You Paid What For That Patent? How Patent Counsel Hiring is Like the VP Wardrobe Buying Process

The recent hullabaloo regarding Sarah Palin's "goldcompany value will be increased if they hire the
plated" wardrobe from Saks and Neiman Marcus gotpatent law firm equivalent of Saks and Neiman
me thinking about how many companies selectMarcus, even when they could have obtained the
patent law firms. This may seem like a non-sequitur,same patent "look" by hiring a much less expensive
but bear with me...law firm.
Those responsible for dressing Gov. Palin apparentlyFortunately, there is a solution to the patent law firm
believed that the large expenditures at Saks andinformation cost problem. The emerging specialty of
Neiman Marcus automatically translated into value forintellectual property ("IP") business strategists can
the Republican ticket by allowing her to be viewed asprovide business professionals with the information
more "Vice Presidential" than she would otherwisenecessary to make educated and more cost
been considered. Notwithstanding the high cost ofappropriate selection of patent legal counsel. An IP
her new wardrobe, as reported in the New Yorkbusiness strategist can effectively operate as a
Times, her overall "look" remains the same as whenbusiness professional's "personal shopper" in selecting
she campaigned for and served as Governor ofpatent counsel and in assisting in managing patent
Alaska: business-appropriate jackets, feminine skirtslegal expenses. In this role, the business IP strategist
and high heels. The response to this wardrobecan obtain the right patent "look" for a company by
makeover by a major fashion commentator: "Honey,knowing where to shop for legal services.
I could have dressed you for a lot less than that."This is not to say that the business IP strategist
From this comment, as well as the continuingwould never select the Saks or Neiman Marcus
backlash about the cost, it appears that the expenseequivalent of a patent law firm. Situations certainly
of Gov. Palin's wardrobe does not directly correlateexist where the cost of such a patent firm would be
with the value provided to the McCain-Palinjustified, such as in a so-called "bet the company"
presidential ticket.invention or litigation. However, as a "personal
Not dissimilarly, when I review patent portfolios forshopper" for patents, an IP business strategist can
clients for valuation and strategy analysis, I oftenallow a business professional to make an informed
think to myself "you paid WHAT for this patent?!" Alldecision about the appropriateness of such higher
too often, otherwise smart business professionalscosts.
effectively engage in "magical thinking" by assumingMoreover, the IP business strategist also understands
that the act of throwing money at a high end patentthe profit margins associated with patent law firms
firm will translate into creating business value. Ofand, as such, will be better able to negotiate a
course, these same professionals would not believediscount with the law firm. That is, the patent
that the mere act of spending of money will result in"personal shopper" can help a business professional to
value creation in other areas of their business. Soobtain Saks and Neiman Marcus quality at a "sale
why do they do this in the patent realm?price." And, who doesn't love to get a high quality
I believe that the information costs associated withproduct at a discount?
vetting and selecting patent legal services make itA "personal shopper" for patents will not necessarily
difficult for busy business professionals to makeresult in reduction of a company's costs, however, I
informed decisions in their company's patent matters.can virtually guarantee that the quality and overall
Without legal training or substantive businessvalue of the patent portfolio will increase. Also, it is
experience in patent matters, the vast majority ofhighly likely that the cost savings enabled by a
business managers likely do not believe themselvescompany's engagement of an IP business strategist
to be capable of directing strategic decisions aboutwill cover the cost of hiring this specialist. As more
their company's patent portfolio. They thereforecompanies become aware that legal cost does not
cannot rationally make the decision to identify a lownecessarily equate with patent value, the more IP
cost, but otherwise excellent, patent law firm tobusiness strategists will be seen as a useful way to
work on their patent matters. For lack of any otherimprove the way one obtains patent legal services.
means by which to select counsel, they assume that