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Listed IP firms to suffer dire consequences
Intellectual property law firms that have decided to list on the ASX are set to face significant repercussions, according to one chief executive officer.
Emma Musgrave
Speaking to Lawyers Weekly about his firm’s recent expansion, Wrays CEO Frank Hurley (pictured) highlighted a number of trends in the IP market.
Instead, Mr Hurley said listed IP firms are receiving negative feedback from two distinct groups.
“We're getting feedback from two groups. One is that offshore associates, particularly the United States, are very unhappy that these firms are listing because they're seeing that they're focused on shareholder value, not client value.
“So whether they will jump I don't know, whether they'll change and go to a more independent firm, I don't know, but we're certainly hearing in the market that they're not happy.
“We're [also] getting senior people from these organisations approaching us asking 'Have you got a job?', because their career paths have been abbreviated.”
Expanding on this, Mr Hurley said ASX-listed IP firms are losing sight of their people and creating an opportunity for firms such as Wrays to pick up the slack.
“We've now got three big gorillas running around the paddock, all worried about shareholder value, so they need to grow revenue and they're out acquiring firms everywhere, but at the end of the day they've got a whole bunch of staff who have suddenly had a career path disappear,” he said.
“If you're a senior associate in one of those firms you’ve lost your pathway to equity.
“We're seeing that as a massive opportunity for us and our clients.”
Mr Hurley’s comments come after IPH, Xenith and Qantm each saw their share prices rapidly decline in the second half of 2016.
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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