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Dictation Software for Law Firms: Local Dictation Subject to Confidentiality Obligations (Section 203 of the German Criminal Code (StGB))

Close the knowledge gap and leverage the latest AI features for automated workflows and intelligent analytics.

At the law firm, dictation is part of everyday life. Briefs, case notes, client meetings: Many tasks are done faster by voice than by keyboard. For lawyers, however, the question isn’t just how fast a tool is, but where the dictation goes. That’s because most well-known dictation tools send the spoken content to servers in the cloud, often outside the EU. As soon as client names, case details, or strategies are processed there, it raises issues regarding attorney-client privilege.

This guide explains why cloud-based dictation should be carefully evaluated in a law firm, how local processing on a Mac mitigates the issue, and how a streamlined, free solution stacks up against the market leader, Dragon Legal, and against generic cloud tools.

Why Cloud Dictation Can Be a Sensitive Issue in a Law Firm

Attorneys are bound by professional secrecy under Section 203 of the German Criminal Code (StGB). Anything clients entrust to them is subject to the duty of confidentiality. Anyone who discloses another person’s secret that came to their knowledge in their capacity as an attorney may be liable to criminal prosecution. The use of external service providers, such as a cloud provider, is not generally prohibited, but is subject to certain conditions. Since 2017, Section 203(3) of the German Criminal Code (StGB) has permitted the involvement of other persons, but requires careful selection, a contractual obligation to maintain confidentiality, and appropriate technical and organizational safeguards.

At the same time, the GDPR applies. Voice recordings constitute personal data as soon as a person is identifiable or is being discussed. If this audio data is transferred to a provider in a third country such as the United States, the requirements for transfers to third countries under Chapter V (Art. 44 et seq. of the GDPR) apply: a valid legal basis, a data processing agreement (DPA), and documentation in the record of processing activities.

Whether a specific cloud dictation is permissible depends on the details: Where are the servers located, what guarantees does the provider offer, is there a data processing agreement, and how are encryption and retention periods regulated? There is no one-size-fits-all answer. Depending on the circumstances, it could pose a compliance risk. That is precisely why the option where the question doesn’t even arise is so attractive: when the dictation never leaves the device.

How Local Processing Reduces Risk at the Source

If speech recognition runs entirely on the Mac, no data is transmitted to an external processor. This eliminates the step that would require the most careful scrutiny under Section 203 of the German Criminal Code (StGB) and under the GDPR. Local processing helps ensure confidentiality because client information remains within the firm. It reduces the risk of unintentional disclosure to third parties because, quite simply, no data leaves the system.

Specifically, "local" means:

  • The language model is stored directly on the Mac and performs computations on-device.
  • There is no account, no login, and no server round trip.
  • The dictation feature works even without an internet connection.
  • The law firm retains control over where data is generated and stored.

Instead of having to justify a transfer to a third country, you document that the processing is purely local. This is the basis for ensuring that a tool can be used in compliance with the GDPR.

Dragon Legal, Generic Cloud Tools, and the Local Approach: A Comparison

Dragon Legal (Nuance, now Microsoft) is the established standard for legal dictation: a mature product with specialized legal vocabulary and formatting commands. It’s also fair to note, however, that Dragon is available in several versions. The local desktop edition runs on-device but is primarily designed for Windows (Nuance no longer offers a current native Mac version). The Anywhere version is cloud-based. Depending on the edition and contract, licensing costs range from the mid to high three-digit range per seat, available as a one-time license or a subscription. The product is not open source.

Generic cloud-based dictation tools are affordable and platform-independent, but they typically process speech on the provider’s servers, often outside the EU. This is the critical issue when it comes to confidential client information.

Flinktext takes a different approach: it's not a feature-packed behemoth, but a streamlined, free Mac app that runs 100% locally by default.

criterion Quick Text Dragon Legal (Nuance) Generic Cloud Tools
Processing 100% local by default, on-device Desktop Edition (local), Anywhere (cloud-based) mostly in the cloud, often outside the EU
platform Native macOS Primarily Windows; no current native Mac version Web/App, cross-platform
Dictation leaves the device No (default) Anywhere: Yes, Desktop Edition: No usually, yes
Legal Terminology No, general-purpose dictation Yes, specialized different
Open source, verifiable code yes (MIT) no no
Telemetry / Account None, no account depending on the version usually an account
AVV upon request depending on the contract and plan depending on the provider
expenses free License, mid- to high-three-digit range per seat Subscription

Let’s be honest: If you need a comprehensive legal dictionary and Dragon’s dictation macros, you won’t find them in a streamlined, all-purpose tool. Flinktext is a Dragon Legal alternative for law firms that prioritize data sovereignty, Mac support, and the fact that it’s free over specialized dictation workflows.

Flinktext: Local dictation software for the Mac

Flinktext is a native macOS menu bar app from Lighthouse Consulting. Its operation is intentionally simple: hold down the hotkey, speak, and release. The recognized text appears at the cursor, in any app—whether it’s law firm software, Word, email, or a browser. Four modes cover everyday needs: Raw (1:1 transcript), Polished (standard written German), Compose (spoken command is written out in full), and Emoji.

These privacy features can be verified in the open-source code:

  • 100% local by default. Speech recognition uses a bundled Whisper model that runs on the device. Your dictation never leaves the device.
  • No telemetry, no tracking, no account. No analytics or crash reporter runs in the background.
  • Keys are stored only in the Keychain. Login credentials are stored exclusively on the device in the macOS Keychain, without iCloud sync.
  • Open source under the MIT license. The code is publicly available on GitHub and can be reviewed by your IT department or your external data protection officer.

Optional cloud backends are available for particularly complex queries, but they are disabled by default. They become active only when a user explicitly enables them and provides their own API key. By default, everything remains local.

Instead of having to compile the app yourself, download a ready-made DMG file, drag Flinktext into the Applications folder, and get started.

Can be used in compliance with the GDPR; not certified

An honest assessment is in order: No software is, in and of itself, GDPR-certified or guaranteed to be compliant with Section 203. Compliance arises from actual use—the combination of tools, processes, and documentation. Flinktext provides the technical foundation that enables local, data-minimal processing. The legally compliant integration into the law firm’s operations—from client communication to the record of processing activities—remains the responsibility of the law firm and its data protection officer. We provide a data processing agreement (DPA) and data protection documentation for the rollout upon request.

Frequently Asked Questions

Is cloud dictation permitted for attorneys? There is no one-size-fits-all answer to this question. Cloud dictation is not generally prohibited, but it is also not automatically permitted. Whether it complies with attorney-client privilege (Section 203 of the German Criminal Code (StGB)) and the GDPR depends on the specific arrangements: server location, data processing agreement, encryption, provider guarantees, and documentation. Depending on the specific circumstances, it may pose a compliance risk. You should assess each case individually with your data protection officer and in light of the guidelines provided by your bar association. Local processing avoids this issue because no data is transmitted.

Is Flinktext an alternative to Dragon Legal? For law firms that prioritize local data processing, native Mac support, and the fact that it’s free: yes. However, Flinktext does not offer specialized legal terminology or dictation macros like Dragon does. It is a streamlined, general-purpose dictation tool with a focus on data privacy—not a carbon copy of Dragon’s features.

Does my dictation leave the Mac? Not in standard mode. Speech recognition runs on-device using a bundled Whisper model. Optional cloud backends are turned off by default and only become active if you enable them yourself and provide your own key.

Does the dictation feature work without an internet connection? Yes. Since processing takes place locally, dictation works entirely offline.

Will I receive a DPA for the law firm? We provide a Data Processing Agreement and data protection documentation upon request. Since, by default, no audio leaves the device, the application is designed to minimize data processing.

How much does Flinktext cost? The app is free and open source under the MIT license. You can download the pre-compiled DMG file; there's no need to compile it yourself.

Next step

If you want to dictate at your law firm without client data being sent to the U.S. cloud, the local version is the safer option. Download Flinktext for free from the product page and contact us to discuss a rollout at your law firm.

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Flinktext: The Dictation App for Mac

Free, open source, 100% local by default. Download, open, dictate.

Download Flinktext for Mac →

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About the author

Nico Röpnack

CEO of Lighthouse Consultings | Member of the Forbes Business Council

Nico Röpnack brings 20 years of operational experience in the manufacturing industry (including BMW, VOSS, and MAGNA). He is currently a Smartsheet Gold Partner, a lecturer on digital transformation at DHBW, and a member of the Forbes Business Council.

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