Legal Business

Q&A: Morag MacDonald – Bird & Bird IP head on disputes, influences and serious maths

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Sitting in the firm’s recently opened New Fetter Lane office, Matthew Field talks to Bird & Bird international head of intellectual property Morag Macdonald (pictured) as the firm targets London expansion.

What is the state of the IP market?

It’s more focused now, though there’s still a lot of issues emerging in electronic and digital areas. Every time we go through the next generation of mobiles you get a different set of cases, the latest being 4G/LTE technology. All the other international law firms we come across are corporate and finance, but our sector focus and heritage in IP means we are the only international firm that does what we do. That really makes us quite unique in the global market.

How has Brexit affected the IP world?

We thought the Unified Patents Court (UPC), which would cover all EU member states, would be a massive change, but who knows after Brexit. One of the court’s main seats was supposed to be in London. It is very difficult to see how the UPC would proceed in its current form but who knows, and frankly the UPC is not likely to be high up in the agenda for the government when they have so many other issues to consider.

What about the US?

There has been a real upheaval in the US patents market since the America Invents Act came into force in 2011, changing their patent system from ‘first to invent’ to ‘first to file’ and making some other significant changes such as the introduction of Inter Partes Reviews which are a form of opposition in the patent office to the validity of the patent. These reviews have reduced the number of big ticket patent trials now being seen in the US.

Bird & Bird has its new office, so what are the plans now?

We’ve been very rapidly growing our brand management practice in London and on a global scale, it’s really turning into a very successful practice.

We are doing a lot of non-contentious IP work. We’re helping clients develop their in-house IP strategy, that’s growing as well. The intangibles are becoming seriously valuable assets as a result of the digital world we now live in and this is becoming clear to companies who are becoming much more interested in managing their intangible assets proactively.

Which cases have been highlights for you? 

Last March I worked on probably the hardest trial I have ever done in my whole career. We had to have an expert scientific adviser come in for a teach-in for the court and Mr Justice Birss because the technology was so complicated.

The case was EMGS v PGS – a patent trial over a technique using electromagnetics to determine whether a sub-sea reservoir contained hydrocarbons or not. But it did involve some serious, serious maths like Maxwell’s equations. It was lovely stuff. It was the hardest maths and physics I have ever had to do for a trial, right up with what I was doing at degree level. Everybody was finding it challenging, but it was fascinating.

Which of your peers have stood out for you?

Throughout my career there have been a number of people I have found invaluable. When I joined the firm the head of the IP group at the time was Karl Arnold. I learnt a huge amount from Karl, not necessarily all about the law. He was a very well regarded IP lawyer, strategically he was stunning in terms of how he would work out cases.

I often worked alongside Trevor Cook, now at Wilmer Hale, who was a relatively junior partner when I joined the firm. I’ve also worked with Simon Thorley QC since he was a junior barrister, he has been the standout IP barrister for years. I’ve worked with and against him for years, he’s a pleasure to work with.

There are certain people when you do litigation who you can’t say precisely what they taught you, but whatever they did teach you it stood you in really good stead.

matthew.field@legalease.co.uk

Legal Business

The eagle strikes: Cadwalader taps Bird & Bird for disputes head Baker

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New York-headquartered Cadwalader, Wickersham & Taft has hired Bird & Bird dispute resolution co-head Steven Baker to its London office.

Baker joins Cadwalader’s City practice expanding the firm’s litigation and international arbitration capacity after four years at Bird & Bird. Baker was previously head of commercial dispute resolution at Olswang until 2011, spending almost a decade with the firm.

In The Legal 500, Baker is recommended for cross-border fraud cases, banking litigation, commercial litigation and international arbitration. Baker had been acting with Brick Court’s Tim Lord QC for claimants Property Alliance Group in the libor rigging litigation against Royal Bank of Scotland, winning the £30m dispute from litigation boutique Cooke, Young & Keiden in February this year.

Baker’s exit comes shortly after the departure of Bird & Bird’s head of transformational projects Dominic Cook, who left the firm earlier this year after a leadership challenge to chief executive David Kerr in March.

The latest partner hire for Cadwalader comes after the firm added former King & Wood Mallesons’ Europe head of finance Jeremy Cross in July. The recent recruits represent a fresh push by Cadwalader into the London market. Following a quiet period, the firm grew its City office 17% last year, upping head count to 56 lawyers.

Cadwalader has recently seen a dip in global revenues, down 4% in the Global 100 rankings to $463.5m for 2015/16. The firm’s profit per equity partner also fell, down 7% to $2.06m, having fallen 15% to $2.21m in 2014/15 from more than $2.6m the year before.

US giant Latham & Watkins has also moved to boost its City litigation practice with new partners in recent months, hiring Stuart Alford QC from the Serious Fraud Office in July, while it recruited Debevoise & Plimpton’s rising arbitration star Sophie Lamb in May.

At the start of this year Cooley also increased its London litigation capacity, a year on from its UK launch, hiring Sullivan & Cromwell litigator Louise Delahunty, a specialist in global investigations.

matthew.field@legalease.co.uk

 

Legal Business

Revolving doors: Global 100 firms invest in Europe as Baker & McKenzie, Mayer Brown and Bird & Bird make hires

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UK and US firms have been busy investing in Europe this week, with Baker & McKenzie, Mayer Brown and Bird & Bird all adding to offices in Berlin, Frankfurt and Brussels.

Baker & McKenzie has added two partners in Germany to expand its energy and M&A practices. Both Thomas Dörmer and Tim Heitling are to join from Taylor Wessing (TW) at the beginning of next month. The pair join with two more TW lawyers, Claire Polte and Daniel Neudecker. Both partners recently advised energy company Enovos International and Swiss Life Asset Managers in the bidding war for Thyssengas as well as engineering firm Schuler AG on the acquisition of metals company AWEBA Group.

Meanwhile, Mayer Brown has hired Hunton & Williams partner Geneviève Michaux for its Brussels office. Michaux is a Belgian and French qualified lawyer whose practice focuses on regulatory matters concerning drugs, biologics, medical devices, cosmetics and food across Europe. Mayer Brown government and trade co-leader Duane Layton said Michaux’s skills complement and replicate Mayer Brown’s life sciences practice in the US.

Bird & Bird has also looked to build its practice in Europe, with the addition of Niels Lutzhöft from Gleiss Lutz to join the tech firm’s global commercial practice group. Lutzhöft, who joins Bird & Bird’s Frankfurt office, specialises in commercial regulatory, competition and copyright law.

The firm’s German head Sven-Erik Heun said Lutzhöft was a great fit for the firm’s focus on cross-practice advice. He added: ‘He is very active in the areas of commercial, regulatory and IP law, which provides an excellent basis for advising companies being transformed by technology and the knowledge economy, or facing digital transformation.’

victoria.young@legalease.co.uk

Legal Business

Maintaining growth: Bird & Bird keeps pace with 6% revenue hike

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Bird & Bird has reported another year of solid growth, with revenue up 6% to €343.8m from €325.5m for the 2015/16 financial year.

The firm, which reports in euros, said allowing for currency fluctuations turnover was up from £259m to £273.8m in sterling. It has kept pace with its growth in 2014/15, when it also reported a 6% rise in revenues, hitting €325.5m. Profit per equity partner (PEP) saw a slight bump up to £454,000, a 1% increase on the £448,000 reported last year.

Chief executive David Kerr told Legal Business:’Overall it has been quite a solid year, it’s good to see continued growth, it has been quite widely spread in Europe and Asia is holding up well as well as the UK.’

He added the firm’s focus on technology and its international reach had helped keep growth up during the general market malaise in the build up to the EU referendum and that the firm would continue to pursue a growth focusing on its core markets: ‘We are obviously wanting to keep fulfilling our strategy. We are not proposing a major change in the course of direction we have been following, we just want to do it better.’ Kerr (pictured), was re-elected in March for a further three-year term.

Around a third of revenues come from its London headquarters, with the firm expected to move its three London offices to a new combined office on Fetter Lane later this summer.

The firm has undergone rapid international expansion in recent years, opening in Australia by merging with Sydney-based Truman Hoyle in 2014. Its international strategy has included co-operation agreements in Indonesia, Turkey and Korea, on top of Australian and Danish mergers over the past three years.

The technology-focused firm also launched a new office in Luxembourg in early 2016, to work in the new Unified Patent Court, becoming its 28th worldwide office.

Speaking to Legal Business last month, Kerr said IP remained the ‘crown jewels’ of the firm, but its work with banks and other institutions was being transformed by its specialist knowledge of technology: ‘It’s growing like crazy because our heartland was IT and media, and now increasingly it is the industries which are being transformed by tech.’

Competitor firms with a technology focus have seen varied results so far. Osborne Clarke reported in May that the firm had boosted revenues by 23% to €236.3m, while Taylor Wessing saw global growth stay flat, with turnover up 1% to £254.4m.

matthew.field@legalease.co.uk

For more on David Kerr’s leadership and Bird & Bird’s strategy, see ‘David made Goliath – Kerr on Bird & Bird’s re-invention as a leading global TMT shop’.

Legal Business

David made Goliath – Kerr on Bird & Bird’s re-invention as a leading global TMT shop

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Victoria Young talks to veteran chief David Kerr about growing pains and going even more global

There’s no doubt chief executive David Kerr has overseen a rapid extension of Bird & Bird’s international reach, with additions ranging from a major takeover in Australia, to acquisitions in Denmark, and associations around the Asia-Pacific region. But for Kerr – re-elected in March for another three-year term after spending two decades as chief executive – a new priority is consolidating and tightening the firm’s focus as it comes off a flat 12 months in a crowded mid-market.

Legal Business

Revolving doors: HSF, Pinsents and Bird & Bird make key international laterals while High Court judge returns to Bar

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Last week saw a host of international law firm lateral hires, while judge Sir Jeremy Cooke has left the UK’s High Court to return to the commercial Bar.

Stephenson Harwood has hired Herbert Smith Freehills (HSF) partner Pierre-Nicolas Sanzey to spearhead the launch of a real estate practice in Paris. His client portfolio has included UK-based asset manager Resolution Property, Allianz and Premier Group and his arrival follows Stephenson Harwood’s acquisition of a seven-strong banking and litigation team from Eversheds in Hong Kong in February.

In Düsseldorf, Herbert Smith Freehills has added to its recently launched office with the hire of Baker & McKenzie senior corporate partner Soenke Becker. Becker co-headed Bakers German corporate practice until 2014 and currently chairs its Europe, Middle East and Africa M&A practice and is a member of the global M&A steering committee.

Meanwhile Norwegian firm Wikborg Rein has recruited Ince & Co shipping partner Nick Shepherd. Shepherd, who will serve as head of Ince’s Piraeus office until December, will join Wikborg in London in May. At the same time, Ince’s former shipping head Faz Peermohamed returned to the firm after four months as chief executive of client the Norwegian Hull Club.

In Asia, Bird & Bird secured the hire of Simmons & Simmons head of TMT Alexander Shepherd as partner in its global tech & communications group in a bid to ‘enhance the firm’s transactional capabilities’ in the sector. Having relocated to Singapore in 2013 to establish an office for Simmons, Shepherd will continue to be based in the region where the firm’s international practice head, Graeme Maguire, said it has become ‘an increasingly important regional hub for tech and comms clients and work.’

Meanwhile Pinsent Masons has strengthend its oil and gas team in Asia with the hire of Ashley Wright from Norton Rose Fulbright. A partner in Norton Rose’s Singapore office since 2011, clients have included Hess, Petronas, PTTEP, KUFPEC and Pertamina.

In Scotland, Burness Paull has bolstered its technology practice with the addition of DLA Piper partner Callum Sinclair to its Glasgow office. Sinclair, who currently counts Skyscanner and the Edinburgh Fringe Festival among his clients, will lead the firm’s technology group, and take over as head of the commercial division from partner David Goodbrand, who steps down from the management role after a decade.

Finally at the Bar, commercial set 7KBW has welcomed the return of judge Sir Jeremy Cooke, after he recently stepped down from the bench. He joined the set as a full time arbitrator and mediator earlier this month (3 May).

Cooke’s time as a judge included presiding over the criminal court trial of the first trader to be convicted for attempting to fix Libor. A justice of the Dubai International Financial Court, he specialises in commercial law, including shipping, insurance, professional negligence, and banking.

Cooke’s departure coincides with current strife within the profession about the clear declining morale in the judiciary over issues including pay and working conditions.

sarah.downey@legalease.co.uk

For more on movement at Ince & Co, see this month’s cover feature ‘Ports in a storm – can Ince get back on course’

Legal Business

News in brief – April 2016

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REED SMITH REPLACED AS SIEMENS REFRESHES PANEL

Last month Eversheds and Osborne Clarke were reappointed to Siemens UK’s legal panel, while Addleshaw Goddard replaced Reed Smith, following a review. The new panel will last for three years.

Legal Business

Bird & Bird’s Kerr set to hit 23 years in charge following re-election

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Tech firm Bird & Bird has reappointed its longstanding leader David Kerr (pictured) as its chief executive for a further three years and elected the founder of its Italian practice as chairman.

Kerr’s re-election sees him continue an unbroken 20 year tenure as chief executive, having first taken on the role in 1996. In that time Kerr has overseen the firm’s expansion from 70 lawyers in three offices to 1,100 fee earners across 28 offices around the globe.

Massimiliano Mostardini, who founded Bird & Bird’s Italian practice when he joined the firm in Milan in 2003, has been elected as the firm’s next chairman after Michael Frie confirmed he would not be standing for re-election. Frie leaves the post after nine years as chairman.

Since arriving at Bird & Bird 13 years ago, Mostardini has overseen the launch of a Rome office and growth in the country to 110 lawyers. He is also the co-head of the Italian intellectual property group and is a member of the firm’s international global board, the international management committee and the international IP steering group. His practice is built on advising companies on domestic and pan-European intellectual property litigation relating to patents, trademarks, copyright, advertising and unfair competition.

Kerr said: ‘Bird & Bird has a bright future and I am honoured to continue my work here as CEO. The speed of change in the global economy both for our clients and the legal profession is intense. Our firm is at the cutting edge both in understanding the changes clients are going through and in adapting our services to meet their needs. It will be an exciting period.’

The firm’s most recent LLP accounts showed revenue in the last financial year rose 6% to €327.1m from €308.7m while profit before member’s remuneration increased by 10% to €93m from €85m. Bird & Bird’s net debt rose by 21% to €46.3m from €38.3m in 2014 following a refinancing of the business, while the top paid member took home 12% more, the firm’s accounts show.

tom.moore@legalease.co.uk

Legal Business

Asia round-up: Olswang and Bird & Bird build offerings while Slaughters Hong Kong partner Hyman retires

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The past week has seen changes for several UK-headquartered firms in Asia with Olswang appointing a new Asia managing partner and Bird & Bird making two lateral partner hires, as corporate partner Neil Hyman retires from Slaughter and May‘s Hong Kong office.

TMT firm Olswang has appointed a new Asia managing partner with corporate partner Andrew Stott taking over from Rob Bratby who headed the region for past four years. Olswang confirmed that Bratby will return to the London office to ‘take up a global telecoms and emerging markets role’. Bratby joined Olswang from US firm Mayer Brown as partner in 2008 where he worked in the City for almost four years before relocating to Singapore in 2012.

Olswang’s new Asia head Stott has been with the firm since 2002 and advises companies, financial institutions and individuals on international public and private M&A, investment deals and strategic joint ventures. Stott also has experience in working on multi-jurisdiction transactions across Europe, North America and Asia. His new role will take effect from 1 May 2016.

Olswang chief executive Paul Stevens commented: ‘We look forward to welcoming Rob back in London. His return to the UK was part of the firm’s plan from the outset, and we are very grateful to Rob for helping to build a robust and client-centric business in Singapore from which our team can grow further.’

Elsewhere, Slaughter and May Hong Kong corporate partner Hyman is due to retire from the partnership on 30 April. Hyman joined the firm in London in 1986 and was made a partner in the corporate practice in 1995. He then transferred to the firm’s Hong Kong office in 2001.

Some of his recent transactions include advising Oversea-Chinese Banking Corporation on its $4.95bn acquisition of Wing Hang Bank; and representing international healthcare group Bupa on the acquisition of Quality HealthCare Medical Services, the largest private clinic network in Hong Kong, for $355m, from Fortis Healthcare.

Meanwhile, Bird & Bird is building its Asia Pacific teams with two new dispute recruits as Jonathan Choo joins from Olswang, and Robert Rhoda joins from RPC.

According to the firm, the ‘appointments represent a major boost to the firm’s rapidly growing Asia-Pacific dispute resolution group’ and places the firm ‘among the strongest arbitration teams in the Asia-Pacific region covering both contentious and non-contentious work’.

Choo will be based in Singapore and previously headed Olswang’s Asian arbitration and dispute resolution practice and also co-headed the international arbitration group. He has experience of a range of significant disputes and arbitrations both in Singapore and overseas.

Rhoda joins from RPC’s Hong Kong office, where he was a member of the commercial disputes group focusing on international arbitration. Rhoda has experience of high-stakes international arbitration matters, as well as advising on commercial litigation and regulatory matters in both London and Hong Kong.

jashiree.kalia@legalease.co.uk

Legal Business

Bird & Bird’s net debt rises by a fifth, as highest paid member gets 12% more

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Bird & Bird‘s net debt rose by 21% in the last financial year to €46.3m from €38.3m in 2014 following a refinancing of the business, while the top paid member took home 12% more, the firm’s accounts show.

Recent filings with Companies House show the highest paid member at the firm took home €1.023m, up 12% from last year’s €911,000. This figure in LLP accounts does not necessarily equate to the highest paid equity partner and can relate to ‘golden handshakes’ to retiring members.

Net current assets increased by just over 100% following a ‘successful refinancing’ in November 2014 and a 9% ‘improvement’ in net assets attributable to members.

Loans and other debts due to members jumped by 8% to €71.7m from €66m while staff costs increased to €147.8m from €141.5m. The firm’s working capital facilities were restructured in November 2014 to an unsecured revolving credit facility which is committed to November 2017.

Revenue rose 6% to €327.1m from €308.7m while profit before member’s remuneration increased by 10% to €93m from €85m.

The firm, which reports in Euros, noted the weakening of the currency by just under 6% against a basket of our major trading currencies and said its main financial risks arise from the ‘current economic climate in the countries it operates, competitive and client pressure to reduce fees and the management of foreign currencies.’

The number of fee earners at the consolidated firm increased to 935 from 926, as total staff numbers rose from 1,732 to 1,759.

The firm made expansion a strategic priority last year in a bid to reposition itself internationally, and established an Australian practice by merging with Sydney-based Truman Hoyle, and signed co-operation agreements with three foreign firms. This included two Indonesian firms, intellectual property specialists K&K Advocates and business law firm Nurjadin Sumono Mulyadi & Partners, and Turkish IT and telecoms boutique BTS & Partners in June.

Bird & Bird plans to move its London office to a 147,000 sqft space at 12 New Fetter Lane next autumn, committing to a pre-let that will see it pay £8.28m a year for the premise. The agreement, which weighs in at £58.11 per sqft, makes the annual cost of the property worth 38% of Bird & Bird’s current leasehold expenditure globally. In 2013/14 the firm paid £21.5m in rent.

sarah.downey@legalease.co.uk