Starting or managing your own Intellectual Property (IP) law practice is an exciting yet often overwhelming venture. As a solo practitioner, the support staff you once relied on for docketing, invoicing, form preparation, and time management is no longer available. While you could hire staff or work longer hours, these solutions can be expensive and may detract from the enjoyment of running your own business. The key challenge is to achieve the same level of efficiency you had at a larger firm, but with fewer resources.

So, how can a small firm achieve the efficiencies of a larger firm without incurring the high costs of support staff? The answer lies in automation. Leveraging technology to streamline non-billable tasks is a primary strategy for increasing productivity and profitability.

The Power of Automation

Fortunately, numerous automation tools are now available to handle tasks that were once time or labor intensive. For example, platforms like Webex and GoToMeeting have made virtual meetings a standard practice, and financial software is widely used to manage back-end finances. Similarly, IP management tools have emerged to replace traditional calendars and spreadsheets for docketing and case management.

The first step is to assess your current efficiency and identify the biggest drains on your time. A simple way to measure this is with the following formula:

Efficiency = (Billable Hours / Total Hours) x 100

For instance, if you worked 50 hours in a week but billed only 25, your efficiency is 50%. By recapturing just five additional billable hours, you could boost your efficiency to 60% and significantly increase your income.

To pinpoint areas for improvement, list all the non-billable activities in your weekly routine and prioritize them from most to least time consuming. This exercise will help you understand the core inefficiencies in your practice.

The Impact of a Docketing System

For many IP professionals, docketing rises to the top of the list of time sinks. Managing your practice with a patchwork of spreadsheets, calendars, and multiple software packages is a recipe for inefficiency. Imagine having a single tool that automatically interfaces with the USPTO to set docketing deadlines, simultaneously creating a calendar entry and preparing an email notification for the client. This type of automation would dramatically improve your efficiency.

Consider the financial impact: if this process takes 8 minutes per USPTO communication and you handle three per day, five days a week, you’ve spent 8 hours on this task each month. At a billing rate of $400 per hour, you’ve wasted $3,200 in potential revenue. For larger firms, these wasted costs increase exponentially.

Similarly, consider the time lost on managing prior art and data entry for Information Disclosure Statement (IDS) forms. These tasks can easily consume hours of lost billing potential. Complex IDS forms, for example, can take 15 to 20 minutes to complete. The time spent creating invoices in QuickBooks can also be a significant efficiency killer. What if these functions were built into a single docketing system that automatically recorded your time? The value of integrated IP management software becomes immediately clear.

The cost of these systems used to be prohibitive for small firms, but this is no longer the case. Today’s market offers highly cost effective IP management solutions that go beyond simple docketing. They are comprehensive systems designed to manage all aspects of your practice, including:

PTO form generation

Prior art and IDS management

Customized report generation

Automated email reminders

Invoice generation

These all in one systems allow you to input data once and reuse it for many different purposes. With all your information in a central location, finding what you need is simple and quick.

Making the Right Choice

The cost savings and increased efficiency provided by a robust IP management system far outweigh its expense. The question is not whether you need a system, but which one to choose. To make an informed decision, you should consider four key factors: cost, features, ease of use, and support.

1. Cost
Determining the cost is a straightforward process. Create a list of potential vendors, check their websites for pricing, and if the information is not published, call them directly. You can also consult colleagues for their recommendations and visit independent review sites like G2Crowd to read legitimate reviews from verified users.

2. Features
Thoroughly researching and comparing features is crucial. A system that is inexpensive may lack the automation capabilities necessary to significantly improve your efficiency. Conversely, an expensive system may include features you will never use, be difficult to learn, and ultimately have a negative impact on your efficiency.

Here is a checklist of features and activities to consider when creating your feature list:

• Automated docketing and document downloading from the PTO
• Automatic matter updates from Patent Center
• Capability to retrieve international patent information
• Custom report and chart generation
• Scheduled, automated report delivery
• PTO form and custom letter generation
• Automatic syncing with third party calendars
• Conflict checking
• Cloud based access
• Integrated document management
• Simple data import, export, and archiving
• Data storage location (U.S. vs. overseas) and security measures
• Integrated invoicing and billing system integration
• Configurable workflows and rules
• Support availability (U.S. based, 24/7, email vs. live person)
• Additional costs for training and support
• Contract terms (cancellation policy, length of commitment)

3. Ease of Use
The importance of ease of use cannot be underestimated. The less time you spend learning a new system, the more time you have for billable work. When evaluating a system, consider the total time required to get up and running, including data migration, to ensure you can quickly become more efficient.

Many vendors offer a trial period for their system. Take advantage of this opportunity to determine whether the marketing claims align with the reality of the software. If a trial is offered, ask the vendor if your data can be easily transferred to the full version so you don’t have to start over.

4. Support
While difficult to assess in advance, support is critically important, especially during the initial implementation. A great product is useless if you cannot figure out how to use it and there is no help available. When evaluating a vendor, inquire about their support hours, availability (email, phone, live person), and the resources they offer, such as webinars and one-on-one training.

During a trial period, test the support team by sending in questions and observing their response time and quality. A slow or incomplete response may indicate a lack of expertise. Also, check for comprehensive documentation or instructional videos that may allow you to find answers to your questions on your own.

The Result

Once you have a system in place, you will quickly notice a significant increase in your efficiency. An added benefit may be that your clients also notice a higher level of professionalism, as you can easily access information and respond to their needs. While automation cannot eliminate all non-billable functions, embracing technology as a core part of your business strategy will enable you to achieve higher levels of efficiency and success