XxxxxxxxxCover story xxxxxxxxxxxx A&O By Natasha Bernal WE PA litigationL empireAY on which the or years, magic circle firms have invested in On a global scale, all of the 30 largest litigation firms sun never sets – that’s A&O’s plan, corporate and finance to try to capture in the world eclipse A&O; at the top of the list, Dentons and it is investing big-time in the high-profile global clients. But Allen & Overy has a total of 352 litigation partners; DLA Piper has initiative. But will it pay off? (A&O)’s shift towards litigation suggests the three times the amount of partners as A&O; Kirkland & Ffight for big clients may no longer be in the boardroom, Ellis boasts 287; while Jones Day has 268. but in the courtroom. True, A&O could bulk up through lateral hires, but If the firm’s wager goes according to plan it will this would hardly help secure new lines of business from TO become first in line for big-ticket litigation work on both big corporates. At a series of meetings, conference calls sides of the Atlantic as well as in Asia. In short, the sun and brainstorming sessions last year, litigation partners will never set on the A&O litigation empire. quickly set on a trump card: IP litigation. “In 2008 [the litigation practice] made up 10 per cent of A&O’s revenue,” A&O global litigation head Tim Strategic pillars House tells The Lawyer. “We went back to the board in “IP and patent litigation rapidly emerged as strategic September [2016] to refresh the mandate. We want to pillars for the firm,” global IP head and IP litigation make 25 per cent of the firm’s global revenue.” partner Nicola Dagg says. “It’s global, it’s modern and WIN But A&O’s litigation practice has a long way to go it’s sophisticated. Our global footprint and expertise before it pushes ahead of its magic circle competitors. matches our footprint.” Should the litigation practice reach its target it would be A&O’s 82 lawyers in the UK, continental Europe and evenly matched with Freshfields Bruckhaus Deringer, Shanghai, will see an investment bonanza. where litigation contributes 25 per cent of the firm’s On the surface, the new business presented to A&O global revenue. Right now though, litigation at A&O management by House and Dagg is simple. Hire key contributes 19 per cent – below Linklaters (20 per cent) laterals in IP litigation as a launching pad to build up and above Clifford Chance (18 per cent). Europe, China and eventually the US; and use those To achieve this growth and be seen as a serious player relationships to leverage the firm’s influence advising in litigation A&O needs to invest in headcount. Accord- high-profile corporates on day-to-day matters. ing to figures from The Lawyer’s Global 200 A&O, with The first step was to grow London. Compared with 99 partners, is stuck in the middle of the magic circle other magic circle firms, which have lean IP litigation pack in terms of litigation partner numbers: below teams of around two partners apiece, A&O now stands Freshfields’ 106 and above Linklaters’ 90 and Clifford out with nine partners and counting. PHOTOGRAPHY BY MICHAELDONALD.COM BY PHOTOGRAPHY Chance’s 89. “From an IP perspective we’re playing a big 44 The Lawyer | The Ambition Issue | May 2017 TheLawyer.com @thelawyermag May 2017 | The Ambition Issue | The Lawyer 45 Cover story A&O strategic ballgame,” Dagg says. “We have had clients and none had client conflicts with the firm – partly because Top 10 law firms by case days Top 10 law firms by cases others comment that we have now got an extremely Simmons is known for representing innovator compa- in IP litigation (2016) in IP litigation (2016) strong team and people have recognised that as a step nies in court rather than generics. change in the market.” Sources close to both firms claim these hires secured How London’s litigation Rank Firm Case days Rank Firm Cases Without major US capability, the majority of IP liti- succession plans for Dagg at A&O, and simultaneously 1 Powell Gilbert 47 1 Powell Gilbert 13 gation-heavy UK firms are playing it safe, keeping their dashed those of Simmons. aristocrats line up 2 Taylor Wessing 32 2 Bristows 10 teams slim and focusing on the big battles raging in the “Simmons is a high-quality IP group – no-one under- 3 Bristows 30 =3 Bird & Bird 8 domestic courts. But while they opt for caution, A&O is stands why they left,” a source claims. “I think there was A&O is listed in both 4 Bird & Bird 25 =3 Taylor Wessing 8 busy playing a completely different game. some element of succession planning for Nicola Dagg. the top 10 firms by 5 Simmons & Simmons 21 5 Gowling WLG 7 number of cases “We’ve seen five years of high demand in life sciences They’ve been trying to recruit for a long time but they 6 Allen & Overy 17 6 Olswang 6 and the top 10 firms for patent litigation,” Dagg says. “We’re working on the haven’t been able to build up.” by number of case 7 Hogan Lovells 15 7 Hogan Lovells 5 biggest, highest profile cases in the market. We recognise There may be some truth in that. Since the Simmons days in The Lawyer’s 8 Gowling WLG 14 =8 Allen & Overy 4 this and, based on client feedback, we need more hires it’s been all musical chairs in A&O’s litigation prac- Litigation Tracker. 9 DLA Piper 13 =8 Marks & Clerk 4 breadth and depth – that’s what’s behind the investment. tice. After Dagg’s ascent to global IP head, House took While litigation 10 EIP Legal 13 =8 Simmons & Simmons 4 represents around “Our big corporate clients expect a sophisticated IP on the extra role of US managing partner. Source: The Lawyer Litigation Tracker 18 per cent of A&O’s practice within A&O and this will be a response to that.” Meanwhile, in Dagg’s team Stone was global revenue, this Some question whether this plan is good business sense named head of brands and Döring was made has grown consider- or is just a matter of big personalities making a persuasive London IP head. A&O IP team scorecard ably, from 10 per cent in 2008. argument. After all, one source jokes, who could be more Dagg dismisses these theories. 2015 2016 difficult to argue with than a patent lawyer? “I don’t think any of the London hires are A&O IP part- ners have mainly “IP litigation investment isn’t traditionally what the succession plans at all,” she claims. “I’ve taken instructed barristers magic circle has done,” a patent litigator says. “They go on the role of global head of IP, which was from 3 New Square through phases of it being fashionable, but they’ve entirely expected. I’m not going anywhere, and 8 New Square 15cases cases7 closed down their patent litigation capability in the past I’m in London, I’m not moving anywhere. It’s alongside compe- because it’s not as profitable as their other work.” about needing a bigger team and needing tition advice from Monckton Square in A&O’s strategy is a complete U-turn from 10 years more breadth and depth within the practice. the past two years. ago when it was doing a lot of M&A work but not much “We are illustrating to clients that we have Simmons & Sim- IP or patent litigation. But partner Neville Cordell, who a phenomenal team now – the best in the 20 mons partners relied joined the firm in 2009 from DLA Piper, insists this is London market. We’re able to show to clients case30 days case days on the same sets. a long-term strategy coming to fruition rather than a that we’re doing work from patents through An increase of cases from a single change of pace. to trademarks. The clients are always the firm rather than two Case that set a “This is different from what the [other] magic circle most important thing.” separate entities new standard in firms are doing,” Cordell claims. “IP litigation is impor- Perhaps the most significant hire for the cases from the same fees – the ‘Dagg’ tant and we think other firms are making a mistake going firm to illustrate this point is brand expert 8 1 client could make the opposite way. Back [when I joined] it was a lot Stone. With Stone the firm gained a trade- wins wins chambers nervous, In 2008 A&O was slammed by the but sources close to smaller, but you can see over the years we have grown.” mark practice with work from headline clients High Court for racking up almost the sets describe it as £5.2m in costs and spending the such as Coca-Cola and Amazon, and found a “strengthening of equivalent of nine years of The Simmons coup the missing piece of the puzzle that links pat- the relationship”. manpower for a five-day trial. A&O has been prolific in raiding talent from Simmons & ent litigation with day-to-day work. “Your eggs are In the now-infamous patent Simmons in particular – four partners and six associates A lot of clients in the trademark side want 6 5 in one basket with infringement case Research In losses losses Dagg,” a source joined the IP litigation team in London in the past year a one-stop shop, Cordell says.