Technology in US Corporate Law Departments

A Presentation for Clients of Blake Dawson Waldron (Sydney)

Ron Friedmann Prism Legal Consulting, Inc. November 2002

Introduction
Prism Legal Consulting, Inc. developed this presentation for Blake Dawson Waldron, a large Australian law firm that is a leading user of technology to serve clients. BDW wanted to share with its clients a current perspective of interesting technology used by in-house counsel in the USA. The goal was not to survey all uses of technology. Rather, it was to highlight interesting applications. To develop this presentation, Prism contacted several leading legal technology vendors and interviewed them by phone.

Agenda
Technology Wish List Communicating

Extranets Intranets

Producing advice Managing the department Where we are going

In-House Tech Overview

Communication

Production

Extranets and Intranets Unified messaging, IM Remote access (VPN, Citrix, dial-up) Document management Utilities (e.g., DealProof, Deltaview) Practice support Research Case management E-Billing

Management

Source: Kraft Kennedy Lesser (leading legal systems integrator/consultant)

Extranets
The use of Extranets is more of a discussion point than a reality
-Technology leader in the US, October 2002

Extranet Functionality
Access work product Collaborate 1-to-1 or many-to-many Work flow Litigation support

Extranet Example: T-Lex

Private label extranets Digital forms replace paper

Accumulates and collects know-how Track and work on current matters Communicate

Automates and accelerates existing work flows New items automatically send e-mail Save time, reduce costs

Extranet Example: IntraLinks

Trusted Hub (ASP) for complex, multiparty transactions

Share documents outside firewalls Granular security model 24x7 support (contrast to law firms)

Customers are financial institutions; law firms/departments are users Also for due diligence and M&A auctions Have an international presence

Extranets: Law Firms

Many law departments access secure, private law firm sites Most law firms use 3rd party software (e.g., eRoom) but some build their own

Intranets
Extranets allow communication with outside parties, especially law firms Intranets allow the law department to serve in-house clients more effectively

Intranet Example: LRN

Third party research and turn-key compliance systems Extensive research available via web Wide range of compliance training modules (e-learning model) Numerous large clients (see LRN web
site for list)

Other Intranet Examples

Mobil: Intellectual Capital Bank Lucent + Motorola: Doc. Assembly Kraft: Conventional intranet Intuit: step-by-step instructions and flowcharts

Source: Corporate Executive Board, General Counsel Roundtable

Producing Advice
Some interesting ways to produce the content to be communicated

Web Crawlers
Large financial institution needs to stay current on regs worldwide nMatrix supplies robotic crawlers

Software constantly checks for updated web pages Brings new pages back, posting to Intranet (and sending e-mail)

Initially for law department, may be rolled out to company

Capture and Share Expertise

Background: Documents v. Expertise nMatrix helps same financial institution capture lawyer expertise

Combination of automatic updates (from PeopleSoft) with manual input re taxonomy (classification)

Taxonomy helps locate experts. It also lets lawyers receive robotic updates (which helps with compliance rules)

Expert Systems
Answers v. Information GEs Virtual Patent Advisor advises on patents and manages workflow Several law firms provide interactive advice. (See Prism Legal web site for list.)

Managing the Department

E-Billing
Move toward e-billing At minimum, reduces admin cost Issues: internal v. ASP Real value: analyze bills and manage outside counsel

Requires task-based billing (coding) TyMetrix is one company in this space

Case Management

Docketing, contact management, tracking

Many vendors, fragmented market Many companies build rather than buy LawPack, with 200 customers, exiting market (and abandoning product)

Not clear how to explain the market

Where Are We Going?

Hildebrandt View
MAINSTREAM LEADING EDGE Precedents & Collaboration Forms Spaces Document Simple Assembly Extranets Intranets Decision Support INNOVATIVE Portals Know-How Expertise Locators Expert Systems

Technology Overview for Legal Departments, 9/02

Prism View of In-House Tech

Whats Hot compliance e-discovery portals extranets instant messaging e-billing convergence Whats Not e-auctions risk analysis best practices