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Several specialized intellectual property (IP) law and litigation firms have been integrated into larger U.S. law firms throughout the year. This strategic shift is driven by the pursuit of expansion among larger firms, aiming to strengthen their IP expertise. In comparison, smaller niche firms face increasing pressure to match the extensive resources of their counterparts.
The integration trend extends beyond Husch Blackwell and Patterson Thuente. Last month, Buchanan Ingersoll & Rooney announced its merger with IP law firm RatnerPrestia, effective January 1. The legal landscape witnessed its most substantial deal in January, with Morrison & Foerster completing its merger with California-based Durie Tangri. This integration brought 36 Durie Tangri lawyers into the fold of the 1,000-lawyer-strong Morrison & Foerster, marking a milestone in the evolution of legal collaborations in IP.
Husch Blackwell’s Strategic Move
In the most recent development, the national law firm Husch Blackwell, boasting a robust team of 1,200 lawyers, announced the absorption of 11 attorneys and nearly 20 law clerks and professional staff from the Minneapolis-based IP firm Patterson Thuente. This move underscores the growing trend of IP-focused firms aligning themselves with more extensive legal entities.
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According to Tom Dickson, the firm’s managing partner, Patterson Thuente, faced persistent recruitment challenges, losing talent to larger law firms and corporations. He emphasized the difficulty of maintaining the right scale independently, prompting internal discussions about the firm’s future. The decision to merge with Husch Blackwell was driven by the latter’s recognition of the value of absorbing the entire team, including professional staff.
Industry Dynamics and Challenges
Kent Zimmermann, a legal industry consultant at Zeughauser Group, highlighted the competitive nature of the IP sector in recruiting associates. While IP remains a relatively resilient practice, demand for these specialized services faces stiff competition from larger firms that can offer higher compensation.
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Zimmermann, who has consulted with IP-focused law firms on strategic planning, cited a trend where IP boutiques are either maintaining their size or experiencing a decline in market positions. The challenge lies in navigating the demand for specialized talent in an industry where larger firms can outbid their smaller counterparts.
Resilience of Intellectual Property Amid Challenges
Intellectual property has proven resilient in a challenging year for law firms. The Thomson Reuters Institute’s Law Firm Financial Index reported a 1% year-over-year increase in demand for IP work during the third quarter of 2023. This growth contrasts the decline in M&A, real estate, and corporate employment amid an extended economic slump.
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