He also shares his insights on how other legal tech providers can bolster client confidence
Last week, Clio founder and CEO Jack Newton discussed with Australasian Lawyer the critical data ownership concerns facing law firms as revealed in Clio’s State of Legal Tech 2025 Data Insights report. In the second part of this interview, Newton advises law firms on how they can better protect their information from being held hostage, and what legal tech providers can do to earn law firms’ trust.
How can legal tech providers resolve such concerns on their end to prevent loss of confidence from clients and the industry as a whole?
Be transparent, be ethical, and put your customers first. Vendors should make it absolutely clear that law firms and their clients own their data, and that they can access or export it at any time in an open, usable format. There should be no friction, no hidden fees, and no barriers.
These rights need to be written clearly into customer agreements, and they need to be honoured in practice. The vendors that take this approach will stand apart. They will build lasting trust and long-term customer relationships. The vendors that continue to hold their client data hostage, are making a short-sighted mistake. It might help their retention in the short term, but it destroys their reputation and the reputation of the industry long-term.
Legal tech companies should be focused on enabling lawyers, not controlling them. Data portability is not a feature, it is a basic customer right.
What can law firms do to better protect ownership of their data?
Law firms must consider data ownership as a key part of their vendor selection process. Before signing any agreement, they should ask clear, direct questions. Can we export our data? In what format? How often? Is there a fee? Those details should be spelt out in the contract.
I often compare it to a prenuptial agreement. You hope you never need to rely on it, but it is there to protect you if the relationship ends. Firms should also push for more transparency and advocate for industry-wide standards around data portability. Staying informed about new regulations and best practices is also important, especially as governments in places like the EU move to incorporate data rights in law.
Ultimately, this is about client trust. The firms that take the time to protect their data ownership upfront are the ones that will have the confidence to embrace technology and innovate without fear.
What are the top three resources available to law firms if they find their information being held up?
The first step is always to look at the contract. Most agreements include clauses around data access, and those terms are enforceable. If a vendor refuses to comply, firms can and should use formal dispute resolution or legal remedies to assert their rights.
Second, look to emerging regulatory frameworks. In the EU, for example, new rules will require that data transfers be completed within 30 days and that switching fees be eliminated by 2027. These laws set an important precedent that firms everywhere can reference when pushing back against unfair practices.
Third, there is power in collective action. Lawyers and firms can come together to push back against practices that restrict access to their own data. Law firms shouldn’t have to fight for access to their own data. Accessing your information is not a privilege, it is a basic right.
