12. November 2020

The Next Generation

Dear Readers

IT and law or LegalTech are relatively recent developments. The discipline is gaining in relevance, not only analyzing legal problems at the intersection of IT and law, but also reflecting on how technology affects law. Exciting and relevant is an interdisciplinary approach that takes a holistic view of the interaction between IT, law, new business and work models, etc.

The changes brought about by the use of technology in law should also be addressed at the university level. LegalTech-courses are needed, students - the future lawyers - should learn already during their studies in a technology-driven environment that "law" alone will not be enough in the future, that interdisciplinary, collaborative, interactive and multidisciplinary work and advice is needed.

The first steps in this direction will be taken with the students from the course "LegalTech and its effects on the working world" at the University of St Gallen. They not only learn the basics of LegalTech, but also work in groups on projects and present them. In addition, they prepare written papers in this subject area. Several exciting projects and ideas have already emerged from the first two sessions of the course. Two of them - the project "Watchchain" and the subsumption machine - were presented at the Weblaw Forum 2019 and in Jusletter IT. The project "TrackRank" for monitoring the external perception of law firms on the Internet was presented by the students at the Weblaw Forum 2020. Also worth mentioning is the project justus-beratung.ch by Andreas Nef, for which there is also a podcast. In addition, Jusletter IT of September 26, 2019, features an article by Benjamin Camavdic on predictive policing and the issue of December 5, 2019, features Florian Furger's work on lootboxes in video games.

The present issue is intended to further support the idea of demand and promotion. It publishes student works from the Spring Course 2020, a "Next Generation" that deals with a number of topics in their work. The ideas range from chatbots to automated document analysis and disposable algorithms to online dispute resolution or legal design thinking. Others are active in the field of blockchain technology.

Several universities and universities of applied sciences in Switzerland, including HSG, ZHAW, Kalaidos, HWZ, FFHS and the HSLU, have now integrated LegalTech into their educational programs (see also our list of training providers in the area of LegalTech). With Jusletter IT we give innovative ideas a mouthpiece. So that many more may follow! If you are interested, please feel welcome to contact us for joint projects or publications.

Furthermore, this issue includes an article by Fabian Teichmann and Léonard Gerber, who follows on from the blockchain-focused articles in this issue with their question of how crypto-currencies can be used to finance terrorism.

We wish you an exciting read
Franz Kummer
Founder and CEO Weblaw AG
Lecturer LegalTech at the University of St. Gallen

Note: The Jusletter issue of 16 November 2020 contains several articles on data protection. The Webinar@Weblaw: "The new Data Protection Act: Selected Topics for Practice" with David Rosenthal and David Vasella will take place on November 25, 2020 at 10:00 a.m. Participation is free of charge if you sign up for a new Jusletter or Jusletter IT annual subscription.

LegalTech

Kooperation von Legal-Tech-Unternehmen und Kanzleien

Robin Gloor

The business model of traditional law firms is under pressure due to changing customer needs and technical innovations. However, through cooperation with Legal Tech companies law firms are able to reposition themselves in the increasingly fragmented legal services market. SaaS and PaaS models can serve as cloud-based infrastructure for law firms in order to implement external legal tech applications in their value creation process.

Was Legal Bots von Bots aus anderen Branchen lernen können

Cedric Frenzer

Chatbots are a popular tool to create revenue. Nevertheless, law firms possess a limited experience with chatbots, in spite of their high potential within the legal sector. In order to be successful legal chatbots must create both a customer benefit, as well as a business advantage. Based on a comparison of chatbots from other sectors, the author presents a model which identifies the success factors for the implementation of a legal chatbot.

Legal Bots: Ein Tool für moderne Juristinnen und Juristen?

Levi Schöb

This article shows the current status on the integration of legal bots into the work of lawyers in Switzerland. Chat bots and their functionality are briefly explained. By bringing up specific examples, the potential as well as the risks of LegalTech in juristic work are highlighted. The author summarizes the most important results and gives a brief outlook on the expected developments around LegalTech.

Beweisrechtliche Anforderungen an verfügende Algorithmen

Lukas Walter

Technological progress enables algorithms to perform automated decisions. If an algorithm is to decide on a legal matter or issue an order, a number of legal questions arise. This paper deals with the relationship between algorithms and law of evidence, and identifies evidential requirements for ordering algorithms. Using a concept from inductive statistics and the example of performance auditing according to article 56 Swiss Federal Health Insurance Act (KVG), the author shows how an ordering algorithm should be designed so that it is compatible with the law of evidence.

Online-Angebote im schweizerischen Scheidungsmarkt

Manuel Schmid

Various online portals offer service packages for the efficient preparation of divorces at low flat-rate prices in the internet. With constant cost transparency, low prices and web-based communication, they offer customers added value. Modular divorce packages, easy-to-understand templates for legal self-help and rule-based tools can lead to increased efficiency in divorce preparation. However, from today’s perspective, online divorces are legally limited, as divorces in Switzerland still require a judicial judgement.

Legal Design Thinking

Serge von Steiger

This paper deals with a possible application of the methodological approach Legal Design Thinking. It explains the functionality and scope of application of the qualified electronic signature and video identification within the meaning of Art. 7a VZertES. Taking the Covid-19 pandemic as an example, this thesis shows how this methodological approach works and how important it is for the future successful development of the legal market.

Online Dispute Resolution im Versicherungsbereich

David Probst

While e-commerce is on the rise, it also led to an increase of disputes. Online resellers therefore developed platforms for alternative dispute resolutions, which have caught the attention of insurers as well. But without effective enforcement mechanisms, there is little value added. Consequently, this report examines the application possibilities both of online dispute resolution (ODR) and smart contracts combined. Based on an insurance business model, it suggests an approach for automated enforcement of extrajudicial settlements.

Information Retrieval: Automatisierte Dokumentenanalyse in M&A Due Diligence

Florian Becker

One of the main challenges of due diligence is that large quantities of relevant documents must be checked for risks mostly manually as well as under high time pressure. In legal due diligence, the use of AI-based, automated test procedures therefore seems particularly promising. Contract review systems based on machine learning models can increase efficiency, accuracy, and the amount of data considered in the final risk assessment. The software solutions from Kira Systems and Leverton are technically advanced and used successfully in M&A practice.

Blockchain

Compliance im Zeitalter von Kryptowährungen und ICOs

Björn Wegberg

The present essay focuses on the strained relationship between the decentral nature of the distributed-ledger technology and the demand for transparency in anti-money laundering regulation. In a second step, the author analysis the possibility to link the automation procedure goAML of the MROS and the video and online identification of the FINMA with LegalTech applications in such a manner that complies with the interests of all relevant parties.

ChainLink und Smart Contracts

Luca Schmid

ChainLink is a platform that provides a link between block chain technologies and the real world. In this thesis the technology of a start up is examined, which even Google will rely on in the future. In addition, the implementation is examined by means of possible examples in Swiss contract law.

La surveillance informatique

Fabian Teichmann

Léonard Gerber

This contribution illustrates the suitability of crypto currencies for the financing of terrorism. A thorough presentation of the Swiss legal framework related to criminal repression, compliance rules and the recent developments regarding tokens is followed by a discussion of the opportunity of introducing new online surveillance measures in order to tackle modern forms of terrorism financing.

News

Bundesrat schlägt zentrale Plattform für den elektronischen Rechtsverkehr vor

Jurius

Der Bundesrat legt den Grundstein für den elektronischen Rechtsverkehr: Über eine hochsichere zentrale Plattform sollen die Parteien in Justizverfahren künftig digital kommunizieren. An seiner Sitzung vom 11. November 2020 hat der Bundesrat das neue Bundesgesetz über die Plattform für die elektronische Kommunikation in der Justiz (BEKJ) in die Vernehmlassung geschickt.

Förderung des Internationalen Genf und digitale Selbstbestimmung: Der Bundesrat legt die Strategie Digitalaussenpolitik 2021–2024 fest

Jurius

Der Bundesrat hat an seiner Sitzung vom 4. November 2020 die Strategie Digitalaussenpolitik 2021–2024 verabschiedet. Die Strategie zeigt auf, wie der Bundesrat in den kommenden vier Jahren die Interessen und Werte der Schweiz auch im digitalen Raum wahren und fördern will. Schwerpunkte bilden hierbei die Stärkung der internationalen Gouvernanz- und Zusammenarbeitsforen, der digitalen Selbstbestimmung von Nutzerinnen und Nutzern, des Völkerrechts sowie die Nutzung der Digitalisierung zugunsten der Internationalen Zusammenarbeit (IZA). Dem Internationalen Genf kommt dabei eine bedeutende Rolle zu, welche der Bundesrat weiter stärken will.

Neue Online-Plattform «ePortal» des EFD aufgeschaltet

Jurius

Das Eidgenössische Finanzdepartement (EFD) startet am 2. November 2020 die Online-Plattform «ePortal». Damit wird die Interaktion mit der Verwaltung für Bürgerinnen und Bürger sowie Unternehmen einfacher, effizienter und benutzerfreundlicher. Das ePortal leistet einen wesentlichen Beitrag zur Digitalisierung der Verwaltung.