Follow the money – trade secret litigation
The growth in intellectual property litigation is in part due to the significant damages awarded in US courts. Litigation finance is a relatively new form of funding and in 2021 funders committed $2.8 billion to IP litigation.
There have been several high value patent litigation cases over the years, however in 2021 only 29% of the funding went on patents. One of the reasons for this is that the win rate in patent litigation runs at about 25%, also there are high risks of patent invalidity through prior art identification and even inter partes reviews.
It is interesting that litigation funders are attracted more and more to trade secret litigation, in part because the narrative of intellectual property being stolen is far easier to convince a jury with than the intricacies of patent claims analysis.
In a recent trade secret case in the US, Appian Corp. was awarded a $2 billion verdict against Pegasystems Inc.
With the apparent ‘great resignation’ currently underway the risks of highly sensitive trade secrets information leaking from one company to another must surely have rocketed up.
No wonder then that litigation financiers are actively seeking more trade secret litigation cases.
#tradesecrets #litigation #funding
COPYRIGHT PROTECTED © 2019 - 2022 Exalt IP Limited. All rights reserved.
Author: John Pryor Exalt IP