Access to patent litigation funding
Some companies hold an important patent, serious indications of infringement and a solvent opponent, but not the means to fund several years of proceedings. A third-party funder may agree to take that risk in exchange for a share of the outcome: that is access to patent litigation funding. The firm checks whether the case is legally and economically strong enough to be presented to a funder, prepares the file, protects the client’s independence and advises the client alone.
The need
Third-party litigation funding has developed in Europe, including before the Unified Patent Court. It allows an innovative company to enforce its rights against a better-funded infringer. But it requires a structured case: clear ownership, a patent in force, defensible validity, documented infringement, a solvent defendant, a proportionate budget. Most cases are not fundable. Saying no quickly and clearly protects the client, who avoids incurring costs and disclosing sensitive information to third parties.
Checkpoints
- The law: ownership, title in force, defensible validity, sufficiently documented infringement.
- The evidence: claim chart mapping the claims to the product, identification of the product, preservation of documents, a realistic evidence plan including, where appropriate, a saisie-contrefaçon.
- The economics: solvency of the defendant, potential damages or royalties, budget by phase.
- The procedure: credible forum, timetable, prospects of an injunction, risk of an adverse costs order, avenues of appeal.
- Conduct: the client’s ability to cooperate, realistic expectations, willingness to maintain a coherent strategy.
How we work
First, a conflict check and an eligibility assessment concluding to proceed, remedy or stop. Then, if the threshold is met, a structured opinion on the merits, the evidence, the economics and the procedure. Next, with the client’s agreement, the preparation of a file calibrated for external review: anonymised presentation, budget, data room, selected documents. Finally, comparison of the offers received and negotiation of the terms. The funded litigation is the subject of a separate engagement, accepted only after checks on conflicts, funding and governance.
Three non-negotiable rules
No transmission as long as ownership, validity, infringement, solvency or economic value remain too fragile. No sensitive document circulates without validation of the scope, control of the recipients and a suitable confidentiality agreement. The client keeps the decision, the attorney remains independent and the funder directs neither the legal strategy nor the settlement of the dispute.
Outside the scope
It is not about acquiring patents to multiply claims, nor setting up a structure designed to threaten without real activity, nor running a standardised campaign against a series of defendants, nor promising a gain. The service is aimed at innovative companies that want to enforce their rights and cannot bear the cost alone.
A few matters that illustrate our practice
Drones: patent infringement action
Assisting a drone manufacturer in a patent infringement action before the Paris Judicial Court. Preparation of evidentiary measures, technical analysis, drafting of the pleadings on the merits and response to procedural incidents.
Medical devices: infringement action before the UPC
Representation of a medical device manufacturer in an infringement action before the Unified Patent Court, alongside a foreign firm. Work on the analysis of the patent, the demonstration of the alleged infringement and the remedies sought.
Analyses and publications to go further
Frequently asked questions
Is the firm paid by the funder?
No. The firm advises the client only, receives no introduction commission and never presents the funder as its client.
Which cases can be funded?
Those combining a solid title, documented infringement, a solvent defendant and financial stakes sufficient in view of the litigation budget. The eligibility assessment answers precisely that question.
Is funding possible before the Unified Patent Court?
Yes. No UPC rule prohibits third-party funding. Questions of transparency, security for costs and conflicts of interest are examined case by case.
Discuss your matter
For a first assessment, contact the firm.