I saw an announcement by Atlanta law firm Morris Manning & Martin that they are launching a new “Web 2.0″ group.

The changing face of the Web and new ways people share information online has ushered in a new crop of legal issues. Attorneys with Morris, Manning & Martin, LLP are responding to that by starting a new “Web 2.0” legal group. The team focuses on the legal implications of the growing business uses of social networking and content provided by those who are not controlled by the business.

There are certainly a morass of legal issues lurking within the corners of social media - we’ve probably only begun to see the applications of law in the space. Too bad there are only a handful (if that) of social media companies in the southeast that are capable of paying MMM’s bill rates.

I am on the fence with this one. Is this simply a case of “deep south big law” chasing a buzzword three years too late? Or is this something that has the potential to be a catalyst for change in an under-served startup market?

Another aspect of this is that one of the primary reasons a startup entrepreneur would choose a big law firm would be the opportunity for assistance with a capital raise. Given that many Web 2.0/social media plays are fairly easy to bootstrap potentially diminishes the likelihood of needing to go with a larger law firm. My 2 cents. I suppose that larger clients (such as a Fortune 500 company) that are experimenting with social media may find value in the service, however.

On an unrelated note - a local entrepreneur recently signed up with a big law firm, with the promise that they would bring his deal to investors. Not only did the investor introductions not materialize, but the firm ran up initial legal fees of well over $20K. I advised him to change legal firms, which he did. Unless you are filing heavy intellectual property (patent) claims, there are very few situations where initial legal fees are going to run that high.

Cheers.