Monetizing patents for household name brand

Challenge: Right-size portfolio and reduce patent maintenance costs

A publicly traded, multinational corporation with a worldwide patent portfolio has an active patent licensing business. The company had initiated US litigation against multiple infringers of a subset of its patent portfolio, but the litigation dragged on for years without resolution. Facing litigation fatigue and financial pressures, the company sought to extract itself from the litigation, but desired to see the enforcement efforts it had started driven to completion.

Solution: Divestiture

Burford’s financing and expertise enabled the client to divest the underlying patents, as well as related IP, to a respected firm specializing in IP monetization, with the company retaining some potential back-end proceeds participation. The monetization entity was able to step into the shoes of the company in the ongoing litigation with fresh eyes and with Burford’s financial backing to fund existing litigation through trials against the infringers. The company’s original litigation counsel continued to represent the monetization entity after the divestiture.  

Divestiture provided the client significant and immediate cash and reduced carrying costs while preserving the possibility of continued upside at the end of a successful enforcement of the patents at stake in the litigation.  

Impact: Immediate cash and lower costs with future upside

The company was able to receive value for the patents it was enforcing, cut litigation spend, and retain a right to some future proceeds.  

Additionally, the company was able to ensure that the enforcement of its valuable IP would continue with a top-notch team and financial backing, maintaining the reputation of the company’s patent assets as a deterrent to potential future infringers and potential licensees.