2017 Report of the Economic Survey

AIPLA Report of the Economic Survey 2017

PRIVATE FIRM, ASSOCIATE

 Of the 240 private firm, associates who participated in the 2017 survey, 60.7% held a bachelor’s degree as their highest degree held other than a law degree, and had an average of 10.8 years of IP attorney experience.  The average and median total gross income for private firm, associates in 2016 was higher than that reported for 2014 and 2012. Average gross income was $214,877 in 2016 compared to $183,021 in 2014, and $188,093 in 2012. The median gross income for 2016 was $197,500, compared to $173,000 in 2014, and $170,000 in 2012.  The average year-end bonus for private firm, associates was $26,912, and $12,000 median.  Employer 2016 contributions to private firm, associates’ 401(k)/403(b) retirement and savings plans averaged $10,958, and $7,500 was the median contribution.  Expected median cash income for associates for 2017 was $205,000 – 3.8% higher than the 2016 median reported income.  Private firm, associates spent over half (53.1%) their time directly on IP prosecution work.  Patent work was the predominant IP work area, accounting for an average of 74.5% of associates’ time.  Responding private firm, associates reported an average number of full-time IP lawyers and patent agents of 63.8.  Private firm, associates reported preparing and filing an average of 22.5 new priority US and PCT patent applications in 2016 – higher than that reported for 2014 and 2012 (18.0 and 17.8, respectively).  In 2016, associates recorded 1,700 (median) billable hours. This is lower than the median billable hours recorded by associates for 2014 (1,750) and 2012 (1,805).  The median average hourly billing rate for private firm, associates increased from $305 in 2012 to $315 in 2014, and again increased in 2016 to $340. Those at firms with more than 150 full-time IP lawyers and agents reported a median average hourly billing rate of $583.  Services were billed hourly most often by private firm, associates (64.6%). This is lower than that reported for 2014, where 75.6% of all billings were hourly. A predetermined fee option was used for 32.4% of services.  In general, the median dollar amount billed for legal services by private firm, associates increased as the size of the organization increased. Overall in 2016, associates billed a median amount of $533,000 for services performed, and those at the smallest organizations (1-2 IP lawyers and agents) reported a median billing of $202,184 compared to those at the largest firms (more than 150 IP lawyers and agents) who reported a median value of $796,940.  Private firm, associates spent an average of 4.7 hours per week on business development. Four in 10 were aware of the Global Dossier.

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