Litigation Finance Revealed in Rare Move by ‘Open’ Company

In a rarity among companies, a coatings maker has voluntarily revealed that it’s using litigation finance to pay for a patent infringement lawsuit.

SilcoTek Corp., based outside State College, Pennsylvania, said disclosing its use of lawsuit financier Omni Bridgeway is in line with the company ethos regarding transparency.

“We are extremely open internally and we’re frankly extremely open externally,” said Geoff White, SilcoTek’s general counsel and chief intellectual property counsel.

The openness clashes with the broad trend of companies that keep secret their use of the tool, even as states press to require the disclosure. In litigation finance, investors pay ...