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New Media Lawyer Independent news and comment on legal technology and new media law from Legal News Media. Issue.97 - 29.11.2001
IN THIS ISSUE
DRAGON MOVES TO NEW HOME
TIKIT BUYS AURRA BACK OFFICE CONSULTANCY
The Aurra acquisition further broadens Tikit's range of consultancy and services to the legal market through the addition of a highly regarded and specialist team. This team which includes Mike Bailey, who was responsible for launching the CMS Open practice management system (PMS) in the UK; Karen Bailey, who has project managed the implementation of both the market leading Elite and CMS systems in several of the largest firms in the UK; and David Gallagher, a specialist in PMS applications as well as products that add value to these systems, which include Carpe Diem time recording and the popular Whitehill reports application.
Commenting on the deal Tikit Group managing director David Lumsden said: "Aurra provides consultancy services to many of the major UK law firms. Their knowledge of the Elite and CMS practice management systems together with their ability to enhance products such as Whitehill has enabled them to build up a strong following in a very short space of time.
"Tikit have built up a successful business in delivering leading edge products and services to the legal market relating mainly to front office applications and we see the acquisition of Aurra as a strategic step to being able to fulfil our ambition to be able to support law firms in both the front and back office."
Mike Bailey of Aurra added: "This year I have noticed a considerable demand by law firms to further maximize their PMS investments, it is our aim to meet this demand from our clients by providing law firms with experienced consultants who have the ability to offer effective, independent PMS consultancy services. Significant investments have already been made implementing these systems by many of the leading firms. Aurra has the requisite expertise and experience to assist these firms in further maximizing the return on this investment.
"The acquisition of Aurra by Tikit will accelerate the rate of growth of Aurra and will enable us to attract other leading consultants to further strengthen our team in our aim of providing an expanding range of back office services to our mutual client base."
The directors of Aurra, which will now become a wholly owned subsidiary of Tikit Group plc, will continue to be employed by Aurra Consultancy Limited following the acquisition and have all entered into new service agreements with the Tikit Group.
LAW SOCIETY SOFTWARE SCHEME DEADLINE
THE EU E-COMMERCE DIRECTIVE & ONLINE CONTRACTS
The EU E-Commerce Directive (Directive 2000/31/EC), which is due to be implemented on 16 January 2002, impinges very much on online contracts. Articles 9, 10, 11 and Recitals 34-39 deal with the 'Contracts Concluded By Electronic Means'. The Directive, according to DTI, requires Member States to remove any prohibitions or restrictions on the use of electronic contracts, with certain permitted exceptions. When the contract is concluded between a business and a consumer via a we bsite (but not when it is concluded between businesses - where they have otherwise agreed - or wholly by email), the service provider must provide certain information to make clear before the consumer places his order what steps the consumer must take, how the full terms and conditions may be accessed and stored and how the consumer can spot and correct technical errors. Providers of information society services have to acknowledge receipt of the order, and order and receipt are deemed to be received when the recipients can access them Articles 9, 10, 11.
The Directive in essence provides that Member States must ensure that their legal system allows contracts to be concluded by electronic means. Moreover, they must ensure that the legal requirements applicable to the contractual process neither create obstacles for the use of electronic contracts nor result in such contracts being deprived of legal effectiveness and validity on account of their having been made by electronic means.
However, exceptions may be made in the following areas:
In respect of consumer contracts, e-commerce merchants (service providers) must provide consumers (but not businesses) at least the following information, prior to the order being placed by the recipient of the service:
Furthermore, service providers must indicate to consumers any relevant codes of conduct to which they subscribe and information on how those codes can be consulted electronically. Contract terms and general conditions must also provided to the recipient, in a way that allows him to store and reproduce them.
Member States must also ensure where consumers of services place their orders through technological means, the following principles apply:
Finally, Member States must ensure that service providers make available to consumers appropriate, effective and accessible technical means allowing them to identify and correct input errors, prior to the placing of the order.
The spirit of the Directive in respect of online contracts is expressed in Recitals 34-39 which in essence provide that each Member State must amend its legislation containing requirements, and in particular requirements as to form, which are likely to curb the use of contracts by electronic means. The result of such amendments should be to make contracts concluded electronically workable. However, the Directive does not affect Member States' possibility of maintaining or establishing general or specific legal requirements for contracts which can be fulfilled by electronic means, in particular requirements concerning secure electronic signatures.
Moreover, Member States may maintain restrictions for the use of electronic contracts with regard to contracts requiring by law the involvement of courts, public authorities, or professions exercising public authority; this possibility also covers contracts which require the involvement of courts, public authorities, or professions exercising public authority in order to have an effect with regard to third parties as well as contracts requiring by law certification or attestation by a notary.
The UK Government's concern and approach in this regards was outlined by the DTI as follows: 'The Government is still considering whether form requirements (e.g. notices or copy documents) must be disapplied, such as those which have to be satisfied for a contract to be enforceable and where the context makes it clear that a physical instrument is required. If so, this could require considerable amendment of the legislation concerned. On the information to be given by providers of information society services to consumers and the placing of the order, we propose to follow the Directive closely. The provisions were negotiated keeping in mind existing best practice and the need to minimise regulatory burdens.'
Four matters caused specific concerns to DTI. Thus, DTI enquired as follows:
There is little doubt that the development of e-commerce within Europe (and certainly globally) is hampered by a number of legal obstacles to its proper functioning, thereby making it difficult to conduct e-trading with ease. Equally, there is little doubt that these obstacles arise from divergences in legislation and from the legal uncertainty as to which national rules apply to such services. To a very large extent the E-Commerce Directive seeks to overcome some of these obstacles by harmonising certain national laws and by clarifying certain legal concepts to the extent necessary for the proper functioning of e-commerce in the EU. To that extent it is most welcome.
PRE-BUDGET SPEECH GOOD FOR IP INDUSTRY
LEGAL NEWS IN BRIEF
DON'T PANIC, SAY DLA - UK law firm DLA is advising companies who receive a software audit form from the Business Software Alliance to pProceed with care when deciding whether to complete it. According to DLA, anyone who returns the form in good faith "could simply be providing the BSA with the evidence it needs to take action against you". The BSA recently sent all UK organisations with 20 or more employees a "2001 Software Audit Return" with a deadline of 30 November for responses and includes a notice to treat the document "as seriously as a tax return". DLA says the approach taken by the BSA makes the document look like an official process which companies are required to comply with. But the BSA has no power to force companies to complete the form, being a private body, not a regulatory one.
MICROSOFT GENERAL COUNSEL RETIRES - Bill Neukom, Microsoft's general counsel,has announced his plans to retire from the company at the end of the current fiscal year. He will be replaced by Microsoft's current deputy general counsel Brad Smith. Neukom joined Microsoft in 1985 but actually started advising the company back in 1979 when his then law partner Bill Gates Jnr (the father of Microsoft founder Bill Gates) asked him to help out his son's company. Brad Smith, who joined Microsoft in 1993 from Covington & Burling, where he had been specialising in antitrust and IP work, will be responsible for a law and corporate affairs department employing almost 600 staff.
CD ANTI-COPYING MOVE BACKFIRES - Complaints about the anti-copying technology (designed to prevent the album being burned or copied onto a blank CD) on the CD version of Natalie Imbruglia's latest album 'White Lilies Island' have forced her record label to issue replacements to angry customers. Her label, BMG Entertainment, said it had set up a hotline for UK customers who were having trouble playing the disc in some PC CD and DVD players. The disc will be replaced by retailers or by the label itself.
SUPREME COURT NOW REVIEWING ONLINE SMUT CASE
The US Supreme Court has this week begun considering a First Amendment dispute surrounding the constitutionality of the 1999 Child Online Protection Act. This attempts to protect children from unsuitable material on the web while avoiding any restrictions on the freedom of speech.
SPACEY LOSES HIS PLACE IN CYBERSPACE
Movie actor Kevin Spacey has lost a court battle over ownership of www.kevinspacey.com domain name. Judge Gary Feess, of the US District Court of the Central District of California, ruled on 14 November that if Mr Spacey wished to take ownership of the domain to court he would have to file in a Canadian court, where its current owner - the well known cybersquatter Jeffrey Burgar resides. According to the court, under the Anticybersquatting Consumer Protection Act 1999, US Congress accepted that as long as there is no attempt to sell on a "personal name" web site for profit, then it is an example of "fair use" and permission is not needed from the individual in question. The decision does prompt the question - why didn't Spacey just go to domain arbitrators, such as WIPO or the National Arbitration Forum (NAF) and take advantage of theit Uniform Dispute Resolution Policy. There again Burgar won a previous WIPO case in almost identical circumstances over the domain www.brucespringsteen.com.
ONLINE LEGAL SERVICES NEWS
FAMILY LAW LIST GOES PUBLIC - Divorce-online in the UK has announced the launch to the general public of its new Solicitors Directory for Family Law Departments. The Directory allows users to search by post code or town for firms with a family law practice and to then book an appointment with the selected firm. All firms will receive a basic listing free of charge however for an additional £150.00 pa fee firms can buy a 'featured listing' which not only provides additional information about a firm but also ensures it is higher placed in any searched results.
Divorce-online's operations director Mark Keenan said all paid for listings would be rotated randomly to prevent the alphabetical disadvantage found in some directories. Also, he added, unlike some other online directories there are no referral fees. Divorce-online has consistently been one of the UK's most frequently visited legal web sites. www.divorce-online.co.uk
SITE FOR INHOUSE LAWYERS - Martindale-Hubbell has launched a new web site providing a range of free resources for inhouse legal departments and corporate counsel worldwide. Along with Martindale-Hubbell's Lawyer Locator system, which provides access to a database of more than one million lawyers and law firms in 160 different countries, users can find reports on the proceedings of the Counsel To Counsel series of forums that Martindale now runs throughout the United States, Europe and Asia, plus the Martindale-Hubbell Dispute Resolution Directory of organisations offering alternative dispute resolution (ADR) services. www.corporate.martindale.com
WEB CONFERENCING FOR LAWYERS
It all sounds a great idea but as Leon de Costa, one of the founders of the Freelawyer and eSettle services in the UK points out "There are significant productivity benefits involved in such a system. However the challenge will be to convince a legal profession, that is paid by the hour, that efficiency gains are desirable."
www.claimnegotiator.com
MIDWARE BULLISH ABOUT FUTURE
Midware has seen its acquisition of the Queensland software and consulting business IMAC Support Services, legal practice management developer Law Ledger and document management distributor Client Server Computing start to yield results. "These businesses have now all been integrated into the Midware organisation and already we are seeing tangible benefits", said Flack.
"Given the prevailing economic conditions, the firm is heartened to see its sales pipelines at all time high levels. Whilst our competitors are resorting to discounting, Midware has been able to maintain prices and margins and still increase sales volume. This just shows the strength of the organisation and reflects the foresight that the firm has displayed in understanding and adapting to the changing technology needs of law firms". With a strong sales period behind it, Midware believes it is nicely positioned to take advantage of the traditionally busier January to June sales period.
INDUSTRY & PROFESSIONAL NEWS
MAPS TO GO ONLINE - Sitescope, the parent of Homecheck, a provider of online environmental risk information to the conveyancing market, has signed a deal with Ordnance Survey that will lead to the creation of the UK's largest online map library. The project involves scanning and capturing data from thousands of large scale Ordnance Survey maps dating back to 1840 to provide a record of how the country has been developed over the past 160 years. Sitescope believe the maps will provide an essential resource for the property, construction and environmental sectors as well as central and local government. Sitescope is undertaking the project in conjunction with GIS and data capture specialist InfoTech Enterprises Europe. Sitescope plan to have the data available via Homecheck's web services during the first half of 2002. www.homecheck.co.uk
IS YOUR EMAIL SYSTEM SECURE - Internet security specialist GFI has launched an
Email Security Testing Zone to enable organizations to check whether their email systems are vulnerable to hackers and similar forms of security risks. The zone - at www.gfi.com/emailsecuritytest/ - allows visitors to discover instantly if their system is secure against current and future email threats, such as emails containing infected attachments, emails with malformed MIME headers and HTML emails with embedded scripts.
NEW E-LAW JOURNAL FOR SCOTLAND - The Scottish legal publisher W.Green this week launched the E-Law Review, a new e-commerce law newsletter aimed at the Scottish market. The newsletter is being published in association with the Scottish Society for Computers & Law and the Shepherd & Wedderburn Centre for Intellectual Property & Technology (SCRIPT).
E-BOOK PUBLISHER'S BOOK OUT SOON - In February, Texere Publishing will publish "The Agent - personalities, politics & publishing" by Arthur Klebanoff. Klebanoff is the literary agent who spotted a loophole in publishing contracts that apparently allows authors to resll the electronic rights to their books if they were not already covered in the original contract. He subsequently set up Rosetta Books which became in a legal dispute with Random House on who owned the electronic rights to books by Kurt Vonnegut, among others. Appropriately enough Texere has secured the electronic rights to "The Agent".
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