So you’re of the opinion that America’s notorious litigiousness creates an unreasonable drag on innovation and profits in the technology and telecom sectors?
Ha! Those guys don’t know how cushy they have it, according to a recent survey by Fulbright & Jaworski, an international law firm.
Yes, the typical technology or telecom concern deals with 79 lawsuits at any given time, plenty to keep the children of corporate counsel in braces, swimming pools and private schools. And, sure, that typical company doles out $11.8 million annually to fend off such suits, no small chunk of change by any estimation (and it does not include the cost of settlements, by the way).
No one is suggesting that this is a desirable state of affairs, with the possible exceptions of successful litigants and their attorneys. (Bigger-picture view of the survey here.)
However, the tech/telecom companies shouldn’t expect any string music from their corporate brethren who run energy or manufacturing outfits. Those guys grapple with an average of 300 lawsuits apiece, a caseload that would have any CEO wondering if he might have been better off skipping that MBA in order to go to law school.
But get this: The energy and manufacturing guys are mere pikers when it comes to getting their pants sued off, at least when compared with the folks who run insurance companies. According to the Fulbright & Jaworski survey, insurance companies have an average of 1,700 lawsuits in the hopper (and may I be the first to suggest that each and every one most likely has merit).
Other findings from the survey:
Just over half of technology and telecom companies have themselves filed a lawsuit seeking $20 million or more in the past year, proving once again that the best defense is a good offense.
About three in 10 companies foresee their caseload increasing in the next year, making one wonder where the rest buy their rose-colored glasses.
And, about two-thirds of technology companies acknowledge having launched an internal investigation of employees that required the hiring out outside counsel.
While not listed in the official results, fully 100% of that two-thirds are praying to the god of their choice that their outside counsel didn’t hire those HP private eyes.
