How Litigation Funding Disclosure Could Affect ITC Cases

Daniel Yonan, director and head of Sterne Kessler’s U.S. International Trade Commission (ITC) Practice Group, spoke with Law360 on the ITC’s proposed rule mandating disclosure of litigation funding in intellectual property cases.

Yonan said he views the proposed rule as a “move toward more transparency, and transparency in litigation is good.”

Due to the ITC only barring imports of infringing products, Yonan explained if a company bringing a case there is backed by litigation funding, “there tends to be a feeling that there’s a bottom line, there’s a monetary remedy that they’re looking for.”

Yonan commented on the potential implications of litigation funding arrangements where if a company gives up the right to decide when to settle due to a funding arrangement or lacks control over the litigation or ownership of the IP, “that typically manifests itself through a standing challenge.”

He added that having funding disclosure up front can get those arguments out of the way and that “as long as you have the ownership and you come to the table clean, you should be able to get your win, regardless of these sideshows.”