Why Silicon Valley, Not Wall Street, Is the Future of the Legal Industry: The Morning Minute

Want to get this daily news briefing by email? Here's the sign-up.

WHAT WE'RE WATCHING

THERE WILL BE LAWSUITS - If your first thought when someone brings up the metaverse is "I liked it better when it was called 'The Sims,'" this week's Law.com Litigation Trendspotter column is for you. You may not quite understand the metaverse (or NFTs or blockchain), but don't be too hard on yourself—no one really knows where all this is going. But given the staggering monetary investment that has already been poured into the metaverse, it's definitely not going away. Litigators would be wise to employ a similar strategy as the companies and law firms that have already entered virtual reality—get in on the ground floor and help shape the architecture. And really, the metaverse is the perfect blank canvas for creative litigators: a land of endless business opportunities, social possibilities—and risks. It's a parallel dimension that is likely to give rise to many of the same disputes that we regularly encounter in the real world (or "meatspace," if you insist—but please don't.) It also, however, promises plenty of brand new, utterly unique causes of action.

WRITING'S ON THE WALL - At a time when businesspeople are giddy at the possibility of avatars being able to buy digital shoes in a virtual reality Foot Locker, it goes without saying that tech rules everything around us. For evidence of this, look no further than Big Law. As Law.com's Ben Seal writes in this week's Law.com Barometer newsletter, firms of all kinds flourished in 2021, but the outstanding success of the Silicon Valley elites stands out as an important indicator of where the industry is headed. For decades, close relationships with banks and financial institutions were a sure sign that a law firm had a bright present and a brighter future. In recent years, private equity bona fides became the defining trait of many firms that outperformed the competition. Those well-heeled client bases are still the center of gravity for plenty of the top firms in the country, but the seemingly boundless growth available to tech companies in an increasingly digital world means the law firms who serve them now represent the future of the legal industry. "A shift from Wall Street to the West will allow a new group of firms to serve as a model for the rest of Big Law," Seal writes. "And given their close connections to so many of the tech companies that have disrupted the economy over the past two decades, that's sure to bring significant change to law firms." To receive the Law.com Barometer directly to your inbox each week, click here.