Cutting Discovery Costs With Remote Foreign Custodian Interviews

As discussed in E-Discovery: Taiwan Collection on a Shoestring, CLP recently faced the challenges of cutting the discovery costs of a Taiwan based wireless communications device manufacturer with a popular new technology under dispute with a competitor.

For cost sensitive clients, containing discovery costs obviously requires reducing the overall volume of documents that will be collected, uploaded, processed and produced. If one looks at the Electronic Discovery Reference Model, ("EDRM”), the industry standard for approaching discovery,you will quickly realize that the most effective way to cut total costs along the discovery pipeline is to decrease the input during collection. 

 

 

With our client, we knew our end goal was to decrease the number of irrelevant documents we collected. The most cost effective way of limiting the collection, we decided, was to work with the person most knowledgeable about the documents on the custodian’s workstation--- the custodians themselves--- to make a targeted collection instead of a full replica of the hard drive.


The challenge, then, was how to effectively work with Taiwanese custodians when travel costs to Taiwan could be 3k an attorney.

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E-Discovery: Taiwan Collection on a Shoestring

The lower costs and cost certainty attributable to flat fee IP litigation has, unexpectedly but not unsurprisingly, appealed not only to traditional consumers of IP litigation, but created a market of small, often foreign, high tech companies who never before could afford top quality IP legal services.

With that said, according to Dean Gonsowski of EWeek.com,

Pre-trial discovery expenses alone now represent 50 percent of litigation costs in an average case [and i]n situations where discovery is actively used, it could represent as much as 90 percent of litigation costs, approaching and perhaps exceeding $1 million on a single case.

So what we - at CLP - quickly discovered was that it was not enough to keep attorney fees in check, we needed to re-think the way law firms conduct discovery to cut the total costs drastically for clients.

Recently CLP represented a Taiwan based wireless broadband communications device company. The company had only 4 full time employees, but a promising technology that made it the target of an IP suit from a competitor. One of our early challenges, therefore, was to collect documents from work stations and peripheral devices of employees in Taiwan under a budget that would allow the cash poor company to defend itself and eventually realize its forecasted profitability.  Early estimates from vendors were around 9-12k.

We eventually figured out how to do it for 3k.

How?

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