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 2011

15200 Shady Grove Road, Suite 306 Rockville, Maryland 20850

TEL: (240) 268-1262 ARI@associationresearch.com

©2011 AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION

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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 ................................................ 12 SOLO PRACTITIONER ......................................................................................................... 12 PRIVATE FIRM, PARTNER .................................................................................................... 15 PRIVATE FIRM, ASSOCIATE ................................................................................................. 18 PRIVATE FIRM, OF COUNSEL ............................................................................................... 21 HEAD OF CORPORATE IP DEPARTMENT ............................................................................... 24 CORPORATE IP DEPARTMENT, ATTORNEY ........................................................................... 25 PRIVATE FIRM, PATENT AGENT ........................................................................................... 26 CORPORATE IP DEPARTMENT, PATENT AGENT .................................................................... 27 TYPICAL CHARGES FOR IP LAW SERVICES .................................................................. 28 TYPICAL TYPE OF FEE FOR IP LAW SERVICE CHARGES ............................................ 32 TYPICAL COSTS OF LITIGATION ...................................................................................... 35

CHARACTERISTICS OF FIRMS ......................................................................................... 40 NUMBER AND TYPE OF ATTORNEYS .................................................................................... 40 ASSOCIATE STARTING SALARY AND SUMMER MONTHLY PAY ................................................ 43 SUPPORT STAFF AND SERVICES ......................................................................................... 45 BILLING RATES AND PRACTICES .......................................................................................... 48 LIABILITY INSURANCE ......................................................................................................... 51 STATISTICAL TABLES .............................................................................................. APPENDIX A INDIVIDUAL DATA ................................................................................................. I-1 TO I-176 FIRM DATA .......................................................................................................... F-1 TO F-33 SURVEY INSTRUMENTS ............................................................................................ APPENDIX B

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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

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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

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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

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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

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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

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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

viii

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

AIPLA Report of the Economic Survey 2011 1

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 e-mail 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 e-mail 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 e-mail was followed up by several e-mail 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 2007. 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 2011 2

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 2009. 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 25th percentile, the median is the 50th percentile, and the third quartile is the 75th 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 mid-point. 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 2010.” 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 2011 3

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% 432Texas 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 2011 4

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 2009.

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 2008. 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 2011 5

GENDER (P. I-1, Q8)

Male79.6%

Female20.4%

ETHNICITY (P. I-1, Q9)

White/Caucasian87.6%

Black/African American

1.6%Hispanic/Latino

1.5%

Asian/Pacific Islander

6.0%

N.A. Indian/Native Canadian

0.2%

Blended1.5%

Other1.5%

AGE (P. I-1, Q7)

Younger than 3013.8%

30-3412.6%

35-3915.9%

40-4417.7%

45-4913.0%

50-5411.1%

55-597.3%

60-644.8%

65 or Older3.7%

PRIMARY PRACTICE (P. I-1, Q2)Background of All Respondents

8.7%

27.0%

24.5% 3.5%

7.2%

12.2%

2.3%

0.8%

13.8%

Private 67.2%

Corporate 25.3%

Private Firm, Partner

Solo Practitioner

Other

Gov’t IP Office,Other than PTO

Attorney, Corporate Legal

Dept

Attorney, Corporate IP

Dept

Head ofCorporate IP Dept

Private Firm,Of Counsel

Private Firm,Associate

Other:Private Firm, Agent 3.5%Agent, Corporate IP Dept 1.5%Head of Corporate Legal Dept 1.4%Agent, Corporate Legal Dept 0.7%PTO Examiner/Admin/Mgmt 1.5%Other 5.2%

------ 13.8%

AIPLA Report of the Economic Survey 2011 6

ADMITTED TO THE PATENT BAR (P. I-1, Q4)

Yes88.7%

No11.3%

YEARS OF INTELLECTUAL PROPERTY LAWEXPERIENCE (P. I-2, Q10)

Fewer than 516.8%

5-68.5%

7-98.8%

10-1420.8%

15-1915.4%

20-249.6%

25-297.2%

30-345.9%

35-393.2%

40 or More3.8%

LOCATION (P. I-2, Q1)

Boston CMSA4.7%

NYC CMSA8.8%

PhiladelphiaCMSA3.8%

Washington, DCCMSA16.5%

Other East6.3%Metro

Southeast3.7%

OtherSoutheast

2.7%Chicago CMSA

6.0%Minn-St. Paul

PMSA4.0%

Other Central16.8%

Texas6.6%

Los AngelesCMSA3.2%

San FranciscoCMSA5.8%

Other West11.1%

CHANGED EMPLOYMENT IN 2010 (P. I-1, Q5)

88.3%

1.1%4.5%

3.2%1.8%

1.1%

No

Other

Corp/Univ/Govtto Private

Corp/Univ/Govtto Same

Private to Corp/Univ/Govt

Private to Private

AIPLA Report of the Economic Survey 2011 7

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

CHANGE IN IP BUDGET FOR COMPANY:2009-2010 (P. I-89, Q28)

Reported by Corporate IP, Head

1-2

3-5

6-10

11-25

26-50

51-100

All Individuals

Nu m

ber

of IP

Atto

rney

s

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 2008.

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.

1st Quarti le/3rd Quartile Median Mean

AIPLA Report of the Economic Survey 2011 8

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 2011. 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 2008. 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 2008.

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 2010. Private firm partners reported the highest median, $390,000, a 9.6% increase from actual income for 2010.

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 2008. Private firm associates billed the most hours, 1,800 (median), slightly lower (1.1%), however, than 2008. Private firm partners typically billed 1,650 hours during 2010, 3.1% below 2008.

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 2010. Median income in 2010 for those in private practice was $210,000, the same as in 2008. 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 2011 9

TREND OF MEDIAN INCOMES:1996-2010 (P. I-3, Q13)

All Private Practice, All Corporate Lawyers, and All Survey Respondents

'

'

'

'

'

' '

&

&

&

&

&

&

&

!

!

!

!

!

!!

1998 2000 2002 2004 2006 2008 2010$120

$140

$160

$180

$200

$220

Tho

usa

nds

Private Corporate All Respondents! & '

Private $139 $180 $190 $200 $215 $210 $210

Corporate $130 $150 $165 $180 $189 $200 $214

All Respondents $130 $160 $175 $187 $200 $200 $205

* Income includes Partner income, cash bonus, share of profits and deferred comp.

BILLABLE HOURS FOR ALL FULL‐TIME PRIVATE PRACTICE ATTORNEYS (P. I‐5, Q32)

By Years of IP Experience

1,65

0

1,72

7 1,85

0

1,84

8

1,85

5

1,80

1

1,77

5

1,80

3

1,60

0 1,70

3

1,70

0

1,67

3

1,60

0 1,70

0

1,56

0

1,60

0

1,50

0

1,52

5

1,50

0

1,50

0

1,00

0

1,20

0

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

To

tal A

ll

Few

er t

han

5 5-6

7-9

10-1

4

15-1

9

20-2

4

25-2

9

30-3

4

35-3

9

40 o

r M

ore

2010 Median 2008 Median

AIPLA Report of the Economic Survey 2011 10

TREND OF MEDIAN BILLABLE HOURS FOR PRIVATE PRACTICE ATTORNEYS:

1996-2010 (P. I-5, Q32)Private Solo Practitioners, Private Partners, and Private Associates

''

' ' '' ' '

&

&

& & & & &

&

!

!

!!

!

!

!!

1996 1998 2000 2002 2004 2006 2008 2010800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Solo Partner Associate! & '

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

TREND OF MEDIAN INCOMES FOR PRIVATE PRACTICE ATTORNEYS:

1996-2010 (P. I-3, Q13)Private Solo Practitioners, Private Partners, and Private Associates

'

'

'

'' ' '

'

&

&

&

&& &

&

&

!

!

!

!

!!

!

!

1996 1998 2000 2002 2004 2006 2008 2010$50

$150

$250

$350

$450

Tho

usa

nds

Solo Partner Associate! & '

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

AIPLA Report of the Economic Survey 2011 11

GROSS INCOME (2010) BY PRIMARY PRACTICE (P. I-3, Q13)

$85,000

$114,500

$119,175

$120,500

$130,000

$130,000

$158,000

$165,000

$169,000

$175,000

$179,000

$213,701

$218,150

$255,000

$374,328

$0 $100,000 $200,000 $300,000 $400,000

Private Partner

Corporate IP, Head

Corporate Legal,Head

Corporate IP,Attorney

Private Of Counsel

Corporate Legal,Attorney

Solo Practitioner

Private Associate

PTOAdmin/Management

Corporate IP, Agent

Corporate Legal,Agent

Government IP, notPTO

Other

Private Agent

PTO Examiner

Median

BILLABLE HOURS (2010) (P. I‐5, Q32)By Practice Type

1,000

1,4001,516

1,650

1,800

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Solo Of Counsel Agent Partner Associate

Median

APPENDIX B

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) 268-1267. 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) 268-1262 (ext. 100) or by email at info@associationresearch.com. Very truly yours,

fàxäx Tâä|Ä Steve Auvil Chair, Law Practice Management Committee

1

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 e-mail ARI at

info@associationresearch.com or call Megan Kirkegaard at 240-268-1262, ext. 100.

Please complete your questionnaire no later than February 21, 2011, either online or by fax to 240-268-1267.

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 __ __

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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

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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? 0 1 – 5 6 – 10 11 – 15 16 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? $______________________

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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

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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 2010. 38. TRADEMARKS (INCLUDING SERVICE MARKS) Fixed

Fee Hourly Other Charged in 2010

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 $

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39. US UTILITY PATENTS Fixed

Fee Hourly Other Charged in 2010

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)

$

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)

$

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 $

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41. OTHER US PATENTS AND COPYRIGHTS Fixed

Fee Hourly Other 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 INFRINGEMENTLess 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 INFRINGEMENTLess 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 $

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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 INFRINGEMENTLess 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 $

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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 3rd party comments, (iii) inclusive of all patent owner responses, 3rd 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 REEXAMINATIONa. Through filing the request $

b. Inclusive of a first patent owner response and 3rd party

comments

$

c. Inclusive of all patent owner responses, 3rd 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: __________________________________________________________________ E-MAIL ADDRESS: _____________________________________________________________________

T H A N K Y O U V E R Y M U C H F O R C O M P L E T I N G T H I S S U R V E Y .

YOU MAY FAX YOUR COMPLETED QUESTIONNAIRE TO ARI AT 240-268-1267.

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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 e-mail ARI at

info@associationresearch.com or call Megan Kirkegaard at 240-268-1262, ext. 100.

Please complete your questionnaire no later than February 21, 2011 either online or by fax to 240-268-1267.

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

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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)? ________%

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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

(2006 – 2010)?_______ 38. What is the total dollar value of IP liability claims, including attorneys fees, paid in the last five

years (2006 – 2010) by the insurer on behalf of the firm? $_______________________

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39. What is the total dollar value of IP liability claims, including attorneys fees, paid in the last five years (2006

– 2010) 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: __________________________________________________________________ E-MAIL ADDRESS: _____________________________________________________________________

T H A N K Y O U V E R Y M U C H F O R C O M P L E T I N G T H I S S U R V E Y .

YOU MAY FAX YOUR COMPLETED QUESTIONNAIRE TO ARI AT 240-268-1267.