2017 Report of the Economic Survey

AIPLA Report of the Economic Survey 2017

SUMMARY OF SURVEY RESULTS BY PRACTICE TYPE

The survey findings, reported in aggregate for all respondents, are also broken down and summarized for eight major practice types covered—solo practitioner; private firm, partner; private firm, associate; private firm, of counsel; corporate IP department, head; corporate IP department, attorney; private firm, patent agent; and corporate IP department, patent agent.

SOLO PRACTITIONER

 Of the 111 solo practitioners responding to the 2017 survey, 42.3% held a bachelor’s degree as their highest degree (other than their law degree), down from the 50.8% reported in 2015. More solo practitioners held master’s degrees in 2017 than in 2015 (44.1%, compared to 36.9%, respectively). Solo practitioners had an average of 20.7 years of IP attorney experience.  The mean (average) gross income for solo practitioners was $228,953 for 2016, an increase of 5.7% over the $216,692 reported for 2014. The median income was $171,500, also up from what was reported for 2014 ($166,800). The highest median income was reported in Texas —$309,000—followed by Washington, DC CMSA at $261,000. Similar to 2014, the lowest median income was reported for Other Southeast—$90,000.  The median year-end cash bonus, a new question for 2017, was $70,000, while the average was $133,315.  Employer 2016 contributions to 401(k)/403(b) retirement and savings plans for all solo practitioners averaged $26,241 with a median value of $24,500.  The expected median total cash income for 2017 was $180,000 – a 5.0% increase over the median actual gross income reported for 2016.  Solo practitioners spent an average of 51.8% of their time engaged directly in IP prosecution work; a continued decline from the 53.3% reported in 2015 and 56.3% in 2013.  While still the dominant area of IP work, patents declined to 57.9% of solo practitioners’ time from the 61.6% reported in 2015, and the 65.0% in 2013.  The average number of new priority US and PCT Patent applications prepared and filed by solo practitioners in 2016 was 16.1 (median was 10.0). Solo practitioners’ IP technical specialization was most often mechanical, and these respondents reported preparing and filing an average of 17.5 new US and PCT Patent applications in 2016.  The median number of billable hours recorded by solo practitioners in 2016 was lower than in 2014 – 700 compared to 800, respectively. It is closer to the figure reported in 2012 (683). Billable hours increased, in general, with years of IP experience. Those with 7-14 years of experience reported an average median of 519 billable hours, while those with 25-34 years’ experience reported a median of 800, and those with 35 or more years reported 1,000 hours.  The median value of the average hourly billing rate was $315. Those in the Washington, DC CMSA region had the highest rate of $400.  Similar to 2014, 60.1% of services billed were on an hourly basis while 36.8% were based on a predetermined fee.  The median dollar amount a solo practitioner billed for legal services performed in 2016 was lower than the median dollar amount billed for 2014 services ($200,000, and $215,001, respectively). This figure is still above the median value reported for 2012 – $180,000.  Solo Practitioners indicate that they spent an average of 5.5 hours per week on business development, or a median of 3.0 hours. Only 26.2% of solo practitioners were familiar with the Global Dossier.

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