Pros And Cons Of Litigation In Litigation

1102 Words3 Pages

Patent Litigation Financing: Everything You Need to Know Patent Litigation: What is it? Patent litigation, generally referred to as patent infringement, involves legal proceedings brought by the injured party for the use, copying, or sale of the injured party’s invention. Essentially, the inventor is alleging that the defendant illegally used, copied, or sold the invention without the express approval of the inventor. Overview Patent litigation financing has its risks. The more complex and larger the patent litigation suit is, the greater the financial risk. And like any finance company, third party funding companies are always looking to maximize financial outcome with the least amount of risk. Investors want to find value in what they are investing in and not …show more content…

Based in New York City, this is the U.S. branch of the Australian litigation funder IMF Bentham. It was launched in NYC in 2011. Pros and Cons of Patent Litigation Financing Patent litigation is risky and costly. Notably, the average patent lawsuit in the U.S. costs roughly $3 million in attorney fees alone. Additional fees, inclusive of discovery, expert witnesses, court reports, etc. can add an additional $1 million. A newer solution for those unable to fund their own suits is something called “third party funding.” Common candidates include individual inventors, small entities, and universities as they generally don’t have the financial resources to self-finance a patent suit. Before considering this option, you’ll first want to consider the factors associated with receiving funding and going through the process of patent litigation. One reason that patent litigation is so risky is that, if the defendant in the suit can find some sort of similarly situated prior product that was created before your patent was obtained, then a court may find your patent invalid after the fact. Thus, you’ve now spent money on obtaining the patent as well as investing in a third party to fund the

More about Pros And Cons Of Litigation In Litigation

Open Document