§;Fixed fees – Examples of areas where we use fixed fees include patent litigation and patent preparation
and prosecution. For litigation, we structure fee arrangements by dividing the litigation into phases and
setting monthly fixed fees in each phase. With predictable case schedules in most venues, this translates
to a fixed fee for the litigation. For patent preparation and prosecution, we set fixed fees for attorney time
for new patent filing preparation and for office action responses. The fee for those projects is set ahead of
time which adds greater predictability to our spend for budget planning purposes. We also use fixed-fee
arrangements for much of our mergers and acquisition work.
§;Contingent fees – We implement these types of fee structures for plaintiff litigation work.
OTHER VALUE PRACTICES IMPLEMENTED BY THE LAW DEPARTMENT
§;Convergence efforts – Is focused on consolidation and selective use of lower-cost and or highly efficient
regional and local legal service providers and contractors.
§;Preferred provider discounts – The law department implements practices that include having a list
of preferred providers for outside counsel services; standard negotiated discounts are part of these
§;Early case assessments – We regularly request that counsel provide early case assessments and seek early
resolution where possible and practical.
§;Litigation management practices – We require frequent cases updates to continue periodic review of the
docket for assessment and resolution.
ESTIMATED COST SAVINGS
Overall cost savings are difficult to reliably estimate or substantiate. Our expectation is that the value-based fee
arrangements that we currently have in place are effectively cost-neutral. However, the key incentive for using
these arrangements is that they greatly increase the predictability of spending expense across months and quarters,
thereby increasing our budget forecasting and planning accuracy.
MOST VALUABLE PRACTICES; PROVIDED GREATEST RESULTS
All of the above practices have netted benefits to the law department and company. Benefits of each of the above
practices are unique to the different practice areas where we use alternative fee arrangements.