If January’s Westlaw reference attorney controversy has taught us anything, it is that legal research providers have gotten more than a little desperate to increase their profits at the expense of their customers. Law firms should be more cautious than ever about monitoring existing contracts and the actions of their provider. Also, be extremely careful when entering into the renewal process. Not every tactic that these providers use is as obvious as Westlaw’s public blunder, but that does not mean similar changes are not occurring every day in the contract process.
As the title says, desperate times tend to inspire desperate measures, particularly when the bottom line is involved. Don’t be surprised if you see legal research providers use creative tactics.
- What if rate increases may not be what you expected or even agreed upon? What if annual percentage increases were tied to, let’s say, cost of living or some other shifting financial index? How would that affect your budget for subsequent years?
- Positioning terms and conditions in hyperlinks of the contract. This could have significant changes months or years into the contract. Your legal research provider is only required to give you written notice for you to review changes. If you miss that update or fail to review it thoroughly, you may find your contract has diminished in value.
- Presenting all options as inflexible, leading firms to believe there are no options to reduce costs, negotiate annual increases, or remove unnecessary products and services.
Buyer Beware: The Fine Print’s Fine Print
Many law firms have spent considerable time getting to the finalized contract only to find that there were conditions that were not discussed during the final phase of the process. Sometimes these costly conditions are tied into end clauses that count on your fatigue. Other times, covert modifications may be buried in addenda or accessed using hyperlinks in the main contract.
Remember:
- Your rep is a salesperson first, most likely with a sales quota, and their interests may not be necessarily aligned with yours. Do not rely on their goodwill to help you save money — saving you money is not their job.
- A sales rep may not show their hand when it comes to hidden clauses buried in your contract. That puts the onus on you to read and interpret every word.
- Once signed, there is no going back to change the terms and conditions. Since these are multi-year contracts and are a considerable monthly expense, it is particularly important to dig into the language, clauses and addenda before committing your firm.
- If you feel concerned about your ability to find and beat these cost increases, you can bring in a consultant to help you navigate the process. You have every right to seek help to better your situation.
The key takeaway is to recognize that legal research service providers are desperate to find ways to squeeze extra pennies from their customers long after the ink has dried on the contract. Law firms should be more cautious than ever when it comes to renewing and reviewing their legal research contracts.
Legal Counsel Consulting has the resources to evaluate contracts to assure competitive pricing.
If there is any way I can help or if you would like to schedule a brief conversation, please feel free to contact me.