Lawyers see plenty of work ahead as innovation economy takes hold

TORONTO • As Canada’s economic growth becomes increasingly dependent on innovation and technology, the country’s lawyers know one thing — they are going to be kept busy.

That’s the thrust of a new report from Borden Ladner Gervais LLP, which notes that everything from patent issues spinning out from the “big bang” of cannabis legalization to battles over smart-city data collection will eventually intersect with law firms and the courts.

One reason is that economic and social change is coming so fast across such a range of sub-sectors that governments and regulators are struggling to keep up, said Andrew Harrison of the law firm’s Toronto’s office.

“In the absence of a strong regulatory framework, it may well be litigation in Canadian courts that, to a degree, shapes the guidance and rules needed to protect individuals and businesses,” declares the BLG report.

Getting frameworks in place — whether through the courts or through consultation — is crucial for both the rule-makers and the innovators, Harrison said, noting the BLG report says some local developers of cryptocurrency are already “considering foreign bases of operation” because of regulatory uncertainty. Of particular concern is clarity on whether crypto-currencies will be defined as securities.

The BLG report focuses on some “uniquely Canadian” innovations, such as those flowing from the legalization of cannabis, which remains illegal under U.S. federal law.

“It’s almost like a big bang,” Harrison said of the Oct. 17, 2018 legalization.

He said there are parallels between the fledgling cannabis sector and the Alberta oilsands a decade ago, an experience the law firm is drawing on.

“We have done this for clients operating in oil and gas, and other industries.”