Private Investment in US Legal Services

transcript

Richard S. Granat, J.D.

President, SmartLegalForms, Inc. and

DirectLaw, Inc.

Co-Chair, eLawyering Task Force, ABA/LPM.

New Business Models

The New “Client”

75 million clients: The Millennials- 1978•$45 billion latent market

WHAT DO

CLIENTSWANT?

CLIENTS WANT

FIXEDPRICES

CLIENTS WANT

SPEED© Copyright, 2013, Richard S. Granat

CLIENTSWANT

TRANSPARENCY

CLIENTSWANT

CONVENIENCE

CLIENTS WANT

BETTERTECHNOLOGY

CLIENTSWANT ONLINE AND FACE TO FACE

• Online• Fixed Fee• UnBundled

Legal Advice Companies Q & A Platforms. e.g. QuoraProblem: Limited Margins

Problem: Limited Service – Not Whole Solution –

Document Automation Companies

WhichDraft

PaperLex

Component ManufacturerDoesn’t Serve End-Users

Out- Sourcing Companies

The New Gatekeepers – ReintermediationProblem: On-Line Only

VirtualLawDirect

My VisionStrong On-Line Legal Services Delivery

Unbundled Legal ServicesUniform Quality

Strong Community PresenceNationwide Brand

Accessible Law Offices

What Do You Need to Create a Nation-Wide

Law FirmThat is Both Online and Off-line?• First Rate Technology• Modern Management Methods• Competent Lawyers / Training• Branding- Nationwide Advertising• Capital To Get All of the Above.

(a) A lawyer or law firm shall not share legal fees with a nonlawyer…(4) (b) A lawyer shall not form a partnership with a nonlawyer if any of the activities of the partnership consist of the practice of law.

Rule 5.4

Two- Tier Structure:

Law Firm That Sits On Top of A Management Company

Problems With Model

• Pricing Model – How Do You Price – Transparency

• Limit on Return

• Limit on Life of Law Firm – Need Succession Plan• • Exit For Investors

Issues

Axiom Law

• Not a Law Firm – Organized as a C Corporation.

• Sounds like a law firm.

• Only Works for Companies that Have an In-House General Counsel – otherwise UPL Violation.

• • Axiom is really a Placement, Outsourcing, and

Project Management Company

Issues

60% of Solos Don’t Have a Web Site.‘Brochure ware’ sitesNo Advanced TechnologyTiny, Undercapitalized OperationsUneven Quality

User generated contentClient PortalsFree AdviceCollaborationNon-Law Firm ProvidersFree Legal FormsOut Sourcing

MostSolos and

Small Law

MostSolos and

Small Law

Early Adopt

Web 1.0

Web 2.0

Web 3.0

Web 4.0

New Generation Law FirmsInternet is the Platform for DeliveryNationwide BrandsOnline and OfflineOnline Delivery of Legal Services.

Innovate or Let’s De-Regulate