What’s Going On at Finnegan Henderson?
The Great Recession has been tough for many different types of firms — and that even includes intellectual property firms. During the past year, IP-focused shops have cut back on hiring, slashed salaries, and lost key partners to larger firms.
A few recent developments at Finnegan Henderson, the D.C.-based IP powerhouse, reflect the new realities. Multiple sources report the following:
1. Earlier this week, at an “all associates” meeting, the firm announced that it is freezing associate salaries.2. At the same meeting, the firm announced that it is reducing first-year associate salaries from $160,000 to $145,000 (in all offices).
UPDATE: We understand that Finnegan has frozen support staff salaries as well.
Two additional items about Finnegan, after the jump.
The next two items are not as well-sourced as the first two, so they should not be seen as completely confirmed:
3.. The firm’s offer rate for its 2009 summer associate program came in at (or below) around 50 percent.4. Some associates are quietly being asked to leave, getting six months to find new jobs.
If true, that’s generous; six months is on the high side in terms of time given to get a new job. Most firms seem to give their lawyers around three months.
We reached out to Finnegan managing partner Richard Racine for confirmation and comment, but he did not return our email or voicemail messages.
UPDATE: From one source with knowledge of the D.C. legal market:
What you posted, specifically #4 (about stealth layoffs) is probably true. Finnegan Henderson has traditionally done everything in its power to avoid admitting that the firm lays off people for economic reasons. They are terrified of being seen as anything other than the biggest and the best. I’m sure the people being asked to leave are, relatively speaking, the weakest performers, but I would be shocked if they are admitting that the slowdown in work is obviously the main impetus. Those patent partners are very crafty when it comes to inventing creative ways to lay off attorneys and making them disappear.
If you have any corrections or additions to the foregoing, please email us (subject line: “Finnegan Henderson”). Thanks.
(56) Comments
Comments
First to say UVA blows.
Mission Accomplished!
1 -
That's a bit harsh. UVA is a fine backup school.
Finnegan -- Beginagain?
NEERRRRRRRRRRRRRRDDDDDDDDDDDDSSSSSSSS!
Sincerely,
Ogre
That's the second firm (First being Fish & Richardson) to have recruited me only to announce layoffs/ salary freezes a year later.
I love working at an IP boutique!
Man, Latham is coming up roses!
I am in desperate need of an update on the status of the ship.
Yikes - I hear that IP lit is going down the tubes. This just affirms what I heard.
8,
There are reports of a leak, but the orchestra is still playing on the deck...I don't get it.
Regards,
Micheal "Sugar" Ray Richardson
Yikes - I hear that IP lit is going down the tubes. This just affirms what I heard.
It would appear that the non-peer firm of FH has come to its senses by embracing my hybrid tough love package with a bear hug. All of you optimists that believe in Commissar Obama's hope and change should take note that a 10,000 point dow doesn't mean the economy has recovered. Unemployment continues to climb while Fortune 500 companies are relocating plants and operation facilities overseas. America will soon become a wasteland of freeloaders while the idustrious will flee to escape the Commissar's oppressive tax scheme. Thomas Hobbes once wrote about the state of nature being a civil strife amongst brutes. Who knew Hobbes was describing Obama's America?
It would appear that the non-peer firm of FH has come to its senses by embracing my hybrid tough love package with a bear hug. All of you optimists that believe in Commissar Obama's hope and change should take note that a 10,000 point dow doesn't mean the economy has recovered. Unemployment continues to climb while Fortune 500 companies are relocating plants and operation facilities overseas. America will soon become a wasteland of freeloaders while the idustrious will flee to escape the Commissar's oppressive tax scheme. Thomas Hobbes once wrote about the state of nature being a civil strife amongst brutes. Who knew Hobbes was describing Obama's America?
Go to a job search board in DC: you will find those asked to leave are in for a soft landing.
Well, at least before their stealth layoff was made public to every recruiter and competing firm. Oh well.
Is there a equity claim in contract these associates could make?
Is there an equity claim in contract these associates could make?
Yikes - I hear that IP lit is going down the tubes. This just affirms what I heard.
Marshall Dennehey Overbrook to $42 k !
Go to a job search board in DC: you will find those asked to leave are in for a soft landing.
Well, at least before their stealth layoff was made public to every recruiter and competing firm. Oh well.
I heard that the six months severance is being paid in the form of a promissory estoppel note (with Kash's image as the watermark).
PE,
Hobbes also wrote that life was nasty, brutish, and short. It was true at the time.
Unfortunately, now old people refuse to die and the young and productive must toil endlessly to pay for their pills and procedures. The middle class and industrious are having fewer kids and will flee with their capital to friendlier jurisdictions.
Is PE an undergrad?
I seriously never heard of Mr. Finnegan Henderson before. Who is he anyway? What he have to do with a law? This brog really going downhill.
Any idea on how many associates been asked to leave? According to NALP, they have a huge incoming 2009 class and they previously hired lots of 3L's. Any news on deferrals and revoked offers?
Seems like things are pretty awesome in Asia.
@18, that's good money in Overbrook
I just want to tell Justice Ginsberg good luck, we're all counting on her.
23 Just jumped the shark into "Below the Law" guy territory. Are we going to get that post in every thread?
Hang on, Ruthie. Ruthie hang on.
Wow. FH was the one firm that remained quiet during this tough period. I was hoping they wouldn't make any headlines. But it's official now...nobody is secure (except for that damn DOJ SECURE chap).
There is a surprising lack of T's in the name "Finnegan Henderson."
Not every IP can hire 3Ls and have 100% offer rates like Knobbe.
Salary Freeze + Pay Cut For 1st Years + NO LAYOFFS = WIN.
33, did you even read the rest of the post?
IP Freedly
It’s surprising that FH has managed to keep it quiet for this long. Stealth layoffs have been going on for months.
#32 - All you nerds should go to Knobbe where you can make partner in 5 years, but as a partner get paid like a third year associate and have no voice. I summered there a number of years ago and wouldn't go into partnership with 90% of their partners. Now that I know what I'm doing that number would probably be closer to 95%. That's a silly place.
Never heard of this firm. "IP powerhouse," indeed.
38 - you're an idiot. FH is one of the premier IP firms out there. If you've never heard of it, then you're no IP lawyer.
The ship be sinking...
39 - You should learn to recognize a troll when you see one.
38, if you don't know Finnegan and Fish, you don't know IP. But not to worry, both will be gone by the new year.
agree with 37. Knobbe wants to overtake Fish & Finngegan, and they probably will. but having been opposite them, they're nothing spectacular. probably charge better rates than big law but also have some pretty terrible experts and poorly drafted motions.
#1: IP Lit hasn't gone down the tubes, in general. Some firms' practices have dried up. Those practices were dominated by patent TROLL cases(in the TRUE meaning of the word). These trolls cannot find funding in the current market to pursue their actions, so they are waiting for the credit market to rebound to file more obnoxious claims.
#2: Knobbe did NOT have a 100% offer rate, idiot
44 - ooooh, i see. IP is OK. That explains why one of the premier IP firms has slashed salaries, laid off fine associates, and no-offered a ton of summer associates. I get it!
Or are you saying that one of the finest IP practices around entertained mostly TROLL cases?
Which is it?
In reply to #44, IP litigation has not gone down the tubes the average spending on IP litigation by corporations has just decreased by 14% for FY 2009. In addition, I think clients are more willing to settle.
On the prosecution end, worldwide the number for new filings is down by a lot.
In helping clients to obtain patents ("preparation and prosecution" in the patent lingo) work is down and budgets are squeezed. How many $4500-$6000 original applications could Finnegan do with its business model? I don't think that the prep and pros practice will ever go back to the same budgets as before.
Ediscovery stuff is making sure that each patent litigation is even more expensive than the last! So really, litigation won't hurt for long.
39, Finnegan sucks. McKool Smith is a much better IP litigation firm.
Finnegan is not a good firm. Period. End of story.
I have determined, after much thought, that the problem with IP is that it includes the word property. When I came to office I was surprised to find that the predecessor administration had not addressed the tough question of separating intellect from property. My administration is moving forward with all due speed to rectify that situation. In the coming weeks my IP czar will propose legislation decoupling the notion of invention and the concept that the inventor has any right to the invention. As a result, inventions will now be free as well as plentiful and the middle class will no longer be hostage to the inventors' special interests.
In summation, intellectual propery will be replaced by intellectual brotherhood, a far more spiritually profitable regime. One day, hopefully, we will all be IB lawyers.
Barack x.
Finnegan prospered because they have some senior partners who are huge rainmakers. They are getting old. After they are gone, there are probably only half a dozen true rainmakers after that, who are now in their mid 50's or so. After that, there is nobody.
Finnegan's rates are too high for prosecution work, and they are quickly becoming or have become indistinguishable from other top litigation firms.
Finnegan will fail.
50 = EPIC FAILURE FOR WRITING THAT IN HIS UNDERPANTS.
51 is right. If 1 or 2 of the right partners leave the whole house of cards comes crashing down
31 - the full name is Finnegan Henderson Farabow Garrett and Dunner, so plenty of t's for you to work with.
That being said, I still doubt they will fail. 51 and 53 are a little off base. Last time I checked, there were plenty of younger partners coming up with good bus. dev., and they tend to pass the torch along pretty well.
I have heard a mixed bag from people I know there - some are very busy, others have no work, and everyone is nervous. I have also noticed some surprising departures from the website.
In any event, it would be a shame is they didn't make it. The fact is that they do far better work than their GP competition. Most ip boutiques do better IP work than the gp firms, in my opinion (I have worked at both types of firms).
does finnegran ask their attys to sleep with clients ?
that could explain their current difficulties
52 = Sean Hannity