Companies: RWS    VIS   

Globalisation and the world wide web have made intellectual property (IP), historically a devilishly difficult asset to defend, even more tricky for companies to protect.

It’s now no longer about IP protection within the confines of the traditional nation state – the defence of copyright, trademarks and patents now needs to be done in countless key territories and legal jurisdictions across the globe and – most problematic of all – in multiple languages.

It’s an expensive and necessary task for businesses, and one that brings many into contact with Brode’s RWS Group, a venture which focuses on high-quality translations and IP searches to protect its clients’ assets.

According to Brode, who is also a non-executive director of Vitesse Media, his firm tries to offer ‘IP peace of mind’ to its roster of clients (the largest of which is AstraZeneca) from its offices throughout Europe, North America, Japan and China. Although UK incorporated, Brode explains that ‘Germany is our biggest market, though our new office in Beijing will afford significant opportunities.’

Interims from the company, for the six months to March, saw profits leap 29.2 per cent to £4.5 million. Net cash hit £16 million and in a recent missive to the market, Brode confirmed the group would ‘surpass expectations’ for the year to September. The market had been hoping RWS would hit profits of almost £9 million on revenues of £40.98 million.

Simple and easy service
‘Translation services account for around 90 per cent of our business,’ he says, ‘and we’ve carved a niche in patent translation, which is a specialised area requiring a high degree of skill. If you’ve got a patent that needs interpreting for an overseas market, your only other option is to use a patent lawyer, for whom translation is not their core business, or recruit a number of freelance translators directly, which when you’re dealing internationally can be complicated.’

RWS also provides technical intellectual property searches for industries such as aerospace, automotive, pharmaceutical and telecoms. It checks licences already in existence using its proprietary product called PatBase. ‘We believe this is now the largest international database of patent families, which is automatically updated by patent offices around the world,’ says Brode. ‘Now we’re giving subscribers access to this through a third party and it’s our fastest growing revenue stream.’

Fate played its part
RWS appeared on Brode’s radar through his involvement with 3i’s independent non-executive director programme, which led to placements in several media companies in the UK and Germany in the early 90s. The first of these was Video Arts, a buyout from entertainer John Cleese and Tony Richardson. Then RWS came calling.

‘In 1995, 3i approached me with an offer from a family who wanted to sell a professional translations business. On the same day, I’d been reading an article in the FT about a company in Gerard’s Cross that had won a Queen’s Award for export. It turned out to be the same company, which was an enormous coincidence.’

The company was based just eight miles from Brode’s home, another fortunate twist of fate. ‘I often joke that I would never have bought it if it had been in Tunbridge Wells on the opposite side of the M25!’

He acquired the company with 3i (he owned 75 per cent) with finance from Barclays, and RWS listed on AIM in November 2003 by reversing into failed cash shell Health Media (with which he was also involved). This gave 3i an exit and allowed Brode to take over the reins. ‘My only regret is that I was forced below the 50 per cent shareholding level, but many institutions wouldn’t invest otherwise,’ he explains.

Brode’s role is predominantly to oversee strategy and acquisition activity and deal with the City, leaving his CEO and FD to run the business. ‘As I explain to shareholders, they’re seeing me because my money’s on the line as the major shareholder and if I’ve got it wrong then we’re all in trouble!’

At present though, he’s pretty good at getting it right.