Intellectual property disputes are complex and usually cost much in legal fees. For this reason, individuals find it very difficult to defend their rights. However, litigation funding offers a way out. It provides a way for people to afford legal battles that they would not have afforded otherwise. This blog explores details of litigation funding for individuals in Australia regarding the intellectual property disputes.
What Is Litigation Funding?
Litigation funding is financial support in legal proceedings. That is to say, it is financial support given in one party’s endeavors to pay its legal costs. In return, they get a percentage of the settlement or damages if the case is won. In this way, people are able to seek out justice without incurring any costs on their own.
Why Is It Essential in IP Disputes?
IP disputes pertain to the protection of one’s creations: a new invention, brand, or even a piece of art. The rights to these have to be defended at whatever cost. Hiring professional lawyers, paying court charges, and other legal expenses can run into huge amounts. Without resources, many of them get compelled to quit the race, even if they have a strong case.
How Does Litigation Funding Work?
The process is simple. First, you look for a litigation funder. They assess your case to establish its strength. They agree to pay your costs if they think you have a reasonable chance of winning your claim. You sign a contract with them, and it sets out how much they would get if you win your case as a part of settlement or damages. If you win, the funder is entitled to a percentage of the money. If you lose, the funder typically absorbs the cost, so you do not have to pay. This lowers your financial risk.
Who Can Make Use Of This?
Litigation funding is perfect for a person with a strong IP case but not enough resources. The same helps in balancing the scales while competing against well-established companies with a big pool to pull from when it comes to fighting out legal cases. This can also help you if you are an inventor, artist, or small business owner. Such sorts of people usually face a financial hurdle while fighting for their IP rights in court.
What Are the Risks?
While litigation funding offers many benefits, there are risks. The key risk is losing your claim. In such a scenario, you may not even owe anything to the funder because you were supposed to pay at the end of the case, but also you won’t be awarded any compensation. Besides, the fact that the funder takes a part in any winning money means that you would receive less than the full amount.
It’s important to carefully look at the terms of any funding arrangement. Make sure you understand what the funder expects and how much of your settlement they will take.
Litigation funding can be a lifeline in IP disputes. It allows individuals to fight for their rights without the fear of overwhelming legal costs. While there are risks, the potential rewards often make it worth considering. Understanding how litigation funding operates, you will make an informed decision and be able to protect your intellectual property. Litigation funding for individuals in Australia is expanding right now.
Author Bio – The author of this article has wanted to make the readers aware of the details of litigation funding for individuals in a country like Australia related to intellectual property disputes.
