its place is emerging a new platform — the internet...

When the platform changes, outsiders replace insiders and opportunities abound. Get ready.”

3

Richard Susskind’s Ten Disruptive Technologies

• Document assembly

• Relentless connectivity

• Electronic legal marketplace

• E-learning

• Online legal guidance

• Legal open-sourcing

• Closed legal communities

• Workflow and project management

• Embedded legal knowledge

• Online dispute resolution

4

Disruption is Relative

Disruption is a relative term: it is the business model that is disruptive and

not the technology.

Sustaining and disruptive business models that use document assembly technology

Lawyer prepares documents, law firm bills using alternative billing method (eg Gowlings Recovery Service Group)

Co-production. Hybrid of self-help documents and legal advice (eg Cisco “trap doors”, virtual law practice)

If implemented, self-help documents combined with outsourcing would minimize need for legal advice (eg Integreon)

Legally safe self-help documents combined with insurance (unlikely)

Business models that don’t involve law firms or legal advice

(eg Legal Zoom)

1 23

5

4

6

Lawyer prepares documents, law firm bills using hourly rate (eg Ballard Spahr)

1 2 3 4 5 6Sustaining* Disruptive*

Copyright © Darryl R. Mountain, Barrister & Solicitor and President of Ontago Inc., 2010. • With respect to conventional law firm business models.

6

Chrissy Burns, Director, IT & Knowledge, Blake Dawson Waldron, Sydney in her PhD thesis entitled “Online Legal Services—A Revolution that Failed?”:

6

“It is important to consider carefully which tasks are best performed by online legal knowledge products and which by human beings.”

›non-standard termsapproval required

pre-approvedterms

›› › › › › ›

Legal / Managementreview . negotiate . approve

Request Sign Manage

ContractExpress

13

What is virtual law practice?13

The eLawyering task force of the American Bar Association has created the following working definition of virtual law practice:

“A virtual law practice is a professional law practice that exists securely online, is accessible to the legal professional and his or her clients, and provides an environment where the client can purchase and access legal services securely online.”

14

Complex logic within the document drafts itself according to the customers needs and circumstances

The customer answers the questions

How it works: Web-Based Document Automation15

Client’s Secure MyLegalAffairs Web Space

Attorney Administrative Area

About Epoq GroupVirtual law practice with Web-based document assembly:

A “good enough” solution

18

EliminateVisit to lawyer’s office

Hourly billing

RaiseReach

Ease of contact, immediacy

Speed of execution

Quality of documents

Client understanding of documents

CreateInternet as first point of contact

Unbundled legal services

Packaged solutions

Cost certainty

Client maintenance opportunities

ReducePrice

Waste

Full service

Richness of client relationship

Omissions and logical errors

The Eliminate-Reduce-Raise-Create Grid, introduced by W.Chan Kim and Renée Mauborgne: Blue Ocean Strategy, page 29.

.

19

Two major limiting factors on disruption in the legal context:19

1. The knowledge acquisition bottleneck

2. Ethical rules of legal profession