Patent Litigation Financing: Third-Party Considerations, Judgment Preservation Insurance, Control of Litigation

Description

Some companies decide that licensing patented technology is too expensive and choose to infringe the technology, calculating that it will cost less to risk being sued for infringement than to enter into a license agreement. The patent owner often must resort to litigation to put an end to the infringement and protect its IP. However, lack of financial resources poses a significant hurdle for many patent owners.

Enter patent funders. Patent litigation finance has increased significantly over the past few years. As the courts show a willingness to enhance punishment for willful infringement, damages awarded are high. Patent litigation continues to attract funders, who buy in and treat the investment like other deals. These complex deals may also include judgment preservation insurance.

Patent litigation financing comes with risks. The more complex and larger the patent suit is, the greater the financial risk. Like other companies, third-party funding companies seek to maximize the financial outcomes while minimizing the risk. Companies going into business with third-party funders should consider potential conflicts of interest, undue influence, and disclosure issues.

Listen as our authoritative panel of patent attorneys examines the options patent owners and litigators have for financing. The panel will address third-party funding/investing as well as the use of judgment insurance. The panel will also discuss issues associated with third-party involvement and how the courts have addressed these issues.