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needed international connections. The second was the expansion of a number of large United States
firms who pushed to become “national.” Smaller firms or firms with a niche practice required this
same expertise in other states.
Internationalization of the legal profession began much later than in accounting firms.1
There was no real need because, unlike the accounting firms that conducted worldwide audits, law
firms in each country were equipped to deal with client matters. This changed in 1949 when Baker
McKenzie began to expand to non-United States markets to assist U.S. clients trying to expand
overseas following WWII.2 The first step was establishing correspondent relationships with firms
outside of the United States. This was necessary in that many countries would not permit a law
firm to operate without a local name.3
The Need for Global Networks4
Internationalization was slow to start because the legal profession was much more
restrictive than accounting in allowing foreign firms to enter and practice in their countries. There
were rules requiring that the names of the partners be present in the name of the firm. As a firm
expanded, it began to use its name when possible in as many countries as commercially feasible.
The purpose was the same as in accounting: establish a brand and attract clients to it. The
downsides were that the legal profession looked down at the Baker McKenzie model and its own
competition pejoratively characterized Baker McKenzie as a franchise.5 The forces of the
international community converged in the late 1980s. American and English firms began
establishing branches in the primary commercial centers. This niche competition in local markets
had the immediate effect of forcing local firms to evaluate alternative ways of providing services
to their international clients.
Law firms, like the accounting firms, were looking for niche markets. The difference was
that U.S. law firms focused internationally on a niche market. In the 1970s, niche markets focused
on serving financial services and then branched out to clients in manufacturing.6 The result today
is that more than 100 United States law firms have offices outside of the country.7 However, the
reality is that internationalization is very limited among U.S. law firms — among the largest 100,
the average has five overseas offices.8
The New York and London firms that opened offices at first generally did not practice local
law, so the regional firms were protected and received referrals on local matters. This also changed
as the number of branches increased and the firms indigenized. With the advent of legal
1 Richard L. Abel, Transnational Law Practice, 44 CASE W. RES. L. REV. 737 (1994).
2 HISTORY OF BAKER & MCKENZIE, http://www.bakermckenzie.com/firmfacts/firmhistory/; see also JOHN R. BAUMAN, PIONEERING A
GLOBAL VISION: THE STORY OF BAKER & MCKENZIE (1999).
3 This rule still applies in a number of countries like Brazil, where the Baker McKenzie members uses their own name and association with the
firm. See Keep Out – Brazilian Lawyers Do Not Want Pesky Foreigners Poaching Their Clients, THE ECONOMIST (June 23, 2011), available at
http://www.economist.com/node/18867851?story_id=18867851&fsrc=rss. The same applies to India. See Margaret Taylor, Ashurst Seals Best-
Friends Deal with India Law Partners, THE LAWYER (July 15, 2011), available at http://www.thelawyer.com/1008640.article.
4 JAGDISH SHETH, STRATEGIC PERSPECTIVE ON THE MARKETING OF INFORMATION TECHNOLOGIES, Volume 4, 3-16 (Emerald
Group Publishing, Ltd. 1994); see also B.M. GILROY, NETWORKING IN MULTINATIONAL ENTERPRISES: THE IMPORTANCE OF
STRATEGIC ALLIANCES (University of South Carolina Press 1993); see also R. Gulati, et al., Strategic Networks, 21 STRATEGIC MGMT. J. 203-
215 (2000).
5 A review of major legal publications shows virtually no articles or discussion of networks or developments in networks. Unlike in accounting,
there is no reporting of new members of networks, loss of members, marketing activities, etc. When a large firm loses a single partner, this is
reported.
6 Carol Silver, Globalization and the U.S. Legal Market in Legal Services – Shifting Identities, 31 L. & POL’Y INT’L BUS. 1127, 1129 (2000).
7 The Am Law 100 2011, AM. L. MAG. (May 1, 2011), http://www.americanlawyer.com/id=1202550268433/The-Am-Law-100-
2011?slreturn=20150403145553.
8 HARVARD PROGRAM ON THE LEGAL PROFESSION, http://www.law.harvard.edu/programs/plp/pages/statistics.php#sotflf.
215
firms who pushed to become “national.” Smaller firms or firms with a niche practice required this
same expertise in other states.
Internationalization of the legal profession began much later than in accounting firms.1
There was no real need because, unlike the accounting firms that conducted worldwide audits, law
firms in each country were equipped to deal with client matters. This changed in 1949 when Baker
McKenzie began to expand to non-United States markets to assist U.S. clients trying to expand
overseas following WWII.2 The first step was establishing correspondent relationships with firms
outside of the United States. This was necessary in that many countries would not permit a law
firm to operate without a local name.3
The Need for Global Networks4
Internationalization was slow to start because the legal profession was much more
restrictive than accounting in allowing foreign firms to enter and practice in their countries. There
were rules requiring that the names of the partners be present in the name of the firm. As a firm
expanded, it began to use its name when possible in as many countries as commercially feasible.
The purpose was the same as in accounting: establish a brand and attract clients to it. The
downsides were that the legal profession looked down at the Baker McKenzie model and its own
competition pejoratively characterized Baker McKenzie as a franchise.5 The forces of the
international community converged in the late 1980s. American and English firms began
establishing branches in the primary commercial centers. This niche competition in local markets
had the immediate effect of forcing local firms to evaluate alternative ways of providing services
to their international clients.
Law firms, like the accounting firms, were looking for niche markets. The difference was
that U.S. law firms focused internationally on a niche market. In the 1970s, niche markets focused
on serving financial services and then branched out to clients in manufacturing.6 The result today
is that more than 100 United States law firms have offices outside of the country.7 However, the
reality is that internationalization is very limited among U.S. law firms — among the largest 100,
the average has five overseas offices.8
The New York and London firms that opened offices at first generally did not practice local
law, so the regional firms were protected and received referrals on local matters. This also changed
as the number of branches increased and the firms indigenized. With the advent of legal
1 Richard L. Abel, Transnational Law Practice, 44 CASE W. RES. L. REV. 737 (1994).
2 HISTORY OF BAKER & MCKENZIE, http://www.bakermckenzie.com/firmfacts/firmhistory/; see also JOHN R. BAUMAN, PIONEERING A
GLOBAL VISION: THE STORY OF BAKER & MCKENZIE (1999).
3 This rule still applies in a number of countries like Brazil, where the Baker McKenzie members uses their own name and association with the
firm. See Keep Out – Brazilian Lawyers Do Not Want Pesky Foreigners Poaching Their Clients, THE ECONOMIST (June 23, 2011), available at
http://www.economist.com/node/18867851?story_id=18867851&fsrc=rss. The same applies to India. See Margaret Taylor, Ashurst Seals Best-
Friends Deal with India Law Partners, THE LAWYER (July 15, 2011), available at http://www.thelawyer.com/1008640.article.
4 JAGDISH SHETH, STRATEGIC PERSPECTIVE ON THE MARKETING OF INFORMATION TECHNOLOGIES, Volume 4, 3-16 (Emerald
Group Publishing, Ltd. 1994); see also B.M. GILROY, NETWORKING IN MULTINATIONAL ENTERPRISES: THE IMPORTANCE OF
STRATEGIC ALLIANCES (University of South Carolina Press 1993); see also R. Gulati, et al., Strategic Networks, 21 STRATEGIC MGMT. J. 203-
215 (2000).
5 A review of major legal publications shows virtually no articles or discussion of networks or developments in networks. Unlike in accounting,
there is no reporting of new members of networks, loss of members, marketing activities, etc. When a large firm loses a single partner, this is
reported.
6 Carol Silver, Globalization and the U.S. Legal Market in Legal Services – Shifting Identities, 31 L. & POL’Y INT’L BUS. 1127, 1129 (2000).
7 The Am Law 100 2011, AM. L. MAG. (May 1, 2011), http://www.americanlawyer.com/id=1202550268433/The-Am-Law-100-
2011?slreturn=20150403145553.
8 HARVARD PROGRAM ON THE LEGAL PROFESSION, http://www.law.harvard.edu/programs/plp/pages/statistics.php#sotflf.
215
