Recently, another edition of the CodeX Future Law event, focusing on Law and Technology, took place at Stanford Law School in the United States. But why is CodeX a global benchmark?
First, it’s essential to recognize Stanford’s DNA. Founded in the 19th century, its main purpose is to be a cradle of innovation and, above all, to engage with the market, fostering a successful relationship between academia and industry. The region, which earned the moniker Silicon Valley after World War II, became the epicenter of tech companies and venture capital.
In other words, moving beyond the academic bubble to develop research and create products aimed at improving people’s lives is the essence of the region. The prolific environment and abundant know-how are classic characteristics of innovation. It’s no coincidence that Walter Isaacson, Steve Jobs’ biographer, described Silicon Valley’s success as a seed planted in fertile soil.
Next, consider the people and structure of Stanford Law School’s program. Here, rebellion or a disruptive mindset is fundamental for creating a stimulating environment that challenges the status quo. When people express, in some way, the desire to change the world and set trends, it truly happens there. This is evident in historical movements like the hippie and counterculture movements, which help explain the unique characteristics of this significant but small part of the world map.
Two recent examples illustrate the local culture of innovation, the legaltech market, and Stanford Law School. The first is “Lex Machina,” a name derived from Latin meaning “Legal Machine.” This initiative by law professors uses a rich data lake of U.S. court patents and the data analysis market. The platform compiled a vast number of lawsuits and their relationship with patent trolls—a controversial strategy of acquiring patents for the purpose of filing lawsuits for damages against large companies. This case became highly successful, attracting several rounds of investment and culminating in the startup’s acquisition by LexisNexis.
The second example is “Judicata,” also founded by Stanford Law School students. This tool specializes in analyzing judicial precedents integrated with artificial intelligence. Defined as a jurimetrics platform, it caught the attention of notable local angel investor Peter Thiel, who is also a Stanford Law alum.
The CodeX Program also developed the “Techindex” platform, a kind of mapping of over two thousand legaltechs worldwide. This list of legal market startups helps identify, for instance, the proportion of companies dedicated to contract management and automation, legal research, document classification and reading, data analysis (analytics), compliance, litigation management, e-discovery, e-billing (fee management), and legal education. One-third of these are platforms for conflict resolution, known as ODR (online dispute resolution).
Clearly, these initiatives are extensive and always interconnected through the knowledge provided by academia, entrepreneurial attitude, and business opportunities in a vast legal market. This market, yet to be fully explored, generates significant revenue, surpassing the GDP of many developed countries. It’s evident, however, that all these endeavors are permeated by the region’s abundant venture capital. The largest share of global venture capital is concentrated there, and innovation doesn’t thrive without funding. It’s the classic triad: know-how, rebellion, and venture capital that justifies the local success.
Finally, the region holds such an important aura that it was on Stanford’s campus that Steve Jobs gave one of his most famous speeches. On that occasion, Jobs conveyed three key points: Life is understood in retrospect—connecting the dots. That is, you need to trust something—instinct, destiny, karma—to achieve great things. The second point relates to love and loss. Sometimes, a legaltech might fail, but it will certainly serve as a learning experience to pursue what you love and find true satisfaction. The third message is: stay hungry, stay foolish. This phrase, which lacks a direct translation, fits perfectly for legal professionals. After all, in a naturally conservative, asymmetrical, and formal market, one must remain always hungry—eager for new things—and open to uncertainties.
