Trademark Disputes are Challenging, but Offer High Returns for Funders

Trademark litigation has traditionally been an area that has disproportionately favored defendants who are large corporations or industry giants, due to the sheer weight of financial and legal resources they are able to bring to bear. However, recent trends have demonstrated that smaller companies are able to redress that balance by utilizing litigation financing providers who are willing to fund proceedings where legitimate trademark disputes occur.

In an article by Managing IP, industry figures highlight that while this is not a silver bullet, when litigation funding is deployed intelligently, it can be a useful asset for litigants. Managing partner of law firm Ellis George Cipollone, Keith Wesley, suggests that the biggest challenge for lawyers seeking funding is having access to enough details about the defendant’s position to make a viable case to potential funders. He points out this can be partly alleviated by using witnesses and publicly accessible information to strengthen their proposition.

On the side of funders, Marla Decker, managing director at Lake Whillans Litigation Finance, notes that not only do financiers consider the strength of the case being brought, but importantly, the scale of damages that can be recouped against the costs for seeing the proceedings through to a successful conclusion. However, while Decker acknowledges that not all cases will be attractive to funders initially, there are always opportunities for claimants to seek funding later in the process, once they have established a more solid evidence base.