Validity Finance released new insights into how the firm evaluates patent claim investment. The firm receives hundreds of cases for review each year, and only selects around 10% for funding. With significant risk associated with patent litigation, Validity shares some characteristics that make a patent claim attractive for investment.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Validity Finance released new insights into how the firm evaluates patent claim investment. The firm receives hundreds of cases for review each year, and only selects around 10% for funding. With significant risk associated with patent litigation, Validity shares some characteristics that make a patent claim attractive for investment.
Validity says that the firm looks at all angles of a case, scrutinizing the most minute details. The implications of small case elements can play a big role in the outcome of litigation. When pitching a case for review, Validity underscores the importance of inventors being fair and honest. Without honesty, Validity will have good reason to reject the case.
Below are seven points Validity finds meaningful when considering a patent litigation investment:
- How well developed is the patent’s infringement argument?
- How compelling is the inventor’s story behind her/his invention?
- How well can the investor explain technology behind the patent?
- How well defined is the litigation strategy?
- How reasonable is the inventor’s patent damage forecast?
- Does the litigation investment budget necessary meet equitable investment benchmarks?
- How candid is the inventor specific to weak links in the merit of their claim?
