The Evolving Ownership of the Legal Industry and the Case for Outside Ownership

Abstract

Traditionally ownership of law firms in the U.S. has been limited to licensed attorneys who are partners or employees of the firm. Times and conditions in the industry have changed significantly over the past thirty years as a result of advances in technology and globalization. Unfortunately the legal industry has failed to change and is currently restricted from raising sufficient capital to stay competitive in a global economy. The lack of change, along with the  inability to raise capital has left the U.S. legal industry at a competitive disadvantage in a now-global market. Countless countries around the globe are adopting new regulations that offer law firms new ways to raise capital through outside ownership. It is time for the United States legal industry to embrace change and give the legal industry what it needs to stay competitive, a new way to raise capital.