Intellectual Property Salary Survey

Transcription

1 Intellectual Property Salary Survey

2 Intellectual Property Salary Survey 2014 Our third annual Intellectual Property (IP) salary survey has just been completed. We contacted our network of Intellectual Property professionals (Patent and Trade Mark Attorneys) in order to gain market intelligence into average salaries, bonuses and benefits currently being received in the profession. We also gauged opinion on the future of the sector by asking those in the know the Attorneys their market predictions for the next 12 months. With 20% more Attorneys completing the survey compared to 2013, we are able to present a genuine snapshot of the profession in 2014 and draw conclusions from our respondents answers.

3 Contents Key Findings 4 Sample Profile 5 Average Salary Breakdown 9 Financial Package and Benefits 15 Key Motivators To Move Jobs 17 What Does The Future Look Like? 18 Contacts Page 23 3

4 Key Findings There has been an increase in responses from Attorneys working in industry from 13% to 24%. A significant increase in the number of respondents with a Chemistry/Pharmaceutical background - which may be indicative of more Attorneys with these skill sets on the market than in The largest increase in average salaries is in the Senior Associate qualified bracket, which has seen an 11% increase YOY. There is an argument to support the trend of post-qualified Attorneys being keenly retained by their employers via salary increases a strong retention tool. Average basic salaries for Attorneys are relatively higher in Law Firms compared to private practice and industry. Average salaries in the Electronics and Physics specialisms are the highest across the industry, with most being paid in the 70K - 90K bracket. 9 in 10 professionals in the IP sector have a bonus scheme in addition to their basic salary. An increased focus on UK applications in view of the impending Unified Patent Court. An increasing trend for Senior Associates setting up their own firms, as the perceived route to Partnership becomes harder to attain. 4

5 Sample Profile Our sample mainly consisted of London or SE based individuals, who work in Private Practices. Interestingly, the percentage of those working in Industry / In House increased this year to almost a quarter of the sample size: in 2013 it was 13%. Region London 41% SE England 15% 2014 SW England 14% East Anglia 9% The Midlands 8% NW England 7% NE England 4% Scotland 1% Wales 1% Employer Type Industry / In House Law Firm/Solicitors Private Practice 5

6 Sample Profile Region London 42% SE England 15% 2013 SW England 10% East Anglia 0% The Midlands 13% NW England 8% NE England 9% Scotland 2% Wales 1% Employer Type Industry / In House Law Firm/Solicitors Private Practice 6

7 Sample Profile This year we have seen substantially more Chemistry/Pharmaceutical respondents, but slightly fewer Telecoms and Mechanical Engineering respondents. Qualification Level 2014 Area of Specialism Trade Marks Biotechnology / Life Science Telecoms / Software Chemistry / Pharmaceuticals Mechanical Engineering Electronics / Physics 7

8 Sample Profile 2013 Area of Specialism Trade Marks Biotechnology / Life Science Telecoms / Software Chemistry / Pharmaceuticals Mechanical Engineering Electronics / Physics 8

9 Average Salary - Comparison wth 2013 The overall average salary in the industry is 69,000, splitting into; 71,350 in London and the SE and 66,000 in all other areas. Evidence suggests there is still a London/SE premuim for salaries. At most levels of qualification, there are increases within London and the South East. * the sample size for salaried partners was less than 10, so averages are somewhat skewed. London and SE average salary All other areas Job Title 2014 Average London /SE Salary Trainee (Patent and 29,740 26,750 Trade Mark) Part-Qualified 44,150 38,920 Associate: Patent 69,400 59,300 Attorney Associate: Trademark 56,900 52,500 Attorney Senior Associate: Patent 85,500 70,200 Attorney Senior Associate: 70,160 64,130 Trademark Attorney Partner: Salaried 127,500* 105,000* Average non - London salary Non fee-earning roles Patent Admin/Paralegal (Support) Trademark Admin/ Paralegal (Support) 34,850 32,500 28,000 27,500 9

10 Average Salary - Comparison with 2013 Positively, salaries have generally increased from 2013 averages across the industry at all levels of professional qualification. The most significant average increases are in the Senior Associate level for Patent Attorneys an increase in average salaries for qualified Attorneys of 11% YOY. Salary increase Job Title 2014 Average London /SE Salary 2013 Average 2014 Average non- London Salary 2013 Average Trainee (Patent and 29,740 28,450 26,750 26,500 Trade Mark) Part-Qualified 44,150 42,300 38,920 38,000 Associate: Patent 69,400 62,000 59,300 58,750 Attorney Associate: 56,900 56,800 52,500 47,850 Trademark Attorney Senior Associate: 85,500 76,245 70,200 65,750 Patent Attorney Senior Associate: 70,160 66,450 64,130 59,230 Trademark Attorney Partner: Salaried 127, , ,000 93,340 Non fee Non fee-earning roles Patent Admin/ 34,850 32,500 32,500 28,000 Paralegal (Support) Trademark Admin/ Paralegal (Support) 28,000 27,500 26,400 25,290 10

11 Average Salary - By Employer Type Average basic salaries for respondents indicate that those Attorneys working in Law Firms / Solicitors appear to be remunerated comparatively higher than both private practice and industry. Average salaries for Industry departments and Private Practice are comparable. Average Salary by Employer Type; Law Firms/Solicitors Industry / In House Private Practice Salary distribution by Employer Type; Law Firms/Solicitors Industry / In House Private Practice 11

12 Average Salary - By Area of Specialism Average salaries within the Electronics / Physics sector are the highest across the industry, with most being paid within in the 70-90k bracket. The trend of Electronics biased Attorneys being better paid than other technologies in the profession comes under scrutiny again. Chemistry/Pharmaceuticals are mostly paid within the 60-70k bracket. The majority of Telecoms/Software respondents are paid in the 50-60k bracket; averages for this group are higher due to a quarter being paid between 70-90k. Salary by Employer Type; Electronic / Physics Biotechnology/ Life Sciences Chemistry / Pharmaceuticals Mechanical Engineering Telecoms / Software Trade Marks Salary by Employer Type; Electronic / Physics Chemistry / Pharmaceuticals Telecoms / Software 12

13 Average Salary - By Area of Specialism Biotechnology/Life Sciences Attorneys are gradually becoming more in demand, mainly in Practice. Mechanical Engineering respondents tended to earn less on average than the other Patent Attorney specialisms. Trade Mark Attorneys have the lowest average pay due to a quarter of respondents being paid in the 30-40k bracket. This may be as a result of the new examination process. Salary by Employer Type; Electronic / Physics Chemistry / Pharmaceuticals Telecoms / Software Biotechnology/ Life Sciences Mechanical Engineering Trade Marks Salary by Employer Type; Biotechnology / Life Science Mechnical Engineering Trade Marks 13

14 Average Salary - By Qualification The qualification variances for CPA and EPA qualifications are based on basic salaries. The CPA figure of 62,720 and the EPA figure of 55,250 are average newly qualified salaries based on respondents. Figures suggest that those Attorneys who hold the CPA qualification are more likely to be paid comparatively higher than those with an EPA qualification. What is less certain to accurately determine, is the correlation of those Attorneys who are dual-qualified. Salaries would appear to rise incrementally, with steady uplifts between 4 and 5 years PQE in particular (this could indicate a move to salaried partner level in some firms). 14

15 Additional Financial Package 9 in 10 professionals in the IP industry have a bonus scheme in addition to their basic salary, with almost a quarter of individuals also having a share scheme (more prevelant in industry). Loyalty/retention bonuses and examination bonuses are becoming gradually more common and are predominately offered in Private Practice. Additional Benefits across the market;

16 Additional Benefits In additional to basic salaries, most respondents also had a contributory pension with more than half also having Death in Service. Professionals in the IP industry tend to receive four benefits in addition to their basic salary, with Private Practice companies providing less soft benefits to its employees. In this year s survey we saw a marked decrease in Childcare Vouchers as an additional benefit. Additional Benefits across the market;

17 Key Motivators To Move Job Flexible working and better benefits have increased in importance in

18 What Does The Future Look Like? As the economy begins to return to a more buoyant and stable footing several of our respondents hoped it would mean an increase in jobs. There is a consensus among respondents that a step change in how progression is created will occur within the market, with more individual firms set up to create more partner and progression opportunities. More vacancies! Greater demand for qualified individuals as global economy recovers. The market seems to be loosening up and we are definitely busier. This seems to be leading to an increasing number of vacancies, so possibly more of a seller s market. More movement of staff to new jobs as economy improves and perceived risk of moving decreases. More lateral hiring as workload increases across sectors and recruitment is driven at the qualified level. 18

19 What Does The Future Look Like? Changes in progression/promotions... I think the larger partnerships are becoming rather stagnant, and are unlikely to be admitting sufficient numbers of additional partners to keep hold of good quality associates without offering significant pay incentives. More new firms - as entrepreneurial salaried partners and/or in house counsel seek more quotable remuneration models. More start up firms in reponse to lengthening partnership tracks at established firms. Increase in the number of frustrated associates/senior associates moving or setting up their own firms as partnership becomes ever more difficult to attain. 19

20 What Does The Future Look Like? In response to the changes in progression and the anticipated growth in businesses in the industry, there is a feeling that there will be greater competition, especially from solicitors and law firms Inherent to this would be pressure on pricing with more competition in the market, companies will need to identify economies they can pass on to customers. Greater Competition More competition from solicitor firms. Larger law firms taking over trade mark work from smaller traditional firms. More competition between patent attorneys and solicitors for patent drafting and prosecution work. The industry needs to modernise its approach and become more commerically orientated. Patent skills will become commoditised and the traditional billing practices will become defunct. Pricing Pressures Downwards pressure on costs, especially as the UKIPO targets SMEs and encourages small business to file their own trade marks. However, as the country recovers economically, I think there will be more opportunities and vacancies arising for trainees. Increased use of technology and process modelling to drive down costs and to provide more clients with more innovative service offerings... Pressure from clients to do more for less. 20

21 What Does The Future Look Like? Skills shortages in Electronics/Telecoms attorneys and Chemistry Attorneys was also a theme, with respondents sensing this will continue to be an issue in the future Other comments centred on the UPC opportunities, increased flexible and inhouse working. Skill shortages... There are so few opportunities for experienced chemistry attorneys at the moment that I would expect such opportunities to increase over the next 5 years, as UK gets over a slight surplus of chemistry attorneys after UK pharma R&D industry contraction. Continuing increase in job numbers, continuing demand for Electronics/Physics sector. Continuing shortages of Electronics/Telecoms attorneys. Increased demand for litigator qualifications. 21

22 What Does The Future Look Like? Other Comments: Increased focus on UK applications in view of impending Unified Patent Court. Better client awareness in relation to annuity services, changes in the European patent law... It seems that there is a shortage of fully qualified patent attorneys preperared to move within the UK, so possibly more acceptance of working from home, higher salary offers or more EPAs moving from mainland Europe to the UK... Clients demanding lower cost and deeper relationships with their outsourced IP firms; adaptable relationships between in-house IP departments and outsourced firms, with increased division of different types of tasks; greater client involvement and interest in IP matters. 22

23 Contact Details Our 2014 Salary Survey gives an overview of some common trends in the profession, given by those Attorneys that we surveyed. For further comment and reaction, please contact James Dawes at Aspire. Tel: + 44 (0) Mob: +44 (0) jamesd@weareaspire.com 23

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