Kempner & Partners

Two of the UK’s North’s leading intellectual property lawyers – Richard Kempner and Andy Robinson – have joined forces to create a new law firm providing a range of specialist intellectual property services. Here they talk to Insider about the state of the market.

How has the credit crunch affected the market for IP in Yorkshire?

Richard Kempner: “IP gives businesses a huge competitive advantage – which is all the more crucial during an economic downturn. IP can provide its owner with a lengthy and legitimate monopoly – 20 years for a patent, anything from three to 25 years for a design; and a perpetual monopoly in the case of a registered trade mark. Whilst the losers in the marketplace are complaining about the economic conditions, the winners are seeing that now is the time when IP can be deployed to huge commercial advantage, using it to gain monopolies and revenue streams where previously there was nothing.”

Are people protecting their ideas or do they see it as an unnecessary expense?

Richard Kempner:“As money gets tighter, the smarter businesses have come to realise that IP is not an unnecessary cost and expense but that proper handling of IP not only safeguards revenue, but is also a real revenue generator. First, smart businesses have continued to file for protection. Protection can give a long, and legal, monopoly right and the fact is that a monopoly right can be a licence to print money. Second, by harnessing unused IP, companies are seeing revenue streams when previously there was nothing. Third, companies are weeding out from their own portfolios IP they don’t need, can’t license and don’t want to pay for. Finally, the really switched on businesses are looking to enforce their rights and take the damages that they will receive as income. Meanwhile, IP lawyers are charging for their services as a package rather than the dreaded hourly rate. If your legal advisers are not IP specialists and aren’t offering a packaged service, you probably should go talk to others who are and do.”

How will short-term cost cutting in IP protection affect companies in the long term?

Andy Robinson: “Short term cost cutting in IP is nothing short of crazy. It’s like killing the goose that lays the golden eggs. The problem with many businesses is that they simply haven’t been well advised on how they can use IP to give them a competitive edge in the marketplace as a simple revenue generator. Major opportunities are missed through this kind of ignorance. Can you answer the question: what is my IP doing to make me the most money? If not, you need to talk to those who know how it can.”

Are people selling/transferring their IP rights to fund other activities?

Andy Robinson: “Selling or licensing your IP to produce funds can be part of a strategically savvy short, medium or long term plan. And some are doing just that. After all what could be smarter than getting everything you can out of your “good” IP; whilst weeding out and selling IP you don’t need, can’t license and don’t want to pay for. But I’ve seen some companies knee jerking in this area and selling off their crown jewels for a fast buck when, in fact, they might have been better advised to hold on to it and either exploit it for themselves, or license it to others in return for a constant revenue stream. The issue businesses face is a simple one – ignorance of what the options are.”

Many areas of the legal profession have suffered in the downturn, how have IP lawyers faired in comparison?

Richard Kempner: “The market has polarised, with savvy clients realising that there are experts and there are wannabes. Those with the experience, wisdom and proven track record are winning the work. How do you tell between the two? Ask to see their track record. Ask them whether they will align their interests with yours, or put their money where their mouths are, so as to avoid charging you by the hour. And ask their lawyer in the first meeting if he is the person working for your business or whether it will be delegated to a more junior member of the practice.”

Why are you confident you can launch a new IP offering in the current economic climate?

Richard Kempner :“In these difficult times clients are becoming increasing conscious of costs, whilst still wanting to get the best advice. I’ve seen some law firms massively overcharging in this area without necessarily giving the best advice. There aren’t many real specialists in the UK. Maybe fewer than 200 can claim real expertise and a proven track record. And these people are busy. So they push work down to juniors who can’t provide the necessary commercial nous – clients are left badly advised, overcharged or both. What clients need is specialist advice, coupled with the wisdom gained from experience. But not many can provide that, so it usually comes at a price. Our clients tell us that there is a market for a personal service, from leading specialists at a reasonable price. At Kempner Robinson, with low overheads, we expect to offer clients a substantial reduction in price on what they would have to pay for equivalent quality advice in London.”