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Frontpage » How To Get a 19 % Return On Your Investment


HOW TO GET A 19 % RETURN ON YOUR INVESTMENT



February 28, 2023

Jonathan Stroud is General Counsel at Unified Patents, an organization adverse
to litigation-funded entities. In a guest post about patent-assertion financing
in PatentlyO, he discusses two April 2021 Federal District of Delaware orders
requiring parties to litigation to disclose third-party litigation funding and
notes that Delaware is a hub for patent infringement litigation. The orders
further require disclosing whether third-party approval is necessary for legal
strategy decisions and settlement conditions. “It may help judges prevent
misrepresentations about David v. Goliath narratives from being used to sway
juries, writes Stroud, “where it might in fact be more like large private equity
funders versus large operating companies. In one recurrent example, a major
funder has a habit of acquiring patents from companies in bankruptcy and then
naming the wholly controlled LLC subsidiaries after the original company, at
least suggesting to any jury a connection that no longer exists.” The orders
have already revealed that a single company, which pitches a 15-19% ROI annually
to potential investors, backed over 4,500 patent suits in the past decade. Part
of the company’s strategy was the recruitment of private citizens to sign legal
documents as patent “owners,” offering to generate “passive income” as part of a
litigation-funded investment.

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