Monday, July 3, 2017
What happens when contract and document legal analytic software goes open source? Is RoboLawyer on the horizon? Are unmet needs to legal transactional services about to be fulfilled? Maybe some of both. LexPredict, a legal software company associated with Chicago-Kent law prof Daniel Katz, announced today that we are about to find out. The results should be of great interest to those of us who follow trends in legal tech. Below are some key paragraphs from the press release on the open-sourcing of ContraxSuite:
Over the last decade, we’ve spent many thousands of effort-hours and hundreds of thousands of dollars developing the contract and document analytics tools that we use with clients. These tools, based on enterprise-quality open source frameworks for natural language processing, machine learning, and optical character recognition, have allowed us to quickly and easily attack many problems, from securities filings and court opinions to articles of incorporation and lease agreements.
Today, we are proud to announce that we plan to open source our core platform for document analytics as ContraxSuite. This code base will be hosted on Github under a permissive open-source licensing model that will allow most organizations to quickly and freely implement and customize their own contract and document analytics. Like Redhat does for Linux, we will provide support, customization, and data services to "cover the last mile" for those organizations who need support or assistance.
We believe that the future of law lies in its central role in facilitating and regulating the modern information economy. But unless we start treating law itself like the production of information, we’ll never get there. We hope our actions today will help lawyers and other LegalTech companies accelerate the pace of improvement through more open collaboration.
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The real challenge in contract analytics is to develop the so-called "training data" - the set of documents and labels used to "teach" the machine what separates a lease agreement from a purchase/sale agreement from a retirement benefits plan. Herein lies the true value of the current software and service providers. But, paradoxically, almost all providers get their information from one of two sources - either public sources of agreements, like the SEC’s EDGAR database or evidence from public courts, or private sources of agreements - their clients. Many organizations have therefore paid for the privilege to give away their own information so that someone else can profit.
By open-sourcing ContraxSuite, we hope to change this dynamic. The analysis and standardization of contracts and corporate governance material is key to the transformation of our economy. But blockchain and Smart Contracts aside, there are significant improvements in risk management, compliance, and profitability that can be gained by treating contracts as valuable data. Until legal departments and law firms can be "sequentially motivated," to borrow Professor Agarwal’s language, we will not see this maturation of the industry.
In the near future, we’ll be revealing more details about this open source strategy - including partnerships, support and customization services, and open-source license model. In the meantime, we hope to get everyone thinking fundamentally about how we do business in legal tech. What does the client really want - software licenses, or a real solution?
The full text of the press release is available here.