CPA Global's State of the IP Industry Survey 2010

By Cpa Global, PRNE
Tuesday, June 1, 2010

Intellectual Property Neglected as Organisations Continue to cut Legal Spend

ST HELIER, Jersey, June 2, 2010 -

    - Concern over IP assets as budgets are cut
    - But cost reductions have helped to streamline practices and processes
    - Europe cited as a problem area for difficulties in securing
      rights on 'new technologies'

In-house and private practice IP professionals remain united
in their concern over the impact of budget cuts and slowing markets on IP
assets and future competitiveness, findings from CPA Global's second annual
State of the IP Industry Survey have revealed.

Despite signs of economic recovery, nearly three-quarters of
the IP professionals who responded to the survey* indicated that reducing
spend on their or their clients' intellectual assets has been a priority over
the past 12 months. Among in-house IP practitioners, 71% regard IP budget
control as very important, while 40% say their restricted budgets make the
proper management of IP assets difficult.

Respondents were more positive about the evolution of IP
practices and processes - such as rights renewals, IP searches and data
verification - over the past 12 months, identifying the credit crunch as the
impetus the industry needed to develop more streamlined alternatives to old
ways of working.

This optimism also extended to national and government levels,
with many respondents citing new leadership in the European Patent Office
(EPO) and the US Patent and Trademark Office (USPTO) as key drivers of
change. That said, concern about cumbersome legislation, inconsistent case
law and discordant national systems across the world was prominent.

A myriad of global IP challenges

More than half of in-house IP departments (55%) and over
one-third of IP law firms (34%) surveyed label the Asia-Pacific region the
most challenging to deal with. Respondents commented that governments in the
region need to take greater action to enforce rights, prevent piracy and
reduce the cost of maintaining IP portfolios in the region, and China was
cited as a particularly problematic jurisdiction.

"Companies need to be aware of the potential dangers
associated with releasing proprietary information in China, even under
confidentiality arrangements," summed up one respondent.

But regions with less developed IP processes weren't the only ones to
come under criticism. Continental Europe and Scandinavia were also
highlighted by some as problem areas, where respondents indicated that it was
difficult to "secure rights

on technologies of emerging importance, as the Europeans have taken a
narrow view of the patentability of newer computer-implemented method
inventions." Additionally, the patchwork quilt of the European Union, where
differing policies and regulations among member states continues to cause
concern for respondents, making broad IP penetration a halting and uncertain

Filing and maintaining IP Rights in North America was also
noted to have provided IP professionals with increasing frustration over the
past year, as the "cost and intensity of litigation" continues to increase
and the "backlog of cases at the USPTO result in significant pendency

The future of the IP industry

When asked for their predictions on how the global IP
landscape will develop over the next five years, respondents to the State of
the IP Industry Survey 2010 agreed that the recent recession is likely to
have a significant and lasting knock-on effect on the industry. In-house IP
professionals noted that reductions in research and development spend will
lead to a decrease in innovation and consequently the number of IP Rights
being filed. While law firm-based respondents agreed with this sentiment,
they indicated that it would become more difficult to provide the depth of
advice required by clients if in-house IP budgets continued to be cut.

However, some respondents were more positive about the future,
suggesting that as IP portfolios are forced to become more streamlined and
cost-effective, businesses and their external counsel will find new ways to
monetise their IP. Results of the Survey show that nearly three quarters of
companies with IP assets review their portfolios at least once a year, 39%
conduct IP audits at least twice annually and ten per cent appraise their
portfolios monthly.

Simon Webster, Director of Operations at CPA Global, said:
"The past 12 months have been challenging for the whole global economy,
leading to severe budget cuts affecting IP protection across the world. This
has made it more important than ever for companies to manage their IP
portfolios in a streamlined and cost-effective way so that they can then find
new approaches to derive value from their IP. It is a positive sign that the
State of the IP Industry Survey 2010 shows organisations to be taking an
increasingly proactive approach to managing and monetising the rights they

IP monetisation and portfolio auditing will likely assume
greater importance in the coming years, as companies contemplate how best to
position and protect their assets. Law firm respondents maintain they are
still educating clients on the singular importance of IP assets to business,
and pushing clients to undertake audits, protect core assets, and sell or let
lapse assets that are no longer needed.

Key influences on the past year

Respondents to the Survey frequently cited David Kappos, the
Undersecretary for Commerce and Director of the United States Patent and
Trademark Office (USPTO), as the person who has influenced the IP industry
most significantly over the past year, having 'advocated much-needed changes
at USPTO with the business background and reputation to back up those
changes'. When respondents were asked what were the most noteworthy cases of
the past year, Bliski and KSR v Teleflex (both US) were both cited, the
former for the impact it

is likely to have on software and business method patents and
the latter for its effect on interpretations of 'obviousness' in patent
viability claims.

*About CPA Global's 2010 State of the IP Industry Survey

The State of the IP Industry Survey was carried out in March and April
. The results were collated from 242 responses from around the world -
68.6% from in-house counsel (166 respondents) and 31.4% from private practice
(76 responses).

About CPA Global

CPA Global is the world's leading provider of legal services
outsourcing, including intellectual property (IP), document review,
transaction support, contract solutions, and legal research. With offices
across Europe, the United States, Asia and the Pacific, CPA Global supports
many of the world's best known corporations and law firms with a diverse set
of legal and IP specific requirements.

CPA Global helps its clients manage their valuable IP Rights, such as
patents, designs and trademarks, ensuring that IP portfolios are protected,
maintained and regularly reviewed in order to maximise value.

Founded in Jersey, Channel Islands in 1969, CPA Global today
employs around 1500 people in 15 offices in ten countries, serving clients'
needs in over 100 countries. The company has a large and diverse list of
clients: from major global corporations to small and medium-sized enterprises
and innovation start-ups; and from the top international law firms to
national and regional law and IP firms. Clients include leading Fortune 500
and FTSE companies, and two-thirds of the Global Lawyer 100.

CPA Global's leadership position is underlined by its ranking
as the world's top intellectual property outsourcing provider and its second
place overall for core legal services outsourcing in the Brown-Wilson Group's
Black Book of Outsourcing 2009. CPA Global also achieved more first place
'quality' ratings in this prestigious industry survey than any other
provider. This follows CPA Global's success in the International Association
of Outsourcing Professionals 2010 Global Outsourcing 100 list, in which it
achieved the highest position of any pure-play legal services outsourcing

For more information, visit:

For further information and a copy of CPA Global's State of the IP
Industry Survey 2010 report, please contact:

    CPA Global

    Steve Clark +44(0)20-7549-5504,
    Rob Coveney +44(0)20-7549-5505,

For further information and a copy of CPA Global's State of the IP Industry Survey 2010 report, please contact: CPA Global, Steve Clark +44(0)20-7549-5504, sclark at; Rob Coveney +44(0)20-7549-5505, rcoveney at

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