Litigation Fund Fight Shows Trap Lurking in Win-Win Deals

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Litigation Funders Risk Disclosure in Court Rules, GAO Moves

Lawyers for Civil Justice, a group of defense-side lawyers in the US, are seeking to amend procedures so that plaintiffs would need to disclose financial backing from investors in federal appeals courts, arguing that judges need the information to police their own conflicts of interest.

In the News

Future of Patent Licensing Deals on the Line at Federal Circuit

The US Court of Appeals for the Federal Circuit in Washington, DC is set to rule on whether a patent owner who gives the ability to sublicense a patent can still sue another for infringement in a case that could have implications for other litigation funding transactions, after judges in Delaware and the Northern District of California ruled that Uniloc – which defaulted on a Fortress loan it used to pay for lawsuits against Motorola, Apple and Google, triggering a provision in the deal that ceded its patent sublicensing rights to Fortress – no longer had exclusionary rights to the patents and thus didn’t have legal standing to sue.

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