Jane Edwards
Keegan Caldwell, founder and global managing partner of Boston-based law firm Caldwell, discussed how corporate organizations can harness the potential of their patents, copyrights, trademarks and other intellectual property assets through financing mechanisms such as IP-backed financing and patent litigation funding.
In an article published Wednesday on the firm’s website, Caldwell listed the five key features of the IP-backed financing market, including market maturation, geographic expansion and collateral protection insurance.
He said lenders look at various factors when assessing IP-backed loan opportunities such as the strength and quality of an IP portfolio, company cash flows and ability to service debt and potential for IP commercialization.
Caldwell urged companies considering leveraging IP-backed financing to work with experienced advisers.
According to the managing director, several trends have emerged associated with litigation funding, which has been used as a key tool for patent monetization, and one of them is the establishment of the Unified Patent Court in Europe.
Other litigation funding market trends are the rising interest in judgment preservation insurance, multijurisdictional strategies, portfolio-level funding and alignment of interests with plaintiffs and their counsel.
“For companies considering litigation funding, it’s important to carefully evaluate potential funders based on their expertise, track record, and financial stability. The right funding partner can provide not only capital but also valuable strategic insights and connections within the IP ecosystem,” Caldwell noted.
