Too Little…Too Late?

Great post about the timing of the new versions of Westlaw and Lexis at Legal Practice Pro. This is what caught my eye:

• “But the giants got fat and sleepy, as they often do. Their pricing became their burden, their staffing and infrastructure made them sluggish. Rather than take the innovations of the technology and provide a better product at a better price, they kept using the door-to-door salesman and blast email approach to rope us into long-term contracts at sky-high fees.“

I could not agree more. As many of you know, the pricing and sales structures at both companies have not changed one iota over the years. Additionally, as Jay points out, their own pricing and justifications for that pricing have created an unsustainable model, but one in which they continue to use. Let’s hope that the new versions of Westlaw and Lexis also come with revolutionary pricing and sales.

• “While the titans took a nap, something happened. Courts started coming online, and so did law reviews and other scholarly journals. We moved into a truer electronic age, one that provided an incentive to digitizing documents.“

The Big Two have never worried about free or low cost competitors, their value lies in not just digitizing documents, but also adding commentary, annotations or a taxonomy. Is this enough to justify the high costs in today’s world? I’m not sure that the answer is the same for everyone, but it’s certainly even more relevant now.

• “Lexis decided to integrate search and other tools directly within Word and Outlook. Westlaw cleaned up their interface to make it more Google-like. There’s no new content, nothing remarkably new, and no recognition that these services are both providing more of a fungible commodity than ever before.“

While I do agree that there is no new content (what more could there possibly be?), the change to Westlaw is in the search algorithm. Content isn’t the issue today, it’s retrieval, and not just any retrieval…relevant retrieval. If content and search functionality was all you needed, Westlaw and Lexis would most definitely be out of business, but the legal profession requires more. The question remains, however, does this justify the costs and if so, what cost?

Friday Fun: Librarians Will Save the World…Again

I’ve written about librarian heroes several times in the past, such as here. But now a new book is out that takes the reader deep into our world and demonstrates that librarians “are FIERCE” (per a reviewer on Amazon). I’ve already got my copy downloaded on my Kindle, and I’ll post a review as soon as I’m done reading it (in the middle of The Count of Monte Cristo right now).

Vendor News and New Resources

Thomson Reuters/West

• WestlawNext–Official Site
• WestlawNext, the Next Generation in Legal Research
• Thomson Reuters Buys Super Lawyers
• Thomson Reuters Introduces International Pro Bono Project
• Hildebrandt and Baker Robbins Merge

Reed Elsevier/LexisNexis

• Reed Elsevier Boss must Ditch the Debt
• Lexis for Microsoft Office: Sneak Preview
• New Interface for LexisNexis Academic and New LexisNexis Statistical Insight
• LexisNexis Increases Irish Coverage

Others

• Fastcase iPhone app…Free!
• Mexican Portal for Public Documents
• CFR in XML Now Available on FDsys
• 2009 Law Technology News Awards

“Hey! You Sunk My Battleship!”: Another Article about New Platforms for Legal Research

The ABA Journal is predicting a “battle” will soon be breaking out on a computer screen near you. This article has screen shots of both WestlawNext (which seems to be the official new name) and New Lexis, and also includes a discussion of Bloomberg Law, FastCase and Google Scholar.

A battle like this makes me think of the game Battleship, so let’s place our pieces on the grid.  Westlaw and Lexis are the “aircraft carriers” worth 5 points each. They have so much ammunition, its hard to conceive of bringing either one down.

Bloomberg Law strikes me as a “submarine” worth three points. They have been stealthy thus far, and very little is known about them. What are their true intentions? Are they really in it for the long-term?

FastCase is a “patrol boat” worth two points. They scoot around the periphery, taking pot shots at the big guys. Believe it or not, they’ve been around for 10 years. Is their business sustainable in this new environment?

To me, Google Scholar could be a “destroyer” worth three points or another “patrol boat” worth only two. Google demands attention, since it is the place that most attorneys start their research anyway, now it just has better content. Will the new content make Google an even more viable choice?

What an exciting time to be involved in legal research! I look forward to the next few months, when we will learn more and more about the new Westlaw and Lexis platforms.

New Versions of Westlaw and Lexis Mentioned in the New York Times

There has been much buzz over the last year around ‘new’ versions of Westlaw and Lexis. How big are these changes? Pretty big, considering the New York Times published an article on the subject yesterday.

Some interesting tidbits from the article:

• Westlaw will introduce its changes on Feb. 1; LexisNexis has yet to specify a date.
• Mike Dahn, vice president for product development at WestlawNext, said it took the company five years to build the new system.
• WestlawNext service has a revamped search system that allows lawyers to type in general requests, as they might on Google, rather than their typical narrow searches.
• In a few weeks, LexisNexis will announce a revamped interface as well and show off a suite of collaboration tools that let lawyers share and work on documents together, said Michael Walsh, the head of United States legal markets for LexisNexis.

LexisNexis Survey: State of the Legal Industry

Earlier this month, LexisNexis released a new survey designed “to generate insights and identify trends about the future of the legal business model.” Incorporating views and opinions from lawyers, corporate counsel and law students, the survey demonstrates that perceptions about the economy are very different depending on your perspective.

Overall the study sought to:

•Gather lawyers’  and students’ perceptions of the current state of the U.S. legal industry

•Understand lawyers’ beliefs about what the future holds for American law firms and legal professionals

•Gauge law students’ attitudes toward entering the legal profession in today’s economy

The Executive Summary:

The national survey, commissioned by LexisNexis, is the first of its depth and breadth to be conducted on the legal industry since the start of the economic crisis. Of the 550 respondents polled, 300 were private practice attorneys,150 were in-house corporate counsel and 100 were law school students.

Corporate counsel say law firms are not doing enough to respond to the economic downturn

•71% of corporate counsel responded that law firms today are not doing enough to respond to the current financial pressures on their business model

•Almost half the in-house counsel polled (46%) say they have requested rate cuts, yet less than one in five (18%) private practice attorneys say their law firms have reduced bill rates

•Only 38% of corporate counsel believe that law firms are being responsive on changing fees and costs given the current economic recession

•69% of corporate counsel have shifted work in-house since the start of the economic downturn; 56% have reduced spend on outside counsel

Private practice attorneys say clients are too focused on costs, at the expense of quality and results

•Over half of corporate counsel surveyed (58%) say they believe law firms are too profitable; however, most private practice attorneys (77%) believe their clients are too focused on reducing costs, at the expense of quality and long-term results

•According to the survey, private practice attorneys say their firms have taken a number of steps in 2009 to respond to the changed economic climate: 43% have conducted layoffs; 41% say their firms have offered alternative fee arrangements; 33% have implemented hiring freezes; 29% have deferred start dates; and 26% have reduced salaries since the start of the economic downturn

Opinions are split on the future of the legal industry

•53% of corporate counsel and 52% of private practice attorneys believe the recession will permanently change the way business is done in the legal industry

•57% of corporate counsel believe the billable hour will give way to alternative billing arrangements

•More than half of corporate counsel responded that they will shift work in-house (57%) and reduce the amount of their total spend on outside counsel (55%) in 2010

•When asked what actions their law firm is most likely to take in 2010, the top two responses among private practice attorneys were: conduct layoffs (18%) and defer start dates for new hires (18%)

The next generation of lawyers feel ill-equipped for the business of the law; many areconsidering alternatives to a career in law

•According to the survey, 65% of law school students (and 90% of lawyers) said that law school does not teach the practical business skills needed to practice law in today‟s economy •35% of law school students responded that they do not feel adequately prepared to succeed in the changing legal marketplace

•One fifth (21%) of students say they regret attending law school

A Few of Our Favorite Things

So much happened these last 12 months, that we thought we might take an opportunity to count down a ‘few of our favorite things’…or, at least the things that made us think the most…

5) Blogs

Some of our favorites are:

• 3 Geeks and a Law Blog—Presents three different viewpoints from within the law firm from a Client Teams Manager, a Librarian and an Internet Marketing Manager. It’s forward-thinking and always has something interesting to say.

• In Search of Perfect Client Service—Patrick Lamb and Nicole Auerbach are passionate about client service…really passionate. Check out their excellent posts to learn more.

• Seth’s Blog—Seth Godin is a true visionary and his blog is both thought-provoking and inspirational.

4) Hubspot Website Grader

Need a quick, easy, objective and, best of all, free way to evaluate your web site? Look no further…

3) The NEW Cable&Clark website

Check out our new case studies and learn more about what we have done in 2009.

2) The Kindle

PLI, West and others announced that several titles will now be available via the Kindle. What else can go on an attorney’s Kindle to reduce the bottom line?

1) Finally, videos that make you think…

Several caught our eye this year. Spend a few minutes watching one of these gems and be inspired:

• The Big Picture
• Did You Know 4.0
• We Think

What were some of your favorites?

May the best of everything come to you and yours in the New Year!  We look forward to catching up with you in 2010.

The Cable&Clark Team.

Vendor News & New Resources

LexisNexis/Reed Elsevier

• Capsoft Buys HotDocs Software Business From LexisNexis
• LexisNexis closes O.C. office
• Haywood Talcove of LexisNexis on the Future of Government Contracting
• LexisNexis Goes Mobile With New iPhone App
• LexisNexis-Kestrel agreement will enhance legal info pros’ working practices
• Reed Elsevier’s CEO Quits After 8 Months

Westlaw/Thomson Reuters

• EU opens monopoly abuse probe into Thomson Reuters
• Thomson Reuters CEO Sees Slow Jobs Growth
• Thomson Reuters Acquisitions
  • Thomson Reuters acquires Swiss firm ASSET4
  • Thomson Reuters to buy tax software company Sabrix
• Thomson Reuters’ Brain

Other

• CCH Announces Partnership With Subsidiary of Peking University
  • “CCH China yesterday announced a strategic alliance with Chinalawinfo, to provide the world’s highest quality English translations of Chinese laws and the world’s most extensive Chinese language legal database.”
• Wolters Kluwer Keeps 09 Target, Hikes Cost Cuts
• Finding the laws that govern us: Google enters the world of legal search
• ABA launches site summarizing federal court opinions and upcoming cases

UPDATE: Bob Berring Responds to Criticism In Blog Post

In a response to the video posted on the Legal Currents blog (see previous post), Bob has further clarified the context of his comments, and elaborated on his position on the SLAW blog. Here are some highlights:

• When I referred to those who are devoted to making the law freely available to everyone as heroes, I meant it. My remarks were not intended to be dismissive. They were informal, unscripted and glib, but not dismissive. But I do not think that the free systems will challenge the proprietary ones in the United States as the centers of legal research for lawyers in the foreseeable future.
• Certain research sources become accepted as reliable. Professional researchers trust them. The users do not question them cricially, they just rely on them. Think of Shepards Citators in the old days or the amalgam of official print reports of judicial opinions and the National Reporter System in print that ruled in the latter part of the 20th Century.
• The day may come when the free systems will combine with sophisticated search engines and become that elusive “Tinkerbell” being granted status as an authority that is implicitly relied upon without question. But that day is not yet here. The free sites have value and I truly admire those who work to make them a reality.

 

 

 

Thomson Reuters Posts Q3 Results

Highlights on overall information from Associated Press:

• Third-quarter net income tumbled 60 percent from a year ago, as revenue in its legal and market divisions fell.
• The company earned $162 million, or 19 cents per share, in the three months ended Sept. 30. That’s down from $404 million, or 49 cents per share, a year earlier.
• Earnings slipped to 43 cents per share from 47 cents a share a year ago. Analysts had expected 40 cents per share.
• Revenue declined 4 percent to $3.22 billion, in part because of unfavorable foreign exchange rates.

Specifically regarding Legal from the Thomson Reuters Press Release:

• Revenues were down 1%. Solid growth in subscription businesses led by Westlaw, Find Law and international units was offset by continued weakness in non-subscription services including Print, Ancillary, Enterprise software, Consulting Services and Trademarks. As in the second quarter, small law firms and government units were the fastest growing customer segments.

• Operating profit declined 5%, with the related margin decreasing 100 basis points, due primarily to the mix of revenues, partially offset by cost controls and the benefits of efficiency initiatives.