Analyzing The Value Proposition

of LPO’sLegal Outsourcing Support Services

What Are We Really Looking

For?

To Get The Job Done!

Agenda

•What can you outsource?

•Why would you?

•What is the investment?

•What’s In It For Me?

What can you outsource?

•Easy answer - anything

•More complicated answer is just another question

•What shouldn’t you outsource?

What can you outsource?

(contd.)•Perhaps you shouldn’t start with what you can, but maybe with what you can’t

•What are the services that you provide that truly differentiate yourself?

•What are the services that are based on your organizational knowledge?

What can’t you outsource?

•Practical first

•Focus on what your true value add is.

•Does the work require organizational knowledge?

•Does the work require face time?

• Intangible reasons should be addressed, but don’t start with “we just can’t do that.”

What can’t you outsource (contd.)?•Legal Concerns

•If the provider is providing legal counsel, you should get informed consent (new comment to ABA Model Rule 1.1).

•Using nonlawyer assistance requires no such informed consent, but still required to conform with legal ethics obligations (new comment to ABA Model Rule 5.3).

•Do not facilitate the unauthorized practice of law (new comment to ABA Model Rule 5.5).

Oldest Legal Outsourcing Model

•What do companies outsource today?

•Patent work

•Litigation work

•Ask yourself why

Outsourcing augments your

operations•Moving quickly to respond to market demands, aka surges

•Taps into deep experience and knowledge that is not cost-effective to have internally

•It is difficult, timely, and costly to add employees to your operations, and it is hard when the work no longer supports their position.

Value

•Quick and responsive

•Deep experience and knowledge pools

•Quality, driven by experience and cost advantages

Value - Quick and Responsive

•Time Difference is a double edged sword, use it to your advantage

•A distributed outsourced model allows you to respond any time of the day or night to needs

•Most providers can dedicate large teams quickly to your rush request

Value - Experience*

• Access to experienced technical and business people

• In the IP realm, you can be exposed to folks with world-class education and experience who have deep knowledge of product spaces

• It is easier to teach legal concepts than it is to teach experience

• * As an IP lawyer, this has formed my opinion here

Value - Quality•Prior experience allows for lessons

learned to be applied to your projects. You gain the benefit of those that have come before.

•Cost advantages (in some cases) allow more eyes on your project for quality and reality checks

•Practical real-world experience mitigates tunnel vision

Costs•Variable depending on provider

•New providers may need more hand holding

•Effective services require experience in your area

•Are you willing to pay for them to acquire that experience if they don’t have it already?

Costs (contd.)

•Export Compliance

•Confidentiality obligations

Costs - Export Compliance

•Some technologies are controlled by your government

•In U.S. dual-use technology may be prohibited from export

•No confidentiality agreement, employment agreement, etc. absolves you from this obligation

•For on-shore providers, ask the question of who forms their team.

•Export law may not be kind to you if controlled technology finds its way off-shore

Costs - Confidentiality

Provisions•Due Diligence step

•Ensure that confidentiality is spelled out (table stakes)

•What about the confidentiality you agreed to with your client, does it allow for outsourcing some of the work, even when you don’t require informed consent.

•What about other third parties?

•Joint development agreements

•Joint ventures?

•Who else is out there?

So Why Would You?

•Everyone else is doing it?

•Do your operations look like a sine wave?

•Outside perspective is more creative.

WII-FMWhat’s In It For

Me?•Avoiding headcount restrictions

•Surging to meet demand quickly

•Validates work load before adding staff

•The benefit of wider experience base that helps minimize blind spots

Questions?

Contact Information

•Bob Bohanek

•Business Development and Legal Consultant, TecEsq Knowledge Solutions, LLC

•bohanek@mac.com

•@rmbohanek, @solomolaw

•651-270-5867