N. 39, July - September 2008 

IP in practice 
IP eModules 
 

Is the IP World getting flat?

The IPR and patent businesses involve highly specialised staff combining legal and technical skills. So far, this business has only been slightly affected by the outsourcing wave that has hit the IT field. Will this change soon? This module provides you with some relevant material to enable you to come up with your own opinion. This trend may seriously affect IP activities in the future.


India: the perfect candidate

In many cases, IPR activities are conducted in English. This makes India the perfect country for the outsourcing of IP activities. In India, there is a large highly skilled, English-speaking workforce available at a cheaper price. A recent survey estimates that the revenues from patent services outsourced to India to be $46 million for the 2007 calendar year. Those Indian revenues are expected to grow at 35% per annum for the next five years, reaching revenues of $206 million by the end of 2012.

This move is partially driven by lower costs. Salaries for patent attorneys in India vary greatly but are usually lower than in Western countries. At the very top of the scale, salaries can be as much as 30 Lakh a year, corresponding to 45 k€. Starting salaries are around 9,000 € a year for recent top graduates.


Some questions

Outsourcing work related to the most technically advanced innovations is not without legal issues, especially in countries where such material is considered strategic and subject to restrictive dissemination export rules. This aspect has recently been highlighted by the USPTO. This issue must be closely followed. Official work relating to a patent file is also an area where outsourcing should be contemplated with extreme care as this work is part of the foundation of a national or international legal system.

Loss of control, data control and vendor unreliability are sometimes other arguments against outsourcing such legal work.


Further reading

Recent study on outsourcing IP services to India

Offshoring Legal Process and related ethical issues

Recent USPTO questions

Patent Attorney in India – Salaries mentioned here and here.