The topic of litigation funding as it relates to patent litigation has most recently been dominated by discussions around court battles over disclosure, with critics of the industry honing in on this area as one they claim is most at risk of abuse from third-party funding. However, as a recent podcast highlighted, these arguments overlook the benefits provided to those seeking to acquire or enforce patents to protect their technology.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
The topic of litigation funding as it relates to patent litigation has most recently been dominated by discussions around court battles over disclosure, with critics of the industry honing in on this area as one they claim is most at risk of abuse from third-party funding. However, as a recent podcast highlighted, these arguments overlook the benefits provided to those seeking to acquire or enforce patents to protect their technology.
In the latest episode of IPWatchdog’s Clause 8 podcast, this perspective was shared by Lillian Shaked, a founding partner of Shaked & Co., and the vice president of licensing for Transpacific IP. In the interview which covered a wide range of topics, Shaked noted that litigation funding had a transformational impact on the patent monetization industry.
This was due to the fact that patent acquisition and licensing had become a process that could take three to five years to complete, and without the financial resources provided by third-party funders, it would have been extremely difficult for both businesses and individuals to adequately assert and license their patents.
Shaked also stated that one of the biggest changes she has witnessed in the activity of litigation funders is a switch from a passive to proactive approach to securing deals. Funders are actively seeking out deals that align with their own interest and experience, rather than waiting to be approached by those seeking capital.
