Network Part 1: Mad As Hell
Everybody knows things are bad. Everybody’s out of work or scared of losing their job. Banks are going bust. Nobody knows what to do. So I want you to get up, go to your windows, and yell – ‘I’m as mad as hell and I’m not going to take this anymore!’ – Network
Last month the blawgosphere erupted with discussions about the future of law: what to change, what to preserve, where did we go wrong? One of the most fundamental debates was about closed networks like Westlaw and Lexis (let’s call them “Wexis”) versus nominally open ones such as Avvo or Google. Wexis monopolizes legal research and – thanks to properties like Findlaw and Lawyers.com - legal marketing as well. These are the ultimate closed networks. They draw their strength from contracts, a steep learning curve, talented salespeople, and ubiquity. Avvo, Google, and others offer a more transparent experience with no sales force, few barriers to entry, no commitment, and no direct price tag for the use of their services. Which type of network is most likely to help lawyers meet their obligations in the future? The answer depends on whether lawyers get mad as hell and decide not to take it anymore, or shrug off the question and go back to business as usual.
The New 800-lbs. Gorilla
By putting an army of salespeople in the field and convincing lawyers that they could not function without them, Westlaw and Lexis have survived countless recessions and outlasted every threat. But last year, forces that had been building for decades such as unbundling, outsourcing, information availability, non-lawyer alternatives, and weak attorney-client bonding, created an opportunity for a different network provider to fill the void. And that is exactly what happened. But here’s the real question: if lawyers had not been jobless in record numbers last year, if businesses had been able to spend, if Big Law had not started laying off instead of hiring, and if the economy had not cratered, would Wexis still be doing business as usual? Probably: and that most likely means that lawyers are resigned to living under a 2-vendor cartel with little real competition and almost no incentive to innovate.
So in November 2009 when Google Scholar announced that it would be offering State and Federal cases including Supreme Court opinions back to 1791, it took a while for the news to sink in. Soon however, you could hear Westlaw and Lexis brass drop their collective loads as they realized that Google would not be content to give away for free the information that they had been charging for. Instead, they realized, Google Scholar intended to update its databases in real time and add services to enhance its growing legal library. In short, it looked like Wexis might face serious competition and the suits were scared.
… too be continued in Part 2










