IP COST SAVING TIPS:
ALTERNATIVE FEE ARRANGEMENTS
12 DECEMBER 2022
HAVE YOU REVIEWED YOUR FEE ARRANGEMENTS LATELY?
While hourly billing is still the predominant way that many law firms bill, Alternative Fee Arrangements (“AFAs”) are increasingly being leveraged by IP groups to control costs and improve predictability.
We don’t have enough time (or space) to cover all the different types of AFAs being deployed today, but Flat Fee arrangements are increasingly popular with IP teams and, according to a recent survey by Bloomberg, are the most requested by legal teams in general.
IT’S NOT ALL UNICORNS AND RAINBOWS
The old adage that “You get what you pay for” also applies to fee arrangements. If you take a scorched earth approach to negotiations and hammer your outside counsel to get fixed fees that only benefit you – prepare to be dissappointed.
Firms may not be able to profitably devote the time needed to complex applications and they are likely to be unmotivated to handle that emergency request you just dropped on them. You know what they say about Karma…
3 TIPS FOR AFA SUCCESS
Partner with your firm to craft a deal that is sustainable and works for both parties.
Make sure that you have a process to measure outside counsel performance, sentiment, and quality to head off problems.
Get your act together. Fixed fees force outside counsel to be ultra efficient – don’t become an impediment to their success.
Disclaimer
THIS POST IS STRICTLY INFORMATIONAL AND IS NOT INTENDED TO BE, AND SHOULD NOT BE RELIED UPON AS FINANCIAL OR LEGAL ADVICE. PLEASE CONSULT A QUALIFIED PROFESSIONAL FOR SPECIFIC ADVICE REGARDING INTELLECTUAL PROPERTY MATTERS.
