BTI Intellectual Property Outlook 2015 Executive Summary

Compelling Research. Compelling Results.©2014 The BTI Consulting Group, Inc. All Rights Reserved.

2015

BTI Intellectual Property OutlookChanges, Trends and Opportunities in IP & IP Litigation

Executive Summary

©2014 The BTI Consulting Group, Inc. All rights reserved. +1 617 439 0333 www.bticonsulting.com

1

BTI IP Outlook 2015: Changes, Trends & Opportunities in IP & IP Litigation Executive Summary

Executive Summary

Without the protection of ideas, innovation is lost. Intellectual property work straddles an imaginary fence in the legal market. For some organizations, it poses significant strategic and operating risk resulting in large-scale, bet-the-company litigation cases. For others, IP needs consist of minimal, routine matters—trademark registrations and domain name protection. Regardless of the intensity, IP plays a critical role in all organizations. Against this backdrop, 2015 should be another banner year for IP and IP litigation in terms of premium billing potential, growth opportunity, and increased workloads. Except, it’s not.


2


Executive Summary

After 4 years of growth, IP decision makers have reversed course. Caseloads shrank by nearly 12% in 2014, reflecting a more acute sense of strategic priority in managing intellectual property. IP decision makers have built up their experience with IP litigation and the implications of America Invents. In addition to better managing IP, they are better managing their IP law firms. IP decision makers have learned:

Litigation can be settled with good outcomes—so more decision makers are moving in this direction Law firms knowledgeable with the entire IP portfolio of a company and who demonstrate exceptional business understanding

get better results than those who don’t Strategic counsel is more than worth its weight in gold—and fees Trademarks skyrocket in importance as businesses expand their global reach Boutique IP providers play a key role, but few are pursuing IP litigation work

− However, clients say they are much happier when the same firm handles prosecution and litigation work

As we enter the second half of 2014, IP decision makers plan to increase their caseload 8% against a budget increase of only 1.1%. Clients plan to use settlements, budgets, alternative fees, and new work processes to keep costs in check. Almost all areas of intellectual property touch a mission-critical aspect of a company—revenue, brand, technology, products, and the list goes on. As legal departments meet their goal of adding more value, these IP decision makers are searching for law firms with piercing, strategic insight and are gravitating towards firms able to handle more of the IP portfolio—routine and complex. With more than 150 law firms offering serious competition, law firms are able leverage these key trends to become IP Powerhouses—the firms positioned to ultimately be the most successful players. You can get preview of these firms starting on page 36. As with all of BTI’s research, this market outlook is all based on unprompted feedback from the individuals making the decisions—clients.


3


2015 Market Drivers for IP and IP Litigation 1. IP litigation strategy changes significantly as decision makers double the number of

cases they plan to settle.

2. Clients become more comfortable in managing the risks associated with IP litigation.

3. IP caseloads shrank 11% in 2014 and will increase 8% in 2015—with only a 1.1% increase in budget expected, law firms will face new price pressure in IP.

4. Alternative fees become more widespread in the IP world.

5. Only 12 law firms are best-positioned to deliver in all IP aspects—litigation and patents, complex and routine.

6. Clients are substantially happier with law firms delivering both IP prosecution and litigation work, than with firms they consider best in only one area.


4


Table of Contents Click on any title to go directly to the chapter

Executive Summary / 1

Market Overview: Spending, Caseloads, and the 2015 Outlook / 5

The $8.5 Billion IP Market / 6

Slow Growth Expected for 2015 / 11

High-volume IP Caseloads / 12

Resolution Rates Set to Soar / 15

AFAs Temper IP Spending / 16

Market Overview Summary / 18

Intellectual Property Forecast 2015 / 19

Roadmap to IP and IP Litigation Opportunities / 20

Practice Roadmap / 22

Priority Practices: Patent Prosecution & IP Litigation / 23

Opportunistic Practice: Strategic Management & Counseling / 24

Cornerstone Practice: Copyright / 25

Tactical Practices: Trademark Prosecution & Licensing / 26

Crossover Practice: Trademarks / 27

Intellectual Property Forecast Summary / 28

How Clients Manage IP and IP Litigation Counsel / 29

Fierce Competition Among Firms for IP Work / 30

Primary IP and IP Litigation Firm Advantage / 32

How Clients Manage IP & IP Litigation Counsel Summary / 34

IP and IP Litigation Powerhouses / 35

Clients Identify the Leaders / 36

Go-To IP Providers / 38

Go-To IP Litigation Providers / 41

Best at Complex IP Litigation / 43

Best at Complex Patent Work / 45

Best at Routine IP Litigation / 47

Best at Routine Patent Work / 49

The IP VIPs / 51

Which Firms Are Clients Really Using / 52

Most-Favored IP Boutiques / 53

Most-Favored IP Departments / 55

What Clients Need Today and in the Future / 57

Client Focus: Strategy / 58

Meeting the Unmet Needs / 60

About The BTI Consulting Group / 61

Methodology / 62

Who We Are / 63

Key Services to Help Our Clients / 64

BTI Research and Publications / 65

Contact BTI / 66

Index of Law Firms / 67

mailto:[email protected]?subject=IP Outlook 2015


5


About The BTI Consulting Group

©2014 The BTI Consulting Group, Inc. All rights reserved. +1 617 439 0333 www.bticonsulting.com BTI IP Outlook 2015: Changes, Trends & Opportunities in IP & IP Litigation Executive Summary

6

Methodology

SURVEY

• BTI taps into vast research and experience to conduct our annual study of the IP

and IP Litigation Market. BTI combines a powerful, comprehensive analysis of client spending, goals, priorities and needs with unbiased, direct feedback from clients on more than 200 individual law firms.

• Participants are granted confidentiality at the individual and organizational level; responses are presented in aggregate only.

DATA COLLECTION

• BTI interviewed over 175 Fortune 1000 General Counsel and IP decision makers

at top-spending organizations to isolate the best opportunities and law firms—by name—in intellectual property and intellectual property litigation.

• Data was collected from December 3, 2013 to June 10, 2014. • One-on-one interviews were conducted by BTI’s team of highly trained

executive interviewers. • BTI’s outreach includes the world’s top-spending and most-coveted clients,

ranging from up-and-coming, middle-market biotechs to Fortune 50 manufacturing behemoths. The high quality of our interview pool is unmatched, and includes:

− Over $1.5 billion in aggregate spending on IP and IP litigation services − Annual revenue from $7.4 million to more than $300 billion

• Average: $12.5 billion • Median: $5.6 billion

• Organizations represent over 20 industries.


7

About BTI: Who We Are

BTI dissects each and every aspect of the client experience through more than 14,000 independent interviews with C-level executives and systematic analysis. BTI has helped professional services firms boost client service for 25 years.

BTI is the leading provider of strategic research to the legal community—performing more market research about law firms than virtually anyone. BTI has helped more than 200 law firms and professional services firms improve client service through compelling research and advice. We conduct the only continuous benchmarking market study in the legal services industry, now in its 15th year.

More than 70 of the 100 largest law firms use BTI’s services and research to:

• Implement robust client feedback programs

• Assess brand awareness and market positioning

• Target market opportunities

• Establish best practices and benchmarks to drive performance

BTI conducts the most insightful, custom client surveys as part of world-class client feedback programs to drive consistent client service delivery for leading professional services firms. Clients use BTI’s fact-based approach and powerful decision-making tools to drive change, create urgency and substantially boost performance.


8

About BTI: Key Services to Help Our Clients

BTI performs a broad range of services for its clients, including:

Strategic Market Research

• High-Impact Custom Client Feedback Surveys

• Market Awareness and Brand Health

• Client Development Research

• Client Satisfaction Surveys

• Best Practices for Superior Client Service

• Private Briefings on Market Trends

Consulting

• Client-Centric Business Strategies

• Strategic Business Planning

• BTI Client Focus Boot Camp

• Garnering Premium Rates by Articulating Superior Value

Client Insight Briefings

BTI also offers private briefings both in person and via the web. Chock full of client-based insights, perspectives and facts, BTI briefings draw from our research, experience and other resources to provide provocative, constructive insights to help you boost client satisfaction, increase client retention and improve your performance. We can tailor our briefing to include specific feedback on your firm.

Please call Michael B. Rynowecer at +1 617 439 0333 to learn more about BTI’s custom research and services.


9

BTI Research and Publications

BTI Brand Elite 2014: Client Perceptions of the Best-Branded Law Firms http://www.btibrandelite.com More than 3,700 in-depth interviews with corporate counsel reveal 9 distinct dimensions of law firm brand drive hirability—and are proven to generate new business and higher profits. See exactly how clients perceive nearly 450 law firms and which 26 enjoy the best brand image.

BTI Client Relationship Scorecard 2014: Ranking Law Firm Client Relationships http://www.bticonsulting.com/clientrelationships Profitability. Market share. Growth. Revenue. Law firms track their performance against any number of metrics, but at the heart of each of these is one vital component: client relationships. In the BTI Client Relationship Scorecard 2014, corporate counsel gauge the strength of their current relationships with law firms—by name—to provide you with the most accurate measure of your law firm’s breadth and strength of client relationships—and those of your competitors.

BTI Client Service A-Team 2014: Survey of Law Firm Client Service Performance http://www.bticlientserviceateam.com 17 activities drive superior client relationships. 4 matter most. Discover how clients rate more than 250 law firms in these key activities—including Client Focus, Commitment to Help, Legal Skills and Provides Value for the Dollar. Learn which firms rank best, The BTI Client Service 30.

BTI Client Service All-Stars 2014 http://www.bticlientserviceallstars.com Corporate counsel’s keen assessment of outside counsel separates the attorneys who deliver excellent client service from those simply delivering good client service. This year, 330 attorneys step up to meet—and exceed—clients’ expectations and earn recognition, by name, from corporate counsel for delivering the absolute best client service.

BTI Litigation Outlook 2014: Changes, Trends and Opportunities for Law Firms http://www.btilitigationoutlook.com Delve into the world of Litigation with a comprehensive, high-impact analysis of client spending, buying habits and opinions on over 240 law firms—by name. The only fact-based tool based exclusively on 300 one-on-one interviews with corporate counsel. Proven to boost ROI on business development efforts. Get your copy of the BTI Litigation Outlook 2014 today.

You can order these and other compelling BTI research or publications at www.bticonsulting.com.

http://www.btibrandelite.com/

http://www.bticonsulting.com/clientrelationships

http://www.bticlientserviceateam.com/

http://www.bticlientserviceallstars.com/

http://www.bticlientserviceallstars.com/

http://www.btilitigationoutlook.com/

http://www.btilitigationoutlook.com/

http://www.bticonsulting.com/


10

Contact BTI

Please contact Michael B. Rynowecer, BTI President, at +1 617 439 0333 or at [email protected] with your questions, thoughts and comments.

mailto:[email protected]?subject=IP Outlook 2015


11

Index of Law Firms

A

Abu-Ghazaleh Intellectual Property 39, 42

Adams & Adams 39, 42

Allen & Overy 44

Amster, Rothstein & Ebenstein 39, 44, 46, 54

B

Baker & McKenzie 38, 42, 48, 50, 55

Baker Botts 39, 41, 43, 46, 47, 49, 51, 56

BakerHostetler 42, 46, 47

Ballard Rosenberg Golper & Savitt 56

Ballard Spahr 38, 42, 43, 46, 47, 50, 51, 56

BananaIP 39

Banner & Witcoff 39, 54

Barlow, Josephs & Holmes 42

Barnes & Thornburg 39, 44, 48, 50, 56

Bartlit Beck Herman Palenchar & Scott 42, 44

Becerril, Coca & Becerril 39, 42

Beusse Wolter Sanks Mora & Maire 39, 50, 54

Blakely Sokoloff Taylor & Zafman 39, 46, 54

Bracewell & Giuliani 39, 42, 44, 46, 48, 50

Brinks Gilson & Lione 44, 45, 48, 49, 51, 54

Brooks Kushman 39, 42, 47, 49, 54

Bryan Cave 46

Buchanan Ingersoll & Rooney 39, 50, 56

Buckingham, Doolittle & Burroughs 39, 54

C

Calfee 38, 42, 44, 46, 50, 54

Cantor Colburn 39

Cardinal Law Group 50, 54

Carlson, Caspers, Vandenburgh, Lindquist

& Schuman 39, 42, 44, 45, 54

Carlson, Gaskey & Olds 50, 54

Carter Scholer Arnett Hamada & Mockler 48, 54

Carter, DeLuca, Farrell & Schmidt 39, 46, 54

Cavell Leitch 39, 54

Christensen O’Connor Johnson Kindness 54

Clements Bernard 54

CMS Cameron McKenna 39


12

Index of Law Firms

Conley Rose 39, 46, 50, 54

Covington & Burling 39, 44, 46, 48, 56

Cozen O’Connor 39

Crowell & Moring 39, 42, 44

D

Davidson Law Group 42

Day Pitney 39, 46, 56

Debevoise & Plimpton 42

Dechert 38, 42, 44, 46

Dehns 39, 46

Dickstein Shapiro 56

DLA Piper 39, 41, 44, 46, 55

Dorsey & Whitney 38, 42, 44, 46, 48, 50, 56

Dr. Schön, Neymeyr & Partner 39

Duane Morris 39, 42

Dykema 39

E

Edell, Shapiro & Finnan 39

Edwards Wildman Palmer 39, 54

Eversheds 38, 42

F

Faegre Baker Daniels 38, 41, 43, 45, 55

Fanelli Haag & Kilger 54

Fay Sharpe 38, 42, 44, 46, 48, 49, 51, 53

Feinberg Day 54

Feldman Gale 54

Fenwick & West 39, 46

Finnegan 38, 41, 43, 45, 47, 54

Fish & Richardson 38, 41, 43, 45, 47, 49, 51, 53, 55

Fitzpatrick, Cella, Harper & Scinto 39, 46, 49, 56

Foley & Lardner 39, 42, 45, 55

Foley Hoag 42, 48, 55

Fredrikson & Byron 48

Freshfields Bruckhaus Deringer 39

FRKelly 42


13

Index of Law Firms

G

Gibson, Dunn & Crutcher 41, 55

Goodwin Procter 46

Greenberg Dauber Epstein & Tucker 46

Greenberg Traurig 39, 42, 48, 50

Greer, Burns & Crain 39

Grunecker, Kinkeldey, Stockmair & Schwanhäusser 39, 42

GTC Law Group 54

H

Harness, Dickey & Pierce 38, 41, 44, 46, 48, 50

Harris Beach 48

Harrity & Harrity 42, 44, 48

Hoffmann & Baron 38, 42, 44, 48, 49, 54

Hoffmann Eitle 39

Hogan Lovells 39, 41, 44, 46

Holland & Hart 39, 50

Holland & Knight 39, 48, 54

Honigman Miller Schwartz and Cohn 49, 54, 56

I

Irell & Manella 41, 44, 56

J

Jenner & Block 39, 42, 44, 48

Jones Day 38, 41, 43, 45, 48, 50, 51, 55

K

K&L Gates 56

Kacvinsky Daisak Bluni 39

Kaye Scholer 39, 42, 44

Keker & Van Nest 39

Kelly, Holt & Christenson 39

Kenyon & Kenyon 39, 42, 46, 48, 50

Kilpatrick Townsend & Stockton 41, 44, 46, 56

Kim & Chang 42

King & Spalding 38, 42, 48

Kinney & Lange 38, 50, 54

Kirkland & Ellis 38, 41, 44, 48, 55

Klunker, Schmitt-Nilson, Hirsch 39, 42

Knobbe, Martens, Olson & Bear 38, 42, 44, 45, 54

Kunzler Law Group 39, 50, 54


14

Index of Law Firms

L

Lando & Anastasi 39, 50, 53

Latham & Watkins 39, 42, 44, 46, 56

LeClairRyan 46, 54

Lee & Hayes 39, 42, 50

Lempia Summerfield Katz 50, 54

Lerner David Littenberg Krumholz & Mentlik 38, 42, 45, 54

Leydig, Voit & Mayer 39, 42, 54

Liu, Shen & Associates 42

Locke Lord 39

M

MacDonald Illig Jones & Britton 39

MacMillan, Sobanski & Todd 39, 50

Mahamedi Paradice 39

Marshall, Gerstein & Borun 39, 46

Mayer Brown 38, 44, 47, 50, 56

McCarter & English 56

McCarthy Tétrault 42

McDermott Will & Emery 39

McDonnell Boehnen Hulbert & Berghoff 38, 42, 45, 54

McKool Smith 39, 42, 43

McMillan 54

McNees Wallace & Nurick 39, 45, 53

Meagher Emanuel Laks Goldberg & Liao 54

Merchant & Gould 38, 41, 43, 45, 47, 50, 51, 53, 56

Michael Best & Friedrich 39, 50, 56

Millen, White, Zelano & Branigan 38

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo 39, 42

Montaury Pimenta, Machado & Vieira de Mello 39, 42

Morgan Lewis 39, 44, 48

Morrison & Foerster 41, 43, 46, 47, 50, 51, 54, 55

Myers Bigel Sibley & Sajovec 39, 54

N

Neal & McDevitt 39, 42, 48, 54

Neal, Gerber & Eisenberg 39, 42, 48

Nelson Mullins 38, 42, 43, 48, 55

Niro, Haller & Niro 48

Norton Rose Fulbright 39, 42, 54


15

Index of Law Firms

O

Oblon, Spivak, McClelland, Maier & Neustadt 42, 54

O’Melveny & Myers 42

Orrick, Herrington & Sutcliffe 42, 44

Osha Liang 39, 46, 50, 53

P

Parsons Behle & Latimer 39, 42, 43, 48, 55

Patent Capital Group 39

Patterson & Sheridan 54

Patterson Thuente Pedersen 40, 42, 46, 48, 50

Pattishall, McAuliffe, Newbury, Hilliard & Geraldson 42, 54

Patton Law Group 40

Paul Hastings 38, 41, 43, 48, 56

Pearne & Gordon 40

Pepper Hamilton 40

Perkins Coie 56

Pillsbury Winthrop Shaw Pittman 38, 42, 44, 45, 56

Pirkey Barber 42, 54

Porter Wright Morris & Arthur 54

Proskauer Rose 42, 44

Q

Quinn Emanuel Urquhart & Sullivan 40, 42

R

Rader, Fishman & Grauer 40, 46

Rathe Lindenbaum 54

Reed Smith 40, 56

Remarck Law Group 48, 54

Robins, Kaplan, Miller & Ciresi 40, 41, 44

Ropes & Gray 38, 41, 43, 45, 48, 50, 51, 55

Rothwell, Figg, Ernst & Manbeck 41, 44

Rouse 38, 41

S

Saul Ewing 56

Schwegman, Lundberg & Woessner 38, 50, 53

Seager, Tufte & Wickhem 40, 50, 54

Seyfarth Shaw 38, 42, 43, 45, 48, 50, 51, 55

Sheridan Ross 48

Sidley Austin 42, 44, 46, 55

Small Patent Law Group, The 40


16

Index of Law Firms

Smith, Gambrell & Russell 40, 46, 50

SoCal IP Law Group 40

Squire Patton Boggs 40, 46, 50, 56

Sterne, Kessler, Goldstein & Fox 40

Stinson Leonard Street 40, 42, 44, 48, 56

Stoel Rives 40

Sullivan & Cromwell 42, 44

Sunstein Kann Murphy & Timbers 40

Sutherland 40

T

Taft Stettinius & Hollister 40, 48, 50

Thompson Hine 40

Trop, Pruner & Hu 46, 50, 54

Turner Boyd 54

U

Uexküll & Stolberg 40

Ulmer & Berne 40

V

Valorem Law Group 48

Vossius & Partner 42

W

Wagner Blecher 40, 48, 50, 54

Wan Hui Da 42

Webb Law Firm, The 42, 48, 54

Weil, Gotshal & Manges 41, 43, 46, 48, 50, 51

Westman, Champlin & Koehler 40

White & Case 40, 42, 46, 48, 50, 56

Williams & Connolly 42, 50

WilmerHale 38, 41, 43, 46, 47, 49, 51, 55

Wilson Sonsini Goodrich & Rosati 38, 41, 44, 45

Withers & Rogers 38

Wood, Herron & Evans 40, 50, 54

Woodcock Washburn 54


17

Terms of Use

This copy of BTI Intellectual Property Outlook 2015: Changes, Trends & Opportunities in IP and IP Litigation is licensed to you for private, non-commercial use for internal company purposes. No portion of this information may be copied or transmitted in any form, shape or manner without the prior written consent of The BTI Consulting Group, Inc., of Wellesley, MA. Any violation of this license may be punishable by applicable federal statutes and subject the user to additional and compensatory licensing fees. © Copyright The BTI Consulting Group, Inc., 2014.

Address any questions to:

The BTI Consulting Group, Inc. 396 Washington Street, Suite 314 Wellesley, MA 02481-6209 +1 617 439 0333

BTI Intellectual Property Outlook 2015 Executive Summary

Business

Transcript of BTI Intellectual Property Outlook 2015 Executive Summary