TransTasman risks, page-19

Many of the attorneys have vested interests in keeping a high stock price, be it IPH, XIP or QIP. With the recent purchase of GH most of the practicing attorneys are working within a corporate environment.

From what I heard, many of the employee attorneys are unhappy and looking to leave or set up their own practices. Law firms exploit the labour of young attorney, who work 12 days in the hope of one day making partner and making the big money. It is no longer an option.

The partners are running for the door because profitability of a patent attorney practice is directly related to the number of patent filings.

In Australia in 2015 there were 913 from PCT national phase applications Australians and 20,120 from foreign applicants. With few exceptions these would have been filed by patent attorney firms.

When ePCT (national phase) takes effect those 20,120 foreign applications would be filed by the originating foreign US, UK and JP attorney firms.

In other words, the total number of filings managed by IPH, XIP etc will fall to about 5% of the current numbers. In fact it will be less because the firms will strong local client base are not selling.

Good luck with the long term share price.