Assisting You: Patent Litigation Financing

Need a Helping Hand?

Validity’s experienced professional team can assist in the litigation financing process by providing independent assessments of patent infringement, validity and valuation. Our expertise can provide the due diligence necessary for litigation financing companies to assess the risk of undertaking a lawsuit and/or reduce the time the litigation financing company pays for its outside legal counsel to evaluate the merits of a lawsuit, along with the typical delays and inefficiencies in that process. For plaintiffs or defendants, Validity can introduce your lawsuit to a plurality of litigation financing companies to create a more competitive environment, which increases the chances of a financed lawsuit and one that provides the most favorable financing terms.

Litigation financing may be an effective means of complementing or even substituting contingent fees. While litigation financing and contingent fee arrangements are not mutually exclusive, litigation financing is used frequently in conjunction with a contingent fee or hybrid contingent fee engagement.

While litigation financing is typically used by plaintiffs, such financing is available to both plaintiffs and defendants. Success in both plaintiff and defense litigation financing is defined by the case outcome where the litigation financier receives a portion of the judgment/settlement in a plaintiff’s case and a portion of the difference between the defendant’s exposure and the amount of the judgment/settlement that is ultimately paid, respectively.

Litigation financing may be employed during any stage of a lawsuit, from pre-filing through appeal, however, initiating financing prior to the time a lawsuit is initiated offers the benefits of strategy formulation and budget projections. In order to avoid state laws that prohibit champerty, litigation financiers should not be responsible for initiating the litigation or otherwise be significantly involved in managing the lawsuit.

Contact us to discuss how we can be of assistance in providing our litigation financing consultation services. It will be our privilege to serve you. 

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