An investment fund had been presented with a patent enforcement claim but did not have any internal capability to conduct due diligence of the case. The case was presented to Deminor as a co-funding proposal with Deminor conducting the initial due diligence.
Process & Approach
Deminor followed its usual due diligence approach when considering litigation funding requests and shared its views with the co-funder at key points during the process. Where technical opinions were required, the costs were shared between the co-funders.
Deminor is seeing an increasing number of co-funding proposals for IP cases that require litigation funding. We have discussed a range of structures for co-funded cases from a due diligence only structure to funding into the co-funder as a purely financial partner to tripartite agreements where the co-funders are all signatories to the funding agreement with the client. Deminor’s integrated case management team where a nominated case manager will carry out the due diligence and manage the funding after an agreement is entered into with the client provides continuity for the client and for our co-funding partners.
"Co-funding opportunities are an effective way for Deminor to take a stake in funding cases to syndicate risk while making use of Deminor’s internal case management team and streamlined review process to make a quick determination as to whether a case could meet the criteria for litigation finance. We are always keen to build relationships with potential co-funding partners which makes processes smoother when working on a case together. If this might be of interest either now or in the future, please do get in touch."