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April 2019

J O U R N A L O F I N T E R N E T L AW

Tomorrow's Lawyer
solutions, and substantive law solutions. In this paper,
we explore how LegalTech, in particular smart con-
tracts and the related field of Legal Design could
potentially develop as a new form of platform-based

Today? business.1
The key argument of this piece is to highlight the
fast-evolving character of the legal profession in the
context of the digital revolution and to emphasize the

Platform-Driven importance for all legal professionals of understanding


these developments. In particular, the presentation of
contracts and privacy policies has gained increased

LegalTech, Smart
attention among regulators, researchers, and prac-
titioners. In Europe, the General Data Protection
Regulation2 (GDPR)’s requirement of information

Contracts & the


transparency and various other legislative require-
ments have contributed to the growth of interest
around these topics. Today, the problems of mandated
disclosures3 are well known and widely documented.

New World of Legal


Less has been said and done about the solutions. Legal
Design seeks to address this “gap” and change things
for the better.

Design
After this introduction, this article is structured as
follows: Section 2 briefly introduces the emerging plat-
form business model. Section 3 describes the shifting
role of lawyers in the context of the digital revolution.
Section 4 describes how LegalTech has assisted law-
Marcelo Corrales, Mark Fenwick, yers in performing this role and how platform-based
Helena Haapio, & Erik P.M. LegalTech has the potential to disrupt the legal profes-
Vermeulen sion. Sections 5 and 6 examine in a little more detail
two key developments, namely smart contracts and the
emerging field of Legal Design. Section 7 concludes.
1. INTRODUCTION

In recent years, we have seen clear indications 2 . T H E P L AT F O R M - B A S E D


of the disruptive changes ahead in the market for BUSINESS MODEL
legal services, which are currently driven by emerging
LegalTech start-ups. There are various broad catego- A major development in the global economy
ries of these LegalTech start-ups, including technol- over the last two decades has been the emergence
ogies assisting in the processing of data, IT support of businesses that organize and define themselves
as “platforms.”4 By platform, we refer to any orga-
nization that uses digital and other emerging tech-
Marcelo Corrales is an Attorney-at-Law specializing in nologies to create value by facilitating connections
intellectual property, information technology, and corporate between two or more groups of users. High-profile
law. Mark Fenwick is Professor of International Business examples of such companies are Amazon, Facebook,
Law at the Faculty of Law, Kyushu University, Fukuoka, Japan.
Helena Haapio is an Associate Professor of Business Law at the or Uber. The type of connection facilitated by dif-
University of Vaasa, Finland and a Contract Innovator at Lexpert ferent platforms varies depending on the platform.
Ltd, Helsinki. Erik P.M. Vermeulen is a Professor of Business & Some platforms facilitate connections between the
Financial Law at Tilburg University in The Netherlands, Senior Legal
Counsel at Signify (formerly known as Philips Lighting) and an buyer and seller of goods (Amazon); some facilitate
Innovation Advisor. connections between those wanting a service and

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J O U R N A L O F I N T E R N E T L AW April 2019

those willing to provide it (Uber); and others sim- tech companies).9 Also, the commercial success
ply facilitate connections (information exchange) makes them attractive to investors, as well as other
between friends (Facebook). What is common to all stakeholders.
platforms, however, is that they make connections The fast growth of platforms has compelled
between “creators” and “extractors” of value and the incumbents to re-visit their business models.
platform generates a profit from making these con- Traditional retailers, for example, have been forced
nections, either by taking a commission or through to shifting their distribution channels for their
advertising.5 products from “stores” to online platforms. For
A cursory look at any list of the world’s largest example, General Electric has attempted to trans-
companies illustrates the speed of this change. In the form itself from an industrial manufacturer into a
2000s, none of the companies in the world were plat- data science company that utilizes platforms, soft-
forms. Now, you could make the argument that over ware, applications, and big data.10 Also, as new
half of the world’s ten largest companies are organized Fintech firms are moving into the financial ser-
as platforms or, at least, derive a significant slice of vices space, many banks are thinking about how to
their income from platform operations. The emer- add platform services to their operations.11 In fact,
gence and growth of platforms is a significant event, every organization is now obliged to consider inte-
not least because such platforms have become a rou- grating platform ideas and experience into their
tinized feature of everyday life within such a short operations.
period. To illustrate this rise, consider that it took the
radio 38 years to reach 50 million users. It took televi-
sion 13 years to achieve the same degree of market 3 . T H E “ L AW Y E R O F T H E
penetration. Facebook, however, “only” needed two F U T U R E ” A S T R A N S AC T I O N
years to gain the same number of users. Now, it has an ENGINEER
active user base of over 2 billion.6
The success of platforms has been made possible Historically, lawyers have been at their most
by the development and proliferation of a number useful when they have operated as “transaction engi-
of digital technologies—most obviously, PCs and neers” that enable new types of business or other eco-
smartphones, the Internet, algorithms, and cloud nomic relationships. The development and growth of
computing. The global reach of these technologies Silicon Valley as a hub of digital technologies in the
encourages more users and other companies to join early 1970s is often presented as an example of lawyers
a platform, adding more “content.” This makes the performing such a role.12
platform more attractive to other content “creators” Although the idea of the “clustering” of similar
and “consumers.” This is particularly important businesses was a significant source of innovation, there
because the success of a platform depends on “net- is a wide consensus that lawyers were also important
work effects.” The more users that a platform has, the in the development of technology firms and facilitat-
more everyone benefits.7 ing innovation.13 For example, lawyers drafted the
In addition, the global proliferation of digi- contractual provisions that provided protection for
tal technologies and communication networks high-risk investors—i.e., angel investors and venture
means that platforms can be established anywhere. capitalists—from the various risks associated with
The emergence of hugely successful platforms in investing in startup companies. Moreover, lawyers
China (Alibaba) or Indonesia (GoJek) illustrates were involved in a range of other activities, such as
the universal appeal of this business model. This deal making, matchmaking, and gatekeeping, in order
highlights an important point; namely how tran- to help founders to start and scale their new busi-
sitional economies might employ platforms to nesses. Finally, various new contractual mechanisms
“leap” directly into the digital age. At least, many helped reduce information asymmetries between the
national governments, as well as international entrepreneurs and investors and, as such, were neces-
organizations, seem to believe in this possibility.8 sary to bring the demand- and supply-side of venture
The adaptability of platforms makes them attrac- capital together in a way that was effective and advan-
tive in all sectors of the economy (and not just tageous to both sides.14

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April 2019 J O U R N A L O F I N T E R N E T L AW

In this way, we can see from the Silicon Valley architects, and other experts and specialists (depend-
example how lawyers functioned as “transaction engi- ing on the particular transaction).21
neers,” i.e., intermediaries that brought together in In pursuing these new solutions, lawyers will be
a relative “safe” environment multiple parties with confronted with a very different type of client. Fast-
quite different but compatible interests. The contri- growth technology companies with limited assets and
bution of local law firms helps explain, in part, the a small number of employees are central to this emerg-
success of Silicon Valley.15 ing digital world. The most successful companies have
The problem, however, is that lawyers often failed used networked digital technologies to create new
to perform this function of being active transaction business models. Trust and value are created through
engineers that add-value. Instead, lawyers became a platforms and networks, instead of by the manage-
hindrance to such creative transactions. This happens ment of workers or assets. The lawyer of the future
for many reasons, but the habit of lawyers to “proce- will need to understand the opportunities and chal-
duralize” solutions and to employ standard form “tem- lenges and help firms to re-invent their governance
plates” is a significant factor.16 structures to be more open and inclusive.22
Lawyers have therefore developed a reputation as In this new model of legal services, law firms
one of the least trusted professions.17 The complaints will need to operate as dynamic and flexible legal
are familiar: lawyers are verbose, they don’t listen, platforms with an emphasis on connecting legal
they are unresponsive, they charge too much, they and other experts and managing the collaboration
don’t care about clients, they spend too much time on and transactions. In this new world of platforms,
trivial issues, they don’t keep clients informed, they such “matchmaking” and project-based temporary
constantly “over-lawyer,” and they don’t communi- partnerships, will mean that lawyers and other legal
cate clearly and concisely.18 advisors will need to be aware of the way network
In the context of the digital revolution, lawyers technology, and other code-based technologies oper-
therefore need to focus on re-discovering their func- ate. After all, many of the “solutions” that the law-
tion as effective transaction engineers that can assist yer of the future will be expected to help design will
parties in facilitating interactions and reducing costs. be technology based. The transactions that lawyers
In a modern business environment, there are many will be facilitating will be dependent on computer
costs that need to be cut: agency costs, transaction code. It is in this context that to facilitate lawyers in
costs, monitoring costs, regulatory costs, and com- performing this function, legal education will need
pliance costs. As such, the scope for lawyers to “add to undergo some important changes in order to pre-
value” is enormous.19 pare prospective legal professionals to perform this
In contrast, one can sometimes hear the view that function.23
the digital revolution may mean the end of lawyers. Most obviously, in the context of the digital
Such views are overstated. Nevertheless, we do think transformation, an understanding of code is going
that if the lawyers of the future are to add value they to be crucial for the lawyer of the future to per-
will need to operate as effective transaction engineers form this transaction engineer function effectively.
and it is very clear that the legal profession is going to More and more businesses and industries will
need to adapt in various ways.20 revolve around code-based products or services,
First, lawyers of the future will need to be able to so facilitating ­transactions—i.e., being an active
assume the role of “project managers.” Lawyers will transaction ­engineer—will inevitably involve cod-
need to become key participants in multidisciplinary ing to some degree. Such coding will require mul-
teams that are going to design the new solutions of tidisciplinary teams working in collaboration and
the future. A capacity to operate in a multidisci- the capacity of lawyers to actively participate in
plinary environment will be vital, as the ability to such teams will be crucial to their success as legal
communicate with a more diverse set of “partners” is professionals. The development of Blockchain
increasingly required. In the digital world, this means technologies and smart contracts are particularly
that lawyers will not only have to work closely with relevant in this regard.24
traditional “partners” such as accountants or financial In the following sections, we therefore examine
service advisors, but also with engineers, designers, LegalTech, smart contracts, and Legal Design.

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J O U R N A L O F I N T E R N E T L AW April 2019

4 . L E G A LT E C H A N D T H E A key effect of these start-ups is the disruption


DISRUPTION OF LEGAL of existing legal practices, and this development has
P R AC T I C E broad implications for the legal profession. Current
legal services are less relevant and seem likely to be
LegalTech—also known as “Legal Technology,” overtaken by LegalTech providers.32 Junior legal pro-
“Legal Informatics,” or “Law and IT”—is disrupting fessionals and legal support staff are likely the first
the way lawyers practice law. It refers to the adoption effected by this development.33 LegalTech applica-
of innovative technology to improve legal services. In tions will soon be able to perform much of the work
other words, the hardware and software used in the of junior lawyers—e.g., document review—and with-
legal profession. LegalTech is therefore the response out the imperfect human qualities that can result in
to the exponential growth of new technologies which mistakes and possible lawsuits.34 Second, the legal
is influencing directly the legal sector, known as one profession will be forced to innovate as a result of
of the most conservative markets.25 the expansion of LegalTech. Innovation is not a task
In the context of this article, we refer to that is easily accomplished by legal institutions that
LegalTech as platforms, IT services, and software that have entrenched operating procedures and have often
make law firms and lawyers more efficient in perform- lost the capacity for pivoting in their operations.35
ing their legal activities. Practice management, docu- Nevertheless, the benefits and necessity of change
ment storage, and automated billing and accounting seems to make such a transformation of procedures
software are prominent examples of how technology inevitable for most law firms, especially medium or
has affected such core tasks. LegalTech also plays an large firms operating in a business context.
increasingly important part in assisting legal profes- LegalTech also creates the possibility of trans-
sionals in the due diligence and discovery processes.26 forming law firms and the legal departments of busi-
At first, LegalTech made law firms and lawyers nesses into “virtual law firms.” A virtual law firm is a
more efficient in performing their traditional core platform with an emphasis on connecting legal and
activities, such as automated billing, document stor- other professionals in a collaborative online environ-
age, practice management, or accounting software. In ment involving both human and machine actors. The
the early 2010s, LegalTech became more advanced virtual law firm model attracts a broad spectrum of law
and started to involve technologies that assisted legal firms. One extreme is represented by the traditional
professionals in more sophisticated tasks, such as due law firm characterized by a hierarchy with partners
diligence or e-discovery. LegalTech has continued to at the top and varying levels of associates, paralegals,
evolve. Multiple start-ups are now using emerging and nonlawyers below them. On the other end of the
technologies, and next-generation technologies are spectrum are those firms that adopt an Airbnb-type
already replacing some junior lawyers and disrupting platform organization, mainly providing a matchmak-
the existing parameters for the practice of law.27 ing/coordination service. Enormous variations exist
Several types of LegalTech start-up can be identi- between the two extremes, depending on the level of
fied. The first type includes start-up companies that implementation of Legal Tech.36
offer a range of online legal services, removing the Some start-ups are already looking to develop as
direct connection of legal consultation process and platforms that add value by connecting lawyers and
guidance for clients.28 The second legal start-up type clients. At the moment, the focus is primarily on
involves online matching platforms that connect match-making but integrating AI or machine learning
lawyers with clients.29 Such platform start-ups help is explicitly mentioned as a key near-future goal. For
consumers find an appropriate lawyer without the instance, UpCounsel offers entrepreneurs on-demand
involvement of a law firm. The third category entails access to experienced lawyers.37 LawyerlinQ38 in the
start-ups that use AI tools to perform time-consum- Netherlands and Digitorney39 in Germany offer law
ing and expensive legal research activities such as firms the possibility to “insource”40 special knowledge
reviewing, understanding, and evaluating contracts.30 and skills for more complex projects. Digitorney aims
Finally, start-ups specializing in blockchain technolo- to disrupt the traditional relationship between com-
gies attempt to replace lawyers as intermediaries for panies and corporate law firms by providing a platform
certain types of transactions.31 or matchmaking function that connects companies

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April 2019 J O U R N A L O F I N T E R N E T L AW

with the law firm that is best placed to meet a compa- smart contract in its earliest and most simple form is
ny’s specific needs. As such, it helps companies over- the vending machine, which is designed to transfer
come the lack of transparency or comparability in the the ownership of a good (e.g., a can of soda) for the
legal market services, as well as the greater degree of exchange of money. The vending machine is in con-
specialization in a business law context.41 trol of the property—by being physically sealed—thus
Future technological advances—most obviously, can enforce the “contract” that is called a “contract
in the fields of machine or deep learning—will mean with bearer,”46 since anyone with money can engage
that lawyers and other legal professionals are replaced in a transaction with the vendor.47
for many activities. Artificial intelligence tools help By extending the logic underlying mechanical
clients to review, understand, and even draft legal devices such as the vending machine, Szabo suggested
documents.42 Data analytics, machine learning, and that the computer code could be used in place of
deep learning are not only used to do legal research vending machines. This idea could be implemented to
but also assist in legal decision making and the predic- negotiate more complex transactions, forging strate-
tion of legal cases.43 As such, there is no doubt that gic relationships, and coordinating transactions aris-
in the near future LegalTech will “automate” a lot of ing under diverse jurisdictions. Instead of transferring
business work, such as document drafting and compli- the ownership of a can of soda, a smart contract could
ance-related work. transfer ownership of shares, real estate, intellectual
property rights, etc.48
Smart contracts are encoded in such a way that the
5 . B L O C K C H A I N A N D S M A RT correct execution is guaranteed by the Blockchain.49
C O N T R AC T S The Blockchain is essentially a distributed ledger that
can be configured to be accessible publicly or pri-
In various ways, therefore, LegalTech is changing vately and the technology guarantees the transaction
the traditional role of legal professionals. Crucially, history.50 This Blockchain-based smart contract tech-
law professionals play a key role in establishing trust in nology allows the involved parties to transfer, receive,
business transactions. Most obviously, they negotiate, and store value or information through a distributed
draft, and interpret contracts and help enforce them. peer-to-peer computer network.51 Decisions are typi-
Well-drafted contracts help to establish confidence in cally based on a majority vote while variations exist in
the validity of the transaction and the economic ben- which accessors of information may have only partial
efits of the deal for the contracting parties. Important access to a selected subset of the data (permissioned
matters, such as the truth about ownership and con- Blockchains).52
trol, the transfer of property, and the allocation of In other words, each transaction is distributed
risk and control, are typically covered in a contract. across the entire network and is stored in a block only
However, such deal-making, matchmaking, gatekeep- when the rest of the network approves the validity of
ing, and enforcing roles are increasingly performed the transaction. This process is based on past events
with the assistance of technology. Also, this trend taking into account the previous block.53 Each block
seems likely to accelerate soon, enabled by new tech- holds a unique fingerprint built on cryptographic hash
nologies (such as Blockchain) and smart contracts.44 code techniques similar to those used in the creation
A smart contract can be defined as  computer of digital certificates and electronic signatures to
code that automatically executes all or parts of an secure authentication.54 Furthermore, a transaction
agreement and is stored on a Blockchain-based plat- history is maintained and can be accessed in order to
form. The concept of smart contracts dates back to check the sequence of events up to this point in time.
1994. It was originated and popularized by computer To take a simple example, consider a smart con-
scientist Nick Szabo. He suggested that many kinds of tract in the case of a car loan. If the borrower misses
contracts can be embedded in computer software and a payment (tracked via a Blockchain-like technol-
hardware architecture. According to Szabo, a smart ogy) then the contract/code would not allow the use
contract is “a set of promises, specified in digital form and operation of the car, i.e., the contract would be
including protocols within which the parties perform “enforced” via networked technologies that disable
on these promises.”45 Szabo’s canonical example of a the car, rather than a “repo man.” Such contracts may

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J O U R N A L O F I N T E R N E T L AW April 2019

produce efficiency, timing, and performance improve- are being spent on preparing materials that legislators
ments as a result of the automation of the contract’s expect to protect the weaker party. The result: plat-
terms. This automation is achieved by computer code form users and customers are overwhelmed with infor-
which controls the automated performance in the mation and choices they would rather not deal with.
context of an Internet of Things environment where When making comparisons or choices becomes hard,
digital devices are interconnected.55 people just click “Accept”—telling what is known as
The advantages of smart contracts are clear. They “the biggest lie on the Internet.”57 Most people using
seem particularly well-suited to the following types of platforms or consuming Internet services just want
transaction found in many contracts: (1) ensuring the access to whatever they are looking for. As regards dis-
payment of funds upon certain objectively verifiable closures and terms, anything goes. If there is no room
triggering events and (2) imposing financial penal- for negotiation, why take the trouble of even reading?
ties if certain objective triggering conditions are not This way of thinking is not just something care-
satisfied. In both these cases, computer code can eas- less consumers do. Traders, producers, and adver-
ily represent the logic of the agreement in the form tisers often think the same way, too. They may be
of “If X occurs, then execute Y” statements. Human experienced business people, but they are reluctant
intervention is not required once the smart contract to read contracts and legal information.58 Even if
is operational, greatly reducing the execution and they read, they may not understand. According to
enforcement costs of the contracting process. research by the leading global Association in the
Although smart contracts can be applied in dif- field, the International Association for Contract and
ferent jurisdictions and industries, they are still in Commercial Management (IACCM), more than 9
developing phase. At present, the actual tasks that out of 10 managers admit that they find contracts dif-
smart contracts can perform are fairly basic and ficult to read or understand.59
straightforward, as seen in the car loan example. Well-meaning legislators mandating information
However, since the adoption of more decentralized obligations are currently not reaching their goal of
Blockchain-based platforms and applications accel- helping those they seek to protect. Platform traders,
erate these days—along with their associated smart producers, and advertisers have a hard time fulfilling
contracts—they will become increasingly more their information obligations and finding guidance on
complex and capable of handling all kind of busi- how to do things right.60 This needs to change.
ness transactions.56 This means that we need a more
seamlessly integrated or interdisciplinary approach to
such contracts. Addressing the many challenges cre- 6.1 HUMAN-CENTERED DESIGN TO THE
ated by smart contracts requires going beyond any one RESCUE
disciplinary perspective or frame of reference. Legal
designers can bring a new perspective to smart con- For a long time, drafters of contracts and legal
tracts, for example, by building powerful interfaces information have focused on content and precision.
using different kinds of design patterns. Their attention has been centered around compliance
and risk, rather than the needs of the people who are
expected to read and use the information they pro-
6. LEGAL DESIGN AND DESIGN duce. Experience and research tell us that the people
PAT T E R N S who use contracts or legal information are not being
served well by their current design.61 Legal Design
In many countries, the legislator requires online seeks to change this.
traders to disclose various kinds of information to Legal Design is an interdisciplinary approach
platform users, especially in the context of consumer, to apply human-centered design to prevent or solve
investor, and data protection. Traders and their advi- legal problems. It prioritizes the point of view of the
sors have to take into account different requirements “users”: not only lawyers and judges, but also citizens,
in order to present information—mandatory disclo- consumers, business people—anyone. It builds on the
sures, terms and conditions, privacy, and cookie poli- vision of a legal system that is more straightforward,
cies—to comply. Around the world, time and money more engaging, and more user-friendly. This includes

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April 2019 J O U R N A L O F I N T E R N E T L AW

how information is presented, how processes are set Visualization—here understood as adding graphs,
up, and how policies have been established. The goal icons, tables, charts, and images to supplement text—
is to improve how lawyers communicate, deliver ser- can help human readers in navigating complex infor-
vices, and make rules and policies—all with the aim mation, opening up its meaning, and reinforcing its
of enhancing the experience, comprehension, and message. At the planning stage, visualization can
empowerment of the users.62 help identify the stakeholders’ goals and expectations,
Contracts, too, can be “impenetrable, incompre- align these, and capture them in a record. In contract-
hensible, confusing and downright boring.”63 Even if ing, the parties are not only free to choose and agree
smart contracts offer perfect performance, their look upon the contents of their contract, they are also free
and feel is not likely to improve the situation for to choose its form (except when the law requires a spe-
human readers. Contract Design applies design think- cial form, such as in the case of sale of real property).
ing in the context of contracts, aiming to make them As long as the arrangement and the parties’ intent to
more useful and usable: the focus is on supporting commit (or not to commit, as the case may be at the
collaboration, driving desirable outcomes, creating preliminary stages) are clear, the parties have a free-
opportunities, and preventing problems before they dom to tailor their affairs and to design their contracts
arise. Contract designers do more than drafting: they the way they want, according to their own needs and
look for a balance between functionality and preci- interests. If they want to, they can choose to deviate
sion, and between precision and ease of use. This from the traditional paradigm in which the contents
requires contracts and processes that make sense for of contracts are expressed as text only.68 They can
the people who work with those contracts, whether choose to use code, a visual user-friendly interface, or
those contracts are smart or “dumb.”64 both for their contracts—something that is already
Design thinking stresses the importance of visual happening with the Creative Commons licenses, for
communication. Visualizing helps humans to think, example.69
communicate, make assumptions visible, and secure
understanding across disciplines. The goal is not to b. Collecting and Sharing Solutions that Work:
create images—the goal is to create understanding. In Legal Design Patterns
the context of platforms and smart contracts, visual- Prior research has revealed promising approaches
ization can help create functional, useful, and usable that can help make legal information more accessible
processes, systems, and outcomes. It can help lawyers, and understandable. A number of solutions already
technologists, and business people see the big picture exist, but they are scattered around and not always
and communicate and share solutions. easy to find or to apply.
Scholars in many parts of the world have felt
a. The Origins: Simplification and Visualization of the need to improve, systematize, classify, and even
Legal Information standardize the representation of legal information,
The first experiments with human-centered including visualization. They have suggested, for
design in the legal domain started around contracts example, diagramming transactions, a graphical user-
and legal information and their visual communica- interface for legal texts, a visual interface for deal
tion: presenting complex content so that it is easy to making, and a layering approach along with icons and
translate into action. This is deeply rooted in the dis- a preview. 70 The varying labels used for the suggested
cipline of information design: organizing and displaying solutions show the need for a more unified approach.
information in a way that maximizes its clarity and Design patterns can provide such an approach and a
understandability.65 more universal language.
Even before Legal Design became a “thing,”66 For architects, interaction designers, and software
early pioneers promoted better and simpler presenta- engineers, design patterns and pattern libraries are a
tion of legal information with user-centered design, common way to share reusable solutions to commonly
simplification, and visualization. Several projects occurring problems.71 Borrowing tools from these pro-
have looked into the simplification of online Terms fessions seems natural for our purposes. These tools
& Conditions, end-user licenses, and privacy policies, are particularly important in the context of platforms,
for example, through the use of icons.67 LegalTech, and smart contracts, where the choices

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J O U R N A L O F I N T E R N E T L AW April 2019

the builders and users make can have a huge impact recurring problems—offer themselves as enablers of
on both the processes and systems as well as their fruitful interdisciplinary dialogue between law, busi-
outputs.72 ness, design, technology, and behavioral sciences.
Erik Gerding proposed in his 2013 Law Review Design patterns are especially useful in organizing
article73 that contract lawyers take a design pattern and displaying information in a way that maximizes
approach and create a pattern language for contracts. its clarity and understandability. They can provide
Later, several multi-professional teams of research- a solid basis on which to implement the principle of
ers have explored similar approaches and developed transparency in a genuinely user-centric, rather than a
prototypes of legal design pattern libraries, first for merely legalistic manner. This approach is particularly
contracts,74 and later for privacy and other commu- relevant in the context of LegalTech and smart con-
nication.75 Related articles illustrate, with examples, tracts, where the next generation of lawyers, software
how design patterns can help solve recurring problems developers, and legal designers can bring altogether a
and implement the principle of transparency in con- new perspective on both the processes and systems as
sumer-facing communication.76 well as their outputs.
With the help of Legal Design, LegalTech solu-
tion builders can build better interfaces and output,
supplementing text or code with layers of explana- N OT E S
tory diagrams, examples, plain language translations, 1. Micha-Manuel Bues & Emilio Matthaei, LegalTech on the
audio, or video. Merging LegalTech with Legal Design Rise: Technology Changes Legal Work Behaviors, But Does Not
Replace its Profession, 90. In: Kai Jacob, Dier Schindler & Roger
helps switch between the different versions of the Strathausen (eds) Liquid Legal: Transforming Legal into a Business
same content and facilitates the making of “good” Savvy, Information Enabled and Performance Driven Industry
(Springer, 2017).
disclosures and “good” contracts, whether smart or
2. Regulation (EU) 2016/679 of the European Parliament and
otherwise. The goal: genuinely informed consumers of the Council of 27 April 2016 on the protection of natural
making good choices and “wise contracts”77—smart persons with regard to the processing of personal data and on the
free movement of such data, and repealing Directive 95/46/EC
contracts that work for people and machines: con- (General Data Protection Regulation).
tracts that are simple at the front, but smart—from a 3. See, e.g., generally, Carl Schneider & Omri Ben-Shahar, The
legal and technological perspective—at the back. Failure of Mandated Disclosure (John M. Olin Program in Law and
Economics Working Paper No. 517, 2010).
4. See, Geoffrey Parker, Marshall Van Alsyne & Shandgeet
Choudry, Platform Revolution: How Networked Markets are
7. CONCLUSION Transforming the Economy and How to Make them Work for You
(W.W. Norton & Company Inc., 2016); Alex Moazed & Nicholas
Johnson, Modern Monopolies: What it Takes to Dominate the Twenty
The development of Blockchain-based decen- First Century Economy (St. Martin’s Press, 2016).
tralized and distributed technologies—particularly 5. Mark Fenwick & Erik P. M. Vermeulen, A Sustainable Platform
Economy & the Future of Corporate Governance, 2-3. European
smart contracts—are poised to usher in significant Corporate Governance Institute Working Paper Series in Law.
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