REMBRANDT :: Litigation Funding

Rembrandt Litigation Funding

Rembrandt's Litigation Funding enables claim holders to pursue meritorious cases, notwithstanding the high costs associated with litigation. While Rembrandt commits all or part of the capital required to fund a new or ongoing litigation, the claim holder retains full control of the case, including the selection of legal counsel and other advisers. Clients do not pay Rembrandt any out-of-pocket fees or expenses, and Rembrandt receives a return only if the claim holder receives value from the underlying claim.

Rembrandt Litigation Funding benefits claim holders and law firms in several ways:

For Claim Holders

Litigation funding enables claim holders to pursue meritorious cases that they might otherwise not be able to afford, and broadens the selection of law firms willing to enter alternative billing arrangements. It mitigates the risk of paying out-of-pocket for litigation, empowering claimants to focus their attention on presenting the merits – and maximizing the value – of their claims.

For Law Firms

Litigation funding provides law firms with the security of knowing that their out-of-pocket expenses will be repaid, allowing them to increase the number of alternative fee arrangements they can offer without significantly increasing their own exposure to risk. The availability of third-party capital may simplify and expedite a firm's decision-making about which cases it can take on, saving the firm and the claimholder valuable time and resources early in the litigation process. As litigation moves forward, third-party capital ensures that law firms have access to the right experts and other resources, strengthening their cases and maximizing their clients' chances of success.

Rembrandt's legal, technical, and financial professionals efficiently evaluate, structure, and close funding transactions. Our carefully designed process includes three steps:

Preliminary Review: Rembrandt conducts a preliminary evaluation, working with the claimant or referral source, to decide whether the case is a business fit for Rembrandt.
Term Sheet Development: Rembrandt and the claim holder reach the business terms of the funding arrangement and enter into a tentative funding agreement, conditioned upon the successful completion of Rembrandt's diligence process.
Diligence: Rembrandt's legal, technical and financial experts review the merits of the case and conduct follow-up calls or meetings with the claim holder and/or its advisers. Rembrandt evaluates the law firm's diligence completed to date and determines whether funding the case is a business fit.

Rembrandt's extensive knowledge and experience across a range of technologies, legal practice areas, and industries enables it to provide funding for a variety of claim types. Rembrandt has cultivated a list of technical and industry experts who are regularly called upon to enhance Rembrandt's understanding of claims under consideration, ensuring that funding decisions are made thoughtfully, even when claims involve highly complex areas of law and rapidly developing technologies.

IP-related Claims

Patent litigation
Copyright litigation
Trademark litigation
Trade secret litigation
ANDA Litigation
Other IP-related claims

Non-IP Related Claims

Antitrust/Unfair Competition
Breach of Contract
Fraudulent Misrepresentation
Tortious Interference
Unjust Enrichment
Other Types of Complex Commercial Litigation

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.

RESULTS

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.

TESTIMONIALS

"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.