The Prospects for a Law Firm to Diversify in Offering Service - Research Proposal Example

1. Introduction 1 Background People who start new technology companies need sound advice; firms that engage in the development of new technology face difficulties in enjoying the results. Technology is required by both the service sector as well as the manufacturing sector. The manufacturing sector could require it to introduce a new product, assess the feasibility and viability of an existing product or determine why the product has not taken off as envisaged. Technology which has been developed for a particular industry for a specific customer by another firm or by themselves is the intellectual property of that firm. Attempting to imitate successful innovations and adopt the technology is abuse of intellectual property rights (Helpman, 1993). The developed market economies use various methods to prevent abuse of such property. Patent, trademark and copyright laws help to prevent the abuse of such property. This problem is very pronounced in the developed countries where infringement of intellectual property rights (IPR) is very rampant and the US companies lose billions of dollars as a result of such infringements. The developers or producers of intellectual property have an incentive to produce only if they are able to enjoy the innovation and creativity (Besen & Raskind, 1991). If a product can be cloned or if private copying is widespread, the purpose is defeated. Such intellectual property needs the right protection to safeguard the interests of the developer. 1.2 Rationale for research While there are several law firms engaged in offering this service, it has been felt that ABC & Co, an existing law firm should consider diversifying into this branch of service. They would concentrate on intellectual property protection in the software industry. They have so far concentrated on immigration law and this would be an entirely new area of service. The number of businesses in this region is increasing and companies are losing the benefit of developing intellectual property. They would prefer to spend for the protection of such property rather than lose the benefit of developing them. To determine the feasibility of diversifying into this area, it has been felt necessary to conduct a research. 1.3 Research problem What are the prospects for an existing law firm to diversify in offering service towards protection of intellectual property rights? 1.4 Research Aims and Objectives a. How many firms in this region are offering this service? b. How many customers do each of them have who seek services in protection of intellectual property? c. How many new firms are expected to be established who are likely to request for this service? d. How would it impact upon the existing services offered by the law firm? e. The competency that would be required to offer this service. All of these questions would help to determine the viability of diversifying. Since this is a people-centric service, the right people are required for successful implementation and hence the necessary qualifications have to be determined. The study would enable to determine if the existing manpower can be trained in this sector or expertise would be required. 2. Secondary Data research and situation analysis An organization’s intellectual property is its biggest asset in today’s world. Intellectual Property (IP) is defined as any "original creative work manifested in a tangible form that can be legally protected" (cited by Raman, 2004). IP is the creation of the mind, a technological innovation like poetry or a design (Gupta & Rustogi, 2002). It protects the rights of the individuals who have transformed their ideas into property by granting rights to the owners of these properties. IP includes industrial property like the patent and trade marks or copyrights under which the software programs fall. Protection of IP enables the creators to benefit from their work. it promotes creativity and the developers receive the due credit. In the US, the IP rights in computer programs are protected by Semiconductor Chip Protection Act of 1984 (Raman). The IP protection in the computer and software industry is required in every field, be it the healthcare, education or businesses. In an academic institution, respect for IP rights is central to education and learning. IP is no more restricted to physical material and includes software and web-based material (Raman). The US constitution grants the power to promote the progress of science and the useful arts by granting exclusive rights to authors and inventors for limited times (Wikipedia). IP rights have limitations or term limits, which means they need to be renewed. In the digital era, new challenges have been posed for the IPRs. The jurisdictional issues relating to the internet are challenging the IPR regime drastically. The internet has made information exchange easier. While laws in cyber space are still taking shape, traditional laws such as copyright are relevant in the electronic world. Software piracy needs to be prevented through policy. Due to increased outsourcing in the computer software industry, intellectual property transfer takes place to another country where the IP protection rights may not be very strong. The widespread diffusion of internet has created new channels for low-cost distribution and marketing of packaged software (Graham & Mowery, 2007). This has reduced barriers to entry in the software industry. The internet is also an important factor behind the growth of patents for business methods, which need not be sold directly to end users. Copyright protection for software innovation was singled out by policy makers in 1970s as the preferred means of protecting software intellectual property. The dominant firms in the US software industry rely on the sales of standard products to mass markets. Hence the formal instruments for intellectual property rights have assumed greater importance despite their evolving legal status. The rights of the owners have been strengthened due to the legislation. The large firms in the US are shifting towards a patent-intensive approach for the protection of their intellectual property. Thus the secondary research suggests that the market for protecting the IPR is very high as different types of firms and institutions seek to patent or protect their intellectual property. Even education institutions and the healthcare sector harbor their own intellectual property. The US legislation is yet to develop for the software industry but the existing copyright laws apply. The reasons and benefits of protection of IP are well known. The right to the intellectual property is granted for a limited period which means the firm has to renew the rights. This indicates repeat business of the client for a law firm. Hence, the secondary research establishes the potential for diversifying or adding this service to the existing law firm but a law firm would need to confirm the potential through primary research. No law firm should make a business decision without the appropriate objective market research. 3. Primary research design The research design begins by determining that there is a lucrative market to provide solutions support for protection of IP, based on the secondary research and the situation analysis. Nevertheless, it is not sufficient to make a decision based on secondary research and hence primary research or market research has been considered necessary. Market research is the process of systematic gathering, recoding and analyzing of data about customers, competitors and the market. It would help to create the right business plan for diversification. The value of market research lies in what you do with the objective information you acquire; how you use it to make better decisions (cited by Raasch, 2006). Primary research is original research where information is collected directly from the respondent and could be either qualitative or quantitative depending upon the information required by the firm. Amaratunga et al., (2002) suggest that research strategy should be chosen as a function of the research situation. Each strategy has its own approach to collect and interpret data and hence its strategy has its own advantages and disadvantages. Logical positivism employs the quantitative and experimental methods to test deductive generalizations (Amaratunga et al.,). This requires independence of the observer from the subject being observed. Hypotheses have to be formulated in advance for subsequent verification. The explanations in this method are reduced to the simplest possible elements in order to facilitate analysis. Positivism claims that generalizations can be made from a set of events in that past and future decisions can be taken accordingly. The quantitative approach places great stress on numbers that represent opinions or concepts. For this research the quantitative method (deductive) of research will be used. Quantitative investigations look for “distinguishing characteristics, elemental properties and empirical boundaries’ and tend to measure “how much” or “how often” (Nau, 1995 cited by Amaratunga et al.,). Quantitative research designs determine the truth value of propositions and allow flexibility in the treatment of data in terms of comparative analysis, statistical analysis and repeatability of data collection in order to verify reliability. For a law firm quantitative research can help to determine client satisfaction, the impact of marketing programs, to quantify the size of new markets and new opportunities and to determine which new and existing legal services the clients intend to purchase in the future (Raasch). The quantitative approach places great stress on numbers that represent opinions or concepts. Quantitative research can be conducted in person or by mail, telephone, email or the Internet. For the purpose of this research, online surveys would be conducted as it helps to capture a widely dispersed population and protects the identity of the respondent (Raasch, 2006). It also increases the participation for those who have social inhibitions. Online surveys have become a very popular means of gathering data. It permits quicker answers because respondents can fill and send the questionnaire easily. That’s also why the response rate is quite high. It also allows an easy territorial and geographical coverage. Finally, this method of administrating questionnaires not only avoids any influence of the interviewer on the interviewee’s responses, but also saves costs in relation to sending the questionnaire by post. Self-completed questionnaires would be sent out as this method of data collection allows the ability for unambiguous quantitative data to be collected (Redmond & Griffith, 2003). The format will be kept relatively simple and straightforward as there is little control over the respondents’ interpretation of questions. The questionnaire would also be sent out to the existing clients and questions pertaining to their opinion on the existing services by the law firm would also be obtained. To send out the questionnaires it is first necessary to compile a complete list of the existing law firms along with their email addresses, in the region along with a lost of the major businesses/institutions that would be potential customers. Surveys would have to be properly designed with measurement in mind. If the correct process is followed in conducting the quantitative research, the results of the survey will represent the attitudes or behaviors a much larger universe (Raasch). It is more time consuming and costlier than qualitative research but the results are more accurate. Cost and time line The costs for conducting the research would be under various heads: a. Compiling of the list of the existing law firms already offering this service b. Compiling a list of the existing clients of the firm c. Compiling a list of potential customers/companies/educational institutions/healthcare units – all under different categories d. Secondary support would also be taken from the data already available with LexisNexis who are the leading providers of client development solutions for the legal profession (Reed, 2006). This would come with a cost but greatly facilitate the research process as ready data on the clients and their liquidity position would be available. This would eliminate the need to sort the compiled list to send out the questionnaires. It gives comprehensive market information including the competitive environment. e. Cost of preparing the questionnaire f. Cost of sending out the emails g. Cost of compiling the information received h. Cost of analyzing the data The time taken would also have to be strictly adhered to so that no overrun is allowed. November 2007 Purchasing the data from LexisNexis and compiling lists as above, discussing with the law firm, subscribing to periodicals and journals to collect data December 2007 Preparing the questionnaires and sending out the emails January 2008 Ten days’ time would be allowed for completing the questionnaires and sending them back. This is in view of the possibility that many respondents may be away or not able to access mail or not have sufficient time at one go to complete the questionnaires. February 2008 Collecting and compiling data, analysis and interpretation of data. March 2008 Presenting the results of the research to the law firm. Data analysis After data collection data analysis is done to give the raw data any meaning. The first step in analyzing the data is data cleaning. At this stage raw data is checked to verify that data has been correctly entered into the files from the data collection form. The data then has to be coded. During this stage the variables are assigned a numerical value. After this the data is tabulated and this refers to the actual counting of the number of observations that fall under different category. After this starts the process of analyzing data. Data analysis consists of data reduction (this starts early in the analysis), data display and conclusion drawing and verification (Miles & Huberman 1994 cited by Weerd-Nederhof, 2001). Data reduction refers to selecting, focusing, simplifying, abstracting, and transforming raw data collected through questionnaires. Data display is a visual format that would display the data systematically so that the user can draw valid conclusions and take appropriate decisions. Better displays lead to qualitative analysis. Display should have the sequence of building the format, entering data, drawing conclusions, writing analytical text, and cycling onward to revised or new displays. Data would be reduced as responses starts coming in and then for drawing conclusions patterns will be formed, contrasts would have to be looked into, which would clarify relationships and make the understanding coherent. Once the constructs are measured and relationships verified hypotheses can be shaped. Sphinx software which is personal computer based analysis software will be useful to establish relationship between variables. The data would be analysed by the use of scales like Likert scales and Semantic Differential scales (Amaratunga et al., 2002). Limitations – reliability and validity There is no unique research method and each method has its own difficulties. The categories listed for research may not be comprehensive or may require further sub-categories. Besides, it is difficult to predict how many participants would be willing to respond in the first place, and then how many would register true opinions. Attempts have been made to ensure the reliability and validity of the data collected. Validity is an important part of the research. “A valid measure is one which measures what it is intended to measure” (De Vaus, 1991 cited by Amaratunga et al.,). A measurement procedure is considered reliable if it comes up with the same results in the same circumstances repeatedly and even if measured by different people. It is expected that that data analyzed and the outcome would contribute to the existing knowledge and make the decision making process easier for the law firm. References: Amaratunga, D., Baldry, D., Sarshar, M., & Newton, R., (2002), Quantitative and Qualitative Research in the built environment: application of mixed research approach, Work Study, Vol. 15 No. 1 2002, pp. 17-31 Besen, M., & Raskind, L. J., (1991), An Introduction to the Law and Economics of Intellectual Property, The Journal of Economic Perspectives, Vol. 5, No. 1. (Winter, 1991), pp. 3-27 Graham S. J. H., & Mowery, D. C., (2007), Intellectual Property Protection in the U.S. Software Industry, 11 Oct 2007 Gupta, G., & Rastogi, A., (2002), Intellectual Property Rights: Who Needs Them? 12 Oct 2007 Helpman, E., (1993), Innovation, Imitation, and Intellectual Property Rights, Econometrica, Vol. 61, No. 6. (Nov., 1993), pp. 1247-1280 Raman, K., (2004), Protecting Intellectual Property Rights through Information Policy, 12 Oct 2007 Redmond, E. C., & Griffith, C. J., (2003), A comparison and evaluation of research methods used in consumer food safety studies, International Journal of Consumer Studies, 27, 1, January 2003, pp17–33 Reed (2006), New LexisNexis Market Intelligence Offering to Provide Corporate Transaction Data for a Full View of Clients & Prospects, 12 Oct 2007 Weerd-Nederhof, P., (2001), Qualitative Case Study Research: The case of a PhD Research Project on organising and managing new product development systems, Management Decision, 39/7 (2001) 513-538 Wikipedia, Intellectual Property, 12 Oct 2007 Read More