One of my little joys this past summer was a brown sugar cold foam cold brew from Starbucks, most often purchased after a strenuous sculling session. Simpler in both construction and calories than a frappuccino, but with the same instantaneous burst of sugary delight on the initial sip, each drink was a hit of warm-weather pleasure to savor. For the first few sips (gulps) the brown sugar cold foam overwhelmed, but as it was consumed, the remaining cold brew retained just enough sweetness to make finishing the cup an enjoyable certainty. Since this is not a beverage review column, by now the question of why I am discussing a cup of overpriced (but delicious) coffee is appropriate for this audience to ask. The answer? Because that cup of joe is what comes to mind when I think of the state of the patent litigation funding market as we approach the final quarter of 2025. That is true even if one takes a longer view regarding the maturation of the litigation funding market as well. I’ll explain.
On the one hand, 2025 has already delivered some impressive patent verdicts and settlement results, particularly in cases that are suspected, if not confirmed to be, funded. Adding to the fun has been the defanging of the PTAB for many patent owners due to the developing discretionary denial of IPR jurisprudence. Likewise, many of the dangerous shoals in the regulatory waters have thus far been avoided by the good ship USS Litigation Funding, from the attempted taxation without representation of the Tillis Big Beautiful Bill amendment, to the adaptation by the industry to even the strictest disclosure rules currently in place in various jurisdictions. From that perspective, 2025 has been a banner year for patent litigation funding, with prospects for the industry looking bright for the future as well. Brown sugar cold foam sweetness, in other words.
On the other hand, 2025 has not been without its challenges in the patent space. More than one market participant has expressed the view that it is harder than ever to find fundable patent cases to invest in, even as already funded cases continue to face settlement challenges and longer than expected times to recovery. Compounding those challenges is the behavior of some funded parties in terms of holding onto unrealistic settlement expectations, particularly those unsophisticated about patent litigation or who see themselves as having one shot to score big. For funders, having those types holding settlement authority can be a real pain point, especially for cases that have dragged on and the amount on offer would allow the funder to show a return in a more reasonable timeframe. Moreover, patent defendants have continued to fight hard on the litigation front, with very few paths to easy and quick settlements available to patent owners hoping for above nuisance value for a license to their assets. At the same time, litigation costs have continued to increase — and if recent negotiations are illustrative — patent acquisition costs are becoming more dear as well. Lastly, the difficulties in the judgment preservation insurance markets have put pressure on patent holders hoping to monetize successful trial results. All that tastes more like not as sweet bottom of the cup cold brew.
In short, the story of 2025 is one of opportunities and challenges from a patent litigation funding perspective and there is still a quarter of the story that will be written in the coming months. Thankfully, there will be an unmissable opportunity to discuss all those developments in mid-January 2026 at one of the industry’s leading conferences, LITFINCON. Returning to its home base in Houston for its fifth installment, the first of three planned 2026 LITFINCONs promises to deliver for attendees everything that prior iterations has provided with some new and exciting twists.
Continuing the tradition of kicking off with a can’t miss and unique panel of jurists sharing their views on litigation funding, LITFINCON V’s agenda is shaping up to provide two days of worthy content and networking opportunities for those fortunate enough to attend. For IP practitioners, the panels on funding patent litigation matters and law firm monetization strategies are must-listens, as are the updates on the use of AI and technology in the litigation funding arena. Likewise, the panel discussing general trends in the funding space, as well as the panel regarding the changing legislative landscape for litigation funding will certainly have discussion of interest for readers of this column. Add in a reprise of the panel I moderated last year, a debate on the case for and against litigation funding, as well as an update on the ever-changing role on insurance in the litigation funding space — and there is very little chance that a LITFINCON V attendee will walk away from the conference saying that they knew everything that was discussed already. For those interested, I am sure that the panels on mass torts and the investment side of the industry will likely be compelling as well.
Content aside, I have always been effusive in my praise in the past for both LITFINCON’s venue and social aspects. Thankfully, LITFINCON V will once again be hosted by the Post Oak, as tasteful and guest-centered a luxury hotel as you can expect to find in a major U.S. city. And as with prior years, LITFINCON V’s social events — before and during the conference — should be of the highest caliber, both in terms of fun and networking with other industry participants. On top of these old standbys, LITFINCON V will also host a Legal Tech AI Pitch Competition, helping to bring tomorrow’s technologies forward as quickly as possible, with a focus on tools that can be of service to the litigation funding community, from funders to lawyers and everyone else involved.
Ultimately, as with the prior events, LITFINCON V will surely be a few days well-spent for both attendees and presenters. The combination of great networking and informative panels on order at prior LITFINCONs promises to expand greatly in 2026, with planned events in Amsterdam and Singapore later in the year as well. Before then though, there is plenty to look forward to at LITFINCON V in Houston. I encourage those interested to keep an eye out for the final agenda and speaker list as we get closer to the event, but there is plenty of reason to book a spot already for those who stand to benefit from attendance. Who knows, maybe you will see me once again on the speaker roster. Registration for LITFINCON V is open, with special super-early-bird pricing until September 15. I hope to see you there.
Please feel free to send comments or questions to me at gkroub@kskiplaw.com or via Twitter: @gkroub. Any topic suggestions or thoughts are most welcome.
Gaston Kroub lives in Brooklyn and is a founding partner of Kroub, Silbersher & Kolmykov PLLC, an intellectual property litigation boutique, and Markman Advisors LLC, a leading consultancy on patent issues for the investment community. Gaston’s practice focuses on intellectual property litigation and related counseling, with a strong focus on patent matters. You can reach him at gkroub@kskiplaw.com or follow him on Twitter: @gkroub.
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