Patent Infringement Litigation Financing
General Patent Corporation (GPC) is the leading patent licensing and enforcement firm, and when General Patent launches a patent enforcement campaign on behalf of a patent owner, GPC both manages and finances the entire process. For such patent enforcement campaigns, financing of litigation expenses is provided by IP Holdings LLC, a member of the GPC group of companies.
Patent infringement litigation is among the most expensive types of civil litigation. Out-of-pocket expenses (or “disbursements”) can run from $100,000 to $1 million or more! IP Holdings finances litigation expenses on a contingency basis, taking repayment from the proceeds of the litigation per an agreed-to formula.
Should General Patent fail to secure an award, settlement or other compensation for the patent owner, IP Holdings writes off its investment and the patent owner owes nothing!
For patent owners who do not have General Patent manage their patent enforcement campaign, IP Holdings provides third-party financing of litigation expenses. The attorney or law firm trying the patent infringement litigation must represent the patent owner on a contingency basis for its fees. That is, the legal team must agree to be paid from the proceeds of the litigation, and only if they are successful on behalf of the patent owner. In such cases, IP Holdings may also be able to finance all disbursements, also on a contingency basis.
When providing third-party litigation financing, IP Holdings is repaid by receiving an agreed-to share of the total settlement, or is paid a risk premium that is charged in six-month intervals. Sometimes IP Holdings' repayment involves a hybrid combination of both.
In all three scenarios, the patent owner makes no payments during the litigation, and IP Holdings is only paid if the legal team is successful in securing an award, settlement or other compensation for the client.
If you are entering into patent infringement litigation, and you need financing of your litigation expenses, contact IP Holdings at info@ip-holdings.com or 845-368-4000 Ext. 107.
