What Makes a Patent Case Fundable
Will you fund my case?" is the wrong first question. The right one is: does this case survive diligence?
Here's what we're actually screening for before capital moves:
Validity that holds up. We stress-test for IPR vulnerability, prior art exposure, prosecution history weaknesses, and Section 101 eligibility before we look at anything else. A patent that folds under a PTAB challenge isn't a case, it's a write-off waiting to happen.
Infringement you can show, not just argue. Element-by-element claim charts mapping the patent to the accused product are the floor, not the ceiling, of what we need to take a case seriously.
Damages that justify the capital. Most funders won't seriously evaluate a case below roughly $50M in estimated exposure, the litigation runway has to be worth the risk on both sides of the table.
A defendant who can actually pay. Financial capacity and settlement incentive matter as much as the merits.
It's also worth watching the regulatory side: proposed ITC disclosure rules for Section 337 practice are a reminder that funding arrangements are under increasing scrutiny. Diligence discipline isn't just good practice anymore, it's becoming table stakes for staying compliant.
And, honestly, a patent owner who can act like a partner. Funders see a lot of opportunities cross our desks, and a meaningful share get rejected at Stratton Street not because the patent is weak, but because the owner isn't reasonable, they're operating on emotion instead of strategy, convinced they're the smartest person in the room, unwilling to hear pushback. The funder is your partner in this, not your employer taking orders. The majority of patent cases settle before trial, so you have to be willing to consider an off-ramp when the facts and the offer say it's time. Rational, strategic patent owners are the ones who go the distance with us, not the ones who are just certain they're right.
The bar is high on purpose. Cases that clear it tend to go the distance.
#PatentLitigation #LitigationFunding #IPLaw #DueDiligence
