Litigation Funding in Australia: A New Dawn with IP Securitized

In the intricate web of litigation and intellectual property law, Australia stands at the cusp of a significant shift. Summit Communication Group , renowned for its deep expertise in public relations, strategic communications and critical issues management, is alliancing with the US firm IP Securitized Corporation, signaling a new dawn in litigation funding. This article delves into the partnership and the broader implications for litigation funding and law firms in Australia.

The Emergence of Litigation Funding in Australia

Litigation funding, once a nascent industry in Australia, has matured significantly. The abolishment of champerty laws catalysed its growth, enabling third parties to fund lawsuits in exchange for a share of the proceeds.

This evolution has seen growth at an annual rate of 9.3% over five years, reaching a staggering $168.8 million by 2023.

However, it's not without its complexities – the industry has been marked by selectivity in case funding and significant revenue fluctuations.

Post-pandemic: the industry anticipates a surge due to a backlog of cases. Consumer protection lawsuits, particularly class actions, present lucrative opportunities, albeit infrequent. The concentration of litigation funding firms in capital cities underscores the strategic importance of proximity to clients and courts.

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IP Securitized: A Game-Changer

IP Securitized stands out with its unique approach to litigation finance and patent protection. The firm provides non-recourse litigation finance, a crucial support for businesses pursuing legal actions beyond their financial reach. This model enables plaintiffs to seek justice without the burden of financial constraints, often leading to more favorable outcomes.

Summit Communication Group 's collaboration with IP Securitized Corporation marks a pivotal development in litigation finance. This partnership, grounded in a deep understanding of the industry, aims to revolutionize the approach to funding complex commercial litigation and intellectual property disputes.

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Investment Criteria: A Blueprint for Success

IP Securitized Corporation targets litigation involving antitrust, securities, fraud, contract, patent, intellectual property, and more, with a minimum capital requirement of $3 million, typically ranging between $7 and $16 million. Key features include:

1. Type of Matter: Focusing on complex litigation across various commercial sectors such as Bioscience, Deep Tech, Data Security, Mining, Heavy Industry, Litigation and Insolvency.
2. Case Merits: Emphasizing the necessity of a solid legal basis and potential for success.
3. Experienced Counsel: Requiring capable legal representation with a proven track record.
4. Jurisdiction: Prioritizing cases in common law jurisdictions or renowned arbitration centres.
5. Substantial Damages: Seeking cases with significant potential financial recovery.

Streamlining the Path to Financing

This meticulous approach ensures a thorough evaluation and positions IP Securitized Corporation as a leader in litigation finance. IP Securitized Corporation outlines clear steps for clients to efficiently secure funding:

1. Realistic Budgeting: Emphasizing the need for a well-considered financial plan.
2. Document Organization: Facilitating due diligence through prompt document provision.
3. Responsiveness: Encouraging swift communication to expedite the funding process.
4. Risk Assessment: Understanding the case's risk profile to align with funding criteria.

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The Timeline: From Evaluation to Investment

The process can vary from four weeks for commercial matters to up to 90 days for patent issues. It involves initial review, active diligence, and culminates in the investment phase. Confidentiality is paramount, safeguarded by agreements and legal doctrines.

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Strategic Expansion and Non-Dilutive Funding

IP Securitized's strategy revolves around leveraging intellectual property to offer more capital with less equity dilution. We focus on sectors that include deep tech and biosciences, with an emphasis on systematic processes and industry expertise. By collaborating with legal firms and attracting insurance companies to manage lender risks, we offer a comprehensive and innovative approach to litigation funding.

Special Focus: Patent Infringement IP Cases

For IP cases, particularly patent infringement, specific criteria are crucial:

• Minimum Patent Number: Requiring at least four patents for consideration.
• Detailed Narrative from Counsel: Essential insights into the case's framework and strategy.
• Opponent Profile: Emphasizing the need to understand the adversary's standing.
• Comprehensive Documentation: Including patent copies and a detailed claim chart.
• High Claim Value: Setting a minimum claim value and budget to ensure significant potential returns.

Summit Communication Group and IP Securitized Partnership

For partners and senior partners of litigation and IP law firms, particularly those focused on plaintiff-type class actions, this partnership promises a robust support system. The combined resources and expertise of both firms will enable more strategic litigation approaches, better resource allocation, and enhanced chances of successful outcomes.

The partnership between Summit Communication Group and IP Securitized Corporation is set to redefine the landscape of litigation funding in Australia. With Summit's expertise in strategic communications and deep business network, combined with IP Securitized's innovative funding solutions, this collaboration is poised to offer unparalleled services to law firms specializing in intellectual property and class action litigations.

It heralds a new chapter in Australia's legal landscape. As the industry evolves, this partnership stands as a testament to the dynamic and progressive nature of litigation funding, promising a brighter and more equitable future in legal proceedings.

We invite you to explore the potential synergies between our organizations and discuss the opportunities this partnership might offer. Additionally, we will provide you with our corporate brochure for a deeper understanding of these services. Please let us know a suitable time for you by emailing gregory.gray@summitcommunication.com.au, and we'll ensure we make the most of this promising opportunity.

Written by Gregory Gray , CEO and Founder of Summit Communication Group

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