The Real World: Insights on In-House IP Strategy
Offshoring
September 22, 2008
Presented by:
P t db
Indira Saladi
Senior Intellectual Property Counsel
Motorola, Inc.
Motorola Inc
Updated 08/04/2008

Offshoring
• What?
Patent and Legal Activities
• Where?
Countries
• How?
Business Models
• Who & How Much?
• Why?
Cost and Capacity
• Concerns?
Slide 2

What?
• Patent Activities
– Application Drafting, Portfolio Analysis,
Proofing, Prosecution, Review, and Searches
• Litigation/Licensing Support
– Claim Charts, Document Review, and Due
Diligence
Dili
• Administrative
– Database Creation, Maintenance, and Legal
Transcription
Slide 3

Where?
• List of Countries Providing LPO services
– Australia
– Chile
– China
– India
– Israel
• April 2008 Conference in Manhattan
– New Zealand
– Philippines
– South Korea
S th K
– Sri Lanka
Slide 4

How?
Business Models
Outsource Hybrid
y Insource
LPO* LPO or Indian Law Firm India Office
Partners with US Attorney
Indian US Law Firm Partners with
Law Firm LPO or Indian Law Firm
* Legal Process Outsourcing
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Slide 5

Who & How Much?
• Corporations or Law Firms?
• LPO Services
– $146M in 2007
– $640M Expected by 2010
• LPO Patent Services
P t tS i
– $46M in 2007
– $206M Expected by 2012*
* ValueNotes report “Offshoring Legal Services to India,” July 2007
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Slide 6

Why?
• Cost
– U.S. Inhouse Patent Attorney
• $150,000 per Year Salary
– Caution: The true cost is much higher
– US L
U.S. Law Fi – P
Firm Patent A
Attorney
• $300 per Hour
– LPO Provider
• $20 - $40 per Hour
– Caution: The true cost is much higher
• Capacity
– Free up Scarce Internal Resources
• Focus on Value-added Services
Slide 7

Concerns?
• Quality
• Time
• Export Control
• Ethics
• Litigation
• True Cost
ue
Slide 8

Quality
• Poor Quality
• Mitigation
– Define Policies and Processes
– Utilize Templates
– Be Selective in Hiring
– Perform Training
Slide 9

Time
• Time Issues
– Turnaround Time
– Difference in Time Zones
• Mitigation
– Define Metrics and Rules
Slide 10

Export Control
• Export Control Issues
• Caution
– July 16 2008 USPTO Notice – Scope of
16,
Foreign Filing Licenses*
• Mitigation
– Use Only Public Information
–P f
Perform a Clearance
Cl
* Federal Register, July 23, 2008 (Volume 73, Number 142), Page 42781
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Slide 11

Ethics
• Ethics Issues
– Unauthorized Practice of Law
– Conflicts of Interest
– Loss of Confidentiality
• Sources of Authority
y
– ABA Model Rules of Professional Conduct
– State and Local Ethics Committees*
• Mitigation
– Ensure US Attorney Supervises and Approves Work
– Utilize Captive Resources
– Inspect Facilities; Secure Access to Computers and Buildings;
Utilize Appropriate Employment Agreements
* San Diego County Bar Assocation Legal Ethics Committee (SDCBA) – Ethics Opinion 2007-1; Los Angeles County
Bar Assocation Professional Responsibility and Ethics Committee (LACBA) – Formal Opinions 1989-2, 2006-3
Slide 12

Litigation
• Litigation Issues
– Discovery
– Loss of Privilege
– Inequitable Conduct
• Mitigation
– Provide Direction by a US Attorney
– D fi P li i and P
Define Policies d Processes
– Perform Training
Slide 13

Cost ($)
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True Cost
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Cost
Loaded Cost
Slide 14

Further I f
F th Information
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1. Computer Patent Annuities (CPA) White Papers
http://www.cpaglobal.com/white_papers
See Microsoft Case Study at
http://www.cpaglobal.com/microsoft_case_study_08
2.
2 Evalueserve White Papers
http://www.evalueserve.com/Media-And-Reports/WhitePapers.aspx
3. International Outsourcing of the Legal Profession, University of California at
Berkeley, April 25, 2008
http://www.law.berkeley.edu/centers/gcl/outsource/
http://www law berkeley edu/centers/gcl/outsource/
4. Lexadigm Solutions LLC, “Practical and Ethical Considerations of Legal
Outsourcing,” February 20, 2007
http://www.lexadigm.com/docs/Practical%20and%20Ethical%20Considerations%
20of%20Legal%20Outsourcing_Lexadigm.pdf
20of%20Legal%20O tso rcing Le adigm pdf
5. ValueNotes, “Offshoring Legal Services to India,” July 2007
http://www.sourcingnotes.com/content/view/71/54/
Slide 15

Contact Information
C t tI f ti
Indira Saladi
Senior Intellectual Property Counsel
Motorola, Inc.
indira.saladi@motorola.com
Slide 16