2017 Report of the Economic Survey

AIPLA Report of the Economic Survey 2017

HEAD OF CORPORATE IP DEPARTMENT

 There were 82 heads of corporate IP departments responding in 2017. This year’s respondents had an average of 19.5 years of IP experience – virtually identical to the 19.6 years of experience reported in 2015 for this same type of respondent.  The average and median total gross income reported for 2016 were both lower than reported for 2014. The average gross income reported for 2016 was $348,655 compared to $360,435 in 2014, and the median 2016 gross income was reported at $269,000 compared to $298,000 for 2014. Gross income increased for the heads of corporate IP departments as the number of subordinates increased.  The average year-end bonus for corporate IP department, heads was $99,597, while the median year- end bonus was $68,000.  Employer contributions to 401(k)/403(b) retirement and savings plans averaged $15,108. The median value reported was $12,000.  Expected median cash income for 2017 was $310,000 – 15.2% higher than the actual 2016 median cash income.  Responding corporate IP heads devoted 18.0% of their time to IP prosecution work, 11.8% of their time was spent managing outside counsel for IP prosecution work and 10.1% of their time was spent on supervision and training of other attorneys or agents within the organization.  Patent work accounted for 47.5% of IP time spent by corporate IP department, heads.  The average number of IP lawyers and patent agents employed by the respondents’ companies at all locations was 9.8. This is lower than reported in 2015 (13.6), 2013 (15.1), and 2011 (18.3).  Heads of corporate IP departments reported preparing and filing an average of 18.9 new priority US and PCT patent applications in 2016. This is higher than reported for 2014 (14.4) and 2012 (9.9).  Less than half (49.4%) of responding corporate IP department, heads have between 1 and 5 IP lawyers and patent agents reporting to them directly or indirectly.  Based on corporate IP department, head respondents, other than as a liaison with outside counsel, 74.6% of licensing is handled by in-house counsel.  The average annual 2016 IP company budget was $5,502,267, and the average corporate IP budget per full-time IP lawyer or agent as reported by the heads of corporate IP departments was $1,200,833.  Three in 10 (30.1%) of corporate IP heads reported an increase in their annual IP budget.  More than one-third (35.8%) of the annual corporate IP budget was devoted to fees paid to outside counsel to perform IP prosecution, and 22.9% was devoted to in house staff to perform and/or manage IP prosecution work.

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