Patent Services Outsourcing to India Hits $46 Million

Fri, 21 Nov 2008 14:58:52 GMT

This is only the latest in a long series of articles that I have seen in the NLJ over the past several years. Clearly this presents a threat to U.S. law firms and patent lawyers. But it also represents a tremendous opportunity.

Non-equity Partners Asked to Pony Up

Thu, 20 Nov 2008 14:56:48 GMT

The National Law Journal reports today that DLA Piper may be asking non-equity partners to make a capital contribution to the firm. In return says Frank Burch, DLA Joint Chief Executive Officer, they will get a limited stake in the firm's profits.

Traditionally, non-equity partners are paid a salary and don't get to share in the profits. This move, which is yet another sign that things are changing quickly in the legal profession, is an effort to reduce the firm's reliance on bank financing. Keeping debt low through larger capital contributions is nothing new. There are a number of AmLaw firms that already manage themselves with this philosophy. What is new here is trying to spread the burden to a lower tier of partner. While DLA says the move is preemptive (i.e. they still enjoy relatively favorable interest terms in the credit markets) I suspect other firms will follow if credit remains tight for the next year.

Long Term Care Insruance

awewalt@ewaltlaw.com (Andrew Ewalt) — Thu, 20 Nov 2008 07:01:53 GMT

Do you have a plan for your Long Term Care? Will you end up in a nursing home and outlive or severely deplete your financial resources? Too often people avoid facing reality of the Long-Term Care threat, avoid taking action...

The odds of falling prey to Long-Term Care are staggering and the cost can be even more so. A year in a Connecticut Nursing Home averages more then $90, 000.00. Unfortunately, Many Americans hold the mistaken belief that Medicare and Medicare Supplemental Insurance will cover Long-Term Care but at best, Medicare will only cover a part or all of the first 100 days of care. The lions share of all Long-Term Care costs is paid out of your own pocket. Once those assets have been spent down to the applicable poverty level an individual may qualify for Medicaid...a government Long-Term Care program.

Against this backdrop, Long-Term Care Insurance (LTCI) has become one of the fastest growing insurance products in the country. Fortunately LTCI can be designed to fit almost any budget. Most LTCI policies share some common features you should know and should be looking for:

1. Benefit Amount: How much will the policy pay?

2. Benefit Triggers: When will the policy pay benefits?

3. Inflation Protection: Will the purchasing power increase?

4. Level of Care: Are Custodial and Intermediate Care covered, along with Skilled Nursing Care? Is Home Health Care covered?

As with any form of insurance, the policy is only as good as the ability of the insurance company to pay your claim. Check out the financial strength and reputation of the insurance company and seek competent legal counsel to interpret the contractual provisions of any LTCI policy before you sign on the dotted line.

How Are You Surviving the Legal Recession?

Tue, 18 Nov 2008 13:53:00 GMT

The ABA wants to know. Click here to participate in a survey being conducted by the ABA Journal.

Nouveautés au CAIJ : Développements récents et fils RSS

Mon, 17 Nov 2008 20:50:56 GMT

13 novembre 2008

Les Développements récents du Barreau du Québec sont dorénavant accessibles
en ligne et sans frais sur le site Internet du CAIJ : www.caij.qc.ca

Vous pouvez dès maintenant en consulter les textes intégraux à partir des
outils de recherche de la Suite JuriBistroMD du CAIJ. Cet ajout confirme la
mission du CAIJ de favoriser l'accès à l'information juridique pour tous les
membres de la profession au Québec.

<http://www.caij.qc.ca/CAIJdocs/dev_recent/transition.html>

Soyez informé des nouveautés JuriBistroMD avec les fils RSS

Grâce aux fils RSS du CAIJ, recevez automatiquement les dernières
acquisitions ajoutées dans BIBLIO, les nouvelles questions de recherche
publiées dans TOPO et restez à l'affût des nouveautés dans votre domaine par
l'entremise de THEMA.

<http://rss.caij.qc.ca/>

That first step

thelegalthing@sun.com (Mike Dillon) — Thu, 13 Nov 2008 16:13:03 GMT

Earlier this week, we held our annual intern "meet and greet" at Sun's campus in Menlo Park. It was a chance for local law students to connect with attorneys in our organization to learn about internship opportunities and, more generally, what it's like to work here. We had a great turnout with more than fifty students from a number of regional law schools. All of them were bright, energetic, interesting - and interested.

At the beginning of the event, I spoke for a few minutes about my career and the value of internships. I pointed out that few people are fortunate enough to identify early in life what their "perfect job" will be. Instead, for most of us, career paths are really nothing more than a process of elimination. You explore, try new opportunities and leave others until (hopefully) you find the right role. For me that journey has been a meandering path through several law firms, two companies (one of them, Sun - twice) and multiple areas of legal practice.

I arrived home last evening and with a glass of wine in hand, sat down and read our town's local newspaper. On the second page, I found an article noting that Pat O'Laughlin, our former mayor, had passed away as the result of a rare disease called spinal arachnoiditis. Besides serving as mayor, Pat was also a very well known civil litigator in the San Jose area. Just about every local judge and attorney knew Pat and admired him for his intellect and tenacity in the courtroom. But it was Pat's wit and frequently displayed humor that were his hallmark.

In 1984, it was Pat who gave me my start as an attorney. At that time, I had just graduated from law school and passed the bar exam. I had little concept of what it meant to be a litigator, but Pat took a chance and hired me. Over the following three years, he trained me and gave me increasingly more complex cases to handle. He clearly had far more confidence in my abilities than I did at that early stage.

It has been more than fifteen years since I last saw him. Ultimately, I realized that litigation was not what I wanted for my professional career and I left to a position with another firm. And from there... like I said, a meandering path to where I am today.

Lao-tzu famously said, "A journey begins with a single step." In many careers that first step is the most important. But, equally important is having a person who helps you take it.

Thank you, Pat. You will be missed by many.

Identity Theft : Part 1

awewalt@ewaltlaw.com (Andrew Ewalt) — Thu, 13 Nov 2008 13:55:05 GMT

Identity theft continues to be one of the fastest growing and scarest crimes. So the question is how does identity theft occur? Thieves always seem to be one step ahead of the authorities. Unfortunately, when it comes to identify theft...

Identity theft continues to be one of the fastest growing and scarest crimes. So the question is how does identity theft occur?

Thieves always seem to be one step ahead of the authorities. Unfortunately, when it comes to identify theft basic personal information is all that is needed. Information like credit card account numbers, social security numbers, bank account information and your name, address and phone number.

Accessing this information can also be very easy. Thieves do not need to steal your wallet to get your personal information. It would be enough to steal your mail, look though your trash or complete a change of address form (found in every post office) in order to divert your mail to another location.

Once thieves have your personal information the stealing can begin.

A Renewed Push for Fixed-Fee Billing Arrangements?

Tue, 11 Nov 2008 14:47:44 GMT

Alternative billing arrangements are hardly a new concept. In many ways, fixed-fee billing is actually a retro concept. Fifty years ago, lawyers were not slaves to the billable hour.

Fixed-fee arrangements have been trying to make a comeback for over a decade. At the same time, there have been many efforts to create new forms of billing that reward firms for success. I remember organizing a CLE program, Beyond the Billable Hour, in the mid 90's. But the current financial crisis seems to be creating a renewed push by corporate counsel to get law firms to move away from open ended hourly billing arrangements.

We are in a period of crisis in the legal profession. Deal flow is constricted and litigation has not picked up enough to offset the loss of deal related business. In the coming year, this means that clients will have more leverage. Law firms that are able to adapt to this new reality and offer creative billing arrangements will be the winners.

IMHO, everyone will be happier when firms start to move away from the billable hour. Law firms will be rewarded for efficiency and associates will feel less pressure to record 200 billable hours in a month. Until that happens, though, we are in for a rough ride. Maybe a new wave of financial regulation will help fill in the missing hours at some AmLaw 100/200 firms. Maybe the litigation boom will arrive as companies and individuals scramble to recoup their investment losses. Smart firms will be properly positioned to capture this work. But in order to survive during this recession, firms will need to carefully review their expenses and come up with creative ways to satisfy their cost conscious clients.

Seeking a bit of white space

thelegalthing@sun.com (Mike Dillon) — Fri, 07 Nov 2008 23:35:27 GMT

Earnings announcement, board meetings, stockholder meeting and the continued melt down of global economic markets. All in all, it's been a stressful few weeks. So, when a few friends offered the chance for a weekend of camping and hiking in Yosemite Valley, I happily accepted.

Yosemite Valley is always wonderful. But at this time of year, it is at its most beautiful. The leaves of the black oaks have turned shades varying from crimson to mustard and color the air with every breeze. In the background, the majestic icons of the valley - El Cap, Half Dome, Glacier Point and Royal Arches, all watch silently. I'm still astounded to meet residents of California who have never visited this sublime geologic wonder.

The hike itself was grueling. There was no trail to follow and we had to move at a good pace to avoid navigating in the dark - or worse yet, being included in the next edition of this.

Our starting point was Olmstead Point off of Tioga Road. From there we descended (and more than occasionally - stumbled) down Tenaya Canyon to the valley floor. Along the more than ten mile route we discovered the engine of a plane that had crashed in the late 1950s; had an encounter (thankfully, a friendly one) with a large black bear; enjoyed the adrenaline of a few rappels and the refreshment of a chilly swim in the Tenaya river. In this environment, it is impossible to think about work. Or, the economy.

Now, at the office a week later, my legs remain in pain and the blisters on my feet have not yet healed. But each time I experience a moment of stress, I reach down and touch my still aching legs. When I do, I'm transported back to Yosemite and find a moment of repose.

(Photographs courtesy of Rene Schaub)

Selecting The Best Employee

awewalt@ewaltlaw.com (Andrew Ewalt) — Fri, 07 Nov 2008 20:46:41 GMT

Employers beware! It is very important to be careful when selecting the best candidate for a job opening – there are legal issues to consider when hiring an employee. Always treat all candidates for the same position equally and use...

Employers beware! It is very important to be careful when selecting the best candidate for a job opening – there are legal issues to consider when hiring an employee.

Always treat all candidates for the same position equally and use objective, trust worthy tests that pertain only to skills relevant to the position.

More and more employers are using test to help them determine which potential hire is best. Here are two examples:

Skill Test: Having candidates take skill based tests confirms. That they have the skills they claim to have and show how well they compare to others in the field.

Personality Test: Measuring traits like flexibility and ambition, personality test provide an indication of candidates’ interpersonal skills.

Top 5 Retirement Planning Mistakes

awewalt@ewaltlaw.com (Andrew Ewalt) — Fri, 07 Nov 2008 08:28:47 GMT

Many of my clients ask my advice regarding their retirement plans and benefits. Though I am not a financial adviser and as such never make recommendations regarding specific financial/investment options (I do work with many very qualified financial professionals and I do love to make referrals so if you are in the need of a financial adviser in Connecticut please let me know), as an attorney I do work very closely with clients and there retirement plans. Here are 5 mistakes to avoid regarding your retirement assets.

1. Not understanding your options when you leave a company.

2. Improper or outdated beneficiary designations.

3. Not understanding the beneficiary's distribution options.

4. Not taking the required minimum distribution from an IRA when you reach age 70 1/2.

5. Not having enough money saved for your retirement.

All of these mistakes can be avoided with a little knowledge. The information you need is available through qualified financial professionals.

The Morning After for Campaign Junkies

Wed, 05 Nov 2008 13:19:12 GMT

One of the best ways to enhance your law practice is to find an interest that connects you with a lot of other people (particularly individuals who are potential clients and referral sources). But what if your passion was the Presidential campaign of 2008?

For the past two years, I have been pouring over polling data, reading political blogs, sharing political humor with friends and colleagues (at least the ones who share my political beliefs) and generally engaging in a lot of political discussions. But as the Wall Street Journal reports today (subscription required), political junkies like myself must now find other ways to feed our addictions.

For a while, there will be opportunities to speculate about the election and understand what were the key factors that lead to Barack Obama's historic victory. But there is now a void in my life that I will have to fill.

Would I have been better off if my passion was something timeless like playing golf or collecting wine? Only if those were truly my passions. And since I've never played anything but miniature golf and I only drink wine on Passover, I would have been making a critical mistake.

The best way to succeed in life is to pursue those things that truly interest you. So now, I'm looking for a new interest. If anyone has any suggestions on how I can now fill the countless hours that I spent on political websites, I am open to suggestions. In the meantime, I will revel in the news that for the first time in history, the United States elected an African American to the office of President of the United States. WOW!

Using Stories to Sell Yourself

Fri, 31 Oct 2008 12:52:55 GMT

BCG's CEO talks about the importance of using stories to sell yourself in a job interview. He explains how the technique is used effectively in selling rugs in Turkey.

Computer Professional Exemption

thelegalthing@sun.com (Mike Dillon) — Thu, 30 Oct 2008 19:15:59 GMT

Last month, as part of the resolution of the impasse over the California state budget, AB10 was passed and signed into law by Governor Schwarzenegger. This piece of legislation amends California Labor Code Section 515.5, known as the "Computer Professional" exemption to state overtime laws.

Prior to this amendment, Section 515.5 required that "computer professionals" receive at least $36 per hour in order to be exempt from overtime payments. While the original legislation may have had a positive intent, the result was not because in order to qualify for this exemption computer professionals were required to track their hours to verify that they received the hourly minimum.

AB10 was the subject of a great deal of lobbying prior to its passage, with the plaintiff's bar arguing that it would be the first step in the elimination of all hourly wage requirements. Others claimed the existing legislation was necessary to ensure that computer professionals were paid a living wage. The reality is very different.

AB10 is not about paying fair wages. Qualified computer engineers remain in high demand. This market demand is reflected in the fact that most computer professionals receive an annual salary that far exceeds the $75,000 minimum level set forth in Sec. 515.5 and includes stock options, benefits and other perquisites. And it should be noted that California's minimum level remains more than three times what is required in other states where the federal standard applies.

AB10 is important to keeping jobs in California. Technology companies consistently rank among the top employers and best places to work in the state. But, we are in an era of increasing globalization where employment opportunities are moving to other states and countries. Some of the most attractive and portable jobs are those of the computer industry. The passage of AB10 brings California law more in line with other states by making the computer professional exemption a true exemption that can be relied on by companies. It will also help reduce the tsunami of wage hour class actions that arose under the previous legislation which resulted in companies paying litigation costs rather than investing in job creation.

In a global economy, California can not afford to be an island if it desires to keep taxpaying jobs for its citizens. Congratulations to the governor and California legislature. AB10 is a positive thing for its technology employers and employees, and for California.

Finding Opportunity in Times of Trouble

Thu, 30 Oct 2008 10:41:34 GMT

Lawyers have a tendency to see a glass that is half empty. It is a useful trait if you want to be a good manager of risk. But it can be crippling at a time when change is in the air. If you are finding yourself focusing too much on bad economic news and simply waiting for "the inevitable", here are some suggestions from a sales trainer on how to get out of a mindset of negativity. While these suggestions are aimed at anyone who has to sell for a living, they have great relevance for lawyers.

My favorite suggestion is "2. Hang around with people who think differently". If you find that everyone around you is passively waiting for more work to land on their desk (i.e. because the market for legal services "stinks" right now), then maybe it is time to hang out with other associates. Group negativity is contagious and if you are not careful, it is easy to join in the collective the collective chorus of whining.

Picking A Guardian For Your Children Part 2

awewalt@ewaltlaw.com (Andrew Ewalt) — Wed, 29 Oct 2008 19:50:42 GMT

Having selected who will act as the guardian it is also important to consider how your assets should be maintained and utilized for your child's benefit. It is a very good idea to leave assets in trust for your child's....

Having selected who will act as the guardian it is also important to consider how your assets should be maintained and utilized for your child's benefit.

It is a very good idea to leave assets in trust for your child's. Trusts provide a centralized location for management and control of your assets and directions on how your child should benefit from those assets.

Here is a list of a few things to consider when thinking about a trust for your child.

1. Should the guardian also be the trustee? Is he/she good with money? Often parents separate these functions in order to add a second decision maker to the process.

2. How restrictive should the distributions to the child be? Income and Principle? Income only? How much desecration should the trustee have in determining when a distribution should be made.

3. At what age should the child realize full distribution from the trust? Often parents structure distribution in stages. One third at age 21, 25 and 30 is a common structure rather then a lump sum at age 18. 18 is common when no trust is used and a probate court is monitoring a minors assets. Just think about what you would have done at age 18 with thousands and thousands of dollars....new Ferrari come to mind?

Picking A Guardian For Your Children: Part 1

awewalt@ewaltlaw.com (Andrew Ewalt) — Tue, 28 Oct 2008 15:32:46 GMT

Have you legally selected who will raise and protect your children if you (and your spouse) die? Have you ever even considered the question? Have you even talked about it? If the answer is "no" or "not really" you are not alone. Many of my clients are just like you. It is often at the top of their "to-do-list but the truth is that if a parent does not state in their will who they want as guardian the government (a judge) will make that decision.

Here are some things to consider when selecting a guardian:

1. No one is going to be you. No one else will have your exact parenting, discipline or style. Once you get over this obstacle it is easier to make a good decision.

2. Parents want to make sure that if they were to die, their children will be taken care of. But what if the individuals they choose are not as well off? Can assets be left to the guardian to even things up?

3. Are the potential guardians emotionally and physically up to the job? Do they have the time? Adult siblings and elderly parents may not be the best choice?

4. Will your children have to move or change schools?

5. Do the guardians have the same moral beliefs?

6. Are they financially stable?

Pre Planning Your Funeral

awewalt@ewaltlaw.com (Andrew Ewalt) — Sat, 25 Oct 2008 21:46:00 GMT

Many of my clients are starting to consider the option of preplanning (and even prufunding) their funerals. This can be very important especially for individuals who are faced with long-term care in a nursing home, because the government allows and even encourages the prefunding of funeral expense up to $5,400.00. Here are some thoughts on why to consider preplanning your funeral.

1. Preplanning lets you make your wishes known, so your loved ones won't have to worry. They won't have to wonder if they made the right decisions.

2. Preplanning will helps reduce emotional overspending by your family and loved ones from grief or guilt.

3. Preplanning gives you a chance to personalize your funeral and make it a celebration of your life. Often your family just don't know what you would have wanted.

4. Prefunding helps relieve you and your family from future financial responsibility.

5. Peace of mind.

Getting the Cold Shoulder

Thu, 23 Oct 2008 13:23:01 GMT

That and other tell-tale signs that you may want to start fine tuning your resume.

Will You Lose Your Home If Your Spouse Enters A Nursing Home?

awewalt@ewaltlaw.com (Andrew Ewalt) — Mon, 20 Oct 2008 15:17:23 GMT

The odds of falling prey to Long-Term Care are staggering. There is a 43% chance that someone age 65 or older will eventually enter a nursing home during his or her lifetime. On Average most of these nursing home stays will last about 2 1/2 years . And such care is not cheap. A year in a nursing home can average more than $100,000.00 in Connecticut. Unfortunately, many hold the mistaken belief that Medicare and Medicare Supplemental Insurance will cover their Long-Term Care expenses. At best, Medicare will pay for all or part of the first 100 days of care. That's all. The lions share of all Long-Term Care cost is paid from the assets of the individuals needing the care. Because the cost of Long -Term Care can be so Staggering many people are legitimately concerned they will lose everything they have worked so long and so hard to acquire. What's more troubling is even Medicaid will only begin to help out when an individual has become impoverished meaning an individual only has a net worth of $1,600.00.

However, not all is lost for Connecticut couples facing the prospects of Long-Term Care costs. Medicaid rules also act to protect the spouse living in the community from impoverishment. This means that under the law a community spouse will be able to keep some of his or her assets. In Connecticut a community spouse is allowed to keep among other things the primary residence, an automobile, personal assets and jewelry, household effects and potentially up to more then $100,000.o0 in additional liquid assets. Unfortunate, everything else may be subject to Medicaid spend down requirements.

Hopefully, this information has waylaid your immediate concerns about losing your home and all of your other assets if your spouse needs Long-Term Care in a nursing home. On the other hand, there are many resources that might help increase the total assets that could be preserved. Through the use of a Long-Term Care Insurance Policy or advance planning with the assistance of an elder law attorney, much more, if not all of the couples assets could be protected. Too often people avoid facing the reality of the Long-Term Care threat and avoid taking action while they can still make a difference. Planning in advance is the key to avoiding the devastating effects of the cost of Long-Term Care.

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