Rembrandt Litigation Funding
This example demonstrates how Rembrandt creates value by providing the capital necessary to investigate and pursue meritorious legal claims.
BACKGROUND & NEED
The claimant, a small operating company, was introduced to Rembrandt by the company's patent prosecution counsel. The company suspected its patents might have been infringed, but did not have the resources required to confirm its suspicions or to cover the costs of litigation.
The company already had approached two contingency litigation firms, but neither was willing to invest the capital required for pre-filing diligence and lab testing.
After reaching an agreement with the company on the terms of funding, Rembrandt provided initial funding for the company to work with an external laboratory for reverse engineering analysis. Based on the results of the testing and because of Rembrandt's funding, the company was finally able to retain a high-quality contingency law firm. Rembrandt subsequently committed $1 million to fund expenses associated with the litigation, including costs associated with an expected attack on the patents before the United States Patent and Trademark Office.
The case was pursued and ultimately led to a substantial fair-value settlement with the defendant, an attractive financial result for all parties.
"Rembrandt is a great resource for clients with good cases who cannot afford the high costs of litigation. In a recent case that we took on a contingency, Rembrandt committed $1 million to cover the costs. After carefully analyzing the merits of the case and attendant risks, Rembrandt was totally hands off which, in turn, allowed us to work directly with the client in all respects. The case settled, resulting in a win-win-win scenario: our client was compensated for the infringement, his prosecution firm's outstanding preexisting legal bills were paid, and our firm made a nice return. This case would not have proceeded without the involvement of Rembrandt." – Litigator.
"Rembrandt gave our company the litigation funding it needed to stand up to a large infringer and have our day in court. With Rembrandt's funding behind us, we were able to put on our best case and knew we had the funding available to go the distance if necessary." – Inventor.