Around the Firms

Piper Merger Means Larger Presence

Piper Rudnick started the New Year by merging with San Francisco's Steinhart and Falconer, a 100-year-old firm that comprised 32 attorneys. The combined firm will operate under Piper Rudnick's name. Although Steinhart was doing well financially, as a small, local firm, it was feeling pressure from national firms' geographic and financial energy. Steinhart's partners concentrate on litigation, real estate and media law; LucasFilm, PricewaterhouseCoopers, BP Arco Co. and the San Francisco Chronicle are among the firm's clients.

“One of the considerations was balancing out this sort of sense of responsibility as a head of a 100-year-old firm,” says Steinhart partner Robb Scott, “and, on the other hand, making sure the opportunities are going to be there for the people who were coming up behind us.”

Steinhart's partners were enthused by Piper's track record of integrating new additions. The result of Piper Marbury's and Rudnick & Wolfe's 1999 union, Piper has a dozen offices and close to 1000 attorneys. In 2001, the firm entered talks to merge with McCutchen, Doyle, Brown & Enerson. Those talks stalled, and McCutchen went on to merge with Boston's Bingham Dana.

According to The American Lawyer, an affiliate of Law Firm Partnership & Benefits, Piper Rudnick grossed $455 million for 2002, and recorded $675,000 in profits per partner.

Larry Watanabe, a law firm recruiter and consultant, said the deal gives Piper an instant presence in Northern California. Steinhart lawyers will help Piper serve clients with local matters, a need that drove it into talks with McCutchen.

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New Year, New Offices

Atlanta law firm Ogletree, Deakins, Nash, Smoak & Stewart, P.C., the United States' third-largest labor and employment firm, opened two new offices at the start of the New Year. They now take up residence in Miami and in Morristown, NJ. A total of 13 lawyers are at the new locales. The new additions give Ogletree Deakins a total of 18 U.S. firms.

The Miami office marks the firm's first Florida presence and comprises the lawyers and staff of Whelan & DeMaio. At the helm are David DeMaio and Michael Whelan. New additions are attorneys Mike Davey and Kelly Cartus Hughes. As for the New Jersey office, it is responsible for the New York metro area and comprises the staff of Stanton, Hughes, Diana, Mariani & Margello. Several of the attorneys are certified to practice in New York as well as in New Jersey.

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New Acquisition Means Stronger Entertainment Practice

With the New Year has come Los Angeles-based Manatt, Phelps & Phillips' acquisition of New York's Parcher Hayes & Snyder. Parcher, a litigation boutique, comprises a dozen attorneys with its main concentration in the entertainment industry. Manatt Phelps now has an entertainment practice on the East Coast as well as on the West Coast; and now totals close to 300 attorneys. According to Manatt Phelps managing partner Paul H. Irving, between 40 and 50 of the firm's lawyers are handling entertainment, media and advertising practices. In Manatt's New York office alone, the attorneys number 65. There are also 10 attorneys who were brought on in early November, including Linda Goldstein and Felix Kent, both from New York's Hall Dickler Kent Goldstein & Wood's advertising group.

Parcher is able to boast such clients as Bob Dylan, Bruce Springsteen and Paul Simon, while Manatt Phelps deals with Michael Douglas and Robin Williams, among others. The two firms also represent media companies and studios, with Time Warner, Sony and DreamWorks on their combined client list.

Former Parcher, now Manatt Phelps, partner Peter Parcher, hopes joining up with Manatt Phelps will achieve his aim to build up his firm's practice to serve areas other than litigation.

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Tougher Times and Changes in Structure Raise Questions and Problems with Bonuses

Despite a rise in activity in the last few months, New York's large law firms decided against increasing year-end associates' bonuses. The bonuses have taken a tremendous downturn at the end of 2002 from the year 2000, when senior and first-year associates earned more than double the amount they now receive. The firms' managing partners hold as their reasoning the fact that in 2000, their firms were attempting to woo young attorneys away from Silicon Valley firms. Presently, most major New York firms' first-year associates are earning a base salary of $125,000, and this was brought about by salary hikes at West Coast firms. Mel Immergut, chairman of Milbank, Tweed, Hadley & McCloy, says that a few firms in Northern California caused the upsurge in bonuses several years ago, and that the dot-com craze played a part as well. However, several firms that were successful back then are now defunct or no longer at the forefront.

Another change that firms have made concerning bonuses is tying them to performance instead of rank. Dewey Ballantine co-managing partner Sanford W. Morhouse feels that this will give associates motivation to build up their performance. However, another major firm's partner was not in agreement, feeling that this method of presenting bonuses causes resentment from associates who believe they have been critiqued unjustly. He fears that there will be a reoccurrence of what happened last year at Clifford Chance: When associates at the firm were surveyed, the outcome was a contemptuous memo. Associates accused the partners of being tightfisted and unjust in their bonus distribution. After news of the memo reached the press, the charges were comprehensively declared. The firm then established several modifications. It now seems that New York firm Jones Day may have a similar experience, as associates have become worried and offended. Traditional year-end letters that Jones Day distributes regarding compensation contained little or no information about bonuses for the most part. Another concern of the firm's associates is that Jones Day is planning on taking in up to 75 associates from Pennie & Edmonds, an intellectual property boutique; the Jones Day associates are feeling as though they are being encouraged to move on.

Time will tell whether the economy will improve, giving these firms an opportunity to once again increase bonus amounts.

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Castoffs Join Reed Smith

Two partners, five associates, two paralegals and several support staff have joined Reed Smith's Washington, DC office from Shanks & Herbert, a boutique IP firm formerly based in Alexandria, VA, which is dissolving. Coming on board are partners Mark R. Shanks and Toni-Junell Herbert. The team has extensive backgrounds in intellectual property litigation, portfolio evaluation, patent related opinions and protection of inventions domestically and abroad. The lawyers represent clients in all phases of licensing transactions, trademark and copyright matters, and advise on corporate intellectual property issues. Shanks is a 1987 graduate of University of Iowa College of Law; Herbert received her law degree in 1990 from the University of Baltimore Law School.

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Venable Adds to Technology Division

Venable LLP has added well-rounded intellectual property attorney Jeffrey L. Eichen as a partner in its Intellectual Property Litigation Group in the firm's Washington office. Eichen joins Venable's growing Technology Division, which already boasts a strong litigation component in addition to its patent prosecution and licensing practices. Venable's Technology Division includes over 35 registered patent lawyers and agents together with technical advisors devoted to patent prosecution, with a cumulative history of having prepared and prosecuted many thousands of patents. Eichen's experience spans the range of intellectual property law, and he has represented companies in the cosmetics, pharmaceuticals, computer and toy industries, as well as commercial banks and other financial institutions. Eichen joins Venable from the Philadelphia office of Schnader, Harrison, Segal & Lewis. Eichen's diverse practice includes significant litigation experience in patent, trademark, copyright and trade secret law, as well as negotiating patent and trademark licensing agreements. Among the clients he has represented in intellectual property matters are Del Laboratories (the maker of Sally Hansen cosmetics), LG Electronics and Pennsylvania Business Bank.

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Kirkpatrick Adds Partner

Kelly D. Talcott has joined Kirkpatrick & Lockhart LLP (K&L)'s New York office as a partner. Prior to joining K&L, Talcott was a partner at Pennie & Edmonds. Talcott concentrates his practice in intellectual property and technology law, providing legal advice on patent and trademark protection, prosecution, and licensing, as well as on trade secret protection, to domestic and international entities including high-tech and Internet-based companies. Additionally, he provides clients with assistance relating to anti-counterfeiting, unfair competition, contract, and RICO issues.

Piper Merger Means Larger Presence

Piper Rudnick started the New Year by merging with San Francisco's Steinhart and Falconer, a 100-year-old firm that comprised 32 attorneys. The combined firm will operate under Piper Rudnick's name. Although Steinhart was doing well financially, as a small, local firm, it was feeling pressure from national firms' geographic and financial energy. Steinhart's partners concentrate on litigation, real estate and media law; LucasFilm, PricewaterhouseCoopers, BP Arco Co. and the San Francisco Chronicle are among the firm's clients.

“One of the considerations was balancing out this sort of sense of responsibility as a head of a 100-year-old firm,” says Steinhart partner Robb Scott, “and, on the other hand, making sure the opportunities are going to be there for the people who were coming up behind us.”

Steinhart's partners were enthused by Piper's track record of integrating new additions. The result of Piper Marbury's and Rudnick & Wolfe's 1999 union, Piper has a dozen offices and close to 1000 attorneys. In 2001, the firm entered talks to merge with McCutchen, Doyle, Brown & Enerson. Those talks stalled, and McCutchen went on to merge with Boston's Bingham Dana.

According to The American Lawyer, an affiliate of Law Firm Partnership & Benefits, Piper Rudnick grossed $455 million for 2002, and recorded $675,000 in profits per partner.

Larry Watanabe, a law firm recruiter and consultant, said the deal gives Piper an instant presence in Northern California. Steinhart lawyers will help Piper serve clients with local matters, a need that drove it into talks with McCutchen.

---

New Year, New Offices

Atlanta law firm Ogletree, Deakins, Nash, Smoak & Stewart, P.C., the United States' third-largest labor and employment firm, opened two new offices at the start of the New Year. They now take up residence in Miami and in Morristown, NJ. A total of 13 lawyers are at the new locales. The new additions give Ogletree Deakins a total of 18 U.S. firms.

The Miami office marks the firm's first Florida presence and comprises the lawyers and staff of Whelan & DeMaio. At the helm are David DeMaio and Michael Whelan. New additions are attorneys Mike Davey and Kelly Cartus Hughes. As for the New Jersey office, it is responsible for the New York metro area and comprises the staff of Stanton, Hughes, Diana, Mariani & Margello. Several of the attorneys are certified to practice in New York as well as in New Jersey.

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New Acquisition Means Stronger Entertainment Practice

With the New Year has come Los Angeles-based Manatt, Phelps & Phillips' acquisition of New York's Parcher Hayes & Snyder. Parcher, a litigation boutique, comprises a dozen attorneys with its main concentration in the entertainment industry. Manatt Phelps now has an entertainment practice on the East Coast as well as on the West Coast; and now totals close to 300 attorneys. According to Manatt Phelps managing partner Paul H. Irving, between 40 and 50 of the firm's lawyers are handling entertainment, media and advertising practices. In Manatt's New York office alone, the attorneys number 65. There are also 10 attorneys who were brought on in early November, including Linda Goldstein and Felix Kent, both from New York's Hall Dickler Kent Goldstein & Wood's advertising group.

Parcher is able to boast such clients as Bob Dylan, Bruce Springsteen and Paul Simon, while Manatt Phelps deals with Michael Douglas and Robin Williams, among others. The two firms also represent media companies and studios, with Time Warner, Sony and DreamWorks on their combined client list.

Former Parcher, now Manatt Phelps, partner Peter Parcher, hopes joining up with Manatt Phelps will achieve his aim to build up his firm's practice to serve areas other than litigation.

---

Tougher Times and Changes in Structure Raise Questions and Problems with Bonuses

Despite a rise in activity in the last few months, New York's large law firms decided against increasing year-end associates' bonuses. The bonuses have taken a tremendous downturn at the end of 2002 from the year 2000, when senior and first-year associates earned more than double the amount they now receive. The firms' managing partners hold as their reasoning the fact that in 2000, their firms were attempting to woo young attorneys away from Silicon Valley firms. Presently, most major New York firms' first-year associates are earning a base salary of $125,000, and this was brought about by salary hikes at West Coast firms. Mel Immergut, chairman of Milbank, Tweed, Hadley & McCloy, says that a few firms in Northern California caused the upsurge in bonuses several years ago, and that the dot-com craze played a part as well. However, several firms that were successful back then are now defunct or no longer at the forefront.

Another change that firms have made concerning bonuses is tying them to performance instead of rank. Dewey Ballantine co-managing partner Sanford W. Morhouse feels that this will give associates motivation to build up their performance. However, another major firm's partner was not in agreement, feeling that this method of presenting bonuses causes resentment from associates who believe they have been critiqued unjustly. He fears that there will be a reoccurrence of what happened last year at Clifford Chance: When associates at the firm were surveyed, the outcome was a contemptuous memo. Associates accused the partners of being tightfisted and unjust in their bonus distribution. After news of the memo reached the press, the charges were comprehensively declared. The firm then established several modifications. It now seems that New York firm Jones Day may have a similar experience, as associates have become worried and offended. Traditional year-end letters that Jones Day distributes regarding compensation contained little or no information about bonuses for the most part. Another concern of the firm's associates is that Jones Day is planning on taking in up to 75 associates from Pennie & Edmonds, an intellectual property boutique; the Jones Day associates are feeling as though they are being encouraged to move on.

Time will tell whether the economy will improve, giving these firms an opportunity to once again increase bonus amounts.

---

Castoffs Join Reed Smith

Two partners, five associates, two paralegals and several support staff have joined Reed Smith's Washington, DC office from Shanks & Herbert, a boutique IP firm formerly based in Alexandria, VA, which is dissolving. Coming on board are partners Mark R. Shanks and Toni-Junell Herbert. The team has extensive backgrounds in intellectual property litigation, portfolio evaluation, patent related opinions and protection of inventions domestically and abroad. The lawyers represent clients in all phases of licensing transactions, trademark and copyright matters, and advise on corporate intellectual property issues. Shanks is a 1987 graduate of University of Iowa College of Law; Herbert received her law degree in 1990 from the University of Baltimore Law School.

---

Venable Adds to Technology Division

Venable LLP has added well-rounded intellectual property attorney Jeffrey L. Eichen as a partner in its Intellectual Property Litigation Group in the firm's Washington office. Eichen joins Venable's growing Technology Division, which already boasts a strong litigation component in addition to its patent prosecution and licensing practices. Venable's Technology Division includes over 35 registered patent lawyers and agents together with technical advisors devoted to patent prosecution, with a cumulative history of having prepared and prosecuted many thousands of patents. Eichen's experience spans the range of intellectual property law, and he has represented companies in the cosmetics, pharmaceuticals, computer and toy industries, as well as commercial banks and other financial institutions. Eichen joins Venable from the Philadelphia office of Schnader, Harrison, Segal & Lewis. Eichen's diverse practice includes significant litigation experience in patent, trademark, copyright and trade secret law, as well as negotiating patent and trademark licensing agreements. Among the clients he has represented in intellectual property matters are Del Laboratories (the maker of Sally Hansen cosmetics), LG Electronics and Pennsylvania Business Bank.

---

Kirkpatrick Adds Partner

Kelly D. Talcott has joined Kirkpatrick & Lockhart LLP (K&L)'s New York office as a partner. Prior to joining K&L, Talcott was a partner at Pennie & Edmonds. Talcott concentrates his practice in intellectual property and technology law, providing legal advice on patent and trademark protection, prosecution, and licensing, as well as on trade secret protection, to domestic and international entities including high-tech and Internet-based companies. Additionally, he provides clients with assistance relating to anti-counterfeiting, unfair competition, contract, and RICO issues.