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WHAT WE'RE WATCHING

ELITE SELF-DEFEAT - It's become painfully clear that large law firms' diversity struggles are self-inflicted—the product of an antiquated and homogenized notion of who qualifies as "Big Law material." As we noted in a two-part Law.com Trendspotter column last October, Big Law's lack of diversity is due in large part to its lack of creativity, particularly with regard to its needlessly restrictive law school recruitment and lateral hiring practices, which have traditionally involved casting small nets into the same shallow, overfished ponds year after year. In this week's Law.com Trendspotter column, we look at recent events that have shed even more light on law firms' outdated and reductive views of what "top-tier talent" looks like and where it can be found, as well as how those views are continuing to hamper diversity progress within the profession. The question now is: can large law firms permanently change this mindset?

IRRATIONAL RATIONING? - As any home improvement DIYer knows, painter's tape is typically blue. But at Benjamin Moore & Co., there appears to be red tape everywhere. Ever since its shocking decision last November to dismiss its entire legal department, the paint manufacturer has been rationing in-house requests for legal advice, Law.com's Phillip Bantz reports. The Berkshire Hathaway-owned company now outsources legal work to Littler Mendelson and independent contractors. Employees who want to consult with a lawyer have to seek permission from Benjamin Moore executives. "They have to request it, and they get a certain amount of time with someone [an outside lawyer] to be able to have a conversation. That takes time, and you need to address issues quickly. People are not happy," said a source familiar with the situation. The source added that employees in the company's procurement department, which had collaborated with in-house lawyers on contract work, are frustrated with the lack of legal support. Benjamin Moore did not respond to a request for comment.

PET PEEVE  - Chewy, the online pet store, sued IBM Monday in New York Southern District Court for declaratory judgment in a patent dispute. The lawsuit, filed by Greenberg Traurig, alleges that IBM runs an aggressive licensing campaign against e-commerce companies and seeks declaratory judgment of non-infringement with respect to four asserted patents. Counsel have not yet appeared for IBM. "As part of its licensing campaign, IBM has accused numerous well-known web-based companies of infringing very early Internet patents and demanded large sums in royalty payments to avoid costly litigation," the complaint alleges. The case is 1:21-cv-01319, Chewy, Inc. v. International Business Machines Corporation. Stay up on the latest deals and litigation with the new Law.com Radar.

WHILE YOU WERE SLEEPING

THE (RISING) COST OF DOING BUSINESS - On top of the financial uncertainty wrought by the pandemic, U.K. law firms are bracing themselves for a rise in their professional indemnity premiums of around 20%, Law.com International's Simon Lock reports. For many, this will be the second year in a row of double-digit premium increases—this time falling at a time of much greater economic uncertainty. "It is a real issue," said one U.K. managing partner.

WHAT YOU SAID

"Early in your career, develop a problem-solving mindset and apply that to everything you do."