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Legal Definitions - house counsel

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Definition of house counsel

House counsel (also known as in-house counsel or corporate counsel) refers to a lawyer who is directly employed by a single company, organization, or government entity, rather than working for an external law firm that serves multiple clients. This attorney is a full-time, salaried employee of the organization and manages its legal affairs from within. Their primary role is to provide legal advice, represent the organization's interests, draft and review legal documents, and ensure compliance with relevant laws and regulations specifically for their employer.

  • Example 1: "InnovateTech," a growing software development company, hires Sarah, an experienced attorney, to manage all their legal needs. Sarah's responsibilities include drafting software licensing agreements, reviewing contracts with cloud service providers, advising on data privacy regulations, and ensuring the company's intellectual property is protected. She is a salaried employee of InnovateTech and works from their corporate office.

    Explanation: Sarah is acting as house counsel because she is directly employed by InnovateTech, receiving a salary, and handles all their legal affairs internally, rather than being part of an outside law firm that would bill InnovateTech by the hour or project.

  • Example 2: "Global Foods Inc.," a multinational food manufacturer, has a dedicated legal department with several attorneys. One of these attorneys, Mark, specializes in regulatory compliance. His daily tasks involve ensuring that all food products meet international safety standards, advising on labeling requirements, and preparing for potential inspections by health authorities. Mark is on Global Foods Inc.'s payroll.

    Explanation: Mark serves as house counsel for Global Foods Inc. because he is a full-time employee of the company, working within its legal department to manage specific legal aspects (regulatory compliance) directly for the organization, rather than being an external consultant.

  • Example 3: A large university, "State University System," employs David as its general counsel. David's team of lawyers handles a wide range of legal issues for the university, including drafting faculty employment contracts, advising on student privacy laws (like FERPA), negotiating real estate leases for campus expansion, and representing the university in any minor lawsuits. David and his team are salaried employees of the university.

    Explanation: David and his team are house counsel because they are directly employed by the State University System to manage all its diverse legal needs internally, providing dedicated legal services solely to the university as part of its staff.

Simple Definition

House counsel refers to an attorney who is directly employed by a company, rather than an external law firm. This lawyer handles the company's internal legal affairs and may represent the entity in legal proceedings, receiving a salary from the company.

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