2017 Report of the Economic Survey

AIPLA Report of the Economic Survey 2017

PRIVATE FIRM, PARTNER

 Of the 389 private firm, partners responding 65.2% held a bachelor’s degree as their highest education aside from their law degree, and they had an average of 23.1 years of IP attorney experience.  The average gross income in 2016 for private firm, partners was higher than that reported for 2014 - $521,707, and $505,316, respectively – representing a 3.2% increase. The median for all participants was $420,000 – also higher than in 2014 ($400,000). The highest median gross income was in Philadelphia CMSA at $635,000 – followed closely by Los Angeles CMSA at $630,000.  When asked to report the year-end bonus, private firm, partners reported an average of $107,139, and $70,000 was the median value. The highest median bonus values were in Minneapolis-St. Paul PMSA and Texas – both at $100,000. San Francisco CMSA reported a median bonus of $144,000; however, there were only four respondents in that location so caution should be used with this data.  Median employer contributions to 401(k)/403(b) retirement and savings plans was $23,500, which was higher than the $20,000 reported in 2015.  Private firm, partners expected their total cash income in 2017 to be $418,500 (median). This is lower than the median value reported for 2016. The average amount expected was $522,336, which is less than a $1,000 above the 2016 average income.  On average, private firm, partners spent 41.3% of their time engaged in IP prosecution work. This is very similar to the amount reported for 2014 (42.1%). Additionally, they spent an average of 17.1% of their time on IP litigation – which is in between what was reported for 2014 (15.5%) and 2012 (20.6%).  The predominant IP work area was patent work, accounting for 69.1% of responding partners’ time.  The mean number of IP lawyers and patent agents employed at all locations reported by the private firm, partners responding to this survey was virtually the same as reported two years ago (43.0 for the 2017 survey vs. 42.5 on the 2015 survey).  The average number of new priority US and PCT Patent applications prepared and filed by private firm, partners in 2016 was 26.0, similar to that prepared in 2014 (26.5). The median was 15.0, and has been the same for the past three surveys.  Private firm, partners typically billed 1,500 hours (median) in 2016 – the same as in 2014.  In 2016 the median average hourly billing rate was $450, and in general increased with age and years of IP experience. Respondents in Boston CMSA reported the highest median average hourly billing rate of $700. Larger firms (in terms of the number of IP lawyers and agents) were also more likely to have higher median average hourly billing rates than their smaller counterparts.  Billings for services were primarily done on an hourly basis (68.5%).  The median dollar amount billed for legal services in 2016 by private firm, partners was similar to that billed in 2014 – $600,500, and $600,000, respectively. Both below the $610,000 reported for 2012.  Private firm, partners reported an average of 6.9 hours spent per week on business development; only 38.3% were familiar with the Global Dossier.

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