  | ALB Insights April 25, 2017 |
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This week’s newsletter features the following:
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| Data privacy: The Taiwanese legal market’s new niche
The legal sector of Taiwan tends to be overshadowed by both the People’s Republic and Hong Kong in terms of size and dynamism. But the island boasts stable legal work from IP, and now data privacy work is growing as well, reports John Kang.
The Taiwanese legal market differs from other jurisdictions in the Greater China neighbourhood in one big way – there are barely any international law firms.
While Hong Kong and mainland China can boast of having dozens of global law firms, there are only a few in Taiwan. Baker McKenzie is one of the largest firms in Taiwan and the largest global law firm there with 69 lawyers, including 34 partners. Other U.S. law firms like Jones Day have a smaller presence, while there are no UK firms.
“Beyond that, there are no other international law firms with full operations in Taiwan,” says Henry Chang, a principal at Baker McKenzie in Taipei. “You have a few IP litigation firms that have partners flown in from the U.S., but Taiwan is not very international in terms of law firms.”
The self-governing island, however, has one important advantage over mainland China. “The quality and transparency of court decisions make the Taiwan system more reliable than its counterparts in mainland China,” says John Eastwood, a founding partner at Taiwanese firm Eiger Law.
Taiwan is home to globally known companies such as Foxconn, HTC and TSMC, which supply firms in the island with legal work.
“Taiwan is an export economy specialising in technology, so there’s always been some sector that Taiwan is manufacturing for,” says Chang, citing examples of how Foxconn makes iPhones and TSMC manufactures chips.
THE FUTURE: DATA PRIVACY, SOUTHEAST ASIA
Most of the work is related to IP, but data privacy work has been growing, thanks to Taiwan’s Personal Data Protection Act, which has developed over the years. “Before, it was much more skeletal. But with the enforcement regulations now in place and some amendments taking effect last year, it’s developed to a point where it’s fairly mature,” explains Chang of Bakers. He notes, however, that enforcement is still not as strict.
“Data privacy now touches on nearly everything,” says Eiger’s Eastwood. “Changes to the law were made a couple of years ago, but in truth, there's much greater awareness among companies and government authorities about the importance of data privacy.”
Law firms in Taiwan remain conservative about Taiwan’s future because of uncertainties with its two largest trading partners: the U.S. and China. With protectionist policies from U.S. President Donald Trump and political tensions with Beijing, Taipei has been looking further south.
Banks, for example, have been opening up offices in Southeast Asia, says Chang. Taiwan banks, led by CTBC Financial and Fubon Financial, have been expanding since 2013 in the region. According to Reuters, this is likely to accelerate over the next few years, thanks to the new Taiwanese government's backing for companies to diversify away from China.
However, Taiwan faces a major challenge as it moves to strengthen links with Southeast Asia. Due to pressure from Beijing, no government in the region has formally recognised Taiwan. With Trump’s “One China” policy stance still up in the air, the future for Taiwan, including its law firms, remains hazy.
To contact the writer, please email john.kang@tr.com. |
| Vedder Price Q&A: ‘Transportation finance will see explosive growth in the region’
U.S. law firm Vedder Price opened its first Asian office in Singapore in September last year, and will focus on global transportation finance (GTF). Ji W. Kim, a shareholder of the firm, talks to Raj Gunashekar about why Singapore was the top choice and how the office is expected to grow.
ALB: It’s been more than six months since the Singapore office opened. How has it been for Vedder Price so far?
Kim: Vedder Price’s Singapore expansion is going very well, and it’s been very busy! Although we already had a number of existing clients in the region before we had a physical presence, establishing a foothold in Singapore has really allowed us to expand the work we do for them. Lev Gantly, a solicitor from our London office, launched the Singapore office with me.
That said, our expansion into the region has increased our volume of aviation finance work. I think this shows that our global transporation finance (GTF) practice has a role to play for our existing and potential clients in Asia.
ALB: Why Singapore?
Kim: Our firm already had quite a number of client relationships in Singapore. It was the right choice for establishing a foothold in a key region that is critical to our clients and where the firm’s GTF practice is already thriving.
We also knew Singapore serves as a hub for Asia, and we’ve already seen growth in our volume of GTF work in the region as a result of opening an office here. The Asian global transportation finance market is expected to undergo explosive growth in the next 20 years, particularly in aircraft finance, as the region’s population grows and air travel surges. Growth in maritime finance is also expected.
ALB: How has your approach to your first Asian office been different from the strategy for London and U.S. offices?
Kim: Singapore is different because we launched our office with expats from our New York and London offices, as opposed to our other expansions where we launched with local laterals. This strategy has been very effective because the office was opened to bring our services to existing clients in their own time zone. It also helps to have an established office when recruiting new hires.
We likewise took on a new approach in the formation of administrative support, sharing an office manager between London and Singapore. It has been very beneficial to have leadership that is both familiar to the firm and familiar with running an office outside the U.S.
ALB: How do you intend to expand further in Singapore and beyond?
Kim: The depth of the firm’s GTF practice across the globe will continue to fuel growth for the Singapore office. The synergy among Vedder Price’s offices is a strength for our GTF clients, and we will continue to assist them as they look to grow their businesses in Asia.
To contact the writer, please email raj.gunashekar@tr.com. |
| When it comes to pitching for work in Greater China, being culturally adept is key
Given the amount of money that law firms spend pitching for work, it is critical that they get the basics right in order to give themselves a fighting chance. John Kang looks at some of the key ingredients of a successful pitch.
There is no shortage of advice on pitching for legal work in general, but there’s not a lot tailored to companies in the Greater China region. Everything from etiquette to requirements in this region may be different from what firms are used to, and in an increasingly competitive legal market, even the smallest details could make or break deals.
Lawyers generally go into presentations expecting a win, as the firm would have invested heavily in hopes of a payoff. Latham & Watkins, for example, spends $30,000 to $70,000 per presentation for big-ticket legal work, as reported by The New York Times earlier this year. And it could be worth it as the firm’s existing clients last year each paid over $1 million in legal fees, the Times report said.
Companies in Greater China are some of the most sought after among law firms, given their sheer size and seemingly limitless legal work. Sheldon Tse, a partner and the head of corporate and securities at King & Wood Mallesons, shares some of his tips for the perfect pitch to Chinese and Hong Kong companies.
Build a team which understands both Chinese and Hong Kong laws, as well as speak the industry language of the client. In addition to matching the skills and expertise required in the request, it is advisable to include native Chinese speakers in the team.
Be proactive in anticipating issues earlier and develop the ability to advise at a more strategic level, and not just provide assistance on documentation.
Be responsive and always follow through. It is always good practice to promptly acknowledge receipt of requests for information or proposal and do a follow-up after a reasonable timeframe. Establishing a relationship is an important part of doing business with the Chinese, and it takes time and effort to build and cement ties. Small steps like these pay off over time.
Be careful about the language and format in pitch materials. Use simplified Chinese for mainland Chinese clients and traditional Chinese for Hong Kong companies to show respect for their local culture. Also, if the request is written in Chinese, respond in the same language. A majority of pitch requests require a response in Chinese, but some require an English or bilingual response. In Hong Kong, it is common that existing materials are in written English, but these will be translated into Chinese when pitching to Chinese clients. To demonstrate a real understanding of the culture, it is advisable that the pitch document be drafted directly in Chinese to avoid losing anything in translation. Or ensure that the translation is of good quality so that it reads naturally to native Chinese speakers.
Use formal language to show respect and politeness. In addition, respect and follow the requirement guidelines to the letter. There are certain requirements that are unique in Chinese pitch requests, such as including a cross-page seal and providing soft copies in a USB.
To contact the writer, please email john.kang@tr.com. |
| ALB Hot Startups: Intelllex ALB Hot Startups is a weekly series that looks at the most promising new legal-tech companies in Asia. This week, ALB has its eyes on Intelllex, an online legal research tool. By Raj Gunashekar
Firm name: Intelllex Year of founding: 2015 Located: Singapore Founders: Chang Zi Qian and Li Jianxin What they do: According to its founders,Intelllex aims to build an intelligent workspace for lawyers by helping them carry out research and manage knowledge in a faster and better way. This is achieved by making it seamless for a law firm to store, organise and retrieve all knowledge on a single platform. Law firms can also develop their own knowledge library that’s equipped with a proprietary AI engine that understands legal concepts. “Our lawyers are backed by the collective wisdom of the firm. It is not only about how much costs we have saved, but also about the increased value we can create for our clients,” explains Qian. Markets serving: Hong Kong, India, the UK, Australia, New Zealand, as well as Singapore, Malaysia and the rest of Southeast Asia Capital raised till date: Self-funded Key clients: Major law firms in Singapore and Malaysia How the idea came about: The founders are lawyers who believe that technology could benefit the legal practice, but there weren’t enough available tools to do so. “In particular, there was insufficient attention given to how a law firm could leverage on previous work done by its lawyers and retain such knowledge in cases of lawyer turnover. There was no good way to institutionalise experience and knowledge. As such, lawyers spend a disproportionate amount of time just finding information and redoing research, resulting in workflow inefficiencies,” says Qian. Jianxin adds that existing tech tools were not helpful, as they tend to alienate young lawyers who grew up using products with superior design and technical capabilities in the consumer space. What makes Intelllex different is how it combines good design and technology so that law firms looking to overcome limitations can do so and win big. Indeed, Intelllex was one of the first five products available under Singapore’s Tech Star for Law, a recently launched programme focused on helping smaller law firms adopt technology. The journey so far: The startup now has 10 full-time team members, and the response has been positive so far. “There isn’t enough effort put into effective knowledge management in law firms, and most platforms serve as archival repositories. There is increasing traction from large firms in both Singapore and Malaysia. We also noticed that in-house legal departments are using our platform,” says Jianxin.
To contact the writer, please email raj.gunashekar@tr.com.
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