50 not out: Murgitroyd reflects on IP ‘pioneer’ role

Thank you to Managing IP for originally publishing this interview. 

As it celebrates its 50th anniversary this year, the firm discusses private equity interest in IP, why the UPC is a key priority, and being a ‘strategic adviser’ to clients.

“We have a strong history of taking a different path and producing industry firsts.”

Gordon Stark, CEO of intellectual property firm Murgitroyd, is in a reflective mood as the firm marks its 50th anniversary this year.

The Glasgow-founded organisation, which became the first UK IP firm to list on the stock exchange in 2001 before delisting and receiving private equity (PE) backing in 2019 (more on that later), has taken on its share of industry firsts.

And in trademark style, the business has its eyes firmly on the future.

Speaking to Managing IP, Stark (pictured) is keen to consider where it can bolster its offering, with one option being the unitary patent and the Unified Patent Court (UPC).

The firm’s patent group has around 200 people, with electronics and software the strongest sector by client representation. The firm is ranked in tier 3 for patent prosecution and tier 2 for trademark prosecution in the UK by IP STARS, Managing IP’s accreditation title.

“We are seeing increased uptake of unitary patents, so we can provide clients with that strategic view depending on what route they want to go down [unitary or European patent].”

He adds: 

“If Germany continues to be the lead jurisdiction for UPC activity, we may look at increasing our capability there. We have four patent attorneys in Munich now, and it might be a good place to try and expand our offering.”

For most litigation, the firm teams up with partner solicitor outfits or IP boutiques, but it has worked as support for representatives involved in UPC litigation.

Stark notes that the UPC’s structure – the court’s local divisions combine legally and technically qualified judges – aligns with Murgitroyd’s approach to advising clients.

Strategic advisers #

Murgitroyd combines traditional attorney-driven patent and trademark prosecution with strategic advice on portfolio management and IP audits – making it well-placed to help clients navigate the relatively new European system, according to Stark.

“We offer something different [from traditional law firms] in combining technical expertise and commercial awareness. By combining these qualities, we can provide a one-stop shop for clients’ IP needs.

“We’ve always tried to be close to clients and act as a strategic partner rather than a pure legal adviser,” 

he says, adding: 

“IP should be seen as part of a solution to a business challenge.”

This strategic advice involves coordinating prosecution, filing strategies, renewals, portfolio reviews and, in some cases, portfolio ‘pruning’.

The role of IP as a ‘solution provider’ is perhaps not something that has always been recognised beyond the confines of IP firms, especially at board level of corporate entities, but Stark believes this attitude is changing.

“I get the sense boards are asking more questions about investment in IP and the value it brings, and they are now looking to monetise IP,” he says. “Historically, in corporate boardrooms, IP has been seen as a cost, but now the narrative is about how IP can fit into the wider business.”

Industry first #

If the firm does indeed expand in Munich, or elsewhere, it will perhaps come as little surprise given its financial backing and history of growth.

Murgitroyd has undergone a string of acquisitions and has opened several new offices since it listed on the stock exchange in 2001, becoming the first UK-based IP firm to do so at the time.

Listing, says Stark, allowed the firm to build a pan-European network. It acquired several firms in the UK, French outfit Cabinet Bonneau, and opened new offices around the UK, Europe, and the US.

In total, the group made eight strategic acquisitions during that time, with offices in countries including the US, Germany, France, Italy, Ireland, and Finland, as well as in Central America.

The firm delisted in 2019 following acquisition by PE company Sovereign Capital Partners, which bought the business for £65 million ($85 million).

Edward Murgitroyd, who was CEO at the time, departed a few months after the acquisition and has previously spoken about the potential pitfalls that can come with PE owners.

Stark, however, believes Murgitroyd set a trend that some other firms have explored.

“For quite some time, we were alone in our listing and in having PE investment. We were pioneers, but it now looks commonplace,” he says.

In the last few years, firms including HGF, Rouse, and Ipsilon have all sold stakes to PE firms.

Stark adds: 

“One of the positive things is the ability for investment to underpin change, whether that be in investment in tech, or growth through acquisitions. The IP market is very fragmented, and market consolidation can be a route to growth.”

On the tech side, the firm is exploring options.

“Adopting the right tech tools is a key consideration in what is a rapidly moving market – do you build it yourself or partner with others? Innovation has to benefit the client as well.”

Stark notes that the firm has developed an AI tool to provide clients with quotes for global filing programmes for their trademark portfolios.

Previously, staff would have had to manually request quotes from international agents, but now the firm can conduct most of the service automatically, reducing internal administration and providing quicker results for clients.

The service began to be deployed within the last month.

But beyond PE and AI, what does the future hold?

“50 years is a landmark – we are in a sector where many traditional partnerships have been around a lot longer, but it's nice to reflect on what we have achieved,” says Stark. “We are looking forward to what comes next.”