REPORT OF THE ECONOMIC SURVEY

Transcription

1 AIPLA REPORT OF THE ECONOMIC SURVEY 2011 PREPARED UNDER DIRECTION OF THE AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION LAW PRACTICE MANAGEMENT COMMITTEE STEVEN M. AUVIL, CHAIR DAVID A. DIVINE, VICE CHAIR July Shady Grove Road, Suite 306 Rockville, Maryland TEL: (240)

2 2011 AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION ALL RIGHTS RESERVED. NO PART OF THIS BOOK MAY BE REPRODUCED OR TRANSMITTED IN ANY FORM OR BY ANY MEANS, ELECTRONIC OR MECHANICAL, INCLUDING PHOTOCOPYING, RECORDING, OR BY AN INFORMATION STORAGE AND RETRIEVAL SYSTEM, WITHOUT PERMISSION IN WRITING FROM THE PUBLISHER. COPIES OF THIS REPORT ARE AVAILABLE FROM AIPLA AT A COST OF $45 PER COPY FOR MEMBERS AND $395 PER COPY FOR NON-MEMBERS. AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION TH STREET, SOUTH, SUITE 700 ARLINGTON VA (703)

3 TABLE OF CONTENTS INTRODUCTION... 1 DATA COLLECTION... 1 CHANGES TO THE SURVEY... 1 DESCRIPTION OF STATISTICS AND FORMATTING CONVENTIONS... 2 RESPONDENT BACKGROUND... 4 IP BUDGET FOR CORPORATE PRACTITIONERS... 7 INCOME RECEIVED IN 2010 AND PROJECTED FOR 2011, BILLING RATES, AND BILLABLE HOURS... 8 SUMMARY OF SURVEY RESULTS BY PRACTICE TYPE SOLO PRACTITIONER PRIVATE FIRM, PARTNER PRIVATE FIRM, ASSOCIATE PRIVATE FIRM, OF COUNSEL HEAD OF CORPORATE IP DEPARTMENT CORPORATE IP DEPARTMENT, ATTORNEY PRIVATE FIRM, PATENT AGENT CORPORATE IP DEPARTMENT, PATENT AGENT TYPICAL CHARGES FOR IP LAW SERVICES TYPICAL TYPE OF FEE FOR IP LAW SERVICE CHARGES TYPICAL COSTS OF LITIGATION CHARACTERISTICS OF FIRMS NUMBER AND TYPE OF ATTORNEYS ASSOCIATE STARTING SALARY AND SUMMER MONTHLY PAY SUPPORT STAFF AND SERVICES BILLING RATES AND PRACTICES LIABILITY INSURANCE STATISTICAL TABLES... APPENDIX A INDIVIDUAL DATA... I-1 TO I-176 FIRM DATA... F-1 TO F-33 SURVEY INSTRUMENTS... APPENDIX B i

4 STATISTICAL TABLES INDIVIDUAL DATA All Respondents... I-1 Background... I-1 Total Gross Income for 2010 from your primary practice (Q13)... I-3 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-3 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-4 Expected total cash income for 2011 (Q16)... I-4 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-5 Billable hours, Hours actually billed, Billing rate, Dollars billed (Q32, Q33, Q34, Q36)... I-5 Percent of services in 2010 that were billed (or will be billed) by type of basis (Q35)... I-6 Solo Practitioner... I-7 Background Information... I-7 Total Gross Income for 2010 from your primary practice (Q13)... I-8 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-9 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-10 Expected total cash income for 2011 (Q16)... I-11 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-12 Percent of time devoted to types of work, by Income Level (Q18)... I-13 Percent of time devoted to IP areas, by Income Level (Q20)... I-14 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-14 Billable hours recorded in 2010 (Q32)... I-15 Percent of billable hours actually billed to clients (hourly or any other basis) (Q33)... I-16 Average hourly billing rate in 2010 (Q34)... I-17 For the first 10 years of experience, billable hours recorded in 2010 (Q32)... I-18 For the first 10 years of experience, average hourly billing rate in 2010 (Q34)... I-18 Percent of services in 2010 that were billed (or will be billed) by type of basis (Q35)... I-19 Dollar amount billed for legal services performed in 2010 (Q36)... I-20 Private Firm, Partner... I-21 Background Information... I-21 Total Gross Income for 2010 from your primary practice (Q13)... I-22 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-23 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-24 Expected total cash income for 2011 (Q16)... I-25 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-26 Percent of time devoted to types of work, by Income Level (Q18)... I-27 Percent of time devoted to IP areas, by Income Level (Q20)... I-28 Hours spent per month training new associates or in-house counsel (Q21)... I-29 Full-time IP lawyers and patent agents at all locations (Q22)... I-30 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-31 Billable hours recorded in 2010 (Q32)... I-32 Percent of billable hours actually billed to clients (hourly or any other basis) (Q33)... I-33 Average hourly billing rate in 2010 (Q34)... I-34 For the first 10 years of experience, billable hours recorded in 2010 (Q32)... I-35 For the first 10 years of experience, average hourly billing rate in 2010 (Q34)... I-35 Percent of services in 2010 that were billed (or will be billed) by type of basis (Q35)... I-36 Dollar amount billed for legal services performed in 2010 (Q36)... I-37 Private Firm, Associate... I-38 Background Information... I-38 Total Gross Income for 2010 from your primary practice (Q13)... I-39 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-40 ii

5 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-41 Expected total cash income for 2011 (Q16)... I-42 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-43 Percent of time devoted to types of work, by Income Level (Q18)... I-44 Percent of time devoted to IP areas, by Income Level (Q20)... I-45 Hours spent per month training new associates or in-house counsel (Q21)... I-46 Full-time IP lawyers and patent agents at all locations (Q22)... I-47 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-48 For the first 10 years of experience, total gross income for 2010 (Q13)... I-49 Billable hours recorded in 2010 (Q32)... I-50 Percent of billable hours actually billed to clients (hourly or any other basis) (Q33)... I-51 Average hourly billing rate in 2010 (Q34)... I-52 For the first 10 years of experience, billable hours recorded in 2010 (Q32)... I-53 For the first 10 years of experience, average hourly billing rate in 2010 (Q34)... I-53 Percent of services in 2010 that were billed (or will be billed) by type of basis (Q35)... I-54 Dollar amount billed for legal services performed in 2010 (Q36)... I-55 Private Firm, Of Counsel... I-56 Background Information... I-56 Total Gross Income for 2010 from your primary practice (Q13)... I-57 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-58 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-59 Expected total cash income for 2011 (Q16)... I-60 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-61 Percent of time devoted to types of work, by Income Level (Q18)... I-62 Percent of time devoted to IP areas, by Income Level (Q20)... I-63 Hours spent per month training new associates or in-house counsel (Q21)... I-64 Full-time IP lawyers and patent agents at all locations (Q22)... I-65 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-66 For the first 10 years of experience, total gross income for 2010 (Q13)... I-67 Billable hours recorded in 2010 (Q32)... I-68 Percent of billable hours actually billed to clients (hourly or any other basis) (Q33)... I-69 Average hourly billing rate in 2010 (Q34)... I-70 For the first 10 years of experience, billable hours recorded in 2010 (Q32)... I-71 For the first 10 years of experience, average hourly billing rate in 2010 (Q34)... I-71 Percent of services in 2010 that were billed (or will be billed) by type of basis (Q35)... I-72 Dollar amount billed for legal services performed in 2010 (Q36)... I-73 Corporate IP Department, Head... I-74 Background Information... I-74 Total Gross Income for 2010 from your primary practice (Q13)... I-75 Total Gross Income for 2010 by Number of Subordinates (Q13)... I-76 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-77 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-78 Expected total cash income for 2011 (Q16)... I-79 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-80 Percent of time devoted to types of work, by Income Level (Q18)... I-81 Percent of time devoted to IP areas, by Income Level (Q20)... I-82 Hours spent per month training new associates or in-house counsel (Q21)... I-83 Full-time IP lawyers and patent agents at all locations (Q22)... I-84 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-85 Direct and indirect reports (Q24)... I-85 Percent of activities handled by in-house counsel other than liaison with outside counsel, by Income Level (Q25).. I-86 Annual gross revenues for company in 2010 (Q26)... I-87 Annual IP budget for company for 2010 (Q27)... I-88 Change in IP budget for company from 2009 to 2010 (Q28)... I-89 Technology focus of company or business unit (Q29)... I-90 Percent of annual corporate IP budget devoted to types of work, by Income Level (Q30)... I-90 Percent of annual corporate IP budget devoted to types of work, by Technology Focus of Company (Q30)... I-90 Percent of time devoted to types of work, by Income Level (Q31)... I-91 iii

6 Percent of time devoted to types of work, by Technology Focus of Company (Q31)... I-91 Corporate IP Department, Attorney... I-92 Background... I-92 Total Gross Income for 2010 from your primary practice (Q13)... I-93 Total Gross Income for 2010 by Number of Subordinates (Q13)... I-94 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-95 Excluding 401(k)/403(b) retirement and savings plans, employer's 2010 contribution to all pension (defined benefit/defined contribution)/capital accumulation plans (Q15)... I-96 Expected total cash income for 2011 (Q16)... I-97 Non-cash income from the practice of law, not included in Q. 13 (e.g., from exercises of stock options, sales of stock grants, in-kind compensation) (Q17)... I-98 Percent of time devoted to types of work, by Income Level (Q18)... I-99 Percent of time devoted to IP areas, by Income Level (Q20)... I-100 Hours spent per month training new associates or in-house counsel (Q21)... I-101 Full-time IP lawyers and patent agents at all locations (Q22)... I-102 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-103 Direct and indirect reports (Q24)... I-103 Private Firm, Agent... I-104 Background... I-104 Total Gross Income for 2010 from your primary practice (Q13)... I-105 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-106 Expected total cash income for 2011 (Q16)... I-107 Full-time IP lawyers and patent agents at all locations (Q22)... I-108 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-109 Billable hours recorded in 2010 (Q32)... I-110 Percent of billable hours actually billed to clients (hourly or any other basis) (Q33)... I-111 Average hourly billing rate in 2010 (Q34)... I-112 Percent of services in 2010 that were billed (or will be billed) by type of basis (Q35)... I-113 Dollar amount billed for legal services performed in 2010 (Q36)... I-114 Corporate IP Department, Agent... I-115 Background... I-115 Total Gross Income for 2010 from your primary practice (Q13)... I-116 Total Gross Income for 2010 by Number of Subordinates (Q13)... I-117 Employer's 2010 contribution to 401(k)/403(b) retirement and savings plans (Q14)... I-118 Expected total cash income for 2011 (Q16)... I-119 Full-time IP lawyers and patent agents at all locations (Q22)... I-120 New priority US and PCT Patent applications prepared and filed in 2010 (Q23)... I-121 Direct and indirect reports (Q24)... I-121 Percent of activities handled by in-house counsel other than liaison with outside counsel, by Income Level (Q25) I-122 Percent of annual corporate IP budget devoted to types of work, by Income Level (Q30)... I-122 Percent of annual corporate IP budget devoted to types of work, by Technology Focus of Company (Q30)... I-122 Percent of time devoted to types of work, by Income Level (Q31)... I-122 Percent of time devoted to types of work, by Technology Focus of Company (Q31)... I-123 Typical Charges... I-124 Trademarks by Location Trademark Clearance Search, Analysis, and Opinion (Q38a)... I-124 Trademark Registration Application (Preparation and Filing) (Q38b)... I-124 Trademark Prosecution (Total, including amendments and interviews but not appeals) (Q38c)... I-124 Trademark Statement of Use (Preparation and Filing) (Q38d)... I-125 Trademark Appeal to the Board (Briefed and Argued) (Q38e)... I-125 Trademark Section 8 and 15 Declaration (Preparation and Filing) (Q38f)... I-125 Trademark Renewal Application (Preparation and Filing) (Q38g)... I-126 Filing of Foreign Origin Trademark Registration Application Received Ready for Filing (Q38h)... I-126 Filing for an International Trademark (Q38i)... I-126 Preparing a UDRP Petition (Q38j)... I-127 Responding to a UDRP Petition (Q38k)... I-127 Trademarks by Firm Type Trademark Clearance Search, Analysis, and Opinion (Q38a)... I-128 Trademark Registration Application (Preparation and Filing) (Q38b)... I-128 Trademark Prosecution (Total, including amendments and interviews but not appeals) (Q38c)... I-128 Trademark Statement of Use (Preparation and Filing) (Q38d)... I-129 iv

7 Trademark Appeal to the Board (Briefed and Argued) (Q38e)... I-129 Trademark Section 8 and 15 Declaration (Preparation and Filing) (Q38f)... I-129 Trademark Renewal Application (Preparation and Filing) (Q38g)... I-130 Filing of Foreign Origin Trademark Registration Application Received Ready for Filing (Q38h)... I-130 Filing for an International Trademark (Q38i)... I-130 Preparing a UDRP Petition (Q38j)... I-131 Responding to a UDRP Petition (Q38k)... I-131 US Utility Patents by Location Original (not divisional, continuation, or CIP) non-provisional utility patent application on invention of minimal complexity (Preparation and Filing) (Q39a)... I-132 Provisional Patent Application (Preparation and Filing) (Q39b)... I-132 Original utility application, relatively complex biotechnology/chemical (Preparation and Filing) (Q39c)... I-132 Original utility application, relatively complex electrical/computer (Preparation and Filing) (Q39d)... I-133 Original utility application, relatively complex mechanical (Preparation and Filing) (Q39e)... I-133 Patent application amendment/argument of minimal complexity (Preparation and Filing) (Q39f)... I-133 Patent application amendment/argument, relatively complex, biotechnology/chemical (Preparation and Filing) (Q39g)... I-134 Patent application amendment/argument, relatively complex, electrical/computer (Preparation and Filing) (Q39h) I-134 Patent application amendment/argument, relatively complex, mechanical (Preparation and Filing) (Q39i)... I-134 Appeal to Board in utility patent application without oral argument (Q39j)... I-135 Appeal to Board in utility patent application with oral argument (Q39k)... I-135 Issuing an allowed application (All post-allowance activity) (Q39l)... I-135 Ex parte re-exam (Q39m)... I-136 Paying a Maintenance Fee (Q39n)... I-136 Utility Patent Novelty Search, Analysis, and Opinion (Q39o)... I-136 Validity/Invalidity Only Opinion, per patent (Q39p)... I-137 Infringement/Non-Infringement Only Opinion, per patent (Q39q)... I-137 Combination Validity and Infringement, per patent (Q39r)... I-137 US Utility Patents by Firm Type Original (not divisional, continuation, or CIP) non-provisional utility patent application on invention of minimal complexity (Preparation and Filing) (Q39a)... I-138 Provisional Patent Application (Preparation and Filing) (Q39b)... I-138 Original utility application, relatively complex biotechnology/chemical (Preparation and Filing) (Q39c)... I-138 Original utility application, relatively complex electrical/computer (Preparation and Filing) (Q39d)... I-139 Original utility application, relatively complex mechanical (Preparation and Filing) (Q39e)... I-139 Patent application amendment/argument of minimal complexity (Preparation and Filing) (Q39f)... I-139 Patent application amendment/argument, relatively complex, biotechnology/chemical (Preparation and Filing) (Q39g)... I-140 Patent application amendment/argument, relatively complex, electrical/computer (Preparation and Filing) (Q39h) I-140 Patent application amendment/argument, relatively complex, mechanical (Preparation and Filing) (Q39i)... I-140 Appeal to Board in utility patent application without oral argument (Q39j)... I-141 Appeal to Board in utility patent application with oral argument (Q39k)... I-141 Issuing an allowed application (All post-allowance activity) (Q39l)... I-141 Ex parte re-exam (Q39m)... I-142 Paying a Maintenance Fee (Q39n)... I-142 Utility Patent Novelty Search, Analysis, and Opinion (Q39o)... I-142 Validity/Invalidity Only Opinion, per patent (Q39p)... I-143 Infringement/Non-Infringement Only Opinion, per patent (Q39q)... I-143 Combination Validity and Infringement, per patent (Q39r)... I-143 Foreign Origin and Foreign Patents by Location Filing foreign origin utility patent application in USPTO, received ready for filing with formal papers, assignment, and priority documents (Q40a)... I-144 Filing non-pct patent application abroad (per country, not including associate or government fees) (Q40b)... I-144 Filing previously prepared US patent application as PCT application in US Receiving Office (Q40c)... I-144 Entering National Stage in US Receiving Office from foreign origin PCT application (Q40d)... I-145 Entering National Stage in each foreign Receiving Office from US origin PCT application (Q40e)... I-145 Paying an annuity or maintenance fee (Q40f)... I-145 v

8 Foreign Origin and Foreign Patents by Firm Type Filing foreign origin utility patent application in USPTO, received ready for filing with formal papers, assignment, and priority documents (Q40a)... I-146 Filing non-pct patent application abroad (per country, not including associate or government fees) (Q40b)... I-146 Filing previously prepared US patent application as PCT application in US Receiving Office (Q40c)... I-146 Entering National Stage in US Receiving Office from foreign origin PCT application (Q40d)... I-147 Entering National Stage in each foreign Receiving Office from US origin PCT application (Q40e)... I-147 Paying an annuity or maintenance fee (Q40f)... I-147 US Design Patents, Plant Patents, and Copyrights by Location US design patent application (Preparation and Filing) (Q41a)... I-148 US plant patent application (Preparation and Filing) (Q41b)... I-148 Copyright registration application (Preparation and Filing) (Q41c)... I-148 US Design Patents, Plant Patents, and Copyrights by Firm Type US design patent application (Preparation and Filing) (Q41a)... I-149 US plant patent application (Preparation and Filing) (Q41b)... I-149 Copyright registration application (Preparation and Filing) (Q41c)... I-149 Type of Fee Primarily Used Trademarks (Q38a-k)... I-150 US Utility Patents (Q39a-r)... I-151 Foreign Origin and Foreign Patents (Q40a-f)... I-151 Other US Patents and Copyrights (Q41a-c)... I-152 Total Costs of Litigation... I-153 Litigation-Patent Infringement by Location Less than $1M at risk End of Discovery (Q42a)... I-153 Less than $1M at risk Inclusive, all costs (Q42b)... I-153 $1-$25M at risk End of Discovery (Q42c)... I-153 $1-$25M at risk Inclusive, all costs (Q42d)... I-154 Greater than $25M at risk End of Discovery (Q42e)... I-154 Greater than $25M at risk Inclusive, all costs (Q42f)... I-154 Litigation-Patent Infringement by Firm Type Less than $1M at risk End of Discovery (Q42a)... I-155 Less than $1M at risk Inclusive, all costs (Q42b)... I-155 $1-$25M at risk End of Discovery (Q42c)... I-155 $1-$25M at risk Inclusive, all costs (Q42d)... I-156 Greater than $25M at risk End of Discovery (Q42e)... I-156 Greater than $25M at risk Inclusive, all costs (Q42f)... I-156 Litigation-Trademark Infringement by Location Less than $1M at risk End of Discovery (Q43a)... I-157 Less than $1M at risk Inclusive, all costs (Q43b)... I-157 $1-$25M at risk End of Discovery (Q43c)... I-157 $1-$25M at risk Inclusive, all costs (Q43d)... I-158 Greater than $25M at risk End of Discovery (Q43e)... I-158 Greater than $25M at risk Inclusive, all costs (Q43f)... I-158 Litigation-Trademark Infringement by Firm Type Less than $1M at risk End of Discovery (Q43a)... I-159 Less than $1M at risk Inclusive, all costs (Q43b)... I-159 $1-$25M at risk End of Discovery (Q43c)... I-159 $1-$25M at risk Inclusive, all costs (Q43d)... I-160 Greater than $25M at risk End of Discovery (Q43e)... I-160 Greater than $25M at risk Inclusive, all costs (Q43f)... I-160 Litigation-Trademark Opposition/Cancellation by Location End of Discovery (Q44a)... I-161 Inclusive, all costs (Q44b)... I-161 Litigation-Trademark Opposition/Cancellation by Firm Type End of Discovery (Q44a)... I-162 Inclusive, all costs (Q44b)... I-162 vi

9 Litigation-Copyright Infringement by Location Less than $1M at risk End of Discovery (Q45a)... I-163 Less than $1M at risk Inclusive, all costs (Q45b)... I-163 $1-$25M at risk End of Discovery (Q45c)... I-163 $1-$25M at risk Inclusive, all costs (Q45d)... I-164 Greater than $25M at risk End of Discovery (Q45e)... I-164 Greater than $25M at risk Inclusive, all costs (Q45f)... I-164 Litigation-Copyright Infringement by Firm Type Less than $1M at risk End of Discovery (Q45a)... I-165 Less than $1M at risk Inclusive, all costs (Q45b)... I-165 $1-$25M at risk End of Discovery (Q45c)... I-165 $1-$25M at risk Inclusive, all costs (Q45d)... I-166 Greater than $25M at risk End of Discovery (Q45e)... I-166 Greater than $25M at risk Inclusive, all costs (Q45f)... I-166 Litigation-Trade Secret Misappropriation by Location Less than $1M at risk End of Discovery (Q46a)... I-167 Less than $1M at risk Inclusive, all costs (Q46b)... I-167 $1-$25M at risk End of Discovery (Q46c)... I-167 $1-$25M at risk Inclusive, all costs (Q46d)... I-168 Greater than $25M at risk End of Discovery (Q46e)... I-168 Greater than $25M at risk Inclusive, all costs (Q46f)... I-168 Litigation-Trade Secret Misappropriation by Firm Type Less than $1M at risk End of Discovery (Q46a)... I-169 Less than $1M at risk Inclusive, all costs (Q46b)... I-169 $1-$25M at risk End of Discovery (Q46c)... I-169 $1-$25M at risk Inclusive, all costs (Q46d)... I-170 Greater than $25M at risk End of Discovery (Q46e)... I-170 Greater than $25M at risk Inclusive, all costs (Q46f)... I-170 Two-Party Interference by Location End of Preliminary Motion (Q47a)... I-171 Inclusive, all costs (Q47b)... I-171 Two-Party Interference by Firm Type End of Preliminary Motion (Q47a)... I-172 Inclusive, all costs (Q47b)... I-172 Inter Partes Reexamination by Location Through filing the request (Q48a)... I-173 Inclusive of a first patent owner response and 3rd party comments (Q48b)... I-173 Inclusive of all patent owner responses, 3rd party comments, and closing of prosecution (Q48c)... I-173 Inclusive of an appeal to the board (Q48d)... I-174 Inclusive of an appeal to the federal court(s) (Q48e)... I-174 Inter Partes Reexamination by Firm Type Through filing the request (Q48a)... I-175 Inclusive of a first patent owner response and 3rd party comments (Q48b)... I-175 Inclusive of all patent owner responses, 3rd party comments, and closing of prosecution (Q48c)... I-175 Inclusive of an appeal to the board (Q48d)... I-176 Inclusive of an appeal to the federal court(s) (Q48e)... I-176 FIRM DATA Background... F-1 Number of office locations in 2010 (Q3-Q4)... F-2 Number of attorneys in the firm in 2010 (Q5)... F-3 Number of attorneys whose practice is primarily IP in the firm in 2010 (Q6)... F-4 Number of agents and assistants involved primarily in the IP practice of the firm in 2010 (Q7)... F-5 Number of attorneys whose practice is primarily IP law who joined the firm in 2010 (Q8)... F-6 Percentage of attorneys hired through a recruiter (head hunter) (Q9)... F-7 Average fee paid to recruiter as a % of salary (Q10)... F-7 Number of attorneys whose practice is primarily IP law who left the firm (including retired) in 2010 (Q11)... F-8 Number of attorneys and agents, by gender and size of firm, whose practice is primarily IP law in the firm in 2010 (Q12)... F-9 vii

10 Number of attorneys and agents, by ethnicity and size of firm, whose practice is primarily IP law in the firm in 2010 (Q13)... F-10 Distribution of support staff by size of firm in 2010 (Q14)... F-11 Number of support staff by size of firm in 2010 (Q14)... F-11 Number of support staff per IP attorney by size of firm (Q14)... F-12 Number of summer associates in 2010 (Q15-Q17)... F-12 Monthly pay for summer associates (Q18)... F-13 Percent of firm's activities outsourced to an external provider (Q19-Q20)... F-13 Percent of firm's billings in IP law (Q21-Q22)... F-14 Allocation of firm s IP billings by size of firm and by type of work (Q23-Q24)... F-15 Allocation of firm s IP billings, by size of firm and by type of work, where IP law is 75% or more of practice (Q23-Q24)... F-16 Allocation of firm s IP billings, by size of firm and by type of work, where IP law is less than 75% of practice (Q23-Q24)... F-17 Total 2010 billings for professional legal services (Q25)... F-18 Total 2010 billings per attorney (Q25)... F-19 Firm collections, billings, overhead, and percent change in billings (Q26-Q30)... F-20 Minimum and maximum 2010 attorney billing rates for non-ip work (Q30a-Q30b)... F-21 Average billing rate for non-ip work (Q30c)... F-22 Minimum and maximum 2010 attorney billing rates for IP work (Q31a-Q31b)... F-23 Average billing rate for IP work (Q31c)... F-24 Current starting salary for a first-year associate (Q32)... F-25 Liability insurance coverage and deductible in 2010 (Q34-Q35)... F-26 Liability insurance cost per attorney in 2010 (Q36)... F-27 Number of liability claims for IP matters made in the last five years (Q37)... F-27 Number of liability claims for IP matters made per attorney in the last five years (Q37)... F-28 Number of liability claims for IP matters made per IP attorney in the last five years (Q37)... F-28 Total dollar value of IP liability claims, including attorneys fees, paid in the last five years by the insurer or directly by the firm (Q38-Q39)... F-28 Professional liability insurance underwriters used by firms (Q40)... F-29 Liability insurance cost per attorney in 2010 by insurance underwriter (Q40)... F-32 Position of the person responding on behalf of the firm (Q1)... F-33 viii

11 INTRODUCTION The AIPLA Economic Survey, developed and directed by the Law Practice Management Committee of the American Intellectual Property Law Association (AIPLA), reports the annual incomes and related professional and demographic characteristics of intellectual property (IP) law attorneys and associated patent agents. Conducted every other year by AIPLA, this survey also examines the economic aspects of intellectual property law practice, including individual billing rates and typical charges for representative IP law services. All AIPLA members were invited to participate. The Law Practice Management Committee took an active role in reviewing the Economic Survey with a goal of improving the usefulness and value of the data that are collected and analyzed. DATA COLLECTION An invitation to participate in the 2011 AIPLA Economic Survey was sent to a list of 15,620 AIPLA members and non-members; accounting for bounces and requests to be removed from the database, the actual sample surveyed was 14,524. The included an individualized direct link to the Web-based questionnaire along with an attached letter requesting additional participation in the Firm portion of the Economic Survey. The initial was followed up by several reminders, including notices specifically directed at collecting additional Firm responses. A total of 2,577 individuals responded by completing some or all of the questionnaire, yielding an 18% response rate. This is lower than in 2009, but similar to This is the third time the survey has been conducted online. The additional efforts to gather data for the Firm portion of the survey garnered 287 responses higher than in 2009, when only 230 firm representatives completed the firm questionnaire. All data submitted by respondents were reviewed and evaluated for reasonableness and consistency; data anomalies and outliers were analyzed and corrected or deleted. In many cases, respondents did not answer every question, so the total counts for each table may vary. CHANGES TO THE SURVEY A number of enhancements were made to the 2011 Individual Survey instrument. Questions were added and wording was refined, based on comments and questions received from past surveys. Medical/Health Care, and Pharmaceutical were options added to the question regarding the percent of time spent by respondents in areas of technical specialization. These two choices were also added to a question in Part II for Corporate Practitioners regarding corporate technology specialization as well as a decomposition of a category that previously lumped together electrical, computer software and hardware. These categories were all broken down into separate items for selection, allowing a better classification of the individuals responding at the various corporations. These new choices were included in response to write-ins from the Other choices in past surveys. Also in Part II, new work areas were included in the question regarding the percentage estimate of how the annual corporate IP budget is devoted. A follow-up question was also added with similar choices, but respondents were expected to allocate their time. A new question for private practitioners was added to define who is primarily represented by each firm; plaintiffs, defendants or both equally. For Part IV under Trademarks questions regarding preparation of a UDRP Petition, and response to a UDRP Petition were included along with questions regarding the type of fee primarily used in 2010 for the various types of prosecution and client counseling. For each line of work, whether it was for Trademarks, US Utility Patents, Foreign Origin and Foreign Patents, or other US Patents and Copyrights, respondents AIPLA Report of the Economic Survey

12 had the opportunity to indicate the type of fee primarily used. Summary tables of the typical type of fee used (hourly, fixed fee or other) are included in Appendix A. The questionnaire and statistical tables for firm data were changed minimally from Two new categories were included for classifying the percent of firms 2010 IP billings. In the data tables in the report, a minimum of three responses was required to show composite values. The term ISD is used in the tables to show insufficient data. DESCRIPTION OF STATISTICS AND FORMATTING CONVENTIONS Quartiles: In tables that report incomes, billing rates, typical charges, and other distributions of real numbers, responses are described by three quartiles: the first quartile, the median, and the third quartile. Quartiles identify interpolated locations on a distribution of values and do not necessarily represent actual reported values. Another label for quartiles is percentiles; the first quartile is the same as the 25 th percentile, the median is the 50 th percentile, and the third quartile is the 75 th percentile. For example, when all reported values are listed from highest to lowest, the third quartile identifies the point on the list that is equal to or greater than 75 percent (three quarters) of the reported values and equal to or less than 25 percent (one quarter). Median (midpoint): The median identifies the point in the distribution of reported values that is equal to or larger than one-half of reported values and equal to or smaller than one-half that is, the midpoint. A median is reported when three or more values were reported by respondents. The first and third quartiles are reported when five or more values were reported by respondents. Quartiles and medians based on values reported by survey respondents are estimates of the quartiles and medians that could be determined if the characteristics of the entire population represented by survey respondents were known. In general, the more values that are reported, the more accurately quartiles estimate the distribution of values among all AIPLA members. Mean (average): The sum of all values divided by the number of values. It should be noted that if the mean exceeds the median, it is because high values will affect the calculations. It is also possible, especially with a small number of values, for the mean to exceed the third quartile. Percentages in some tables and some graphs may not sum to exactly 100% due to rounding. Other definitions useful in understanding tabular information presented in this report are: Income: Defined as total gross income in calendar year 2010 from your primary practice including any partnership income, cash bonus, share of profits, and similar income you received, and any deferred compensation in which you vested in Typical Charges: Respondents were instructed to respond only if you have been personally responsible for a representative sample of the type of work to which the question pertains, either as a service provider (an attorney in private practice) or as a purchaser of such services (corporate counsel). In thinking of a typical charge, respondents were directed to assume a typical case with no unusual complications, and asked what would you have expected to charge or be charged, in 2010, for legal services only (including search fees, but not including copy costs, drawing fees or government fees) in each of the following types of US matters? Respondents were also asked to indicate the type of fee primarily used in 2010 (i.e., fixed fee, hourly, other). AIPLA Report of the Economic Survey

13 Estimated Litigation Costs: Respondents were instructed to respond to these questions only if you have personal knowledge either as a service provider or as a purchaser of such services of the costs incurred within the relatively recent past, for the type of work to which the question pertains. In each of the questions, total cost is all costs, including outside legal and paralegal services, local counsel, associates, paralegals, travel and living expenses, fees and costs for court reporters, photocopies, courier services, exhibit preparation, analytical testing, expert witnesses, translators, surveys, jury advisors, and similar expenses. Respondents were further instructed to estimate these based on a single IP asset, such as one patent at issue or one trademark. Location: The metropolitan areas of Boston, New York City, Philadelphia, Washington (DC-MD-VA), Chicago, and Minneapolis St. Paul include all localities central city and surrounding areas within the primary metropolitan statistical area. One state Texas had sufficiently large numbers of respondents to be reported separately. There were sufficient responses to breakout Los Angeles and San Francisco separately; California firms outside of those metro areas were included in Other West. Other categories exclude those named metropolitan areas. LOCATION METROPOLITAN AREAS PERCENT COUNT Boston CMSA* 4.7% 120 New York City CMSA* 8.8% 227 Philadelphia CMSA* 3.8% 98 Washington, DC CMSA* 16.5% 424 Other East: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, and West Virginia 6.3% 162 Metro Southeast: Raleigh Durham, Greensboro Winston-Salem, and Charlotte, NC; Atlanta, GA; and Miami Ft. Lauderdale West Palm Beach, FL 3.7% 96 Other Southeast: North Carolina, South Carolina, Georgia, and Florida 2.7% 69 Chicago CMSA* 6.0% 154 Minneapolis St. Paul PMSA** 4.0% 104 Other Central: Minnesota, North Dakota, South Dakota, Wisconsin, Michigan, Ohio, Indiana, Illinois, Iowa, Nebraska, Kansas, Missouri, Kentucky, Oklahoma, Arkansas, Louisiana, Mississippi, Alabama, and Tennessee 16.8% 432 Texas 6.6% 171 Los Angeles CMSA* 3.2% 83 San Francisco CMSA* 5.8% 150 Other West: Montana, Wyoming, Colorado, New Mexico, Idaho, Utah, Nevada, Arizona, Washington, Oregon, California, Alaska, and Hawaii 11.1% 287 *CMSA: Consolidated Metropolitan Statistical Area a metro area with a population of one million or more. **PMSA: Primary Metropolitan Statistical Area a component of a CMSA. AIPLA Report of the Economic Survey

14 RESPONDENT BACKGROUND A total of 2,577 individuals participated in the survey. Most survey participants were male (79.6%) and White/Caucasian (87.6%). Nearly three-quarters of all respondents (73.0%) were under the age of 50, with one-third ranging in age between 35 and 44. Other than a law degree, a more than one-third of all respondents (37.7%) reported holding an advanced degree such as a Masters or Ph.D. Private Firm, Partner and Private Firm, Associate represented just over half (51.5%) of all respondents, followed by Corporate IP Department, Attorney (12.2%), Solo Practitioner (8.7%), and Corporate IP Department, Head (7.2%) all very similar to The vast majority (88.7%) of respondents had been admitted to the patent bar. Seven in 10 respondents (70.3%) had fewer than 20 year s experience practicing Intellectual Property Law, compared with 75.3% reported in the 2009 Economic Survey. 16.8% reported having fewer than 5 years of IP law experience in 2010, down slightly from 19.8% for In 2008, there were more respondents with 7-9 years of experience than in 2010 (12.8% vs. 8.8%, respectively). The most prevalent IP technical specialization (representing over 50% of time) was mechanical (29.7%), followed by electrical, chemical, and computer software all ranging between 14.5% and 14.9%. Four in 10 respondents (40.1%) practiced in the Mid-Atlantic or New England area, including 16.5% in the Washington, DC, Consolidated Metropolitan Statistical Area (CMSA). The Other Central region represented 26.8%, and one in five (20.1%) were located in the West. Respondents reported similarly in 2008 and 2010 that they were not very likely to have changed employment, 87.0% vs. 88.7%, respectively. Of those who had changed employment in 2010 (11.7%), 4.5% had switched from one private firm to another private firm. AIPLA Report of the Economic Survey

15 GENDER (P. I-1, Q8) Male 79.6% White/Caucasian 87.6% ETHNICITY (P. I-1, Q9) Female 20.4% Black/African American 1.6% Other 1.5% Blended 1.5% N.A. Indian/ Native Canadian 0.2% Asian/Pacific Islander 6.0% Hispanic/Latino 1.5% % AGE (P. I-1, Q7) % % Younger than % Private 67.2% Corporate 25.3% Private Firm, Partner PRIMARY PRACTICE (P. I-1, Q2) Background of All Respondents 27.0% Solo Practitioner 8.7% Other 13.8% Gov t IP Office, Other than PTO 0.8% 2.3% Attorney, Corporate Legal Dept Attorney, Corporate IP 12.2% Dept % % % % 65 or Older 3.7% Other: Private Firm, Agent 3.5% Agent, Corporate IP Dept 1.5% Head of Corporate Legal Dept 1.4% 24.5% Agent, Corporate Legal Dept 0.7% Private Firm, PTO Examiner/Admin/Mgmt 1.5% Other 5.2% Associate % 7.2% Head of Corporate IP Dept 3.5% Private Firm, Of Counsel AIPLA Report of the Economic Survey

16 ADMITTED TO THE PATENT BAR (P. I-1, Q4) YEARS OF INTELLECTUAL PROPERTY LAW EXPERIENCE (P. I-2, Q10) % % Yes 88.7% % % No 11.3% Fewer than % % % % % 40 or More 3.8% Chicago CMSA 6.0% Minn-St. Paul PMSA 4.0% LOCATION (P. I-2, Q1) Other Southeast Other East 2.7% Metro 6.3% Southeast 3.7% Washington, DC CMSA 16.5% CHANGED EMPLOYMENT IN 2010 (P. I-1, Q5) No 88.3% Other Central 16.8% Texas 6.6% Los Angeles CMSA 3.2% Other West San Francisco 11.1% CMSA 5.8% Philadelphia CMSA 3.8% NYC CMSA 8.8% Boston CMSA 4.7% Corp/Univ/Govt 1.1% to Same 3.2% 1.8% Other Private to 1.1% Corp/Univ/Govt 4.5% Corp/Univ/Govt to Private Private to Private AIPLA Report of the Economic Survey

17 IP BUDGET FOR CORPORATE PRACTITIONERS ANNUAL IP BUDGET FOR COMPANY (P. I-88, Q27) CORPORATE IP, HEAD By Technology Focus Biotech Chemical Electrical Computer Software Computer Hardware Mechanical Medical/Health Care Pharmaceutical All Individuals $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 1st Quartile/3rd Quartile Median Mean CHANGE IN IP BUDGET FOR COMPANY: (P. I-89, Q28) Reported by Corporate IP, Head 1-2 Number of IP Attorneys All Individuals 0% 20% 40% 60% 80% 100% Increase No Change Decrease As reported by Corporate IP Department Heads, more than half (53.8%) of the IP budgets for companies with 1 2 full-time IP lawyers and agents stayed the same from 2009 to 2010, compared to 40.6% reported by this same group in 2009 for IP budgets from 2007 to Responding Corporate IP Heads at companies with 6 10 full-time IP lawyers and agents were much less likely to report an increase in their budget from 2009 to 2010 (18.8%) than were reported in 2009 for 2008 budgets compared to 2007, where 40.6% of firms with 6 10 employees reported an increase in their IP budgets. AIPLA Report of the Economic Survey

18 INCOME RECEIVED IN 2010 AND PROJECTED FOR 2011, BILLING RATES, AND BILLABLE HOURS Compensation for 2010 was measured broadly by gross income, which includes salary, partnership income, bonuses, shares of profits, and deferred compensation. Also covered were retirement and savings plans as well as expected total cash income for In addition, for private practitioners, data were collected for billable hours and rates and the amount billed for legal services. Findings are summarized below: Primary practice median gross income for 2010 was $205,000 for all participants, up from $200,000 in At the top of the list was private firm partner with a median income of $374,328, down from $415,000 in 2008, but still above levels reported in 2006 ($344,500). For 2010, the median employer contribution to 401(k) and 403(b) retirement & savings plans was $8,000. The median reported by private firm partners was slightly more than twice the overall $16,500 reflecting a slight increase from The typical employer contribution to all other pensions (defined benefit, defined contribution & capital accumulation plans) was $18,602, based on 314 responses. Anticipated total cash income (median) for 2011 was $210,000, a slight increase over the actual level reported for Private firm partners reported the highest median, $390,000, a 9.6% increase from actual income for Non-cash income for 2010 from law practice stock options, stock sales, and in-kind compensation was $45,000 (median) for 292 respondents. Median billable hours recorded for all individuals in 2010 was 1,650, below the 1,727 median for Private firm associates billed the most hours, 1,800 (median), slightly lower (1.1%), however, than Private firm partners typically billed 1,650 hours during 2010, 3.1% below The median billing rate for all attorneys was higher in 2010 ($340 per hour) than in 2008 ($325). For private firm partners the median was $410 compared with a median of $300 for private firm associates. For 2010, the median dollar amount billed for legal services was $486,500, down slightly from two years earlier ($500,000). The highest median was generated by private firm partners ($600,000) and the lowest by solo practitioners ($200,000). Hourly billing continues to be the predominant model, used by 74.2% of all respondents. However, solo practitioner s bill on an hourly basis 56.5% of the time and use a fixed or predetermined fee 40.6% of the time. Median income of all survey respondents measured $205,000 in Median income in 2010 for those in private practice was $210,000, the same as in Corporate practitioners experienced an increase in income over the past two years to a level of $214,000, up from $200,000 a 7% improvement. AIPLA Report of the Economic Survey

19 Thousands TREND OF MEDIAN INCOMES: (P. I-3, Q13) All Private Practice, All Corporate Lawyers, and All Survey Respondents $220 $200 $180 $160 $140 &' ' & ' & $ All Respondents $130 $160 $175 $187 $200 $200 $205 Corporate $130 $150 $165 $180 $189 $200 $214 Private $139 $180 $190 $200 $215 $210 $210 * Income includes Partner income, cash bonus, share of profits and deferred comp. ' & ' & &' & ' Private & Corporate ' All Respondents 2200 BILLABLE HOURS FOR ALL FULL TIME PRIVATE PRACTICE ATTORNEYS (P. I 5, Q32) By Years of IP Experience ,650 1,727 1,850 1,848 1,855 1,801 1,775 1,803 1,600 1,703 1,700 1,673 1,600 1,700 1,560 1,600 1,500 1,525 1,500 1, ,000 1, Total All Fewer than Median 2008 Median or More AIPLA Report of the Economic Survey

20 2,200 TREND OF MEDIAN BILLABLE HOURS FOR PRIVATE PRACTICE ATTORNEYS: (P. I-5, Q32) Private Solo Practitioners, Private Partners, and Private Associates 2,000 1,800 1,600 ' & ' ' ' ' ' & & & & & ' & ' & 1,400 1,200 1, Solo 1,120 1,260 1,301 1,203 1,000 1,150 1,080 1,000 Partner 1,750 1,800 1,800 1,800 1,780 1,800 1,702 1,650 Associate 1,850 1,883 1,900 1,900 1,850 1,850 1,820 1,800 Solo & Partner ' Associate Thousands TREND OF MEDIAN INCOMES FOR PRIVATE PRACTICE ATTORNEYS: (P. I-3, Q13) Private Solo Practitioners, Private Partners, and Private Associates $450 $350 $250 $150 & ' & ' & ' & & & ' ' ' $ Solo $120 $134 $200 $170 $160 $200 $161 $169 Partner $228 $230 $286 $300 $300 $345 $415 $374 Associate $85 $97 $130 $140 $137 $145 $165 $165 & ' & ' Solo & Partner ' Associate AIPLA Report of the Economic Survey

21 GROSS INCOME (2010) BY PRIMARY PRACTICE (P. I-3, Q13) Private Partner $374,328 Corporate IP, Head Corporate Legal, Head Corporate IP, Attorney Private Of Counsel Corporate Legal, Attorney Solo Practitioner $255,000 $218,150 $213,701 $179,000 $175,000 $169,000 Private Associate PTO Admin/Management Corporate IP, Agent Corporate Legal, Agent Government IP, not PTO Other Private Agent PTO Examiner $165,000 $158,000 $130,000 $130,000 $120,500 $119,175 $114,500 $85,000 $0 $100,000 $200,000 $300,000 $400,000 Median BILLABLE HOURS (2010) (P. I 5, Q32) By Practice Type , ,400 1,516 1, , Solo Of Counsel Agent Partner Associate Median AIPLA Report of the Economic Survey

22 APPENDIX B

23 January 2011 Dear AIPLA Member: The Law Practice Management Committee of AIPLA is responsible for conducting an economic survey of the membership every two years. Once again this year, you can complete the survey online. We invite you to click on the following link to complete the 2011 Economic Survey for Individuals: LINK When you first access the secure website using this link, you will be asked to provide a password of your own choosing that allows you to save your work and return to the survey as needed to complete the survey. Please save this information for your future reference. This link is individualized for you. Please do not share it with anyone to ensure that your responses remain confidential. Your input is needed and is vital to the quality and usefulness of the AIPLA's 2011 Report of the Economic Survey, and the response deadline of February 21st is fast approaching. On the website you will find the instructions and several options for completing and returning your confidential survey to our consultant, Association Research, Inc., either online or by fax at (240) As an added incentive to participate, we will send to all AIPLA members who respond to the survey, and fill out their contact information, a benchmarking tool that will allow you to view a summary of the survey results in electronic format. Print out your completed questionnaire and this unique tool will allow you to enter in your personal data for comparison. You must respond to receive the benchmarking tool, so please take some time to complete and return this important survey. Foreign and non-member responses are welcome; however, only AIPLA members will receive the benchmarking tool. SEPARATE SURVEY DESIGNED FOR LAW FIRMS ATTACHED: Again this year there are a series of questions which should be answered at the Firm level. As AIPLA has in the past, we request that members coordinate a single response for their entire firm. The link to the firm questionnaire can be found in the attached memo. Please send the attachment along to the individual completing this on your firm s behalf. On behalf of the Law Practice Management Committee, thank you for participating. If you have any questions regarding your response to the survey, please contact Association Research, Inc. at (240) (ext. 100) or by at [email protected]. Very truly yours, fàxäx Tâä Ä Steve Auvil Chair, Law Practice Management Committee

24 A M E R I C A N I N T E L L E C T U A L P R O P E R T Y L A W A S S O C I A T I O N AIPLA 2011 ECONOMIC SURVEY INDIVIDUALS Association Research, Inc. (ARI), an independent survey research organization, is conducting this confidential survey for AIPLA. All responses will be kept completely confidential. All questions and concerns about the survey or online content should be directed to ARI. Please ARI at [email protected] or call Megan Kirkegaard at , ext Please complete your questionnaire no later than February 21, 2011, either online or by fax to PART I. GENERAL QUESTIONS FOR ALL RESPONDENTS 1. What is the ZIP code of your office location or primary work site? (zip code) 2. What is your primary practice? (CHECK THE ONE CATEGORY THAT BEST DESCRIBES YOUR PRACTICE.) PRIVATE FIRM Solo Practitioner Equity Partner, Shareholder (or equivalent) Associate, Non-equity Partner (or equivalent) Patent Agent Of Counsel (or equivalent) CORPORATE IP DEPARTMENT Head of IP Department (for entire corporation or a division) Attorney Patent Agent CORPORATE LEGAL DEPARTMENT Head of Legal Department (for entire corporation or a division) Attorney Patent Agent GOVERNMENT PTO Examiner (up to and including SPE) PTO Administration, Management, Solicitor's Office Government IP Office, other than PTO OTHER Other; please describe 3. What percent of your time was devoted to IP practice during 2010? Less than 50% 50% - 79% 80% or more 4. Are you admitted to the Patent Bar? Yes No 5. Did you change employment in 2010? (CHECK ONLY ONE) No Yes, moved from a private firm to a private firm. Yes, moved from a private firm to a corporation, university or Government IP office. Yes, moved from a corporation, university or Government IP office to a different corporation, university or Government IP office. Yes, moved from a corporation, university or Government IP office to a private firm. Other (SPECIFY) 6. Did your current employer have a change in status in the past year due to a merger, joint venture or other change in corporate structure? Yes No 7. In what year were you born? 19 1

25 8. What is your gender? Male Female 9. How would you describe your ethnicity? White/Caucasian Black/African American Hispanic/Latino Asian/Pacific Islander North American Indian/Native Canadian Blended Other (SPECIFY) 10. How many full years of IP law attorney experience do you have? years 11. What is your major technical undergraduate degree? Biotechnology Chemical Computer Hardware Computer Software Electrical Mechanical General Science Other (SPECIFY) 12. Other than a law degree, what is your highest completed education? None Master s Degree Other (SPECIFY) Bachelor s Degree Doctorate Degree 13. What was your total gross income in calendar year 2010 from your primary practice? (Include any partnership income, cash bonus, share of profits, and similar income you received, and any deferred compensation in which you vested in 2010.) $ 14. What was your employer's 2010 contribution on your behalf to all 401(k)/403(b) retirement and savings plans? $ 15. Excluding 401(k)/403(b) retirement and savings plans, what was your employer's 2010 contribution on your behalf to all pension and capital accumulation plans, including defined benefit or defined contribution pension plans? If you are self-employed, what contribution did you make to your retirement plan? $ Employer made a contribution and the amount is unknown. 16. What is your expected total cash income for 2011? (As in Q. 13 above, includes expected cash income, including bonus and profit-sharing.) $ 17. How much gross income from the practice of law, not included in Q. 13 above (e.g., from exercises of stock options, sales of stock grants, in-kind compensation), did you receive: $ 18. What percent of your time is devoted to each of the following types of work? Responses should total 100%. % Direct IP prosecution work (all patents, trade secrets, trademarks, copyrights) including selection, evaluation, application preparation and prosecution, including related counseling and ex parte appeals (not including supervision or management thereof) % Supervision of IP prosecution work by other attorneys or agents % Opinions, counseling or inter partes conflicts or prospective conflicts prior to litigation or formal ADR (not including actual litigation, ADR, negotiation or licensing) % Licensing % Non-licensing transactional work (e.g., mergers, acquisitions, joint ventures, obtaining financing and due diligence associated with such matters) % IP Litigation % Other dispute resolution (including all inter partes proceedings and ADR, but not ex parte appeals) % Office management and administration % Marketing % Non-IP legal % Managing outside counsel for IP prosecution work % Managing outside counsel for IP litigation work % Other (SPECIFY) 100% TOTAL 2

26 19. If you are admitted to the Patent Bar, what percent of your time is spent in each of the following areas of technical specialization? Response may total less than 100%. % Biotechnology % Chemical % Computer Hardware % Computer Software % Electrical % Mechanical % Medical/Health Care % Pharmaceutical % Other areas (SPECIFY) % TOTAL (may total less than 100%) 20. What percent of your time is devoted to each of the following practice areas? Response may total less than 100%. % Business Law % Copyrights % Foreign (Non-US) IP Law % General IP % Patents % Trade Secrets % Trademarks % Other areas (SPECIFY) % TOTAL (may total less than 100%) 21. Estimate the amount of time spent per month training new associates or in-house counsel: (hours) 22. In all locations, how many full-time IP lawyers and patent agents are employed by your firm or corporation? 23. How many new priority (i.e., not continuation, CIP, or Divisional, but including provisional) US and PCT Patent applications were prepared and filed by you personally in 2010? Include PCT only if not based on a prior application. (Do not include applications prepared by another person which you reviewed, revised and filed.) PART II. CORPORATE PRACTITIONERS THESE QUESTIONS SHOULD BE ANSWERED BY CORPORATE PRACTITIONERS ONLY. PLEASE SKIP THIS SECTION IF YOU ARE NOT A CORPORATE PRACTITIONER. 24. How many IP lawyers and patent agents report to you, directly or indirectly? or more 25. Other than as a liaison with outside counsel, what percent of the following activities is handled by in-house counsel? % by In-house Counsel a. Litigation % b. Licensing % c. Patent Preparation and Prosecution % d. Trademark Registration, Prosecution and Enforcement % e. Copyright Registration and Enforcement % 26. What was the annual gross revenue of your organization in 2010 (provide the gross revenue for your business unit if your company tracks gross revenue by business unit) in USD? $ 3

27 27. What was the annual corporate IP budget of your organization (excluding litigation) in 2010 (provide the IP budget for your business unit if your company allocates IP budget by business unit) in USD? $ 28. How much did the annual corporate IP budget of your organization (excluding litigation) change from 2009 to 2010? Increase % No change Decrease % 29. Which type of technology best describes your corporation? Other includes corporate having multiple technology types. Please specify types: Biotech Chemical Electrical Computer Software Computer Hardware Mechanical Medical/Health Care Pharmaceutical Other (SPECIFY) 30. What is your estimate of the percentage of the annual corporate IP budget devoted to each of the following types of work? Responses should total 100%. % Direct IP prosecution work (all patents, trade secrets, trademarks, copyrights) including selection, evaluation, application preparation and prosecution, including related counseling and ex parte appeals (not including supervision or management thereof) % Direct IP litigation work % Managing outside counsel for IP prosecution work % Managing outside counsel for IP litigation work % Opinions, counseling % Licensing % Non-licensing transactional work (mergers, acquisitions, joint ventures, obtaining financing and due diligence associated with such matters) % Other dispute resolution (including all inter partes proceedings and ADR, but not ex parte appeals) % Office management and administration % Other (SPECIFY) 100% TOTAL 31. What percent of your time is devoted to each of the following types of work? Responses should total 100%. % Direct IP prosecution work (all patents, trade secrets, trademarks, copyrights) including selection, evaluation, application preparation and prosecution, including related counseling and ex parte appeals (not including supervision or management thereof) % Direct IP litigation work % Managing outside counsel for IP prosecution work % Managing outside counsel for IP litigation work % Opinions, counseling % Licensing % Non-licensing transactional work (mergers, acquisitions, joint ventures, obtaining financing and due diligence associated with such matters) % Supervision of other in-house attorneys or agents % Office management and administration % Other (SPECIFY) 100% TOTAL 4

28 PART III. PRIVATE PRACTITIONERS THESE QUESTIONS SHOULD BE ANSWERED BY PRIVATE PRACTITIONERS ONLY. PLEASE SKIP THIS SECTION IF YOU ARE NOT A PRIVATE PRACTITIONER. 32. How many billable hours did you record in 2010? hours 33. What percent of these billable hours were actually billed to clients (hourly or any other basis)? % 34. What was your average hourly billing rate in 2010? $ 35. What percent of your services in 2010 were billed (or will be billed) on the following basis? Hourly % Predetermined Fee % Contingent % Other % TOTAL 100% 36. What dollar amount was billed for the legal services you performed in 2010? $ 37. Do you primarily represent plaintiff, defendants, or both equally? Plaintiffs Defendants Both equally PART IV. TYPICAL CHARGES AND COSTS PROSECUTION AND CLIENT COUNSELING THESE QUESTIONS SHOULD BE ANSWERED BY BOTH CORPORATE AND PRIVATE PRACTITIONERS. THE FOLLOWING QUESTIONS, COVERING TRADEMARKS, PATENTS, AND COPYRIGHTS, ASK FOR TYPICAL CHARGES. PLEASE RESPOND ONLY IF YOU HAVE BEEN PERSONALLY RESPONSIBLE FOR A REPRESENTATIVE SAMPLE OF THE TYPE OF WORK TO WHICH THE QUESTION PERTAINS, EITHER AS A SERVICE PROVIDER (I.E., AN ATTORNEY IN PRIVATE PRACTICE) OR AS A PURCHASER OF SUCH SERVICES (I.E., CORPORATE COUNSEL). ASSUMING A TYPICAL CASE WITH NO UNUSUAL COMPLICATIONS, WHAT DID YOU CHARGE (OR WOULD HAVE CHARGED, E.G., BASED ON A FIXED FEE RATE SCHEDULE) OR WHAT WERE YOU CHARGED (OR WHAT YOU WOULD HAVE EXPECTED TO BE CHARGED, E.G., BASED ON A FIXED FEE RATE SCHEDULE), IN 2010, FOR LEGAL SERVICES ONLY (INCLUDING SEARCH FEES, BUT NOT INCLUDING COPY COSTS, DRAWING FEES OR GOVERNMENT FEES) IN EACH OF THE FOLLOWING TYPES OF US MATTERS? PLEASE ALSO INDICATE THE TYPE OF FEE PRIMARILY USED IN TRADEMARKS (INCLUDING SERVICE MARKS) Fixed Hourly Other Charged in 2010 Fee a. Trademark Clearance Search, Analysis, and Opinion $ b. Trademark Registration Application (Preparation and Filing) $ c. Trademark Prosecution (Total, including amendments and interviews but not appeals) d. Trademark Statement of Use (Preparation and Filing) $ e. Trademark Appeal to the Board (Briefed and Argued) $ f. Trademark Section 8 and 15 Declaration (Preparation and Filing) $ g. Trademark Renewal Application (Preparation and Filing) $ h. Filing of Foreign Origin Trademark Registration Application Received Ready for Filing i. Filing for an international trademark $ j. Preparing a UDRP Petition (Uniform Domain-Name Dispute-Resolution) $ k. Responding to a UDRP Petition $ $ $ 5

29 39. US UTILITY PATENTS a. Original (not divisional, continuation, or CIP) non-provisional utility patent application on invention of minimal complexity, e.g., 10 page specification, 10 claims (Preparation and Filing) Fixed Fee b. Provisional Patent Application (Preparation and Filing) $ c. Original utility application, relatively complex biotechnology/chemical (Preparation and Filing) d. Original utility application, relatively complex electrical/computer (Preparation and Filing) e. Original utility application, relatively complex mechanical (Preparation and Filing) f. Patent application amendment/argument of minimal complexity (Preparation and Filing) Hourly Other Charged in 2010 g. Patent application amendment/argument, relatively complex, $ biotechnology/chemical (Preparation and Filing) h. Patent application amendment/argument, relatively complex, electrical $ computer (Preparation and Filing) i. Patent application amendment/argument, relatively complex, $ mechanical (Preparation and Filing) j. Appeal to Board in utility patent application without oral argument. $ k. Appeal to Board in utility patent application with oral argument. $ l. Issuing an allowed application (All post-allowance activity) $ m. Ex parte re-exam $ n. Paying a Maintenance Fee $ o. Utility Patent Novelty Search, Analysis, and Opinion $ p. Validity/Invalidity Only Opinion, per patent $ q. Infringement/Non-Infringement Only Opinion, per patent $ r. Combination validity and Infringement, per patent $ $ $ $ $ $ 40. FOREIGN ORIGIN AND FOREIGN PATENTS Exclude government, associate, drawing, and similar fees. Fixed Fee Hourly Other Charged in 2010 a. Filing foreign origin utility patent application in US PTO, received ready for $ filing with formal papers, assignment, and priority documents b. Filing non-pct patent application abroad (per country, not including $ associate or government fees) c. Filing previously prepared US patent application as PCT application in US $ Receiving Office d. Entering National Stage in US Receiving Office from foreign origin PCT $ application e. Entering National Stage in each foreign Receiving Office from US origin $ PCT application f. Paying an annuity or maintenance fee $ 6

30 41. OTHER US PATENTS AND COPYRIGHTS Fixed Hourly Other Fee Charged in 2010 a. US design patent application (Preparation and Filing) $ b. US plant patent application (Preparation and Filing) $ c. Copyright registration application (Preparation and Filing) $ LITIGATION AND RELATED MATTERS THESE QUESTIONS SHOULD BE ANSWERED BY BOTH CORPORATE AND PRIVATE PRACTITIONERS. RESPOND TO EACH OF THE FOLLOWING QUESTIONS ONLY IF YOU HAVE PERSONAL KNOWLEDGE EITHER AS A SERVICE PROVIDER (ATTORNEY IN PRIVATE PRACTICE) OR AS A PURCHASER OF SUCH SERVICES (CORPORATE COUNSEL) OF THE COSTS INCURRED WITHIN THE RELATIVELY RECENT PAST, FOR THE TYPE OF WORK TO WHICH THE QUESTION PERTAINS. IN EACH OF THE QUESTIONS, "TOTAL COST" IS ALL COSTS, INCLUDING OUTSIDE LEGAL AND PARALEGAL SERVICES, LOCAL COUNSEL, ASSOCIATES, PARALEGALS, TRAVEL AND LIVING EXPENSES, FEES AND COSTS FOR COURT REPORTERS, PHOTOCOPIES, COURIER SERVICES, EXHIBIT PREPARATION, ANALYTICAL TESTING, EXPERT WITNESSES, TRANSLATORS, SURVEYS, JURY ADVISORS, AND SIMILAR EXPENSES. PLEASE ESTIMATE THESE BASED ON A SINGLE IP ASSET (I.E., ONE PATENT AT ISSUE, ONE TRADEMARK, ETC.). 42. What is your estimate of the total cost of a patent infringement suit (i) through the end of discovery, and (ii) inclusive of discovery, motions, pretrial, trial, post-trial, and appeal? LITIGATION PATENT INFRINGEMENT Less than $1 million at risk a. End of Discovery $ b. Inclusive, all costs $ $1-$25 million at risk c. End of Discovery $ d. Inclusive, all costs $ More than $25 million at risk e. End of Discovery $ f. Inclusive, all costs $ 43. What is your estimate of the total cost of a trademark infringement suit (i) through the end of discovery, and (ii) inclusive of discovery, motions, pre-trial, trial, post-trial, and appeal? LITIGATION TRADEMARK INFRINGEMENT Less than $1 million at risk a. End of Discovery $ b. Inclusive, all costs $ $1-$25 million at risk c. End of Discovery $ d. Inclusive, all costs $ More than $25 million at risk e. End of Discovery $ f. Inclusive, all costs $ 7

31 44. What is your estimate of the total cost of a trademark opposition/cancellation (i) through end of discovery, and (ii) inclusive of discovery, motions, hearing, and post-hearing? LITIGATION TRADEMARK OPPOSITION/CANCELLATION a. End of Discovery $ b. Inclusive, all costs $ 45. What is your estimate of the total cost of a copyright infringement suit (i) through the end of discovery, and (ii) inclusive of discovery, motions, pre-trial, trial, post-trial, and appeal? LITIGATION COPYRIGHT INFRINGEMENT Less than $1 million at risk a. End of Discovery $ b. Inclusive, all costs $ $1-$25 million at risk c. End of Discovery $ d. Inclusive, all costs $ More than $25 million at risk e. End of Discovery $ f. Inclusive, all costs $ 46. What is your estimate of the total cost of a trade secret misappropriation suit: (i) through the end of discovery, and (ii) inclusive of discovery, motions, pre-trial, trial, post-trial, and appeal? LITIGATION TRADE SECRET MISAPPROPRIATION Less than $1 million at risk a. End of Discovery $ b. Inclusive, all costs $ $1-$25 million at risk c. End of Discovery $ d. Inclusive, all costs $ More than $25 million at risk e. End of Discovery $ f. Inclusive, all costs $ 47. What is your estimate of the total cost of a two-party interference: (i) through the end of the preliminary motion period, and (ii) inclusive of preliminary and other motions, testimony, briefs and arguments at final hearing, but not appeal. TWO-PARTY INTERFERENCE a. End of Preliminary Motion $ b. Inclusive, all costs $ 8

32 48. What is your estimate of the total cost of an Inter Partes Reexamination: (i) through filing the request, (ii) inclusive of a first patent owner response and 3 rd party comments, (iii) inclusive of all patent owner responses, 3 rd party comments, and closing of prosecution, (iv) inclusive of an appeal to the board, and (v) inclusive of an appeal to the federal court(s)? INTER PARTES REEXAMINATION a. Through filing the request $ b. Inclusive of a first patent owner response and 3 rd party $ comments c. Inclusive of all patent owner responses, 3 rd party comments, and closing of prosecution d. Inclusive of an appeal to the board $ e. Inclusive of an appeal to the federal court(s) $ $ OPTIONAL: (TO RECEIVE THE BENCHMARK SPREADSHEET TOOL, PLEASE ENTER YOUR CONTACT INFORMATION BELOW) NAME: FIRM: ADDRESS: CITY: STATE: ZIP CODE: TELEPHONE NUMBER: ADDRESS: THANK YOU VERY MUCH FOR COMPLETING THIS SURVEY. YOU MAY FAX YOUR COMPLETED QUESTIONNAIRE TO ARI AT

33 A M E R I C A N I N T E L L E C T U A L P R O P E R T Y L A W A S S O C I A T I O N AIPLA 2011 ECONOMIC SURVEY FIRMS Association Research, Inc. (ARI), an independent survey research organization, is conducting this confidential survey for AIPLA. All responses will be kept completely confidential. All questions and concerns about the survey or online content should be directed to ARI. Please ARI at [email protected] or call Megan Kirkegaard at , ext Please complete your questionnaire no later than February 21, 2011 either online or by fax to PRIVATE FIRM DATA 1. What is the position in the firm of the person responding on behalf of the firm? Managing Partner/Shareholder Administrator Other; please describe 2. What is the ZIP code of the firm s principal office location? (zip code) 3. How many major office locations staffed by two or more partners did the firm have in 2010? 4. How many minor (satellite or office location with less than two partners) office locations did the firm have in 2010? 5. In each of the following categories, how many attorneys were in the firm in 2010? If the number in any category varied during the year, report the average. Partner/Shareholder Associate/Non-equity Partner Of Counsel Contract/Part-time TOTAL attorneys 6. How many attorneys whose practice is primarily IP law were in the firm in 2010? If the number in any category varied during the year, report the average. Partner/Shareholder Associate/Non-equity Partner Of Counsel Contract/Part-time TOTAL IP attorneys 7. How many of the following were involved primarily in the IP practice of the firm in 2010? USPTO-registered Patent Agents (not attorneys) Technical Assistants, including Searchers Paralegal/Legal Assistants 8. How many attorneys or agents whose practice is primarily IP law became associated with the firm in 2010? If the number in any category varied during the year, report the average. Partner/Shareholder Associate/Non-equity Partner Of Counsel Contract/Part-time Patent Agents or trainees TOTAL IP attorneys and agents 1

34 9. Of all attorneys hired during 2010, what percentage were hired through a recruiter (head hunter)? Less than 25% 25% 50% 50% - 75% 75% or more 10. What was the average fee, as a percent of salary, paid to a recruiter (head hunter)? % 11. How many attorneys or agents whose practice is primarily IP law left the firm (including retired) in 2010? Partner/Shareholder Associate/Non-equity Partner Of Counsel Contract/Part-time Patent Agents or trainees TOTAL IP attorneys and agents 12. Considering the number of attorneys and agents associated with the firm whose practice is primarily IP law, please indicate the number by gender. Please TOTAL at end. Gender: Male Female TOTAL 13. Considering the number of attorneys and agents associated with the firm whose practice is primarily IP law, please indicate the number by ethnicity. Please TOTAL at end. Ethnicity: White/Caucasian Black/African American Hispanic/Latino Asian/Pacific Islander North American Indian/Native Canadian Blended Other TOTAL 14. How many support staff (secretarial, clerical, and other non-billable staff) devoted primarily to the support of the IP practice were in the firm in 2010? 15. How many summer associates did you have during 2010? 16. How many of these summer associates identified in Q. 15 received full-time offers in 2010? 17. How many summer associates identified in Q. 15 accepted the firm s offer in 2010? 18. How much did you pay summer associates in 2010? per month 19. What percent of the firm s international filing is outsourced to an external provider in 2010? % 20. What percent of the firm s annuity payments are outsourced to an external provider in 2010? % 21. What percent of the firm's practice by billings is in IP law in 2010? % 22. Approximately what percent of the firm s billable IP hours in 2010 were actually billed to clients (hourly or other basis)? % 2

35 23. What percent of the firm's 2010 IP billings were for litigation? % 24. What percent of the firm's 2010 IP billings were for: a. Patent applications and prosecution? % b. Trademark registration and prosecution? % c. Copyright registration applications? % d. Licensing? % e. Other IP work? % 25. What were the firm's total 2010 billings for professional legal services? $ 26. What was the ratio of the firm's collections to the firm s billings for 2010? % 27. As a percent of total 2010 collections (for services performed in any year), what was the firm's overhead in 2010? Overhead is all expenses other than client reimbursed expenses and compensation to attorneys and patent agents (including partner and shareholder profits). % 28. What was the percent change in the firm's billings for IP legal services from 2009 to 2010? Calculate as (2010 billings 2009 billings)/2009 billings) x 100. % 29. What was the percent change in the firm's billings for IP legal services from 2008 to 2009? Calculate as (2009 billings 2008 billings)/2008 billings) x 100. % 30. What were the firm's minimum, maximum, and average 2010 attorney billing rates for non-ip work? $ per hour was minimum rate $ per hour was maximum rate $ per hour was the average rate Not Applicable (only perform IP work) 31. What were the firm's minimum, maximum, and average 2010 attorney billing rates for IP work? $ per hour was minimum rate $ per hour was maximum rate $ per hour was the average rate 32. What is the firm s current starting salary for a first year associate? $ per year 33. What is the firm s average salary for a patent agent? $ per year PROFESSIONAL LIABILITY INSURANCE 34. What was the firm's maximum liability insurance coverage in 2010? $ each claim $ total 35. What was the liability insurance deductible in 2010? $ each claim $ total 36. What was the firm's liability insurance cost per attorney in 2010? $ 37. How many liability claims for IP matters have been made against the firm in the last five years ( )? 38. What is the total dollar value of IP liability claims, including attorneys fees, paid in the last five years ( ) by the insurer on behalf of the firm? $ 3

36 39. What is the total dollar value of IP liability claims, including attorneys fees, paid in the last five years ( ) by the firm directly? $ 40. Who is the firm's professional liability insurance underwriter? ALAS ALPS American Home Assurance Company CNA Insurance Companies Columbia Casualty General Star Great American Jamieson (New Jersey) Kemper/Lumberman s Lloyd's of London Minnesota Mutual Lawyers Insurance Co. Oregon Professional Liability Fund National Casualty St. Paul Westport Other insurer (SPECIFY) OPTIONAL: (TO RECEIVE THE BENCHMARK SPREADSHEET TOOL, PLEASE ENTER YOUR CONTACT INFORMATION BELOW) NAME: FIRM: ADDRESS: CITY: STATE: ZIP CODE: TELEPHONE NUMBER: ADDRESS: THANK YOU VERY MUCH FOR COMPLETING THIS SURVEY. YOU MAY FAX YOUR COMPLETED QUESTIONNAIRE TO ARI AT