An Introduction to Mapping and Classifying LegalTech

The LegalTech Book: The Legal Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries

MK: I needed to know how to properly approach this area, so decided to read a book excerpt.

What does it do?

  • LegalTech introduces changes in the ways legal teams work —> affects the way legal knowledge is assessed, acquired, processed and delivered.

Legal Research

  • Quite clear, various databases (paid or free).

Matter Management

  • Automation of reporting, standardization of workflows, collaboration facilitation, faster search, maintenance of precedents, recording approvals, etc.

  • May include process management that can exist as standalone solutions.

Subtopics

  • Billing / legal spend management. Allows demonstration of the ROI to stakeholders – analyze the line items in invoices and reject the ones that don’t look good.

  • Knowledge management and expertise automation. Team’s know-how, need to keep within the firm and make easily accessible. [MK: lots of tools doing this and not calling themselves LegalTech, too]

Contracts

  • A huge battleground for LegalTech innovation. See below for examples.

Drafting aids

  • Automate the creation of new contracts.

  • Can be straightforward filling in of boilerplates or using question-response sequences to create a contract.

Contract Review + Due Diligence

  • Automate the review of existing contracts and other agreements.

  • Simplest way: compare against a template/boilerplate.

  • More complex: tag certain sections for human review. Learn which bits are likely to deviate from the median. Use case: review of multiple contracts during due diligence.

  • Can be used for risk management – review of historical contracts.

  • Useful to identify cases like UK being part of EU and applying EU legislation broadly.

Management

  • Contract repository, obligation mapping and tracking, task management, [MK: expiration date management and renewal], etc.

Analytics

  • Extraction and monitoring of data related to the organization’s contracting obligations, trends, efficiency, etc.

Digital Signature

  • No need to explain why (simple, provable, time-stamped, etc.)

  • Increased use of signing on mobile devices.

Positive Consequences

  • Governance – the right signatory every time.

  • Contract retention.

  • Speed – system chases signatories and nudges them when they’re late.

  • Future-proofing – integration with matter management and contracts systems.

E-Discovery

  • Managing the identification, collection and analysis of electronically stored info.

Intellectual Property Rights

  • Automation of tracking of patents, trademarks and other IPRs.

Others

  • Privacy and compliance management (GDPR, anyone?)

  • [MK: KYC and AML assistance tools]

  • Online dispute resolution tools – facilitate faster and cheaper resolution of potential and actual litigation.

  • Litigation prediction – based on past track record predict an outcome of a case based on the court’s (or even individual judge’s) past track records —> choose the right strategy and tactics.

Source