3 ASIAN LEGAL BUSINESS – MAY 2024 WWW.LEGALBUSINESSONLINE.COM THE BRIEFING: YOUR MONTHLY NEED-TO-KNOW U.S. LAW FIRMS KICKED OFF 2024 (Reuters) U.S. law firms are off to a strong start in 2024 after a lacklustre 2023 that saw weak client demand and declining collections on billed work, new financial data shows. Demand for legal services was up 1.9 percent in the first quarter of the year over the first three months of 2023, according to Thomson Reuters Institute’s Law Firm Financial Index, which tracks key financial metrics across 186 large and midsize law firms. Billing rates, which were a consistent bright spot for firms in 2023, continued to rise with a 6.6 percent increase in the first quarter compared with a year ago, according to the index. Much of that rate growth was driven by midsize law firms. Revenue was up 5.7 percent, and firm profits rose 5.8 percent, increases that were helped by firms holding direct expense growth to just 5.4 percent. “There’s lots of positivity,” said William Josten, manager for enterprise legal content at the Thomson Reuters Institute, which shares the same parent company as Reuters. The Wells Fargo Legal Specialty Group also identified promising signs for firms, with demand up 2 percent and revenue up 9.5 percent. WITH STRONG DEMAND AND PROFITS In a recent survey by executive search firm Native, nearly half of the Indian general counsels or legal heads surveyed expressed an interest in pursuing career opportunities at law firms. The survey, which included responses from approximately 300 participants, revealed that 43 percent are considering such moves, particularly as they approach retirement or face a scarcity of suitable in-house roles that fully utilise their expertise. The findings suggest a trend where stability is valued highly among these legal professionals, even above the competitive compensation offered by technology platforms. Despite the lucrative pay at startups, many general counsels prefer the security of established companies or law firms. The survey highlights the shortage of in-house positions that allow general counsels to effectively apply their extensive knowledge as a key factor driving the shift towards law firm employment. 45% IN THE NEWS U.S. law firms Troutman Pepper Hamilton Sanders and Locke Lord have said they are in talks to merge, in what would be the largest law firm combination to emerge so far this year. The firms said their priority is “delivering exceptional legal services to our clients.” “I EARN ABOUT 5,000 YUAN FROM MY JOB AS A LAWYER, BUT 20,000 YUAN FROM LIVESTREAMING. I CANNOT SURVIVE IN SHANGHAI WITHOUT DOING LIVESTREAMS.” QUOTE UNQUOTE Technology company Litera Microsystems is collaborating with Microsoft to integrate its technology with Microsoft Copilot. The two companies said the collaboration will give lawyers using Copilot access to Litera’s document and data management solutions. In a comment on video platform Douyin, Chinese lawyer “Xiaobingxin” defends performing titillating dances in livestreaming videos. IN THE NEWS Percentage of U.S. junior associates who believe their law school education did not adequately prepare them for firm life, according to a recent survey by Major, Lindsey & Africa and Leopard Solutions. INDIAN GCs INCREASINGLY SEEKING LAW FIRM ROLES Proportion of global general counsel who now prefer to delegate operational decisions to specialised legal operations teams, according to a report released by FTI and Relativity. 63 PERCENT
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