Cooley Godward is hunting for a merger partner as the leading Silicon Valley firm moves to develop an East Coast presence to shield its practice from the battered Californian economy.

The Palo Alto firm has already approached New York-based IP specialist Pennie & Edmonds. However, it is believed that no agreement has been reached and Pennie & Edmonds has previously turned down mergers with larger firms, including this year with Jones Day Reavis & Pogue.