Will Your IP Firm’s Merger Improve Quality of Service?

What Do IP Firm Mergers Mean for SMEs?

– Noticed a change in the header of your IP law firm?

– A few cheesy photos showing the two leaders of firms alongside a beaming private equity guy?

– An article claiming your service will be so much better now ‘we have access to the skills of the new firm’?

Why the mergers?

Economics:

– Higher costs (interest rates, energy etc)

– Larger firms can centralize operations, reduce costs, and invest in technology

– Private equity view IP law is a stable, fee-generating sector ripe for consolidation!

– Fewer reciprocity costs (cross border)

Technology:

AI, automation, and legal tech require (large) cash investment

Broader range of services:

– Better (international) filing capabilities

– Adding expertise in growth areas like biotech and AI

– IP advisory beyond just patents and trademarks

What should SMEs look out for?

Higher costs? The merged business has to make more profits from more sales and a lower cost base, if the efficiencies aren’t apparent, then the price will increase

Worse Service? Smaller clients can be more costly to serve and hence there is a risk that quality of service will diminish. Streamlined processes might also impact on the service you are used to

Changes in Personnel? The culture of the merged business will change, and it will not suit all practitioners

What Should SMEs Do?

Shop around: Don’t assume bigger means better. Look for firms that understand your sector and growth stage.

Ask strategic questions: How will this IP help us raise capital? Enter new markets? Defend our competitive edge?

Consider hybrid models: Combine legal services with strategic advisory to get the best of both worlds

Will the new service help you value all your intangible assets and protect your competitive edge?

The key is to find partners who treat IP not just as a legal right, but as a strategic asset.