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Delaware Chief Judge Targets Funding Disclosures in Patent Cases

A Delaware Chief Judge has summoned a personal injury attorney who has filed nearly 800 infringement lawsuits in the last three years and many others to appear in a series of hearings probing whether the parties have accurately disclosed information about their funding arrangements, building on the judge’s standing order for parties in all cases, not just patent disputes, to disclose when they’ve accepted litigation funding from an outside source—an uncommon requirement seen in few other US courts.

Insights

IP Litigation Financing Protects Investors, Not Inventors

Joshua Landau, patent counsel at the Computer & Communications Industry Association, argues that IP litigation financing protects investors to the detriment of inventors, and that greater transparency is needed in litigation finance to prevent this.

In the News

Litigation Finance Gains Traction in Patent Infringement Cases

VLSI Technology LLC and Intel Corp. were called last week to appear at an upcoming US federal district court hearing to probe whether VLSI was sufficiently forthcoming with its financial disclosures—the latest judicial response to the growing prevalence of third-party funding in patent disputes.

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