Longtime readers of this column know that I’ve usually shared insights from each the LF Dealmakers Forum and the IP Dealmakers Forum. For the previous, which continues as a flagship occasion within the litigation finance trade, my first recap was written all the way in which again in 2019. Since then, I’ve attended on a virtually yearly foundation, and I used to be as soon as once more excited to get a press cross as your trusty IP columnist to attend this yr’s event, held final week in Midtown Manhattan. The placement was new to me, although it met the same old excessive Dealmakers customary. Nonetheless, the acquainted components that make this occasion a staple on the yearly convention calendar have been firmly in place. The same old mixture of energy gamers within the litigation finance area have been in attendance, from funders, to attorneys of all stripes, to these within the contingent danger insurance coverage trade. In fact, it was a little bit humbling to see how lots of the individuals on the occasion have been people that I’ve had skilled interactions with through the years. A few of these connections, after all, arose out of prior Dealmakers occasions, offering a heady reminder of why networking is an expert necessity, particularly in a relationship-driven trade like IP-focused litigation finance.
What was most enjoyable about this yr’s LF Dealmakers for me, nevertheless, was not the pleasant faces and informative dialogue on the ins and outs of the litigation finance trade because it stands at present. Every was welcome — and a reminder of why Dealmakers occasions are constantly worthwhile — however I used to be most eager to focus this yr on the shared morning program devoted to coverage and trade advocacy. Moreover offering some distinctive views, comparable to from a sitting congressman with actual prior expertise as a litigator, the dialogue on supply was each well timed and informative in mild of the present and potential affect regulatory exercise has on the burgeoning litigation finance trade. In reality, for my three takeaways from this yr’s occasion, I’d wish to give attention to coverage points previous, current, and future, significantly as they relate to IP-related litigation finance. (To the extent I reference any dialogue from LF Dealmakers Discussion board, I’ll abide by the Chatham Home guidelines adopted by the occasion for the primary time this yr.)
First, there isn’t a dispute that the previous few years have seen some policy-related selections which have had a major affect on litigation finance because it pertains to patent and different IP litigation. Whereas it was confirmed at this yr’s occasion that IP litigation stays a key space of focus for litigation funders, it’s also true that funder habits has been influenced by each carried out and proposed regulation prior to now. For example of the previous, the elevated disclosure burden in entrance of Chief Decide Connolly in Delaware has led to a dramatic drop in funded patent circumstances filed in that once-popular district, in addition to another penalties for funded patent house owners that I’ve coated on these pages. Likewise, maybe the defining coverage second of 2025 for the litigation finance trade — and possibly ever — occurred proper earlier than the summer time, when a proposed piece of tax laws threatened to doom the trade. Whereas that disaster was averted, the recent scars from that abortive legislative clawing at funder cash are nonetheless uncooked for a lot of within the trade. Many bear in mind the panic, stalled offers, and emotions of powerlessness that appeared to collectively seize the trade till the parliamentarian struck the modification from what handed because the One Large Stunning Large Act. And since patent circumstances of measurement are disproportionally funded circumstances, the potential fallout for patent litigants and their counsel was immense – as confirmed by the momentary disruption that even dialogue of a punitive litigation finance taxation scheme induced.
Because of the shock engendered by the tax proposal aimed on the trade, LF Dealmakers’ give attention to avoiding extra coverage surprises for the trade was well-taken by attendees. For our second takeaway from the occasion, we will drill down into a few of the coverage actions that panelists advised to the viewers. One of many key questions from the viewers throughout one of many coverage panels was as direct because it will get, particularly, what might trade gamers do at present to advance the coverage pursuits of the litigation finance trade? To start out, the significance of countering the “bogeyman” narratives round litigation finance — such because the presence of shadowy overseas capital and funder management over circumstances — by trade individuals was highlighted. Extra than simply reminding people that litigation finance unlocks entry to justice for deserving litigants, it appears clear that profitable counter-advocacy would require beneficiaries of litigation finance to inform their tales publicly, in a method that thus far many within the trade have been reluctant to espouse. Likewise, constructing relationships with politicians from the bottom up, even on the state degree, in addition to pooling sources by way of trade associations will probably be important duties for trade individuals to undertake. Even the act of writing about litigation finance in a optimistic mild has promise, if solely to counteract the damaging spin on the trade that’s encountered when utilizing numerous generative AI instruments to teach oneself on what litigation finance is all about. That’s proper, we’ve got to assist stability out the AI by coaching it. Welcome to 2025.
Lastly, for our third takeaway, we will take a fast peek into the way forward for litigation finance because it pertains to IP litigation. For one, there was a transparent expectation by these within the know that additional legislative motion round litigation finance, at each the state and federal ranges, was not solely potential however probably. Accordingly, these with time-sensitive patent monetization or IP claims are finest suggested to push their tasks alongside as rapidly as they’ll, at the least to the extent that they need to play the funding sport based on the present guidelines. Alongside the identical strains, it stays as important as ever to remain abreast of various disclosure guidelines and selections on litigation funding disclosure points adopted by trial courts as they relate to litigation finance, as a result of they not solely change — in addition they change defendant habits in circumstances.
Finally, whereas the way forward for litigation finance as a key part of the IP litigation ecosystem appears safe, the worthy dialogue of coverage on the LF Dealmakers Discussion board reminds us of the important want to remain vigilant, educated in regards to the guidelines of the sport, and versatile sufficient to adapt to coverage selections which can be being contemplated or carried out. To that finish, the crew at LF Dealmakers, at the side of Invenio, have launched “The Litigation Finance Advocacy Toolkit,” “a first-of-its-kind useful resource providing sensible steerage for litigation finance professionals searching for to affect coverage and public notion.” It’s nicely definitely worth the learn and hopefully will act as a spur for additional motion by these considering litigation finance’s mission of accelerating entry to justice for meritorious claims. And for these desperate to deepen their involvement and sharpen their insights with much more of an IP focus, a visit to Austin in early November for the upcoming IP Dealmakers Forum is recommended as nicely.
Please be happy to ship feedback or inquiries to me at [email protected] or by way of Twitter: @gkroub. Any subject solutions or ideas are most welcome.
Gaston Kroub lives in Brooklyn and is a founding accomplice of Kroub, Silbersher & Kolmykov PLLC, an mental property litigation boutique, and Markman Advisors LLC, a number one consultancy on patent points for the funding neighborhood. Gaston’s observe focuses on mental property litigation and associated counseling, with a powerful give attention to patent issues. You possibly can attain him at [email protected] or observe him on Twitter: @gkroub.
