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`Sony Corp., et. al. v.
`Creative Technology,
`Ltd.
`|PR2016-01407
`
`Exhibit
`Creative-2013
`
`1
`
`

`
`·'
`
`AlP LA
`
`REPORT OF THE
`ECONOMIC SURVEY
`2007
`
`. PREPARED UNDER DIRECTION OF THE
`AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION
`LAW PRACTICE MANAGEMENT COMMITTEE
`
`KEVIN ALAN WOLFF, CHAIR
`ASHOK K. MANNAVA, VICE CHAIR
`
`July 2007
`
`ARI
`
`Association Research, Inc.
`
`4 RESEARCH PLACE, SUITE 220
`ROCKVILLE, M ARYLAND 20850
`T EL: (240) 26B-1262
`ARI@ASSOCIATIONRESEARCH.COM
`
`2
`
`

`
`INTRODUCTION
`
`The AIPLA Economic Survey, developed and directed by the Law Practice Management Committee of
`the American Intellectual Property Law Association (AIPLA), reports the annual incomes and related
`professional and demographic characteristics of intellectual property (IP) law attorneys and associated
`patent agents. Conducted every other year by AIPLA, this survey also examines the economic aspects
`of intellectual property law practice, including individual billing rates and typical charges for
`representative IP law services. All AIPLA members were invited to participate.
`
`The Law Practice Management Committee took an active role in reviewing the Economic Survey with a
`goal of improving the usefulness and value of the data that are collected and analyzed.
`
`Based on a survey of committee members, some questions were modified and some tables, especially
`typical charges for services and typical costs of litigation, were reformatted for ease of use. The most
`significant change instituted by the committee concerned survey methodology.
`
`For the first time, AI PLA members were offered a Web-based version of the questionnaire as well as a
`printed version. The results of this change were striking-a 75% increase in the number of
`respondents.
`
`Another significant improvement in survey methodology was the use of statistical analysis to
`consistently remove outlier data from the database, particularly with respect to income, charges, and
`costs.
`
`DATA COLLECTION
`
`Access to the Web-based questionnaire was provided by a direct link in e-mail letters sent to 14,132
`AIPLA members and non-members. The initial e-mail was followed up by e-mail reminders and a
`printed version of the questionnaire delivered by US mail.
`
`A total of 2,733 individuals responded by completing some or all of the questionnaire, a nearly 20%
`response rate.
`
`Th,ere were 1,558 responses in 2005 when the survey was e-mailed as an Excel spreadsheet and also
`sent via US mail in a hard copy version. The spreadsheet and questionnaire were also posted on the
`AIPLA website for downloading. For 2007, 81% of the responses were completed online, with the
`balance faxed or mailed.
`
`The firm questionnaire was completed by 309 firm representatives, compared with 297 in 2005.
`
`All data submitted by respondents were reviewed and evaluated for reasonableness and consistency;
`data anomalies and outliers were analyzed and corrected or deleted.
`
`In many cases, respondents did not answer every question, so the total counts for each table may vary.
`
`AIPLA Report of the Economic Survey 2007
`1
`
`3
`
`

`
`DESCRIPTION OF STATISTICS AND FORMATTING CONVENTIONS
`
`Quartiles: In tables that report incomes, billing rates, typical charges, and other distributions of real
`numbers, responses are described by three quartiles: the first quartile, the median, and the third
`quartile. Quartiles identify interpolated locations on a distribution of values and do not necessarily
`represent actual reported values. Another label for quartiles is percentiles and the first quartile is the
`same as the 25th percentile, the median is the 501h percentile, and the third quartile is the 75n'
`percentile. For example, when all reported values are listed from highest to lowest, the third quartile
`identifies the point on the list that is equal to or greater than 75 percent (three quarters) of the reported
`values and equal to or less than 25 percent (one quarter).
`
`Median (midpoint): The median identifies the point in the distribution of reported values that is equal
`to or larger than one-half of reported values and equal to or smaller than one-half-that is, the mid(cid:173)
`point.
`
`A median is reported when three or more values were reported by respondents. The first and third
`quartiles are reported when five or more values were reported by respondents. Quartiles and medians
`based on values reported by survey respondents are estimates of the quartiles and medians that could
`be determined if the characteristics of the entire population represented by survey respondents were
`known. In general, the more values that are reported, the more accurately quartiles estimate the
`distribution of values among all AlP LA members.
`
`Mean (average): The sum of all values divided by the number of values.
`
`It should be noted that if the mean exceeds the median, it is because high values will affect the
`calculations. It is possible, especially with a small number of values, for the mean to exceed the third
`quartile.
`
`Percentages in some tables and some graphs may not sum to exactly 100% due to rounding.
`
`Other definitions useful in understanding tabular information presented in this report are:
`
`Income: Defined as "total gross income in calendar year 2006 from your primary practice ... including
`any parlnership income, cash bonus, share of profits, and similar income you received, and any
`deferred compensation in which you vested in 2006."
`
`Typical Charges: Respondents were instructed to respond "only if you have been personally
`responsible for a representative sample of the type of work to which the question perlains, either as a
`service provider (an attorney in private practice) or as a purchaser of such services (corporate
`counsel)." In thinking of a typical charge, respondents were directed to assume "a typical case with no
`unusual complications," and asked "what would you have expected to charge or be charged, in 2006,
`for legal services only (including search fees, but not including copy costs, drawing fees or government
`fees) in each of the following types of US matters?"
`
`Estimated Litigation Costs: Respondents were instructed to respond to these questions Monty if you
`have personal knowledge either as a service provider or as a purchaser of such services of the costs
`incurred within the relatively recent past, for the type of work to which the question perlains. In each of the
`questions, 'total cost' is all costs, including outside legal and paralegal services, local counsel, associates,
`paralegals, travel and living expenses, fees and costs for courl reporters, photocopies, courier services,
`exhibit preparation, analytical testing, experl witnesses, translators, surveys, jury advisors, and similar
`expenses." Respondents were further instructed to estimate these based on a single IP asset, such as
`one patent at issue or one trademark.
`
`AIPLA Report of the Economic Survey 2007
`2
`
`4
`
`

`
`Location: The metropolitan areas of Boston, New York City, Philadelphia, Washington (DC-MD-VA),
`Chicago, and Minneapolis-St. Paul include all localities-central city and surrounding areas-within the
`primary metropolitan statistical area. ·one state- Texas-had sufficiently large numbers of
`respondents to be reported separately. There were sufficient responses to breakout Los Angeles and
`San Francisco separately; California firms outside of those metro areas were included in "Other West."
`Other categories exclude these named metropolitan areas.
`
`LOCATION
`
`PERCENT
`
`COUNT
`
`METROPOLITAN AREAS
`
`Boston CMSA*
`
`New York City CMSA*
`
`Philadelphia CMSA*
`
`Washington, DC CMSA*
`
`5.2%
`
`9.0%
`
`3.4%
`
`13.6%
`
`5.8%
`
`4.4%
`.2.1%
`
`5.8%
`
`4.2%
`
`16.5%
`6.6%
`
`4.3%
`
`7.7%
`
`138
`
`241
`
`90
`
`364
`
`155
`
`119
`55
`155
`
`112
`
`442
`178
`
`114
`
`206
`
`308
`
`Other East: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island,
`Connecticut, Ne'IN York, New Jersey, Pennsylvania, Delaware, Maryland,
`Virginia, and West Virginia
`Metro Southeast: Raleigh-Durham, Greensboro-Winston-Salem, and
`Charlotte, NC; Atlanta, GA; and Miami-Ft. Lauderdale-West Palm Beach, FL
`Other Southeast: North Carolina, South Carolina, Georgia, and Florida
`
`Chicago CMSA*
`
`Minneapolis-St. Paul PMSA **
`
`Other Central: Minnesota, North Dakota, South Dakota, Wisconsin,
`Michigan, Ohio, Indiana, Illinois, Iowa, Nebraska, Kansas, Missouri, Kentucky,
`Oklahoma, Arkansas, Louisiana, Mississip.pi, Alabama, and.Tennessee
`Texas
`
`Los Angeles CMSA*
`
`San Francisco CMSA*
`
`Other West: Montana, Wyoming, Colorado, New Mexico, Idaho, Utah,
`Nevada, Arizona, Washington, Oregon, California, Alaska, and Hawaii
`11 .5%
`*CMSA: Consolidated Metropolitan Statistical Area- a metro area with a population of one million or more.
`**PMSA: Primary Metropolitan Statistical Area- a component of a CMSA.
`
`AlP LA Report of the Economic Survey 2007
`3
`
`5
`
`

`
`Total Costs: Litigation-Patent Infringement by Location
`
`Litigation-Patent Infringement Less than $1M at risk--End of Discovery (OOOs) (Q3Sa)
`
`- NYC - Waol>, DC
`
`T""'
`-"'~ 348
`$41;1
`'"-!A'"'"!l"l
`Fno Oual6o 25%
`$200
`Median (Milpon)
`$350
`$500
`
`Thid0urie75%
`
`()ASA
`21
`$687
`$225
`$500
`$850
`
`a.&SA
`27
`$595
`$200
`$350
`$750
`
`OISA
`18
`$546
`$119
`$350
`$575
`
`OISA
`38
`$438
`$188
`$300
`$500
`
`OllllrEaol
`12
`$436
`$258
`$350
`$688
`
`MeiJO
`
`easl
`16
`$471
`$313
`$425
`$613
`
`- - cticogo
`
`l.oellion
`0111«
`
`....
`
`12
`$327
`$194
`$300
`$400
`
`a.tSI.
`24
`$550
`$200
`$375
`$713
`
`--SI.PU
`
`PloiSA
`
`8
`$606
`$500
`$550
`$713
`
`OOher
`C...al
`63
`$378
`$200
`$250
`$400
`
`, ....
`
`32
`$521
`$250
`$450
`$725
`
`LA.
`(;USA
`19
`$391
`$\50
`$400
`$600
`
`S.F.
`CIISA.
`19
`$429
`$150
`$300
`$500
`
`Oh<
`w ..
`36
`$314
`$163
`$300
`$400
`
`........
`
`SlP.U
`PMSA
`
`7
`$1,043
`S600
`$1,000
`$1,000
`
`OOher
`en-•
`61
`$598
`$338
`$500
`$643
`
`Minnl.·
`SlPOII
`PMSA
`15
`$2,233
`$1,500
`$2,000
`$3,000
`
`OO>et
`Ctrlt.
`69
`$759
`$400
`S600
`$1,000
`
`Tox11
`3t
`$958
`$500
`$750
`$1,000
`
`,, ..
`
`41
`$1,824
`$1.000
`$1,500
`$2,750
`
`LA.
`CIASA
`19
`56%
`$250
`$750
`$1,000
`
`SF.
`QISA
`2t
`$964
`$450
`$600
`$1,625
`
`Otllet
`WOSI
`36
`$576
`$300
`$500
`$736
`
`LA.
`CMSA
`27
`$1,623
`$500
`$1,250
`$2,500
`
`S.F.
`CMSA
`33
`$1,732
`$775
`$1,500
`$2,25()
`
`Othot
`
`.....
`
`39
`$1,351
`$650
`$1,000
`$2,000
`
`litigation-Patent Infringement Less than $1M at risk-Inclusive, all costs (OOOs) (Q36b)
`
`- NYC
`
`T""' ~ CMSA
`19
`28
`$964
`$1,107
`$425
`$500
`$750
`$675
`51,250
`$1,500
`
`$767
`$380
`$600
`$1,000
`
`-"'~ 341
`
`jjo., (Averago)
`
`F'ftl Quarlie 25%
`
`Median (M~oonl
`
`TIW<I Ouatlie 75"
`
`?hila
`CloiSA
`16
`$603
`$256
`$550
`$850
`
`w .. ~oc
`CMSA
`37
`$786
`$350
`$500
`$1,125
`
`Other E..,
`12
`$645
`$425
`$500
`$900
`
`Melro
`
`....
`
`15
`S882
`S600
`$750
`$1,000
`
`- Soutll-
`
`l.oc .. lon
`OO>et
`
`....
`
`12
`$523
`$294
`$450
`$688
`
`cticogo
`CMSA
`24
`$726
`$306
`$625
`$1,000
`
`Chk:ago
`CMSA
`39
`$1,691
`$1,150
`$1,500
`$2,300
`
`Utigation.Patent lnfrlngement S1-S25N at risk-End ol Discovery (OOOs) (Q36c)
`
`T""
`-ol~ 450
`$1,589
`Me.. (A .. _)
`$700
`$1,250
`$2,000
`
`MediMI(~
`
`T~od0urie75%
`
`F'nHlurie25%
`
`8oslon
`eliSA
`29
`51,888
`S900
`$1,750
`$3,000
`
`Phil
`NYC
`Wosii. DC
`CNSA ~ CMSA
`35
`48
`18
`$2,021
`$1,483
`$1,630
`$750
`$1,000
`$250
`$2,000
`$1,625
`$1,000
`$3,000
`$2,500
`$2,000
`
`OtherE•I
`19
`
`$2,008
`S600
`$1.000
`$3,000
`
`......
`....
`
`19
`St,717
`$880
`$1,5()0
`$2,000
`
`- SoUh-
`
`Loeatlon
`Ollleo
`
`....
`
`14
`$1,452
`$575
`$875
`$2,125
`
`AIPLA Report of the Economic Survey 2007
`1-90
`
`6
`
`

`
`Total Costs: Utigation-Patent Infringement by Location
`
`litigation-Patent lnlringement $1-$251.1 at risk-Inclusive, all costs (OOOS) (Q36d)
`
`-oiRes;mlorU
`
`t.UI{Aver.lge)
`
`FntCurie25%
`
`Me<ian(~
`
`Thi!dCIIII¥1le75%
`
`Toto~
`44li
`$2,645
`$1,250
`$2,500
`$3,500
`
`8os lOll
`CMSA
`29
`$3,066
`52,000
`$2,750
`54,000
`
`NYC
`CNSA
`38
`$3,354
`$2,000
`$.3,250
`$.4,438
`
`Pllia
`CMSA
`18
`S2,S82
`$500
`$2,750
`
`$~.000
`
`Wasil. DC
`CNSA
`47
`$2,863
`$1,500
`$2,000
`$3,500
`
`OlhotEal
`17
`$2,803
`$780
`$2,000
`$5,500
`
`litigatlon.Patent Infringement Greater than $25M at risk-End of Discove<y (OOOS) (Q36e)
`
`-.. ~ 415
`
`Totol
`
`$3,340
`$1,500
`$3,000
`$4,500
`
`EooiOII
`OMSA
`31
`$3,337
`$1,500
`$3,000
`$.5,000
`
`NYC
`CMSA
`37
`$4,189
`$2,500
`$4,000
`$.5,000
`
`Phil a
`CNSA
`14
`$3,1$4
`
`$688
`$3,200
`$3.650
`
`Wash, OC
`CMSA
`48
`$3,-454
`$2,000
`$3,500
`$4,375
`
`OdletEIIt
`14
`$3,929
`$1,825
`$2,250
`$5,250
`
`-(lwerage)
`
`F"ntQu--
`
`MO<bn{Mq,on)
`
`Thlrd0val1ile75%
`
`- - CNcago
`
`Looollon
`
`Olhof
`
`....
`
`12
`$2,104
`$850
`$1,375
`$3,375
`
`CNSA
`37
`$2,515
`51,875
`$2,500
`$3,000
`
`.....
`
`not
`20
`$2,985
`$1,625
`$3,000
`$3,563
`
`s.uon: - Chk:ago
`
`locaiO.
`
`Olh"
`
`....
`
`9
`$2.744
`$1,000
`$1,500
`$3,750
`
`CMSA
`34
`$3,424
`$2,000
`$3,000
`$4,000
`
`.......
`
`east
`18
`$3,903
`$1,563
`$3,750
`$5,125
`
`Utlgation-Patent lnlringement Greater than $25M at risk-Inclusive, all costs (OOOS) (Q361)
`
`-"'~ 419
`
`_,_
`
`"-(Avmgel
`FniQude:IS%
`
`Thltd Qua1le 75%
`
`roo;;
`
`$5,499
`$3,000
`$5.000
`$7,000
`
`Boslon
`CMSA
`31
`$5,410
`$3,500
`$5,000
`$7,000
`
`tNC
`CMSA
`35
`$6,586
`$5.000
`$6.000
`$7,500
`
`Prill
`CMSA
`15
`$5,228
`$1,225
`$5,000
`$7,000
`
`w .. ~oc
`CMSA
`47
`$5,767
`$4,500
`$5.000
`$7,000
`
`OlhetEast
`15
`$6,960
`$2,750
`$4,000
`$10,000
`
`......
`""
`
`Sot<tJ.
`
`21
`$6,631
`$3,500
`$6,000
`$7,750
`
`~
`Other
`Solllh-
`
`....
`
`ChK;.go
`CMSA
`32
`$.5,267
`$3,063
`$4,500
`$8,750
`
`$4,163
`$2,000
`$2,500
`$6,500
`
`AIPLA R:eport of the Economic Survey 2007
`1-91
`
`Mlnnt.·
`SlPa~
`
`.......
`14
`$3,114
`$1,850
`$2,750
`$4,250
`
`Minrte.·
`SLPIU
`PIASA
`13
`$3,654
`$2,000
`$3,000
`$4,000
`
`MMe.-
`St.Pao
`PMSA
`12
`$5,435
`$2,875
`$5,000
`$7,000
`
`Odlet
`Conlr~
`69
`$1,467
`$775
`$1,250
`$2,000
`
`r ....
`~
`$3,014
`$1,650
`$3,000
`$4,000
`
`LA
`CNSA
`26
`$2,823
`$1,475
`$2,ESO
`$3,625
`
`S-F.
`CMSA
`36
`$3,133
`$2,000
`$3,000
`$4,000
`
`caw
`West
`39
`$2,378
`$850
`$2,000
`$3,000
`
`Other
`cmr~
`59
`$1,853
`$700
`51,250
`$3,000
`
`Tws
`41
`$3,104
`$1,500
`$2,500
`$4,500
`
`L.A.
`CMSA
`18
`$3,594
`$2,000
`$3,000
`$5,000
`
`SF.
`CMSA
`38
`$4,209
`$2,500
`$4,000
`$5,000
`
`Other
`West
`36
`$3,410
`$1,500
`$3,000
`$4,875
`
`Other
`Cenlnl
`60
`$3,690
`$1,500
`$3,000
`$5,000
`
`TWIS
`
`~
`$.5,014
`$2,550
`$5,000
`$7,000
`
`L.A.
`CMSA
`18
`$5,903
`$4,000
`$5,000
`$7,625
`
`S.F.
`CMSA
`42
`$6,4SO
`$4,000
`$6.000
`$7,850
`
`Othet
`WQI
`38
`$5,791
`$3,000
`$.5,000
`$7,475
`
`7
`
`

`
`Total Costs: Litigation-Patent Infringement by Firm Type
`
`L.ltigation-Patentlnfringement Less than $1M at risk--End of Discovery (OOOs) (Q36a)
`
`Tolll
`-d~ 348
`5461
`IUI(Avorago)
`S200
`Fi1l Quafle 25%
`$350
`$500
`
`Moclon(Mdpoirlq
`
`ll*d0ulrtilo7~
`
`1-5
`Allaneys
`53
`$241
`S100
`$175
`$300
`
`6-75
`A!tmeys
`146
`5427
`S244
`$350
`$500
`
`76ocmcre
`Allllmoys
`80
`$544
`$263
`$500
`$725
`
`AI
`Corparolo
`66
`$625
`$223
`$500
`$750
`
`Litigatlon·Patent lnfringement Less than $1M at risk--Inclusi ve, all costs (OOOs) (Q36b)
`
`N'-"lbw ol Rospondonts
`
`Moon(Avngo)
`
`Fr.tQurilo 25'11
`
`Modlan IMdpolnt)
`
`Thlrd Qurile 76'11
`
`Toc.l
`341
`$767
`$380
`$600
`$1,000
`
`1-5
`
`6-75
`
`........ " Atlomays
`
`54
`$437
`S195
`$350
`$500
`
`140
`$726
`$500
`S600
`$800
`
`7C c;~rrrue
`Allorneys
`81
`$896
`$500
`$800
`S1.000
`
`AI
`Corparale
`63
`$994
`$350
`$750
`$1,500
`
`Litigation-Patent Infringement $1·$25M at risk--End of Discovery (000sHQ36c)
`
`-oiR_.,1S
`
`Mo111(Avtrago)
`
`FhiQu-25'11
`
`Mociiii(Mdpoln1)
`
`TIROurit7~
`
`ToiJI
`450
`$1,589
`$700
`$1,250
`$2,000
`
`1-5
`Atkrneys
`52
`$854
`$263
`$575
`$1,250
`
`ll-75
`Atkrneys
`179
`$1,438
`S650
`$1,!XXl
`S2,!XXl
`
`716ocmcn
`A!1ane1>
`111
`sum
`$1,000
`$1,750
`$2,500
`
`AI
`Corparoto
`104
`$1,008
`$913
`$1,800
`S2,500
`
`AIPLA Report of the Econom ic Survey 2007
`1·92
`
`8
`
`

`
`Total Costs: Litigation-Patent Infringement by Firm Type
`
`Litigation-Patent Infringement $1-$25M at risk-Inclusive, all costs (000s) (Q36d)
`
`TOial
`- d~ 446
`Me.,(Avorago)
`$2,645
`$1,250
`$2,500
`$3,500
`
`ThidQoJ3ftilo 75%
`
`Fbi Quri1& 25%
`
`Medan(Mdpolnt)
`
`t..S
`Allomoys
`51
`$1,397
`$500
`$1,000
`$2,000
`
`6-75
`All:>meys
`179
`$2,379
`$1,000
`$2,000
`$3,000
`
`76 .......
`AI
`Allomoys Caper•
`111
`101
`$3,204
`$3,162
`$2,000
`$2,000
`$3,000
`$3,000
`$4,000
`$4,000
`
`Litigation-Patent Infringement Grea:er than $25M at risk--End of Discovery (OOOs) (Q36e)
`
`_d..........,..
`
`Mom (A-ago)
`
`Fl'st0uatile25%
`
`Mo<bn (Mdpoint)
`Thwd aun1o 75%
`
`Toe.l
`415
`$3,340
`$1,500
`$3,000
`$4,500
`
`t..S
`Allomoys
`34
`$1,816
`$500
`$900
`$2,500
`
`6-75
`All:>meys
`162
`$3,002
`S1,500
`$2,500
`$4,000
`
`76a'mcn
`Abney$
`108
`$3,933
`$2,500
`$4,000
`$5,000
`
`AI
`<:orpor.oo
`106
`$3,795
`$1,500
`$3,000
`$5,000
`
`Litigation-Patent Infringement Greater than $25M at risk-Inclusive, all costs (OOOs) (Q36f)
`
`TcUI
`419
`$5,499
`$3,000
`$5,000
`$7,000
`
`t..S
`-..ys
`·36
`$3,379
`$1,000
`$2,050
`$4,000
`
`6-75
`All:>meys
`164
`$4,918
`"$2,813
`$4,900
`$7,000
`
`76 «mort-
`Alkmeys
`107
`S6,120
`$4,200
`$5.500
`$7,500
`
`,.,
`
`Caporalt
`107
`$6,572
`$4,000
`$5.500
`$8,000
`
`Nll1lbordRespondenb
`
`Meon(A .... go)
`
`Fl'stQuaile 25%
`
`Median (Mdpoint)
`
`Tl*d Ouartile 75%
`
`AIPLA Reporl of the Economic Survey 2007
`1-93
`
`9