The New Realities of Funded Patent Litigation
Intellectual Property attorney David Donoghue wrote a column for Financier Worldwide Magazine examining how third-party litigation funding has become a durable and increasingly sophisticated feature of U.S. patent disputes. Citing recent docket activity and market trends, Mr. Donoghue explains how funding can change a plaintiff's incentives and strategy, often resulting in more rigorously screened cases, greater staying power through discovery and trial, and more data-driven settlements as a result of Markman rulings and Patent Trial and Appeal Board (PTAB) decisions. He also outlines practical defense considerations that can be implemented early, including targeted inquiries into funding-related disclosure and control issues, careful scrutiny of standing and ownership structures, disciplined damages challenges and strategic use of tools such as cost security and potential fee shifting under Section 285.