1LAW Legal Technologies LLC
Ver. 03/10/2018 (Draft may contain errors and omissions)
Table of Contents
“I believe in a better way.”
― Ben Harper
1LAW was among the first law firms in the Cryptospace. Accepting Bitcoin as a form of payment in February 2014.
Most of us have a negative opinion about lawyers and the legal system, but what is it about the legal industry that gives rise to this opinion? After delving into the major issues of accessibility and accountability that plague our current legal system, we’ve found a solution that leverages artificial intelligence and Blockchain technologies to increase clients’ access to legal help and increase accountability within the legal process. We aim to make the legal system accessible, trustworthy, and accountable.
The primary failing of the legal system today is one of access. This is a global problem that requires a global solution. The data from the US shows that in the 100 million non-criminal cases filed annually almost 80% of the cases one party must navigate through the court process without representation. Millions of others have foregone basic legal documents such as wills, power of attorney, and medical directives. This lack of representation or basic legal security highlights a gap in the justice system that impacts all of us. The two types of individuals who lack this access to legal services and representation are people without the means to pay for representation and people who perceive the legal system as a difficult, expensive, or unapproachable endeavor.
On the flip side of the access coin, a lesser-known phenomenon exists with small law offices. 90% of the legal businesses are solo and small firms. These small businesses typically function with one to four lawyers who do not have the resources to market their services like a larger firm, nor do they charge the exorbitant rates of their larger counterparts. These firms struggle to make their services known to the greater public, meaning those from the socio-economic class that could actually afford their services do not know they exist. Lawyers as a whole spend $6 Billion+ on marketing with tremendous fragmentation resulting in duplicative efforts. These lawyers, too, lack access to the people they could best serve.
The second issue that thwarts trust and positivity in a fair legal system is a lack of accountability. A client in need may give $5,000 to retain a lawyer for services. The money will run out even if the case is not resolved, but the client won’t know what services have been accomplished in their favor. This leads to distrust and uncertainty about the moral reliability of lawyers in general. Lawyers also find themselves lacking confidence in the system when they encounter error-prone gatekeepers in the delivery and acceptance of documents. If something is lost or a document is incorrectly rejected, there is little recourse. A want for accountability exacerbates the poor reputation of the legal system.
1LAW creates a path to solve the issues of access to and accountability for legal services. While delivering a decentralized nexus to the highly fragmented industry will create a new means of marketing to and connecting with potential clients at a greatly reduced cost. 1LAW has partnered with networks throughout the globe. Most recently with Legal Advice ME, a legal services network serving 11 countries through the Middle East. Through the 1LAW API global partners and platforms will continue to grow lawyer network.
Furthermore, as blockchain technology matures the development of a completely decentralized justice system will result from the platforms efforts. Document integrity and litigation services are the primary areas that are immediate beneficiaries of the technology.
At 1LAW, we provide mobile and web-based legal forms, services, and attorneys for consumers via Artificial Intelligence (“AI”), ensuring access to low-cost and open legal help, both domestically and globally. We also automate accountability tracking for consumers to make the legal work and process transparent.
Millions of consumers lose thousands of dollars by not using a lawyer or available legal services. By moving consumers to our virtual platform we estimate that the net benefit is $3-7 per dollar spent on legal assistance.
We consolidate marketing efforts and make them transparent while providing a virtual law office through AI. We also leverage blockchain and AI to automate aspects of the legal process, ensuring transparency while avoiding human error.
The decentralized marketing platform provides the first opportunity to participate in a transparent marketing effort. By requiring proof of stake all members of the platform benefit by creating a threshold for participation.
Our Location Based Communication technology is currently protected by a patent application 62249156 filed with the US Patent & Trademark office on October 30, 2015.
Our Chatbot Document Automation technology provisional patent filed with the US Patent & Trademark office on July 24, 2017.
1LAW Platform, Docubot & Botineer
The 1LAW platform is designed for easy access and accountability. We currently have a mobile and web app platform with an AI legal concierge (Docubot) to help assess your needs. Our Botineer is a visual, DIY chatbot builder to allow lawyers, law schools, and professionals deploy their own specific chatbots.
Legal Advice ME
An online legal services marketplace connecting consumers with lawyers from various law firms across the region. Our online community brings together clients and attorneys from across the region and is the quickest, simplest and most affordable way to get legal assistance across the UAE and the Middle East.
Open access to legal questions and answers as well as forms through AI:
The initial experience with 1LAW is an AI-driven virtual legal services platform where consumers and potential clients can seek answers to legal questions and obtain necessary legal forms via a chatbot (named Docubot). We have taught Docubot to build legal forms and are now teaching our bot engine to answer basic legal inquiries based on expert knowledge from lawyers, law librarians and legal professionals. Legal professionals, in turn, can use our product to build their own chatbots with automated legal forms. Clients and lawyers can benefit from this open environment.
Easy access to specialized lawyers through AI:
In several cases, customers will need services that reach beyond the basic open access to legal help. Within the platform, the chatbot can ask questions that will prompt its artificial intelligence to narrow down specialized lawyers for the specific needs of the individual. Potential clients will then have the ability to choose their lawyer from a relevant pool of professionals. This benefits both the client and the lawyer.
Enhanced accountability through Blockchain smart contracts:
Through Blockchain technologies, 1LAW is creating step-by-step contracts. Through these smart contracts, clients’ retainer money can be controlled by specific deliverables. Only when a lawyer delivers an agreed-upon service will the lawyer receive the money from the reserve. In this manner, clients know the services that have been offered and benefit from the transparency in the process. Lawyers will also be able to take advantage of this Blockchain and artificial intelligence as their files will be vetted and passed through an AI delivery system which will check that all aspects of the document have been properly done, giving a Blockchain hash or contract number for verification that the document has been adequately received and accepted.
Applied to Legal – Market Opportunity
1LAW is a disruptive force within the legal industry. The global legal services industry revenue is nearly 750 billion a year with a US domestic revenue of nearly $300 billion. On average, 2% of revenue is spent on marketing ($6B/year). The marketing dollars have created a digital arms or “ads” race. 80% of the most expensive search terms on Google AdWords are related to the legal field. Unfortunately, digital ads do not offer efficiency in reaching the right customers; instead, they aim to cast a wide net to capture clients. This wasteful volume in advertisement overwhelms and confuses potential customers.
Despite the money spent on marketing, there are too many people that fail to receive adequate help or representation when it matters most. The social and economic cost of having so few people represented in legal proceedings are borne by all of us.
A decentralized platform will thwart the ability for hackers and click bait to consume legal marketing dollars. The token serve as proof of stake for the attorneys and the consumers to the extent that duplicate accounts become difficult to create. Chatbot vetting of legal needs ensures that “tire kicking” or non-qualified leads do not consume law office resources while giving the consumer an opportunity to experience the platform.
The is a annual $40 billion/year market currently un-serviced by traditional legal services. The legal industry spends 2% on marketing represents an $800,000 million/year opportunity. By delivering services to the un-serviced we will also penetrate the larger $300 billion/year legal services industry and the corresponding marketing
By leveraging automation and artificial intelligence to make the marketing and delivery of legal services more efficient. In bringing the previously un-serviced to the platform we create an reason for lawyers to aggregate their marketing funds.
The chatbot and our proprietary processes can determine and assess an individual’s legal needs before they ever talk to a lawyer, giving us the ability to pair clients with lawyers. This will get the right clients and their value connected with transparent lawyers and services . Our platform then persists with this connection by using the Blockchain to create payment agreements based on work done, allowing for a transparent process and clean transfer of funds.
Until now there has been no market leader in the delivery of legal services. There is no company that has the integrations, network and partners that 1LAW has built. Our product has global appeal with primary markets in the United States and Middle East with developing markets in Europe (Germany) and South America (Brazil).
Starting in 2010 as the shift from the traditional branding of individual lawyers, 1LAW set out to disrupt the legal industry as an easy-to-remember name for quality legal services.
In 2015, we moved beyond branding and regional affiliations to the legal technology element to the disruption with the development of an on-demand legal services app.
In 2016, we added a virtual law office that provides on-demand legal services, file sharing and storage, and Docubot in AI-powered form automation tool for individuals without the need for a brick-and-mortar office.
In early 2017, they integrated the chatbot with the virtual law office to allow the chatbot to be the public facing tool to help people assess their legal needs. People can now enter the environment through interaction with the chatbot and be directed to the database of the legal services provider. The platform provides 24/7 access to legal documents and communication with their counsel via an encrypted app.
In 2018, the entered into an exclusive agreement with Legal Advice ME, Suzanna Kalendzhian 2017’s Most Innovative Woman in Legal Tech, to establish the first truly Global Legal Access Network.
The ESQ token is developed on the Stellar platform. We believe that the Stellar infrastructure supports the type of payment transaction utility within the virtual law services platform.
We are generating 400,000,000 ESQ tokens and issuing 200,000,000 which will be sold as a form of pre-paid legal services and as a proof of stake in the network. We are utilizing the Stellar exchange as a means of purchase and sale of ESQ tokens.
1 ESQ = 2 XLM
The token economy of the platform is one that encourages both consumer participation (earn tokens for creating a will or other “legal wellness” documents) and establish a proof of stake (a vested interest) in the platform. This promotes transparency and fulfillment of the legal services.
The Blockchain also represents a powerful document repository. No more looking for a will, you simply upload a death certificate and the system retrieves the will. Legal filings no longer require a person to push the accept button; they are lodged upon machine review of the documents.
Proof of Stake
Drawing upon our existing technology the 1LAW team will build an end to end, inquiry to court filing, digital legal experience providing access to open legal service and transparent paid services.
Among the services are:
1) Open legal documents. Wills, power of attorney, medical directives are all essential documents which should be free. Simple business formation documents as well as state registrations, obtaining a taxpayer ID should also be free.
Many additional documents such as self-help divorce, name change, answer to a complaint will additionally be available for free depending on the state.
2) Free legal consults
Most legal issues and inquiries can be addressed with a 15-minute consult. By driving traffic through the chatbot, assessing the legal need, and providing a summary to the legal services representative, clients will receive answers to their legal questions.
3) The legal services industry needs this type of solution.
As a result of the 2008 global economic crisis it is anticipated that over the next 10 years there will not be sufficient attorneys to service the legal needs. This will only add to the Justice gap and number of on represent individuals. After the global recession many people chose to return to school thinking that a lie degree would ensure them a job. Upon graduation the jobs were not there. In 2014 for the first time he seat was available in a law school for everyone that had applied to law school. By 2017 many law schools saw their Matriculation levels drop and many law schools closed.
The utility of a platform that will assess and individuals legal needs without exhausting human capital is essential. By leveraging artificial intelligence they give an attorney can service many more clients because they are not bogged down gathering basic information.
Proliferating the technology
Our products are smart phone centric.
More and more industries are entering the M-commerce revolution as sales on mobile devices skyrocket. Smartphones and tablets now account for more than half of all internet activity and mobile e-commerce — or M-commerce — is part of that wave. CNBC reports that M-commerce sales were up by more than 18% in 2017.
Yet the rising popularity of M-commerce doesn’t just apply to sales. Services — even legal services — have an opportunity to follow this trend and reach an even wider audience. The fact is, there are just some people who are more comfortable turning to their smartphones than they are with walking into traditional brick-and-mortar stores. Those same type of people also need legal services and if you’re not looking at mobile connectivity options, you’re ignoring a massive segment of the population.
BusinessInsider.com reports that an increased use of mobile wallets also stands to help fuel growth in mobile payments. Innovations like this are helping past fears about mobile security to fade as M-commerce becomes more prevalent.
Reaching future platform users:
More than half of all internet activity now comes from mobile devices. E-commerce via mobile devices, or “m-commerce,” is also on the rise. With so many products and services now available at your fingertips, why not legal services? That’s where the 1LAW app — available on iOS and progressive web app platforms — comes in. With just a couple of taps on your smartphone, 1LAW can connect you to a wealth of legal advice.
Say you need a bill of sale for your car, 1LAW’s Docubot can provide a form free of charge. What about a medical directive for your aging mother? Also free. Power of attorney? Check. Will? Of course. We believe that access to many of these basic legal forms should be free and easily available online, and they are through the 1LAW app. You can even access the Docubot via Facebook or other social media sites. The platform is curated by Lawyers and their bios are available in the app. The forms are recognized by the legal industry – think legal zoom. All information is vetted prior to being allowed on the platform.
What if your legal needs are more complicated? Well, 1LAW utilizes artificial intelligence to connect users to a variety of legal services. While many legal questions can be answered by our AI chatbot, if your needs require the skills of an attorney, we can make that connection through our network of participating providers. You don’t even have to enter a law office for this service; just open up your 1LAW app, and with the tap of a finger, you can be connected via the chat function or even a video call with an available attorney.
Whether you need an attorney or not, 1LAW provides a personally cultivated experience to give you the best legal experience for your price point. And it’s all available within minutes or even seconds on your smartphone or tablet. If an attorney is not immediately available, our chatbot will gather the necessary information from you to make sure any selected lawyers are up to speed at their first availability. Response times can be immediate but the max target is 48 hrs (because Amazon has taught us to be patient) but basic immediate help is always available via AI.
How do you know if you’re getting quality service? All of our participating lawyers are required to be insured and licensed. Each attorney is vetted by 1LAW before joining our list of providers. Attorneys must be licensed and insured. 1LAW internally vets the participants on the platform.
What about security? 1LAW utilizes industry-standard encryption to protect you and your information. This applies to everything from video conversation with our attorneys to the uploading of documents. Plus, all of your communications with 1LAW and its providers is protected by our firewall and, therefore, becomes privileged information.
If you do engage one of our participating attorneys for legal services, 1LAW will utilize the token ESQ to ensure that you’ll only be charged for services as they are rendered, piece by piece. If one of our lawyers doesn’t do the work, you don’t pay. It’s that simple.
If a client has paid a certain amount and the attorney quits delivering, does a different attorney then have an opportunity to step in and complete the work? That is what we will strive for if not a full refund.
1LAW has entered into strategic relationships with large national attorney associations. These Associations distribute the app as a means of extending an attorney’s online fingerprint.
Obviously, you might be skeptical about finding clients on the internet, especially those who find you while looking for a cheap and easy way to access legal services. But if these clients reach a point where they are seeking out services from an attorney, the 1LAW app will have already gathered some basic information, including things like the nature of an injury and the date on which it happened. Suddenly, it’s an authentic lead with an inherent value.
For attorneys, 1LAW’s use of cryptocurrency will ensure you are paid if you do the work. Because you’ll be fulfilling client requests piece by piece, you’ll be paid for each segment of the project — even if you just generate the lead. With clients paying throughout the process, you won’t have to wonder whether you’ll actually be paid at the end of the project because you’ll be paid for each (segment?).
Imagine finding clients while you sleep. In essence, that’s what the 1LAW app could do for you. 1LAW allows potential clients to connect directly with available attorneys via the app’s chat function or a video call. However, some of these requests may come in the middle of the night when no attorneys are available. In that scenario’s the app’s artificial intelligence chatbot will gather the necessary information and have it ready for you when you wake up or become otherwise available. It’s not just 24-7 convenience and accessibility for clients, it’s 24-7 lead generation for participating attorneys.
In the fall of 2017 for the first time ever lost students were taught How to use a chat bot to automate a law practice. This class was taught using 1LAW’s proprietary chatbot engine and builder Botineer.
Need for a coin
Legal services are not something most people think of until they need them. By educating mothers as to the need for a will, power of attorney, medical directive or small business owners as to corporate protections we can capture the $40B annually worth of revenue is not participating in the market. $8 Billion a year is being spent on marketing of legal service among a fragmented marketplace.
The inefficiency of marketing and delivery of legal services will be addressed by a smart contract governed marketplace that integrates Artificial Intelligence to assess needs of the participants as well as ensure the delivery and fulfillment of the services. Equally as important is to reduce the inherent unreliability of marketing efforts. Gamification of legal marketing will be eliminated by a smart contract governed marketplace.
The platform will be decentralized and utilize tokens for operation and show proof of stake. All transactions on the platform will be in tokens to facilitate intra-platform transaction. Attorneys earn coins for participating (providing consults) and curating content. Non attorney platform users can earn tokens by creating a profile, sharing with friends and family and completing a legal wellness package (e.g. will, power of attorney and medical directive).
In the last 18 months a surge in awareness of legal technology and the potential impact on the future of legal service. From DIY form sites to lawyers willing to accept a flat fee for services the landscape is changing form the traditional brick and mortar law office. As a result of technological improvements people who previously did not feel that they could afford an attorney are now able to receive essential services for low or often no legal fees. Acquiring these new participants
a) With some legal matters, such as immigration or deportation, there will be zero advance warning, so immediacy is critical.
b) The fact that an attorney has spent the most money on advertising does not ensure quality or fulfillment of service. Social and platform recommendation
c) Many legal issues can be resolved or answered within 15 minutes so there is an incentive for professionals to engage in virtual services.
d) Traffic congestion in urban communities make the use of virtual professional services extremely attractive.
Early adopters will likely come in the following groups:
1) Solo and small firm lawyers. These groups will immediately benefit from a reduction in overhead due to the chatbot assistant and virtual legal services. These saving we anticipate will be transitioned into additional marketing spends through the platform.
2) Personal Injury law firms. Personal Injury law firms spend a disproportionate amount of their revenue on marketing. The potential future clients presented by the platform consumer users
3) Mothers and sole proprietor business people who can benefit from free legal documents.
4) Low income and individuals without a previous connection to a lawyer or legal service provider.
5) Younger tech entrepreneurs that are seeking lower cost solutions to business formation.
5) Friends, family and colleagues of Early Adopters. The platform rewards and encourages referrals both consumer and lawyer side.
6) Referrals from Legal Aid and non-profit legal services organizations. As a means of expanding their services to more people.
7) Local governments leaders will purchase the services. This will enable friction-less services for everyone in a disaster scenario.
Mass adoption will occur as the consumers are aware that essential legal services are available for free, while delivery and quality of paid services are ensured.
Adoption of our products and services by Lawyers and their clients will bring an exciting demographic to the cryptocurrency marketplace, promoting growth and ensuring ongoing success of the greater community. By leveraging our existing AI and virtual service platform, early adopter will receive immediate value from the platform.
a) Lawyers tend to be slow adopters of technology. We will focus on younger attorneys and attorneys seeking to grow their practices. These attorneys have shown themselves to both need greater efficiency and a willingness to employ the latest technology.
b) New method of transacting for professional services. Certain areas of the law specifically Administrative Law are well suited for a virtual legal relationship.
c) Current institutions are often a barrier to innovation. By working towards a common end, eliminating the justice gap, institutional actors will see their interests aligned with our mission.
We have deep experience in implementing privacy. Tokenholders will purchase services and good via the marketplace anonymously, only sending personal data when absolutely required.
We are incorporated in United States and will comply with relevant regulations. We will comply with the laws and regulations of United States. Once compliance is satisfied, our focus is on protecting the privacy of our tokenholders.
We are legal experts and skilled at preserving the integrity of client information. We provide a highly secure marketplace ensured through top quality talent, a bug bounty program and regularly run third party penetration tests.
Our team is very experienced in legal services, marketing, cyber security, compliance, privacy, and scaling.
A. Jason Velez, Project Leader and Platform Architect https://www.linkedin.com/in/ajasonvelez
Velez is one of the first legal-crypto pioneers. In 2014 he became one of the first lawyers to accept Bitcoin for payment of legal services and analyze the tax and compliance implications of the space. He is a practicing attorney (17 years) who made the jump to tech entrepreneurship. He serves as the 1LAW project lead and father of Docubot. Jason is the founding partner and creator of 1LAW, a culmination of his lifelong efforts to provide compassionate, accessible legal services in a modern environment. Relying on his practical legal experience, he set forth to develop a 21st century legal platform to serve an increasingly tech-dependent legal market.
George “Trey” Richards, Lead Developer: https://www.linkedin.com/in/trey-richards-961526b4/
Trey Richards is the Technical Cofounder and a Software Engineer and Entrepreneur. Trey specializes in Mobile and Web Development, E-commerce/cryptocurrency integration, with an emphasis on solving real world problems in the most efficient and scalable way possible. One of Trey’s biggest assets is his confidence that he and his team are capable of anything, there is no problem too large, nor too small, that it cannot be solved through methodical planning, engineering and execution.
Trevor Welch, CFO https://www.linkedin.com/in/trevorwelch/
Trevor recently launched IBI Group (International Blockchain Investments) Jan 2018. This is a Venture Capital Firm focused on the emerging Blockchain, Crypto and Decentralization Technology. In his other ventures he is responsible for portfolio management, investment due diligence and compliance coordination. Awarded best Multi-Strat Hedge fund and HFOF in two publications in consecutive years.
Stewart Whaley, Attorney and Software Developer: https://www.linkedin.com/in/stewartwhaley/
Software developer, team leader, licensed attorney, Microsoft Certified Professional, Certified information Privacy Professional (CIPP/US) and Twilio Doer. Stewart has experience building, designing, supporting and managing software in the healthcare, legal and media industries. As an attorney and CIPP, Stewart has extensive knowledge of IT and HIPAA/healthcare regs and compliance including the development of HIPAA-compliant, cloud-based software (including video conferencing and secure messaging telemedicine), project management, risk assessment, and development of policies and procedures to ensure regulatory/statutory compliance.
Tyler T. Todd, COO https://www.linkedin.com/in/tyler-todd-133016131/
As a practicing lawyer for 13 years, Tyler has excelled to become the managing partner of 1LAW and the COO of 1LAW Technologies. With his natural ability to connect and relate with various personalities, Tyler has the innate expertise to manage and lead those around him to accomplish and reach team goals.
Tyler has had the pleasure of serving on a number of advisory boards for nonprofit organizations and continually seeks for volunteer opportunities. As a lawyer, he has been named a Top 40 Under 40 by the National Trial Lawyers. Working together with the 1LAW team, Tyler truly believes the Justice gap will be closed and all people around the world will have access to legal services that will enable them to protect what matters most.
Vincent Morris, Legal Aid Developer and Liaison https://www.linkedin.com/in/vincemorris/
Morris is a practicing attorney (12 years) and is worked for the two free legal aid organizations in Arkansas beginning as a law student intern and completed his career with legal aid as the Director of the Arkansas Legal Services Partnership and Director of the Arkansas Pro Bono Partnership.
Recognized by the American Bar Association as a Legal Rebel he is celebrated as one of the few attorneys in the nation that are “the innovators – the folks who’ve found a different path, some new way to blend the needs of their clients or their practice, or even their own needs of personal expression, into the way they practice the law.” See Morris – ABA Legal Rebel.
Dr. Kim Welch https://www.linkedin.com/in/kimwelchinfo/
Kim Welch holds an Ed.D. in Learning Technologies from Pepperdine University. She is also certified in User Experience, Change Management, and basic HTML and CSS. She speaks French and Spanish and has a strong desire to open legal and educational access to people who have otherwise been without resources. Her studies focus on the digital learning experience.
Jesse Stay: https://www.linkedin.com/in/facebook/
Jesse is a Growth Hacker, Internet Marketing, and Social Media Strategist, 9-time book author, software developer and blogger. Recognized by Mashable as one of 10 entrepreneurs (next to Jack Dorsey!), as well as 10 developers to follow on Twitter.
Having led social media for The Church of Jesus Christ of Latter-day Saints during what some have called “The Mormon Moment” during the Romney campaign and launch of “The Book of Mormon Musical,” Jesse has helped large, multi-national organizations formulate social media from within and grow and solidify strategy for social media across departments. I also helped double the social referrals for a top-25 news organization poised to be one of the top growing newspapers in the nation within a 6-month period.
Dr. Kerk Kee: https://www.linkedin.com/in/kerkkee/
Kerk Kee holds a Ph.d in Organizational Communication. He Is an Assistant Professor of Communication Studies at Chapman University in Orange County, California. His research focus includes technology adoption, distributed collaboration, and virtual organization. His dissertation “Rationalities behind the Adoption of Cyberinfrastructure for e-Science in the Early 21st Century U.S.” serves as guidance for diffusing innovation.
This is a utility coin, not a security. Don’t speculate. Do your own research. All tokens provide access to legal services including future legal services.
A purchase of ESQ Tokens involves a high degree of risk. You should consider carefully the risks described below, together with all of the other information contained in this Whitepaper, before making a decision to purchase. The following risks entail circumstances under which, 1LAW’s business, financial condition, results of operations and prospects could suffer.
Participation in coin offerings, including the ESQ Token offering, involves a high degree of risk.
Financial and operating risks confronting financial and technology companies 1LAW may be significant. The financial and payment processing industries are highly competitive and the percentage of companies that survive and prosper may be limited. Unexpected problems in the areas of product development, marketing, financing and general management, among others, that cannot be solved may arise.
YOU SHOULD CONSULT YOUR LEGAL, FINANCIAL, TAX, AND OTHER PROFESSIONAL ADVISORS BEFORE ACTING ON THE CONTENTS OF THIS WHITEPAPER.
1LAW Legal Technologies LLC. (“1LAW”), a Delaware company, will distribute ESQ (“ESQ”) tokens, and will deploy all proceeds of the sale of ESQ tokens to fund 1LAW’s legal services project, technology platform, businesses, and operations.
The ESQ tokens are intended to be used for anticipated current and future legal needs. The ESQ tokens do not create or confer any ownership or security interest over 1LAW’s assets or properties, and do not offer any fixed or contingent assurance of financial return. Therefore, ESQ tokens are not securities and are not intended to constitute securities in any jurisdiction, and do not constitute a collective investment scheme in any jurisdiction. This Whitepaper does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities or a solicitation for investment in securities in any jurisdiction.
This Whitepaper does not constitute or form part of any opinion on any advice to sell, or any solicitation of any offer by 1LAW to purchase any ESQ tokens nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision.
No regulatory authority has examined or approved of any of the information set out in this Whitepaper. No such action has been or will be taken under the laws, regulatory requirements or rules of any jurisdiction. The publication, distribution, or dissemination of this Whitepaper does not imply that the applicable laws, regulatory requirements or rules have been complied with.
General risks associated with the business of 1LAW.
1LAW proposes to offer highly complex services and products and faces competition that may result in low market share and/or profitability. 1LAW expects the marketplace to continue to be highly competitive as new products develop, industry standards become well known and other competitors attempt to enter these markets. Some competitors may have longer operating histories, and larger customer bases and significantly greater financial, sales and marketing, manufacturing, distribution, technical and other capabilities than 1LAW. These competitors may be able to adapt more quickly to new or emerging technological requirements and changes in customer and/or regulatory requirements. They may also be able to devote greater resources to the promotion and sale of their products and services. Competition from newly established competitors may also enter the marketplace and further materially adversely affect 1LAW. Existing or new competitors may develop products, technologies or services that more effectively address 1LAW’s markets with enhanced features and functionality, greater levels of integration and/or lower cost. Additionally, changes or developments in technology could render 1LAW’s products and services dated or obsolete or cause them to lose market acceptance, which could have a material adverse impact on business performance. As the technological sophistication of its competitors and the size of the market increase, competing low-cost producers could emerge and grow stronger.
Our reliance on third parties and agreements with collaboration partners may require us to share our trade secrets, which increases the possibility that a competitor may discover them or that our trade secrets will be misappropriated or disclosed.
Our reliance on third party contractors to develop and manufacture our products and services is based upon agreements that limit the rights of the third parties to use or disclose our confidential information, including our trade secrets and know-how. Despite the contractual provisions, the need to share trade secrets and other confidential information increases the risk that such trade secrets and information are disclosed or used, even if unintentionally, in violation of these agreements. In the highly competitive markets in which our products and services are expected to compete, protecting our trade secrets, including our strategies for addressing competing products and services, is imperative, and any unauthorized use or disclosure could impair our competitive position and may have a material adverse effect on our business and operations. In addition, our partners may be larger and more complex organizations than ours, and the risk of inadvertent disclosure of our proprietary information may be increased despite internal procedures and contractual obligations in place with our collaboration partners. Despite our efforts to protect our trade secrets and other confidential information, a competitor’s discovery of such trade secrets and information could impair our competitive position and have an adverse impact on our business.
Risks associated with financial reporting.
There may be material weaknesses in our internal control over financial reporting as well as significant deficiencies in our disclosure controls and procedures, and we may identify material weaknesses in internal controls or significant deficiencies in our disclosure controls and procedures in the future. If we fail to remediate any identified material weaknesses, or if we otherwise fail to maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results, or detect or prevent fraud in a timely manner, which may, among other adverse consequences, cause our customers to lose confidence. A “material weakness” is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
We may issue additional ESQ Tokens in order to raise additional capital needed to pay our operating expenses.
We plan to incur substantial research and product development expenses, and we may need to raise additional capital to pay operating expenses until we are able to generate sufficient revenues. Additional sales of ESQ Tokens may be required in the future to meet our capital needs, unless we receive revenues from the sale of any products or services we are successful in raising sufficient capital in the ICO. Sales of additional ESQ Tokens could result in the dilution of the interests of present ESQ Token holders.
Interruptions in IT systems could materially adversely affect business performance.
1LAW is entirely dependent on the secure operation of its websites and systems as well as the operation of the Internet generally. Its business involves the storage and transmission of customers’ proprietary information, and security breaches could expose 1LAW to a risk of loss or misuse of this information, and to resulting claims and litigation. A number of large companies have suffered security breaches, many of which have involved intentional attacks. From time to time 1LAW and many other businesses also experience denial of service attacks in which attackers attempt to block customers’ access to any or all of its product, software and platforms, including but not limited to its website. If 1LAW is unable to avert a denial of service attack for any significant period, it could sustain substantial revenue loss from lost sales and customer dissatisfaction. 1LAW may not have the resources or technical sophistication to anticipate or prevent rapidly evolving types of cyber-attacks. Cyber-attacks may target 1LAW, its customers, its suppliers, banks, credit card processors, delivery services, e-commerce in general or the communication infrastructure on which it depends or which it operates. If an actual or perceived attack or breach of its security occurs, customer and/or supplier perception of the effectiveness of its security measures could be harmed and 1LAW could lose customers, suppliers or both. Actual or anticipated attacks and risks may cause 1LAW to incur increasing costs, including costs to deploy additional personnel and protection technologies, train employees, and engage third party experts and coESQltants. A person who is able to circumvent security measures might be able to misappropriate its or its customers’ proprietary information, cause interruption in operations, damage computers or those of customers, or otherwise damage reputation and business. Any compromise of security could result in a violation of applicable privacy, banking, consumer protection and other laws, significant legal and financial exposure, damage to its reputation, and a loss of confidence in security measures, which could harm 1LAW’s business. Any significant interruption to the efficient and uninterrupted operation of 1LAW’s information technology applications, systems and networks, including, but not limited to, new system implementations, facility issues or energy blackouts, could have a material adverse impact on 1LAW’s operations and operating results. The protective measures adopted to avoid system or network disruptions may be insufficient to prevent or limit the damage from any future disruptions, and any such disruption could have an adverse effect on 1LAW’s business, financial condition and results of operations.
Risks associated with intellectual property.
We may in the future be subject to intellectual property or other claims, which are costly to defend, could result in significant damage awards, and could limit our ability to use certain technologies in the future. In the future we may have patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. Adverse results in any of these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements (if licenses are available at all), or orders preventing us from offering certain features, functionalities, products, or services, and may also cause us to change our business practices, and require development of non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. Intellectual property claims are often time consuming, expensive to litigate or settle, and cause significant diversion of management attention. To the extent such intellectual property infringement claims are successful, they may have an adverse effect on our business. Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products and services. Our intellectual property rights are important assets for us. Various events outside of our control pose a threat to our intellectual property rights, as well as to our products, services and technologies. For example, effective intellectual property protection may not be available in every country in which our products and services are distributed or made available. Also, the efforts we have taken to protect our proprietary rights may not be sufficient or effective. We also seek to maintain certain intellectual property as trade secrets. The secrecy could be compromised by outside parties, or by our employees, which could cause us to lose the competitive advantage resulting from these trade secrets. Any significant impairment of our intellectual property rights could harm our business and our ability to compete.
Risks associated with legal proceedings.
1LAW undertakes global business operations and may be involved from time to time in disputes, including lawsuits and other legal proceedings, and investigations by relevant authorities. It is possible that such cases may arise in the future. Due to the differences in judicial systems and the uncertainties inherent in such proceedings, 1LAW may be subject to a ruling requiring payment of amounts far exceeding its expectations. Any judgment or decision unfavorable to 1LAW could also have a material adverse effect on 1LAW’s business. In addition, due to various circumstances, there can be no assurance that lawsuits involving claims for large sums will not be brought, even if the possibility of receiving orders for such payment is quite low.
Risks associated with international operations.
1LAW is subject to numerous evolving and complex laws and regulations which apply, among other things, to financial reporting standards, corporate governance, data privacy, tax, competitive practices and regulations in each jurisdiction in which it operates. In the jurisdictions in which it operates, 1LAW would need to comply with various standards and practices of different regulatory, tax, judicial and administrative bodies. There are a number of risks associated with international business operations, including political instability (e.g., the threat of war, terrorist attacks or civil unrest), inconsistent regulations across jurisdictions, unanticipated changes in the regulatory environment, and import and export restrictions. Any of these events may affect its employees, reputation, business or financial results as well as its ability to meet its objectives, including the following international business risks:
- negative economic developments in economies around the world and the instability of governments, or the downgrades in the debt ratings of certain major economies;
- social and political instability;
- complex regulations governing certain of its products;
- potential terrorist attacks;
- adverse changes in governmental policies, especially those affecting trade and investment;
- foreign currency exchange; and
- threats that its operations or property could be subject to nationalization and expropriation.
1LAW may not be in full compliance at all times with the laws and regulations to which it is subject. Likewise, 1LAW may not have obtained or may not be able to obtain the permits and other authorizations or licenses that it would need. If 1LAW violates or fails to comply with laws, regulations, permits, health and safety regulations or other authorizations or licenses, it could be fined or otherwise sanctioned by regulators. In such a case, or if any of these international business risks were to materialize, the business, financial condition and results of operations, and thus the value of the ESQ Token, could be adversely affected.
ACKNOWLEDGEMENTS REGARDING RELATIONSHIPS: Use of Token and The Service. – No Formation of an Attorney-Client Relationship
There are risks and uncertainties associated with 1LAW and its respective businesses and operations, the ESQ tokens, and the 1LAW platform.
The Information (Legal resources, forms, and chat) found on the 1LAW Platform is intended for general informational purposes only and should be used only as a starting point for addressing your legal issues.
General Information does not constitute legal services, and accessing such information, or corresponding with or asking questions to a lawyer via the Services, or otherwise using the Services, does not create an attorney-client relationship between you and the Service, or you and any lawyer.
It is not a substitute for an in-person or telephonic consultation with a lawyer licensed to practice in your jurisdiction about your specific legal issue, and you should not rely on such Legal Information.
Such information is only intended for general educational and informational purposes. It is not a substitute for legal advice from a qualified attorney licensed to practice in an appropriate jurisdiction. Moreover, nothing contained on the Site or feature of the Service is a promise or guarantee of the outcome of any legal matter in which a Service Provider is involved.
You understand that questions and answers or other postings to the Services are not confidential and are not subject to attorney-client privilege.
The Service is a platform where lawyers can offer information and interact with consumers. We provide a number of methods by which you can purchase legal services or have a direct, confidential discussion of your legal issues with a lawyer. Although some of these methods involve the Service processing a transaction on your behalf, in all instances, the Service is simply the intermediary in such transactions. You are liable for paying the lawyer for the services provided. The Service has no liability, either primarily or secondarily, for paying the lawyer other than as an agent on your behalf. The fees you pay for such services are charged by the lawyer and passed through to the lawyer once services have been rendered. Any attorney-client relationship formed as a result of such discussions is between you and the lawyer you speak with—not between you and the Service. Furthermore, you understand that the Service cannot be held responsible for the quality or accuracy of any information or legal services provided by lawyers you connect with via the Service.
DISCLAIMER OF LIABILITY
To the maximum extent permitted by the applicable laws, regulations, and rules, 1LAW shall not be liable for any indirect, special, incidental, consequential, or other losses of any kind, in tort, contract, or otherwise (including, but not limited to, loss of revenue, income or profits, and loss of use or data), arising out of or in connection with any acceptance of or reliance on this Whitepaper or any part thereof by you.
NO REPRESENTATIONS AND WARRANTIES
1LAW does not make or purport to make, and hereby disclaims, any representation, warranty, or undertaking in any form whatsoever to any entity or person, including any representation, warranty or undertaking in relation to the truth, accuracy, and completeness of any of the information set out in this Whitepaper.
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
All statements contained in this Whitepaper, statements made in press releases or in any place accessible by the public and oral statements that may be made by 1LAW or its respective directors, executive officers, or employees acting on behalf of 1LAW (as the case may be), that are not statements of historical fact, constitute “forward-looking statements”. Some of these statements can be identified by forward-looking terms such as “aim”, “target”, “anticipate”, “believe”, “could”, “can”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “possible”, “probable”, “project”, “should”, “would”, “will”, or other similar terms. However, these terms are not the exclusive means of identifying forward-looking statements. All statements regarding 1LAW’s financial position, business strategies, plans, and prospects and the future prospects of the industry which 1LAW is in are forward-looking statements. These forward- looking statements, including but not limited to statements as to 1LAW’s revenue and profitability, prospects, future plans, other expected industry trends, and other matters discussed in this Whitepaper regarding 1LAW are matters that are not historical facts, but only predictions.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results, performance, or achievements of 1LAW to be materially different from any future results, performance, or achievements expected, expressed, or implied by such forward-looking statements. These factors include, amongst others:
• changes in political, social, economic, and stock or cryptocurrency market conditions, and the regulatory environment in the countries in which 1LAW conducts its respective businesses and operations;
• the risk that 1LAW may be unable to execute or implement their respective business strategies and future plans; • changes in interest rates and exchange rates of at currencies and cryptocurrencies;
• changes in the anticipated growth strategies and expected internal growth of 1LAW;
• changes in the availability and fees payable to 1LAW in connection with their respective businesses and operations;
• changes in the availability and salaries of employees who are required by 1LAW to operate their respective businesses and operations;
• changes in preferences of users of 1LAW’s products and services;
• changes in competitive conditions under which 1LAW operates, and the ability of 1LAW to compete under such conditions;
• changes in the future capital needs of 1LAW and the availability of financing and capital to fund such needs;
• changes to regulations in the jurisdictions where 1LAW operates;
• war or acts of international or domestic terrorism;
• occurrences of catastrophic events, natural disasters, and acts of God that affect the businesses and/or operations of 1LAW;
• other factors beyond the control of 1LAW; and
• any risk and uncertainties associated with 1LAW and its businesses and operations, the 1LAW tokens, the ESQ, and the 1LAW platform.
All forward-looking statements made by or attributable to 1LAW or persons acting on behalf of 1LAW are expressly qualified in their entirety by such factors. Given that risks and uncertainties that may cause the actual future results, performance, or achievements of 1LAW to be materially different from that expected, expressed, or implied by the forward-looking statements in this Whitepaper, undue reliance must not be placed on these statements. These forward-looking statements are relevant only as of the date of this Whitepaper.
Nothing contained in this Whitepaper is or may be relied upon as a promise, representation, or undertaking as to the future performance or policies of 1LAW.
MARKET AND INDUSTRY INFORMATION AND NO CONSENT OF OTHER PERSONS
This Whitepaper may include market and industry information and forecasts that have been obtained from internal surveys, reports, and studies, where appropriate, as well as research, publicly available information, and industry publications. Such surveys, reports, studies, market research, publicly available information, and publications generally state that the information they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information.
Save for 1LAW and its respective directors, executive officers, team members, advisors and employees, no person has provided his or her consent to the inclusion of his or her name and/or other information attributed or perceived to be attributed to such person in connection therewith in this Whitepaper and no representation, warranty, or undertaking is or purported to be provided
No information in this Whitepaper should be considered to be business, legal, financial, or tax advice regarding 1LAW, the ESQ tokens, and the 1LAW Market platform. Do your own research and make your own decisions.
Appendix A – William Mougayar’s 20 ?’s
1. Is the token tied to a product usage, i.e. does it give the user exclusive access to it, or provide interaction rights to the product? Yes the ESQ is the fuel and a transactional implement.
2. Does the token grant a governance action, like voting on a consensus related or other decision-making factor? Not directly but membership and platform participation rights are granted on the basis of token possession.
3. Does the token enable the user to contribute to a value-adding action for the network or market that is being built? Yes, Lawyer token possessors are the primary source of value to the platform.
4. Does the token grant an ownership of sorts, whether it is real or a proxy to a value? Yes the ESQ token represents a value of legal services and documents.
5. Does the token result in a monetizable reward based on an action by the user (active work)? Lawyers are rewarded for contributions to the platform and services rendered through the platform.
6. Does the token grant the user a value based on sharing or disclosing some data about them (passive work)? Yes, consumers are rewarded for creating a profile and completing the Legal Wellness package.
7. Is buying something part of the business model? Yes, Not physical items but services and digital items are part of the platform.
8. Is selling something part of the business model? Yes, Virtual services and digital items are part of the platform.
9. Can users create a new product or service? Yes, Lawyers can create profiles for themselves and their companies.
10. Is the token required to run a smart contract or to fund an oracle? (an oracle is a source of information or data that other a smart contract can use) Yes, eventually however not as a part of phase 1.
11. Is the token required as a security deposit to secure some aspect of the blockchain’s operation? Not at this time, future functionality anticipates this type of token use.
12. Is the token (or a derivative of it, like a stable coin or gas unit) used to pay for some usage? Yes, communication activities, such as video and messaging as well as file storage expend tokens.
13. Is the token required to join a network or other related entity? Yes, tokens are required to participate in the platform.
14. Does the token enable a real connection between users? Yes, video and chat messaging are integrated in the platform.
15. Is the token given away or offered at a discount, as an incentive to encourage product trial or usage? Yes, initial consumer users are given tokens to facilitate platform usage after creating a profile. Select Legal Aid Organizations will receive tokens as well to help promote Legal Wellness.
16. Is the token your principal payment unit, essentially functioning as an internal currency? Yes
17. Is the token (or derivative of it) the principal accounting unit for all internal transactions? Yes
18. Does your blockchain autonomously distribute profits to token holders? N/A
19. Does your blockchain autonomously distribute other benefits to token holders? Yes, certain features are unlocked by holding or possessing a minimum number of tokens.
20. Is there a related benefit to your users, resulting from built-in currency inflation? No
 The estimated $40 Billion market currently un-serviced by traditional legal services.
 IBIS World Report 2016