Legal Tech Hong Kong

1. Legal Tech Hong Kong • March 2013 Richard Williams Electronic Discovery Partner Deloitte China ricwilliams@deloitte.com.cn

2. Topics to discuss today • State of play • Methodology and practical experience dealing with relevant legislation • eDiscovery readiness and IT Integration lifecycle • Time line and ability to deliver Deloitte

3. State of play – challenges

4. Current experience and state of play in the market for moving data cross border – what we see as data processors • Japanese • Korea • Hong Kong • China • Singapore • Malaysia • Vietnam Deloitte

5. Challenges arising from cross border discovery • Everything always needs to be ready for review yesterday • Multiple jurisdictions means multiple laws, cultures, languages and geographical challenges. • Need to create multiple review databases, therefore risking loss of efficiency for the review. Deloitte

6. Working to find solutions to cross border discovery • Globally integrated data processor with common standards for methodology, tools and data handling • Ability to scale in any territory to meet demand • Deep understanding and appreciation of local cultural and language • Seamlessly integrate with legal teams and provide advisory services in relation to handling of data and local procedures • Bespoke solutions • Risk management focus to reduce risk for clients, legal teams and advisors/data processors Deloitte

7. Methodology

8. Segregation of documents and data 4 categories of relevance. • Relevant protected documents • Relevant not protected documents Universe of Documents and files • Not relevant not protected documents • Not relevant protected documents Deloitte

9. Framework Deloitte

10. How eDiscovery readiness and IT integration can help

11. eDiscovery readiness & IT integration • Know your data universe and plan future technology upgrades • Understand the cross border implication of hosting email and data servers • ERP and financial system implementation • Requirements to flag data protected documents Deloitte

12. Assisted Review – a view on reducing timelines

13. Assisted review to reduce time and increase accuracy The changing face of e-Discovery • With increasing data volumes, data protection legislation emerging or being enforced in more locations and cross border matters becoming the norm there is pressure to develop a more efficient review methodology • Clients want/need to exert greater control over review costs • The catalyst - Assisted Review: • Provides a cheaper, quicker option for document review that does not place reliance on a people intensive first tier review exercise • Is already generating significant interest among law firms • Leverages advances in technology Deloitte

14. Assisted reviewDefinition • It’s a review methodology that takes the expertise of human reviewers • and • amplifies their decisions using advanced search & classification technology • Automating the document review process with human guidance. • Experts train the system & their efforts are amplified. • There are several search technologies that can classify documents (LSI, NLP, Bayesian). • Computer assisted review efficiency and quality is driven by and measured using a statistical based approach Deloitte

15. Assisted reviewAn iterative Process Create Random Sample Set Review Sample Set Validate Results Categorise Document Universe Deloitte

16. Further applications of assisted reviewLeveraging the power of Analytics • Prioritisation – Review the documents more likely to be Relevant first and the Not Relevant documents last. • Culling/Filtering – Only review the documents more likely to be Relevant. The assumption is the remaining documents will be least Relevant and more likely to be Not Relevant. • Quality Control – Quality control the work product of the review team. Sampling documents tagged as Relevant and/or Not Relevant. • Tier 2 Review – Use of document clustering can assist the Tier 2 team in their assessment / approach to the second tier review process. Deloitte

17. Assisted reviewKey Benefits • Potential to significantly reduce time and costs of review. • Allows clients to assess the merits of their case far quicker. • Potential for enhanced quality of document review. • Enhanced coding consistency. • Improved & cost effective QC processes. Deloitte

18. Case Studies

19. Case Study 1 RTO company responding to regulatory matter in foreign jurisdiction • Computer collected in various location in PRC • All data centrally located in Shanghai data centre • Data processed onsite in Shanghai by eDiscovery team • Keywords applied to data to identify responsive documents to relevant issues at hand • eReview undertaken by a team of reviewers (combined Deloitte/Legal firm team) who physically reside in PRC using standard 1st and 2nd tier review. • Data identified as relevant reviewed by PRC law firm with specific scope to flag documents that may trigger State Secret or Commercially sensitive legislation. • Documents that are flagged as not responsive to above legislation are provided back to the law firm/client in PRC for further action Deloitte

20. Case Study 2 Multinational Pharmaceutical company responding to litigation • Computer collected in various location in PRC • All data centrally located in Shanghai data centre • Data processed onsite in Shanghai by eDiscovery team • List of keywords specifically formulated to identify documents that may trigger State Secret or Commercially Sensitive legislation. • Documents flagged as responsive to SS/CS Legislation isolated. • Keywords applied to data to identify responsive documents to relevant issues at hand • (SS/CS+NR) (SS/CS+Rel) (NR) (Rel) Deloitte

21. Final words • Focus on reducing overall risk relating to data mobility by leveraging in country platforms • Global interconnectedness is the key to ensure consistency of approach and keeping abreast of rapidly changing environment • Working in an advisory capacity with our clients and legal teams.