Litigation insurers and third-party funders across Europe are closely monitoring the first case heard by a newly constituted panel of the Unified Patent Court’s Court of Appeal, as the matter could offer early signals on how appellate judges will approach procedural and cost-related issues in the UPC system. The case, Syntorr v. Arthrex, is the inaugural appeal to be considered by the third Court of Appeal panel, making it an important early data point for stakeholders assessing litigation risk in the young court.

An article in JUVE Patent explains that the appeal arises from a dispute over European patent rights and follows contested proceedings at the Court of First Instance. While the substantive patent issues are central to the case, the appeal has attracted particular interest from insurers and funders because of its potential implications for security for costs and the treatment of insurance arrangements in UPC litigation. These questions are of direct relevance to how litigation risk is underwritten and financed, especially in cross-border patent disputes where exposure can be significant.

The establishment of additional appeal panels is itself a sign of the UPC’s increasing caseload, and early rulings from these panels will play a key role in shaping expectations around procedural consistency and predictability. For funders, clarity on whether and how courts scrutinise insurance coverage, funding structures, and security applications is critical when deciding whether to deploy capital into UPC matters. Insurers, meanwhile, are watching closely to see how appellate judges view policy wording, anti-avoidance provisions, and the extent to which coverage can be relied upon to satisfy cost concerns raised by opposing parties.

Although no substantive appellate guidance has yet emerged from this first hearing, the case underscores how closely financial stakeholders are tracking the UPC’s evolution. Even procedural decisions at the appellate level can have downstream effects on pricing, structuring, and appetite for funding complex patent litigation.

For the legal funding industry, the UPC Court of Appeal’s early jurisprudence may soon become a reference point for risk assessment, influencing both underwriting practices and investment strategies in European IP disputes.

The UK government has signalled a renewed regulatory focus on the claims management and litigation funding sectors, as part of a broader effort to curb what it characterises as excessive or speculative claims activity. The move forms part of a wider review of the consumer redress and claims ecosystem, with third-party funding increasingly drawn into policy discussions around cost, transparency, and accountability.

An article in Solicitor News reports that ministers are examining whether litigation funding and related financial arrangements are contributing to an imbalance in the claims market, particularly in mass claims and collective redress actions. While litigation funding has historically operated outside the scope of formal regulation in England and Wales, policymakers are now considering whether additional oversight is required to protect consumers and defendants alike. This includes potential scrutiny of funding agreements, funder returns, and the role of intermediaries operating between claimants, law firms, and capital providers.

The renewed attention comes amid political pressure to rein in what critics describe as a growing “claims culture,” with the government keen to demonstrate action ahead of future legislative reforms. Industry stakeholders have cautioned, however, that overly restrictive measures could limit access to justice, particularly in complex or high-cost litigation where claimants would otherwise be unable to pursue meritorious claims. Litigation funders have long argued that their capital plays a stabilising role by absorbing risk and enabling legal representation in cases involving significant power imbalances.

While no formal proposals have yet been published, the article suggests that funding models linked to claims management companies may face particular scrutiny, especially where aggressive marketing or fee structures are perceived to undermine consumer interests. Any regulatory changes would likely build on existing reforms affecting claims management firms and contingency-style legal services.