Litigation Finance Gains Traction in Patent Infringement Cases

VLSI Technology LLC and Intel Corp. were called this week to appear at an upcoming 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.

Patent infringement lawsuits represent one of the fastest-growing sectors for the burgeoning litigation finance industry, as high costs and potentially much higher pay-outs put patent owners and lawsuit funders into alignment.

The ballooning industry hasn’t gone unnoticed by courts: Parties like VLSI that accept litigation funding increasingly find themselves the targets of court orders and hearings seeking ...