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[eslifer]

I've actually tried that, with no response.

[JD]

"Is it a trend that many clients are now looking away from the expensive California, Chicago, New York, DC areas and finding firms in middle America more attractive?"

I'm not aware of any evidence of such a trend.

Keep in mind that "institutional filers" (e.g. applicants that file more than, say, 200 applications per year, or maybe even more) need large law firms simply to handle the volume.  Boutiques, and microtiques, may get some of the pie, but they're never going to get the whole pie.  As the number of outside firms that an "institutional filer" uses increases, the benefits of lower billing rates begins to diminish.  For example, if the client is going to file 500 applications, using 25 boutiques or microtiques to each write 20 apps is simply not as economical as using 1 or 2, or maybe 3, biqtiques or biglaw firms, even though biqtiques and biglaw rates will be higher.

Besides, large IP practices in the DC, NY, and Chicago markets are not interested in clients that squawk incessantly about rates.  Most of the big patent firms in those markets have a "these are our rates, take 'em or leave 'em" attitude that they find serves them well.  If your work intake is steady, or even increasing, why would you lower your rates?

[landonew]

"Is it a trend that many clients are now looking away from the expensive California, Chicago, New York, DC areas and finding firms in middle America more attractive?"

I'm not aware of any evidence of such a trend.

Keep in mind that "institutional filers" (e.g. applicants that file more than, say, 200 applications per year, or maybe even more) need large law firms simply to handle the volume.  Boutiques, and microtiques, may get some of the pie, but they're never going to get the whole pie.  As the number of outside firms that an "institutional filer" uses increases, the benefits of lower billing rates begins to diminish.  For example, if the client is going to file 500 applications, using 25 boutiques or microtiques to each write 20 apps is simply not as economical as using 1 or 2, or maybe 3, biqtiques or biglaw firms, even though biqtiques and biglaw rates will be higher.

Besides, large IP practices in the DC, NY, and Chicago markets are not interested in clients that squawk incessantly about rates.  Most of the big patent firms in those markets have a "these are our rates, take 'em or leave 'em" attitude that they find serves them well.  If your work intake is steady, or even increasing, why would you lower your rates?

Thanks JD.  A few questions for you though.

Why would it the savings be diminished? Even if 1 firm handles the whole case load, it is still per/hour billing right?  Is there some savings do to "economies of scale", or do they just give volume discounts.  If it is the latter, that would be the first time I hae heard of a law firm giving a price break. 

Thanks,
Landon

[Upnorthguy]

As someone who worked in house during law school, I saw some of the pricing that went on with our outside firms for applications and I've heard some about other companies.

I believe many companies that file a significant number of applications per year look to their outside counsel to provide applications for a flat rate or for a range.  In the case of my company, the applications were generally ran $8-12k just to get it allowed and if it was going to take an unusual amount of time (=money) to reach that point, the outside counsel would have to get prior approval to keep working on it.  Outside firms are usually very willing to negotiate (=give a discount from their hourly rate) a discounted flat price/range for a steady pipeline of work.

Also, dealing with numerous outside firms takes time and effort.  Each one requires training and communication so they follow your plan for applications.  If you can get enough bandwidth out of a smaller number of firms (and some extra capacity), you don't have to do as much training, especially when you have increases in the number of applications.