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Top Trends in Legal Outsourcing India

A breif about the changing dynamics which are set to impact the legal outsourcing industry in the coming year.  “We see 2011 as a pivotal year for legal outsourcing as the industry continues its development from a niche practice to a truly global industry.” –Fronterion Managing Principal, Michael D. Bell.  Following a breakthrough year of big deals and industry buyouts for LPO in 2010, the Fronterion Ten for 2011: Top 10 Trends in Legal Outsourcing for 2011 reveals the most important trends in legal outsourcing for the next 12 months.

Ripples from the rapidly growing legal outsourcing industry are shaping professional ethics, altering long-standing law firm-client relationship dynamics and challenging the general notion of how legal services are procured, delivered and consumed. “The coming year presents a number of new and exciting opportunities for the LPO industry, and a fair share of challenges, as well. The firms that will be the most successful will be those with the ability to recognize and respond to change.” – Ten for 2011: Top 10 Trends in Legal Outsourcing for 2011.

A Fundamentally Changing Legal Profession. Continued downward pressure on costs and the globalisation of legal services provide a perfect environment for LPO. Those who refuse to engage with LPO will increasingly become a minority – the industry can no longer be ignored.  Enterprise Approach. Many firms already outsource legal work at partner or department levels. However, LPO is more effective and efficient when a firm implements a firm-wide or ‘enterprise’ approach, led by senior management.  Onshore Expansion. The growth in onshore and hybrid on-offshore delivery solutions will begin in earnest in 2011. This trend will be equally prevalent in the United States and United Kingdom, with LPO providers and firms already building capacity.  Expanding Client Geographic/Jurisdictional Reach. Demand for LPO services will spread to new markets. In the US, law firms in Texas, the Midwest and the Pacific Northwest are potential growth markets for LPO. In the UK, regions outside of London are also emerging growth markets. However, continental Europe will remain a challenging environment for LPO.  Progressive Value Proposition. LPO providers will have to offer more services and a more progressive value proposition to remain competitive. Alongside traditional litigation support, LPO vendors may also have to offer contract portfolio servicing, compliance, diligence, human resources, medical and broader legal support functions.  Increasing Technology Applications. As a result of the growing importance of technology, LPO vendors will use technology as a key selling point. Technology platforms will be used to offer diversified services and as a means for vendors to further embed themselves in client organizations.  The unprecedented growth and industry consolidation initiated in the fourth quarter of 2010 will continue to shape the dynamic LPO vendor landscape in the coming year. Overall, these consolidation trends are positive for the industry as vendors emerge stronger, more capitalized and, most likely, considerably larger.  The growing acceptance and adoption of onshore and offshore LPO will become more visible in the coming year. This will become increasing prevalent in the US, where in past five to six years, corporations and law firms have remained virtually silent on all LPO related matters. Competition means that LPO vendors will have to differentiate themselves from each other in terms of services offered and delivery models. No dominant model exists (yet) and a range of different approaches will emerge next year.  Regulatory bodies start to address the changing legal landscape. In the US, ethical commentary is expected from the ABA’s Commission on Ethics 2020. In the UK, announcements are expected from the SRA and the Law Society. Other jurisdictions that have been silent so far may follow suit, such as Australia, Canada, and South Africa.

Document Review Outsourcing India

Document review appears to be a key area for growth in the near future. As per recent KPMG study that calculated that document review accounts for 58 to 90 percent of litigation costs in the United States. Applying a baseline of $4.9 billion as the cost of litigation support at the top 200 law firms in the United States in 2006, and assuming 60 percent of the figure represents document review, the math produces a potential annual market of almost $3 billion, which suggests huge potential growth in legal sourcing going forward. When a client can choose to have a first-cut document review done by associates billed out at nearly $300 per hour, or at $60 per hour via a legal sourcing firm with no loss of quality, what client won’t insist on realizing the cost savings?

DuPont has been an industry pioneer in assigning large-scale document reviews to attorneys in the Philippines. There are many well-established providers that have embraced the ethical guidelines set out by the ABA and are currently delivering quality work in India. Law firms and in-house counsel are increasingly turning to legal sourcing in the normal course. Clifford Chance is operating a captured offshore office, the “Knowledge Centre,” which has reportedly worked on over 300 client projects in its first year of operation.

LAW FIRMS TRADEMARKS

The vast majority of attorneys and the clients they represent have at least one thing in common; namely, they conduct their business using names other than their own. But whereas many business people have traditionally invested a great deal of time money and energy in branding their business attorneys only recently have begun engaging in such advertising activities. In fact it was not until the 1970s that attorneys were ethically permitted to advertise, and even today some jurisdictions continue to impose significant restrictions on lawyers promotional activities.

The core of branding is the process of protecting the name under which a business is conducted and identified. The law provides a vehicle for obtaining this protection through the trademark statutes. The federal trademark statute known as the Lanham Act provides protection for any name, symbol, logo, or combination thereof when used in commerce to identify a product or service. It is therefore apparent that a law firm’s name should be a protectible federal trademark if the other requirements of trademark law are met.

To have a protectible mark a firm must adopt a name that does not sound like or cause market confusion with the name of any other law firm or related business. Thus when the law firm Suisman, Shapiro, Wool, Bernnan, and Gray & Greenberg, PC (generally known as Suisman Shapiro) was presented with a situation where two attorneys left the firm and created a firm called Suisman, Shapiro; the court found that there was a likelihood of confusion and enjoined the use of the name Suisman Shapiro by the new firm. The court pointed out that a firm name does not identify individual person but rather identifies the law firm as business entity and held that the plaintiff was able to prove that its name had developed secondary meaning in the minds of consumers in the local market. This can be accomplished by advertising and promotional activities as well as by other public recognition.

A similar situation occurred when the Midwest firm Foley and Lardner opened an office in Boston, since the Foley Hoag firm had already been established in Boston for more than sixty years. Foley Hoag registered its service mark Foley Hoag with the Patent and Trademark Office in 2002.Foley and Lardner had begun calling itself “Foley” about three years before the move but when it attempted to register “Foley” the Patent and Trademark Office denied the resignation as likely to cause confusion with Foley Hoag. In fact both the firms identified themselves as “Foley” there was a great deal of actual confusion. Letters and faxes intended for one of the firms were addressed to the other. Even the Post Office could not tell the two firms apart and misdelivered their mail.

In Oct 2005 Foley Hoag filed suit in the District of Massachusetts. The Firms settled the dispute in August 2007 and while Foley and Lardner denied that there was any likelihood of confusion it did agree not to use “Foley” without “Lardner” in close proximity and prominence as well as to avoid referring to itself by the single word Foley in written or oral communications unless it was used in a context reasonably understood to be referring to Foley and Lardner. Foley and Lardner was allowed to retain the foley.com URL.

The problem of Secondary meaning also was significant in a case involving a prominent intellectual property lawyer named M. Kelly Tillery. Tillery filed a suit against his former law firm for the firm’s use of his name. The partnership agreement between Tillery and his firm provided that the firm continue using Tillery’s name unless the use violated the code of professional responsibility and Tillery would therefore have to prove that on trial in order to show that the firm breached the partnership agreement. The firm did change its letterhead, stationery and the like leaving only the use of the domain name leonardtillery.com and related

Email addresses in dispute. However at the time of the law suit the firm had created a new URL and was in the process of transitioning to it. All emails were sent from the new domain, although the firm continued to receive emails at the old addresses. Also the URL directed users to the new domain. After the suit was filed the firm created a page with a message alerting users that Tillery was no longer affiliated with the firm before redirecting them to the new site.

Tillery’s attempt to obtain a preliminary injunction was unsuccessful as the court felt he would not likely succeed on the merits on any claims he asserted. Judge Norma explained that trademarks may be arbitrary or fanciful, suggestive, descriptive or generic. Individual names are descriptive and therefore protectible only if they achieve secondary meaning.

Tillery did not use his name in connection with any business or product except as part of the name of the law firms with which he had been affiliated. Tillery did not promote his surname in connection with his firm name. In fact he had brought in only a handful of new clients in the last sixteen months with the firm, and they were referred to the firm rather than to him individually.  [TILLERY Vs LEONARDO & SCIOLLA]

A similar conclusion was reached in a case involving a cyber squatting claim by Seattle Law firm The Christen Law Firm against its Website development vendor, Chameleon Data. When the law firm disputed certain of the vendor’s charges and failed to pay them, Chameleon transferred to itself ownership of the four domains that had been managed by Chameleon but owned by the firm. The court dismissed the cyber squatting claims, holding that the domain names at issue were either generic or descriptive and that the firm had not established that they had achieved secondary meaning.

 

A recent English case addressed a dispute between a solicitors practicing employment law who had obtained a trademark registration for the mark “Just Employment” and a Scottish company providing advice and representation in employment matters doing business under the name “Just employment Law Limited”. The court held that the Solicitor’s trademark registration was invalid because the mark was merely descriptive and had not acquired distinctiveness. [BIGNELL Vs JUST EMPLOYMENT LAW LIMITED]

Many law firms now recognize the importance of branding and the necessity of engaging in the promotional activities that have become vital in today’s competitive market. It is clear from the Foley case that registering the firm’s name as federal trademark has some advantages although under the Lanham Act mere use of a protectible name in interstate commerce is all that is necessary for common law protection of that name. Registration also may be appropriate for solo practitioners although they may have greater difficulty in establishing that their names are registerable trademarks.