IP disputes are complex and can extend over a long period of time. Both factors contribute to the fact that IP disputes often involves significant costs. The stakes in such cases are often so high that a company often cannot afford to lose a patent case.
Apart from a threatened order to pay substantial damages, there is the risk of a legal ban on the sale of the products covered by the patent and possible compensation actions by the purchasers of those products.
In IP disputes, a company simply cannot save on the cost of lawyers and experts. But sometimes the patent holder is a small company, or even an individual inventor, with limited resources who has to fight against a large multinational corporation that is illegally using the patent. Even for companies with significant resources, setting aside a sufficient budget can be a serious challenge.
In both situations, litigation funding can provide a solution. By partnering with a litigation financier, large players can better manage such complex case while small players can fight with equal weapons.