What is Patent Litigation Funding?

Patent litigation funding, often referred to as ‘Patent litigation financing,’ is a financial arrangement that involves external investors providing capital to support parties involved in patent litigation. In patent litigation funding, these investors, typically litigation finance firms, offer financial resources to plaintiffs or law firms engaged in patent-related legal disputes. This financial support assists in covering the substantial costs associated with patent litigation, which can include legal fees, expert witness fees, court expenses, and other litigation-related costs.

Patent litigation funding serves to mitigate the financial risks inherent in patent litigation. It allows inventors, individuals, or businesses to pursue meritorious patent claims even when they might lack the necessary financial resources to do so independently. By alleviating the financial burden, patent litigation funding empowers patent holders to protect their intellectual property rights effectively.

In return for their investment, the litigation funders typically receive a portion of any monetary recovery obtained through the litigation. This arrangement aligns the interests of the patent holder and the funder in seeking a successful outcome in the case.

Woodsford is a founder member of both the International Legal Finance Association and the Association of Litigation Funders.