With artificial intelligence taking the world by storm, we asked an expert in MoFo's Technology Transactions Group just how much impact AI is having on his day-to-day practice.
Don’t let the abbreviated moniker fool you: MoFo is a very well-respected name throughout BigLaw, in part because of its varied practice offerings. In this article, we’re shining a light on an especially important area that MoFo excels in: technology transactions. For those who aren’t entirely sure what exactly tech transactions entails, stay tuned. MoFo partner Justin Haan gives us the lowdown on the leading technology transactions group (TTG), and gives aspiring lawyers some useful advice on how to make a start in the practice. The TTG at MoFo is a global practice, collaborating with offices outside of the States and across Europe and Asia.
"We work with a mix of well-established tech companies – including nearly all of ‘the Magnificent 7'..."
Our interviewee tells us more about the work the firm does. Haan details, “We work on a variety of IP, licensing, and commercial transactions,” and this is especially true on matters where technology and innovation are the forefront. The group is also dedicated to pro bono work within its core industries, helping clients protect their intellectual property and contract with key customers and vendors. Aside from the work, the group is differentiated by its “deeply collaborative” and “non-hierarchical” nature which is deeply interdisciplinary, often intersecting with the firm’s other practices (e.g. mergers & acquisitions, privacy & data security, antitrust, product liability, and regulatory).
You may be wondering exactly who the TTG is doing work for. Clientele range from Fortune 500 tech giants to fast-growing startups. Of the latter, part of the value TTG attorneys can add (and the fun they can have) with startups is in partnering with them and understanding their technology. The group supports companies of all sizes on product development, strategic sourcing, and commercial R&D. Clients often include software companies developing AI models and tools, automative companies developing autonomous vehicle technology, and companies in AR/VR seeking to leverage AI-driven applications.
Further, Haan explains, “We work with a mix of well-established tech companies – including nearly all of ‘the Magnificent 7,’ or whatever FAANG-like [Facebook, Amazon, Apple, Netflix, Google] acronym is being used today.” He continues to say that clients also critically include “both developers of AI models/infrastructure and companies implementing it,” which “provides us with a comprehensive perspective in the field.”
On the topic of AI, working with those deploying foundational models for use by others in the industry can be exciting work and sits at the core of what makes AI tick. For this reason, attorneys are able to sit down with their clients and dig into the nuts and bolts of how the models work. For example, the semiconductor industry is the beating heart of the current AI revolution and these clients serve as different parts of the overall AI supply chain.
“It is essential that we have a deep understanding of both the technologies and the business models involved.”
Day-to-day, we were told that tech transactions lawyers structure, draft, review, and negotiate contracts, including collaboration agreements, joint ventures, and IP licenses. The TTG works on deals that support the development, commercialization, and distribution of emerging technologies. Thus, the role involves spotting issues, managing risk, and balancing the commercial goals of the business with the legal and regulatory landscape. Essentially, these attorneys are legal Swiss army knives for intellectual property and business matters. Pretty cool, right? The team also supports M&A transactions by advising clients on the intellectual property-related aspects of their M&A transactions, which involves everything from diligence of intellectual property portfolios to drafting and negotiating core transaction documents. “To prepare agreements that are appropriately suited to a given transaction,” Haan states, “it is essential that we have a deep understanding of both the technologies and the business models involved.”
Breaking this down further, Haan explains his role on the team. “Partners in the practice are responsible for establishing and developing relationships with clients—typically attorneys on in-house teams but also founders and executives—to identify opportunities where we can be useful,” Haan details, adding that “partners also focus on training and providing hands-on experience for our associates, which often takes the form of collaboratively working through issues in real-time.” Associates, on the other hand, should be prepared to be involved with drafting simpler substantive agreements (e.g., terms of service) and with managing the process on M&A transactions. Over time, associates are expected to lead the day-to-day on more complicated licensing and commercial transactions; this also involves coordinating input from other teams around the firm (e.g., antitrust, business restructuring + insolvency). They often function as the first line of support for clients, which means providing responsive, practical, and commercially minded advice. Given the fast-paced nature of the work, associates also need to be skilled in project management and time management.
If any of this sounds like something you might be interested in, read on to hear more from our experts on MoFo’s TTG practice…
Chambers Associate: How has the rise in AI influenced the work you come across in the practice?
Justin Haan, partner: We have been working on AI-related matters for nearly a decade. That said, it is undeniable that there has been an explosion of interest in AI technology since the launch of ChatGPT. Today it is a major focus of our work. We’re fortunate to have been collaborating with industry leaders like OpenAI and other AI tool developers even in the “before times” (i.e., before the launch of ChatGPT) as this has provided us with early insights into emerging issues that affect nearly every client.
CA: What sorts of skills lend themselves well to a practice at the intersection of technology transactions and AI?
JH: Key skills include having an active curiosity about our clients, their products, and their businesses. Our technology transactions practice has a culture of “geeking out” on the latest technologies and taking a deep dive into learning about new businesses. Accordingly, staying up to date on the latest developments in technology and the law is invaluable. Our practice also requires attention to detail (e.g., drafting with precision) and the ability to simplify complex technologies or business models into terms that are easily digested by clients and negotiation partners.
CA: What sparked your interest in the practice? And more specifically, your interest in AI?
JH: My interest in technology transactions stems from a longstanding fascination with the way new technologies challenge existing legal structures and business models. I decided to go to law school in the wake of the “Napster era,” when new forms of digitally distributing music upended traditional content industries. My interest in AI dates back to the computer science courses I took in high school and before that an early engagement with personal computers (before they were as ubiquitous as they are today).
CA: Can you tell us about a deal you’ve worked on that sits at the intersection of technology transactions and AI?
JH: A notable example is representing OpenAI in one of its early partnerships with Microsoft, which secured computer power that enabled OpenAI to train the large language models that we know and use today.
CA: What does the future of the practice look like in combination with developments in AI?
JH: Although you may hear people express the fear that AI will replace human roles, to date we’ve found that it enhances our effectiveness and productivity. AI tools—like the AI Assistant we implemented at MoFo—allow us to deliver work product to clients faster and more efficiently. That said, AI tools are not “answer” machines. They aid us in crafting the right answers, but human knowledge remains irreplaceable.
CA: How can students stay up to date on developments in the technology transactions and AI space?
JH: To stay current on developments in technology transactions and AI, students should consider listening to podcasts such as The New York Times Hard Fork.
CA: How can students demonstrate a good understanding of the practice in applications and interviews?
JH: The strongest applicants are able to demonstrate a genuine interest in how technology -- and the business of technology -- operates and by staying informed about current developments in the industry.
