Litigation funding firms support complex patent and IP disputes

The legal industry increasingly relies on specialized financing to manage the high costs and long durations of commercial and intellectual property disputes. Litigation often presents a unique cash flow challenge where expenses, such as court fees, expert reports, and discovery, are front-loaded, while revenue from fees or recoveries is deferred for years.

In the sector of patent and intellectual property (IP) litigation funding, several firms provide capital for single cases or entire portfolios. Notable providers include Burford Capital, which offers financing for IP portfolios and legal expenses, and Omni Bridgeway, which covers costs ranging from discovery to appeals. Other specialized firms include GLS Capital, Longford Capital Management, Parabellum Capital, and Soryn IP Capital Management.

For law firms, managing these timelines is critical to maintaining liquidity. The gap between performing work (Work in Progress) and recovering disbursements can span several years, as evidenced by historical data showing median processing times for federal tort trials often exceeding 20 months.