A Comprehensive Guide to the

Asia-Pacific Legal Markets

JOHN GRIMLEY

PUBLISHED BY

IN ASSOCIATION WITH

Contents
Executive summary.................................................................................................................... IX
About the author......................................................................................................................XIII
Acknowledgements..................................................................................................................XV

Part One: An analysis and definition of the Asia-Pacific region

Introduction: Analyzing whether the expected growth in the region is realistic................................. 3
Chapter 1: What is the Asia-Pacific region?.................................................................................. 7
A region characterized by diversity................................................................................... 8
Emerging markets.......................................................................................................... 9
An illustration of market differences in the region The case of franchising................................ 9
The regions impact in the global economy....................................................................... 10
Growth of economies....................................................................................................11
Innovative launching pads for expansion into new markets....................................................11
New focal points to advance effectiveness....................................................................... 12
Investments in technology.............................................................................................. 12
Conspicuous U-turn...................................................................................................... 12
Long-term local talents.................................................................................................. 12
Partnerships to offset barriers.......................................................................................... 13
Market entry via public-private partnerships...................................................................... 13
Domestic priorities....................................................................................................... 13
Novel technologies...................................................................................................... 13
Challenges to regional growth: Long-term sustainable economies.......................................... 14
Chapter 2: Australia and its role in the Asian legal market........................................................... 15
Australias positioning................................................................................................... 15
Is Australia part of Asia?............................................................................................... 15
The current Australian legal market.................................................................................. 16
Australias unique attraction as a gateway to Asia.............................................................. 16
Australia riding a wave of Asian legal market expansion..................................................... 16
Australian law firms going overseas................................................................................. 18
Australia in Asias legal market....................................................................................... 18

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Contents

Chapter 3: Emerging trends impacting legal services in the Asia-Pacific region.............................. 19

Economic growth........................................................................................................ 20
Trade liberalization...................................................................................................... 22
Price competition......................................................................................................... 24
Intra-Asian law firm growth............................................................................................ 25
Japanese law firms among the leaders in intra-Asian law firm growth..................................... 26
Law firm mergers......................................................................................................... 26
Legal market liberalization............................................................................................. 27
Alternative business structures......................................................................................... 28
Influx of foreign law firms.............................................................................................. 28
Singapore as a model for future local competition?............................................................ 28
The future of NewLaw in Asia........................................................................................ 29
What is the future of legal services in Asia?...................................................................... 30
Conclusion................................................................................................................. 30
Emerging trends in technology and law in Asia................................................................. 30

Part Two: In-depth analyses by country

The Chinese legal market An overview.................................................................................... 35
Chinas importance in the Asian economy........................................................................ 36
May foreign lawyers practice in China?.......................................................................... 36
Participation at government proceedings.......................................................................... 38
Key law firms in the China market................................................................................... 38
Key foreign trade agreements and their impact upon the market........................................... 38
An interview with Paul Kossof, author of Chinese Trademark Law, The New Chinese
Trademark Law of 2014................................................................................................ 39
The Hong Kong legal market An overview............................................................................... 41
Hong Kongs importance in the Asian economy................................................................. 41
May foreign lawyers practice in Hong Kong?................................................................... 42
Key law firms in the Hong Kong market........................................................................... 42
Key foreign trade agreements and their impact upon the market........................................... 43
E-discovery in Hong Kong............................................................................................. 43
The South Korean legal market An overview............................................................................ 45
South Koreas importance in the Asian economy................................................................ 45
May foreign lawyers practice in South Korea?.................................................................. 46
Key law firms in the South Korean market......................................................................... 46
Key foreign trade agreements and their impact upon the market........................................... 47
Trends in the South Korean legal market........................................................................... 47
Interview with Ryan Russell, author of the Kimchi Law Blog in Korea....................................... 48

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A Comprehensive Guide to the Asia-Pacific Legal Markets

The Japanese legal market An overview.................................................................................. 53

Lawyer numbers increase, but opportunity remains............................................................. 53
Legal market value....................................................................................................... 54
Japans importance in the Asian economy........................................................................ 54
May foreign lawyers practice in Japan?........................................................................... 54
Key law firms in the Japanese market.............................................................................. 55
Key foreign trade agreements and their impact upon the market........................................... 55
The Myanmar legal market An overview................................................................................. 57
Myanmars importance in the Asian economy................................................................... 57
May foreign lawyers practice in Myanmar?...................................................................... 58
Key law firms in the Myanmar market.............................................................................. 58
Key foreign trade agreements and their impact upon the market........................................... 59
The Malaysian legal market An overview................................................................................ 61
Malaysias importance in the Asian economy.................................................................... 61
May foreign lawyers practice in Malaysia?...................................................................... 62
Key law firms in the Malaysian market............................................................................. 62
Key foreign trade agreements and their impact upon the market........................................... 63
The Indonesian legal market An overview................................................................................ 65
Indonesias importance in the Asian economy................................................................... 65
May foreign lawyers practice in Indonesia?...................................................................... 66
Key law firms in the Indonesian market............................................................................ 66
Key foreign trade agreements and their impact upon the market........................................... 67
The Australian legal market An overview................................................................................. 69
Australias importance in the Asian economy..................................................................... 69
May foreign lawyers practice in Australia?....................................................................... 70
Key law firms in the Australian market.............................................................................. 70
Key foreign trade agreements and their impact upon the market........................................... 71
Observations on the Australian legal market by Richard Smith, author of the Australian
Law Firm Business Development Blog............................................................................... 71
The Indian legal market An overview...................................................................................... 75
Indias importance in the Asian economy.......................................................................... 75
May foreign lawyers practice in India?............................................................................ 76
Key law firms in the Indian market................................................................................... 76
Key foreign trade agreements and their impact upon the market........................................... 77
Q&A with Anuj Agrawal, associate editor of Bar & Bench................................................... 78
The Philippines legal market An overview................................................................................ 81
The Philippines importance in the Asian economy.............................................................. 81
May foreign lawyers practice in the Philippines?................................................................ 82
Key law firms in the Philippine market.............................................................................. 83

Contents

Key foreign trade agreements and their impact upon the market........................................... 83
Practicing in the Philippine legal market............................................................................ 84
The Singaporean legal market An overview............................................................................. 87
Singapores importance in the Asian economy.................................................................. 87
May foreign lawyers practice in Singapore?..................................................................... 88
Key law firms in the Singaporean market.......................................................................... 89
Key foreign trade agreements and their impact upon the market........................................... 89
Singapore: A snapsot of recent legal developments........................................................... 89
The New Zealand legal market An overview............................................................................ 93
New Zealands importance in the Asian economy............................................................. 93
May foreign lawyers practice in New Zealand?............................................................... 94
Key law firms in the New Zealand market........................................................................ 94
Key foreign trade agreements and their impact upon the market........................................... 95
Q&A with Jonathan Boswell, Chief Executive Officer at TGT Legal........................................ 95
The Brunei legal market An overview...................................................................................... 99
Bruneis importance in the Asian economy........................................................................ 99
May foreign lawyers practice in Brunei?........................................................................ 100
Key law firms in Brunei................................................................................................101
Key foreign trade agreements and their impact upon the market..........................................101
The Taiwanese legal market An overview.............................................................................. 103
Taiwans importance in the Asian economy..................................................................... 103
May foreign lawyers practice in Taiwan?....................................................................... 104
Key law firms in the Taiwan market............................................................................... 105
Key foreign trade agreements and their impact upon the market......................................... 105
The Thailand legal market An overview................................................................................. 107
Thailands importance in the Asian economy................................................................... 107
May foreign lawyers practice in Thailand?..................................................................... 108
Key law firms in the Thai market................................................................................... 108
Key foreign trade agreements and their impact upon the market......................................... 109
The Vietnamese legal market An overview.............................................................................. 111
Vietnams importance in the Asian economy..................................................................... 111
May foreign lawyers practice in Vietnam?....................................................................... 112
Key law firms in the Vietnamese market........................................................................... 112
Key foreign trade agreements and their impact upon the market.......................................... 113
Trends in Vietnams legal market.................................................................................... 114
The South Pacific islands legal markets An overview................................................................ 117
The South Pacific islands importance in the Asian economy................................................ 117
May foreign lawyers practice in the South Pacific?............................................................ 118

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A Comprehensive Guide to the Asia-Pacific Legal Markets

Key law firms in the South Pacific................................................................................... 118

Key foreign trade agreements and their impact upon the market.......................................... 118

Part Three: US and European Firms in the Asia-Pacific market

Chapter 4: Overview of the growth of US and European firms in the Asian markets..................... 123
The top legal firms in the Asian market............................................................................123
Major opportunities available to foreign law firms.............................................................123
Technology helps global legal services firms....................................................................124
Law firms are following their clients................................................................................124
American legal firms have dominated the move to Asia.....................................................124
Foreign firms face unique challenges in Asia....................................................................124
Unique locales of Asia-Pacific opportunity.......................................................................125
NewLaw and domestic law firms within Asia...................................................................126
Key expansion strategies..............................................................................................126
The risks of expansion.................................................................................................126
Factors for succeeding in Asian markets..........................................................................126
Have international law firms been successful in Asia?........................................................127
Geographic coverage of the region...............................................................................127
Profitability................................................................................................................127
Adherence to a common vision and values......................................................................127
Chapter 5: What are the major sectoral growth areas?............................................................. 129
Booming purchasing power..........................................................................................129
What drives the Asia-Pacific regions growth and development?..........................................129
Conclusion................................................................................................................132

Part Four: The global impact of the Asia-Pacific legal markets

Chapter 6: Asian law firms face the challenge of rapid evolution................................................ 135
The Asia-Pacific legal industry and its major players..........................................................136
State of legal services industry life cycle across Asia-Pacific................................................141
Rapid evolution facing Asia-Pacifics law firms..................................................................142
Successful Asia-Pacific law firms of the future................................................................... 143
Chapter 7: Foreign direct investment (FDI) in the Asia-Pacific region............................................ 145
Will Asia-Pacific FDI overtake other major world economies?............................................. 145
FDI developments worldwide....................................................................................... 145
The US and EU..........................................................................................................149
Conclusion................................................................................................................149

VII

Contents

Part Five: Case studies

Case study 1: AdventBalance Growing Australasias largest alternative legal service provider.... 155
The market opportunity................................................................................................155
The strategy.............................................................................................................. 156
The story so far..........................................................................................................157
Challenges and opportunities.......................................................................................157
Case study 2: K&L Gates Examining a globally integrated model.............................................159
The Asia-Pacific region................................................................................................159
Helping businesses capitalize on Chinas growth............................................................. 160
The firms expansion down under...................................................................................162
New frontiers in Asia................................................................................................. 163
Conclusion............................................................................................................... 163
Case study 3: Conventus Law A different focus....................................................................... 165
A focus on quality..................................................................................................... 165
Certainty and control................................................................................................. 166
Case study 4: The Tonga legal market.......................................................................................167
Case study 5: Clyde & Co........................................................................................................171
Sector strategy dictates expansion activity.......................................................................171
Asia-Pacific development at pace..................................................................................171
The Australian experience............................................................................................172
Appendix 1: Thoughts on technology and law in Asia................................................................175
How is technology impacting the practice of law?............................................................175
Early tech pioneers in law............................................................................................175
Are computers helpful or a hindrance?............................................................................175
Taking an active role in law practice..............................................................................176
Changing times globally..............................................................................................176
Trends in 2014......................................................................................................... 177
How is generational marketing becoming more important for law firms?................................178
The state of the legal industry........................................................................................179
Maximize human resources via understanding the generations.............................................179
Appendix 2: Seizing opportunity in a growing market...............................................................181
1) Education and training.............................................................................................181
2) Innovating within existing organizations.......................................................................183
Conclusion............................................................................................................... 184

VIII

Executive summary
THIS REPORT begins by analyzing whether
projections for dramatic growth a potential
doubling of the market by 2017 or 2020
in the region are realistic. The report goes
on to discuss the individual markets within
the region, the unique opportunities and
challenges these present, and how changes
in the Asia-Pacific market may impact upon
law firms in the west. This report brings
together the information firms need as they
consider whether to enter into or expand
within the Asia-Pacific market.
Part One seeks to analyze and define
the Asia Pacific market. As this book aims
to serve as a comprehensive guide to the
Asia-Pacific legal markets, it is important to
consider what comprises the Asia-Pacific
region. This is an expression frequently
used yet, what actually does it mean?
The Asia-Pacific region covers an extensive
geographic region comprising some 2.8
billion hectares of land or roughly 22 per
cent of the global land area. It is a vast
region that stretches from the perimeters of
China-Mongolia in the north to the southern
tip of Australia and New Zealand to the
south. While narrowly focusing on the AsiaPacific region, this study shall also use what
is generally observable coverage in the legal
services sector to define the parameters of
the market. This report, therefore, will seek to
cover the following markets in greater depth:
China, Hong Kong, South Korea, Japan,
Myanmar, Malaysia, Indonesia, Australia,
India, Philippines, Singapore, New Zealand,
Brunei, Taiwan, Thailand, Vietnam, and the
South Pacific Islands. Some of these markets

are considered both developed and/or

developing. Either way, they are all widely
regarded as key markets in the context of
legal services in the region.
Part One of this report goes on to
consider the role of Australia in the Asian
legal market. Asia-Pacific regional integration
has been brought about by many years of
national and regional collaborative initiatives
and strengthened by increasing cross-border
trade, financial integration, improvement in
mechanisms of human interaction, shifts in
technology, and transfer of skills.
Australia has been an integral part of
this integration. Since 2004, Australian
commerce has carried out more trade
with Asia than with the rest of the world
combined and that trade is on the rise. Three
of Australias five prime trading partners
China, Japan, and the Republic of Korea
are in Asia. Together with the ASEAN group,
these nations account for approximately
half of Australias overall international trade
activities.
Global law firms view Australia as
attractive due to its strong ties with major
trading partners across the Asia-Pacific
region. Too, a number of Australias top legal
firms have offices based abroad in places
such as China, Hong Kong, Singapore,
and Indonesia. For international law firms,
Australia is viewed as a destination offering
both a gateway into Asia and ample
domestic opportunity.
This first section of the report then
addresses the emerging trends impacting
legal services in the region. A number

IX

Executive summary

of major factors are influencing the legal

services sector globally and in the AsiaPacific market in 2014. Some of the
factors which will be explored in greater
depth include: increased competition;
commoditization hastened by new
technology; novel forms of rivalry from new
service providers; a change in the role of
in-house general counsel; globalization;
changing foreign direct investment (FDI)
trends; economic growth; a shift from a
sellers market to a buyers market; more
decisions being made by clients; the appeal
of Asian markets to western law firms; legal
market liberalization; the rise of the internet
economy; price competition; intra-Asian law
firm growth; law firm mergers; and alternative
business structures.
Part Two of the report provides a detailed
analysis of the most important nations in the
region, including an explanation of why
each is important, plus a look at some of
the developing and less recognized nations
and their potential in the future. The country
analyses include projections for growth,
information on what is permissible in terms
of foreign practice, information on the key
players already in the market, the challenges
to economic growth, key free-trade
agreements (FTAs), and commentary from key
industry insiders who provide unique insights
into specific local markets.
In Part Three, the report then goes on to
discuss the impact of the Asia-Pacific region
on US and European firms. It considers the
interest and track record of US and European
firms in Asia-Pacific markets and presents the
major opportunities in the region available
to these international firms, including market
liberalization; economic growth; outbound
FDI; and inbound FDI (as outlined by Nick
Seddon, partner with Beaton Capital and
former head of Asia for DLA Piper and
Eversheds).

Reports reflect that the Asia-Pacific is one

of the fastest-growing economic regions in
the world. GDP in the Asia-Pacific region is
projected to rise at 6.4 per cent per year
between 2011 and 2020, compared to 2.5
per cent in the US and just 1.3 percent in
the Eurozone. This report considers the five
key industry sectors that will drive growth:
e-commerce, tourism, infrastructure, energy,
and machinery and transport equipment.
These sectors, and the conditions surrounding
their importance in the market, will be
analyzed in-depth in the pages of this report.
Part four of this guide addresses the
global impact of the Asia-Pacific legal
markets. George Beaton and Eric Chin
of Beaton Capital in Australia analyze
how regional macro-environment forces
and the legal services industry life cycle
are accelerating the pace of change for
indigenous law firms. Beaton and Chin first
outline five major reasons why the world is
now in the Asian century. They then provide
market-specific analysis of how economic
changes are impacting local law firms in key
markets within the Asia-Pacific region and
an analysis of the state of the legal services
industry lifecycle across the region.
Foreign direct investment (FDI) is a major
part of international economic integration.
It generates long-lasting bonds between
economies and helps stimulate the exchange
of technology and expertise between
nations. FDI permits host countries to support
its manufactured goods more extensively in
the global market, is an excellent source of
funding for investment, and, with the support
of a tailored policy, it is a significant vehicle
for development.
The Asia-Pacific region has demonstrated
high growth in both inbound and outbound
foreign direct investment flows. The
region has also demonstrated remarkable
flexibility in a challenging global economic
environment. Key statistics will be presented

A Comprehensive Guide to the Asia-Pacific Legal Markets

in the fourth part of this report, demonstrating

that the Asia-Pacific region is poised to lead
the world in the future in both inbound and
outbound foreign direct investment.
The concluding fifth part of this report is
composed of case studies detailing unique
and successful approaches to the Asia-Pacific
legal market, outlined by a very diverse range
of service providers in the region. Major
international law firms Clyde & Co and K&L
Gates outline their unique regional stories.
Australia-based law firm AdventBalance
provides a unique insight into the NewLaw
experience in the region. Hong-Kong-based
legal social media publisher Conventus Law
provides unique insight into the emergent
role of social media in the region. Finally,
the experience of running a local regional
law practice in Tonga in the South Pacific
is provided by John Walter Appleby of
Ladbrook Law.
Two insightful appendices to this
report provide special analysis on future
developments in the Asia-Pacific legal market:
Chris Dale of The e-Disclosure Information
Project, Oxford, discusses technology and
the law in Asia; and Ivan Rasic, CEO of
LegalTrek writes about the ecosystem of
constant innovation that is essential for those
who seek to be successful legal services
providers in the Asia-Pacific legal market of
the future.
Whether the Asia-Pacific legal market
doubles by 2017, 2020, or later, in the
estimation of many observers of the global
legal profession, this market will be one of the
most (if not the most) important legal markets
in the world in the not-too-distant future.

XI

About the author

JOHN GRIMLEY specializes in the provision of writing and research services to the corporate and
professional services sectors. He also edits and publishes Asia Law Portal. For over 13 years he has
helped lawyers market their practices internationally. Most notably, he established and directed the
European representative business development office of US AmLaw 100 law firm Patton Boggs LLP.
At the inception of his career, he served as a writer to the President of the United States in the White
House. A licensed American lawyer, he holds a Juris Doctor from the University of San Diego School of
Law.

XIII

Acknowledgements
THIS BOOK would not have been possible without the support and encouragement of Helen Roche
and Laura Slater at Ark Group. The professionals at Beaton Capital George Beaton, Eric Chin,
and Nick Seddon provided invaluable input and contributions. My thanks also to Kirsten Hodgson
of KScope Marketing and Gaythri Raman of LexisNexis for their counsel. Thanks also to those legal
professionals who contributed commentary or case studies to this book. Their contributions have
indeed helped to make the region come alive within the pages of this book. They include Stephen
Lai of Conventus Law, Therese Gallenero and Clinton Swan of Clyde & Co, John Appleby or
Ladbrooks, Ken Jagger of AdventBalance, Kent Wong of VCI Legal, Sangeet Kauar of Legal Brokers
Compliance, Ivan Rasic of CaseTrek, Chris Dale of the e-Disclosure Information Project, Paul Kossof,
author of Chinese Trademark Law: The New Chinese Trademark Law of 2014, Paul Cornelius Castillo
of Platon Martinez Flores San Pedro Leao Law Offices, Richard Smith, author of Australian Law Firm
Business Development, Jeff Berardi of K&L Gates, Jonathan Boswell of TGT Legal, Kengo Miyamoto
of Miyamoto International Law Offices, Anuj Agrawal, associate editor of Bar & Bench, and John
Formichella of Blumenthal Richter & Sumet.

XV