Markets No Longer Capable Of Caring About What’s Real Or What’s Fake

Would your broker eat this banana?

Whose Legal Data Is It Anyway?

Lawyer and legal business consultant Mark Cohen observes that the legal profession is essentially a data wasteland in the digital era , ranking behind all other private industries in utilizing big data and its uptown cousin, artificial intelligence to make decisions and serve clients.  Still, both nature – and today’s clients – abhor a vacuum and more enterprising companies from outside legal are targeting the legal void.

For example, the same day that Cohen’s article ran on Forbes , Tech Crunch  carried a feature  on Atrium Records  — the latest release by  Justin Kan’s on techno-powered #altlaw firm Atrium.   As described by the Techcrunch  article, Atrium records creates a collaborative portal for clients, which aggregates all their business documents in one place, and can generate hiring offers and contracts from forms completed by clients within the site. But what caught my eye about the Atrium service – and what relates it back to Cohen’s piece —  is the way that the portal leverages data. From the article:

Instead of writing hiring contracts from scratch each time, you fill out a form and use menu selections to set the salary, share count, vesting schedule and offer expiration. Looking across its anonymized data set of contracts, Atrium can recommend the best clauses and most common set ups, like four-year vesting with one-year cliffs. You can see the status of the contracts every step of the way, from drafting and finalizing to getting employees to accept. [Kan says] that Atrium’s goal is to continue building on its archive of more than 100,000 legal documents to develop aggregated pools of data clients could opt into. If they’re willing to share their salary data, vendor contract pricing and more, they’ll get access to that of Atrium’s other clients. “You’ll be able to see if you’re on the high end of being paid by Salesforce for a contract,” Kan explains. That’s a much more data-driven approach than when most lawyers just think of the last few salaries they saw for that position and give you a rough average.

Atrium’s use of business data harvested from law firm clients (with their consent) to help other clients make business decisions about salaries is very different from traditional legal analytics — where firms look at past judicial decisions, results and outcomes to predict what might happen in a future case.  With traditional analytics, lawyers rely on data to do what they were hired to do, which is to advise clients about the impact of the law on their intended action so that they can decide how to proceed. In Atrium’s case, data gathered during the attorney-client relationship is employed to help other clients – and potentially competitors – make business decisions. And that’s what gives me pause.  

Here’s the thing. We lawyers come into contact with lots of proprietary and personal data in the course of representing clients.  In its role representing startups, Atrium is privy to an array of data from vendor costs, executive compensation, companies’ source and supply for different products and all kinds of other information. Likewise, lawyers who represent clients in divorce cases or estate planning compile information on their homes, their cars and finances. It’s one thing for an attorney to advise a divorce client with a particular financial profile not to fight a $3000/month alimony and custody payment because it’s comparable to what the judge awarded in a dozen other cases with clients who had nearly identical financial profiles. It’s quite another for lawyers to share the price that Client A was able to get for her house with other clients.  

To be clear, I’m not suggesting that Atrium is acting improperly or unethically by collecting and sharing client business data which is anonymized and shared only with their consent. What concerns me is that as attorneys and trusted advisors, we have the kind of special relationship with our clients that invites them to let down their guard and share proprietary and personal information because they know it will never be revealed. Sharing proprietary information gathered during the course of legal representation for purposes other than advising on the law and in a manner that can place clients at a disadvantage, or leveraging that information to market a law firm (“Unlike other firms, we have access to thousands of pieces of proprietary data on startups) makes me uncomfortable. 

There’s another issue too – just as time is money, so is data. In fact so much so that yesterday, Senators Mark Warner (D-Va.) and Josh Hawley (R-Mo) introduced legislation that would require Facebook, Google, Amazon and other gib platforms to disclose the value of user data.  Of course, this legislation wouldn’t apply to law firms, but nevertheless, it confirms that data has value and owners of data ought to be compensated for its use.

Nothing in this post should be construed as detracting from the importance of using data analytics to predict legal outcomes. Relying on data to predict outcomes or to test hunches ought to be a no-brainer – unless of course, you practice law in France.. The harder question is whether and to what extent we lawyers can use the non-public data that we come in contact with through our cases for other purposes than just representing clients. 

Image courtesy of Shutterstock

What The Hell Is A Gigawatt? Green Energy Renewables And Virtual Power-Purchase Agreements

(Photo by GERARD JULIEN/AFP/Getty Images)

A gigawatt is a measure of power. There are one billion watts in one gigawatt. Technically speaking, it’s what they call in the sciences, “a shitload of power.” It’s enough that when you tell a wild-eyed scientist that it takes 1.21 gigawatts of electricity to send you back home to 1985, he will run around wildly bemoaning the fact that only a bolt of lightning can feasibly generate that kind of power.

Hold your horses though. While in the movies a bolt of lighting might be the only way to generate gigawatts of power, in real life, there are many other ways, including horses. According to the U.S. Department of Energy, one gigawatt is roughly equivalent to the power generated by 1.3 million horses. So, in Back to the Future Part III, Doc and Marty were actually onto something when they first tried to pull the DeLorean up to 88 MPH. I know, I know, powering the flux capacitor and getting the time machine up to speed are two separate problems, I just think it’s fun to realize that they only needed  about 1,572,994 more horses if they had wanted to supplant Mr. Fusion.

Believe it or not, today we have even more sophisticated ways of generating our gigawatts than predestined lightning strikes or millions of pounds of horseflesh. It only takes 431 spinning utility-scale wind turbines, for instance, to generate a gigawatt of electricity, based on the average 2.32-megawatt size of utility-scale wind turbines installed in 2017. Or, you could generate this kind of juice with about 3.125 million standard-sized 320-watt solar panels (that sounds like a lot of solar panels, but keep in mind that it’s much cheaper to produce a couple solar panels than a good workhorse).

It’s these renewables that corporate America, and to a lesser extent corporate Europe, corporate Africa, and the corporate Middle East, are increasingly focused on through the use of complex contracts called virtual power-purchase agreements. Companies are increasingly under investor pressure to turn to greener technologies, and virtual power-purchase agreements are seen as a means to finance green power projects that otherwise might not happen.

How these agreements work is that a customer, typically a business of some sort, signs a virtual power-purchase agreement with a renewable energy generator for power generated from clean sources at a fixed rate, for a fixed term. The “agreement” may actually be a series of agreements facilitated by middlemen called “offtakers,” which are usually big energy trading companies. The offtaker guarantees the renewable energy developer a fixed price for the electricity it produces, paying a refund if the price dips below a predetermined rate. In turn, the offtaker enters into a corresponding agreement with the corporate customer to fix its energy costs at a set price. If the actual costs of the power exceed what was agreed to in the virtual power-purchase agreement, the offtaker will refund the difference to the customer. The customer gets to fix its power costs and boost its green energy credentials by underwriting specific green energy projects, and the energy developer is protected against an unexpected drop in electricity prices. It’s similar to insurance.

A virtual power-purchase agreement should be distinguished from a physical power purchase agreement. The latter allows the customer to actually physically consume the power being produced from a green energy project, whereas the former allows for “virtual” consumption — the actual electrons flowing out of a wind turbine or solar panel enter the wholesale market, but the customer essentially gets credit for them. The advantage of the virtual agreements is that the customers and renewable energy projects do not have to be in the same electrical grid region, which makes green power offsets more available to businesses that are located in comparatively dark, windless places.

Although virtual power-purchase agreements can be credited for only a small portion of green energy projects overall, they are becoming more influential every year. In 2017, European, Middle Eastern, and African companies inked power-purchase agreements for clean energy projects with a total capacity of just 1.1 gigawatts — not even enough for a lousy one-way trip with the flux capacitor. But last year, that more than doubled, to 2.3 gigawatts. U.S. companies did even better in 2018, with 8.5 gigawatts in new green power-purchase agreements, almost a threefold increase from their 2017 total, led by tech giants like Amazon, Facebook, and Microsoft. Some companies you really wouldn’t expect — like Anheuser-Busch, and even Shell and ExxonMobil — are dipping their toes into the renewable energy market. Sometimes, it seems, even corporations do the right thing.


Jonathan Wolf is a litigation associate at a midsize, full-service Minnesota firm. He also teaches as an adjunct writing professor at Mitchell Hamline School of Law, has written for a wide variety of publications, and makes it both his business and his pleasure to be financially and scientifically literate. Any views he expresses are probably pure gold, but are nonetheless solely his own and should not be attributed to any organization with which he is affiliated. He wouldn’t want to share the credit anyway. He can be reached at jon_wolf@hotmail.com.

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From the Above the Law Network

Fuct Yeah! The Supreme Court Addresses Scandalous Trademarks

(Photo by Charley Gallay/Getty Images for RVCA)

“Fuct yeah!” went the screams of various court-watchers as the Supreme Court’s Iancu v. Brunetti decision hit the internet on Monday. The result will come as not much of a surprise to readers of this column and will bring cheer to those First Amendment maximalists who shiver when considering government restraint on speech.

The speech at issue here is a clothing company’s brand name, which comprises a word described during oral argument as “the equivalent of [the] past participle form of a well-known word of profanity.” This word, FUCT, had been denied trademark registration by certain language in the Lanham Act, language that has now been blown to bits by a Justice Kagan-penned opinion that was served up accompanied by a slew of in-part concurrences and dissents.

After the Supreme Court recently decided in Matal v. Tam that a Lanham Act prohibition against the registration of “disparaging” trademarks clashed with the First Amendment and was thus invalid, many believed that it wouldn’t be long before the Supremes closed the loop by striking down a similar prohibition against the registration of marks including “immoral” or “scandalous” or “immoral” material under §1052(a).

The FUCT mark was such a mark, as it was previously determined to have “decidedly negative sexual connotations” and found to be a “a total vulgar” under this Lanham Act section. Because the use of the mark’s homophone was often in the context of “misogyny, nihilism or violence,” it was found to be “highly offensive.” On these grounds, the FUCT mark’s trademark registration application was rejected by the Patent and Trademark Office, a decision that was upheld on appeal until it reached the Supreme Court.

There, the Court, referencing its Tam decision, conceded that they had not reached a consensus framework on whether the Lanham Act prohibitions were restrictions on free speech or conditions on a government benefit. But, they had adopted two premises to guide their consideration. First, if a trademark registration bar is “viewpoint-based,” it is unconstitutional. Second, the “disparagement” bar was viewpoint-based. So, the “core postulate” with which no justice disagreed was that “the government may not discriminate against speech based on the ideas or opinions it conveys.”

They followed those two premises and that core postulate to address the treatment of the FUCT mark. If the rejection of the FUCT mark was viewpoint-based and discriminated against free speech based on the ideas it conveys, that rejection would be reversed.

To get to the bottom of things, the Supremes mused etymological and rhetorical, asking, “When is expressive material ‘immoral’’’? Answering the question, they consult the dictionary and find that, according “to a standard definition,” a word is immoral when it is “inconsistent with rectitude, purity, or good morals; wicked; or vicious.”

The Court then concludes that the prohibition against immoral and scandalous marks is viewpoint-discriminatory because it allows registration of marks that accord with the viewpoint of purity or good morals or righteousness but denies registration to those marks that convey the opposite viewpoint.

This point is illustrated by a fantastic example of how the government uses the trademark registration process to push one viewpoint. The Court cites the PTO’s rejection of a number of marks that seemed to convey a drug-positive viewpoint: KO KANE and MARIJUANA COLA beverages, YOU CAN’T SPELL HEALTHCARE WITHOUT THC pain relief medication, and the slogan BONG HITS 4 JESUS. These are contrasted with the PTO’s approval of marks reflecting an anti-drug viewpoint, such as the one that branded a 1980s government education program and that you still see on the government’s (or at this point in time more likely a knock-off garmento’s) particularly distinctive t-shirts: D.A.R.E. TO RESIST DRUGS AND VIOLENCE and SAY NO TO DRUGS—REALITY IS THE BEST TRIP IN LIFE.

There is no way that this is not a viewpoint-based approach to what qualifies as a registrable U.S. trademark. The Court concludes that a prohibition against the registration of “immoral” or “scandalous” trademarks cannot stand in light of the Free Speech Clause of the First Amendment.

Justice Sonya Sotomayor pens a partial dissent, joined by Justice Breyer, that counts up all the worms that will be wiggling their way out of the can that the Supreme Court has just pried open. She notes that the court improperly collapses “immoral” with “scandalous” and opines that, given the location of the two words in the language of the text (separated, as they are, by the word “deceptive”), the language is susceptible to a reading that excises the doomed “immoral” clause and maintains the more Constitutional “scandalous” prohibition. Doing so would protect children and those who experience a visceral reaction upon hearing certain words, she states, and that would outweigh any free speech issues.

It would appear from her dissent and the position taken by Justice Alito in a separate opinion, that a rewrite of the statute to prohibit the registration of only “scandalous” trademarks would stand a fighting chance before the Court. But, for now, the PTO will be forced to register just about any mark thrown its way, regardless of content and assuming it is not generic or confusingly similar to an already registered mark. If the PTO has a swear jar, in other words, prepare for that thing to fill up mighty fast.


Scott Alan Burroughs, Esq. practices with Doniger / Burroughs, an art law firm based in Venice, California. He represents artists and content creators of all stripes and writes and speaks regularly on copyright issues. He can be reached at scott@copyrightLA.com, and you can follow his law firm on Instagram: @veniceartlaw.

Keeping The Law Personal During The Rise Of Robots

(Image via Getty)

Sometimes I think that it was just yesterday that I started law school, took the bar, was sworn in, and started off on what has been a career filled with twists and turns, some of which I wanted, some of which I did not. That’s probably true for most of us.

There have been so many advances in the profession (and yes, I am going to continue to call it that until I am taking a dirt nap and probably even after that). One of the things that does hearten me, at least a little, is the awakening, albeit too gradual, to the acknowledgement and existence of mental health issues within our midst. The stigma still exists, but slowly, there are little cracks in our armor of invincibility and those cracks couldn’t come a moment too soon.  They are way too late to save many lawyers who haved died by suicide over the past years, but hopefully these cracks that now reveal themselves can help save the lives of lawyers who are in distress and law students as well.

You can have all the legal tech you want, you can have all the gadgets and accoutrements that we think are important to our work and present the right “image,” whatever that may be, but if the new emphasis on lawyer mental health is indeed here for good and not just a passing fad, then saving even one life that would have previously been lost is a hopeful sign and a positive one for us.

You can’t start too early to develop an equilibrium, a sense of balance about yourself, your career, your life. Having a sense of humor about the ridiculousness of life’s situations can only help.

Many of us still have to reconcile ourselves that legal technology is here to stay, for better or worse, and that alternative methods of providing legal services are also here to stay.

One example: will we see an increase in the use of licensed legal technicians to close the access to justice gap? Washington State has licensed legal techs in domestic relations and apparently is looking at licensing other areas in the future. New Mexico is looking at the issue, while Utah allows licensed paralegal practitioners to help clients in family law, landlord tenant, and some debt collection matters.

For those considering law school and doing a cost benefit analysis, it’s entirely possible that some future lawyers may take this alternative path if the goal is to help with “people law” problems. Saddled with less debt, or none at all, licensed legal techs may well be more cost efficient, but at what cost to the lawyers who have traditionally practiced in those “bread and butter” areas?

Will there still be value in the law school education? Some lawyers have felt, and I don’t disagree, that the vast majority of their work has been shuffling papers back and forth. What will be the difference between lawyers and licensed legal techs except for the debt load and the ability to try cases, which few lawyers ever actually get to do?

The State Bar of California, while not necessarily dragging its heels, although reasonable people could differ about that, has given itself until December 31, 2020 to “…explore options to increase access through licensing of paraprofessionals, limited license legal technicians, and other paraprofessionals.” It’s Goal Four of the Bar’s updated strategic plan.

Now there’s the possibility that artificial intelligence will not only take your job, but be your boss. Oy. We already complain about bad bosses now. How would HR  handle complaints against AI bosses?

Will AI understand the concept of “take this job and shove it?” Evaluating performance will be even more of a number game than it already is. (Not enough hours billed, insufficient collections… that’s nothing new.) How would AI evaluate the non-quantifiable aspects of practicing law, the soft skills? The satisfied client, the good result that is not reflected in the numbers, the interpersonal skills that a lawyer has that lead to attracting and retaining clients? How do you “optimize humanity”? How would you even try to do it in the context of legal practice? Would there be algorithms for that? How would an algorithm model behavior for a young associate who needs coaching and mentoring? Would an algorithm receive performance bonuses? And how would an algorithm spend that bonus money? And where? And on what?

As lawyers, we push back, we challenge the status quo, we don’t just accept what is purportedly a “given.” How would we interact with a boss, whether managing partner, chief legal officer, or any other title that confers management responsibilities, who is truly non-human, and may even be “inhumane” to boot?

Will relationships matter any more? How will AI evaluate an in-house counsel who doesn’t have billable hours to meet?

The  technological revolution changing legal practice is a good thing if it makes justice more affordable for everyone. We see AI all around us, and we know it’s here to stay.

But substituting algorithms for the human touch robs us of the very personal nature of the practice of law.


old lady lawyer elderly woman grandmother grandma laptop computerJill Switzer has been an active member of the State Bar of California for over 40 years. She remembers practicing law in a kinder, gentler time. She’s had a diverse legal career, including stints as a deputy district attorney, a solo practice, and several senior in-house gigs. She now mediates full-time, which gives her the opportunity to see dinosaurs, millennials, and those in-between interact — it’s not always civil. You can reach her by email at oldladylawyer@gmail.com.

Amended Gender Discrimination Case Brings The Real Scoop On Jones Day Compensation

It may seem like we spend an inordinate amount of time piling on Jones Day; I mean, we’ve written eight stories (and counting) about allegations of gender bias at the firm. But the initial complaint was juicy, alleging a “fraternity culture” at the firm and unequal pay behind the firm’s notorious “black box” compensation system, and so much has been happening in the case with more women being added as named plaintiffs and/or opting into the class action that we simply had to write more stories.

On Monday, plaintiffs filed an amended complaint against the Biglaw giant. In addition to named plaintiffs Nilab Rahyar Tolton and Andrea Mazingo, who were identified in the earlier version of the complaint, three of the four anonymous Jane Doe plaintiffs have chosen to reveal themselves. Meredith Williams and Jaclyn Stahl were associates in the firm’s Irvine office, while Saira Draper worked for Jones Day in Atlanta. The decision to publicly identify themselves has been a fraught one, with Jones Day pushing for the names of the plaintiffs to become public. In a statement about the complaint, the plaintiffs say they were bolstered by others coming forward:

“It is time to do away with the stigmatization of women who challenge discrimination and harassment in their workplaces. We will not stay silent; we will not be bullied. And we are empowered by our solidarity.”

One plaintiff, Jane Doe 4, has maintained her anonymity. In previous filings, plaintiffs analogized their position to that of a whistleblower.

Additionally, plaintiffs formally picked up former New York associate, Katrina Henderson, as a named plaintiff. Another woman, Jessica Jardine Wilkes, was the first non-named plaintiff to opt-in to the lawsuit earlier this month.

The amended complaint alleges the firm’s notorious “black box” compensation system is used to pay women less than men at the firm. And, as reported by Law.com, the amended complaint brings receipts:

The seven women now on the complaint also provided details of their salaries and bonuses during their time at the firm, illustrating that their pay did not compare with the Cravath scale. They said Jones Day’s “black box” system of compensation allows the firm to depart from its stated commitment to reward top performers with pay that matches market leaders.

So, just how much does compensation at Jones Day diverge from the Cravath scale? Well, the complaint provides helpful charts to show just how underpaid plaintiffs were at Jones Day.

While all plaintiffs were paid below market all the years they were at the firm, you can see the issue gets more pronounced the more senior the associate. This isn’t surprising as the firm has historically enjoyed the ability to say it at least meets the market for first-year associates (never mind those pesky bonuses) in its recruitment efforts, and once the associate is ensconced in the firm, the salary crunch is on.

Regardless of what happens on the merits of the case, in publicly revealing their salary information, plaintiffs have dramatically increased the transparency of Jones Day. Something anyone considering working at the firm should be appreciative of.

Earlier coverage: Jones Day Hit With Explosive Gender Discrimination Case
Jones Day Facing Second Class-Action Lawsuit Over ‘Fraternity Culture’ Of The Firm
Partner Whose Behavior Features Prominently In Jones Day Gender Discrimination Lawsuit Is Out At The Firm
Jones Day Wants Gender Discrimination Plaintiffs To Reveal Themselves To The Public
Plaintiffs Throw Shade At Jones Day In Gender Discrimination Lawsuit
Gender Discrimination Lawsuit Against Jones Day Gets Yet Another Plaintiff
Gender Discrimination Lawsuit Against Jones Day Dropped — Well, One Of Them At Least
Jones Day Gender Discrimination Case Spreads To New York


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

Single Mom Breaks Down Her Law School Experience By The Relevant Numbers

— Kelly Barnett, a recent graduate of Golden Gate University School of Law who is a single mother, summarizing her law school journey in a Facebook post that has since gone viral after being shared on the Pantsuit Nation group page, where it has more than 82K likes.


Staci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.