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Commercial Legal Innovation

Navigating Patent Litigation: The Crucial Role of Generative AI Platforms

January 2, 2024

Navigating Patent Litigation: The Crucial Role of Generative AI Platforms

In a landmark decision by the International Trade Commission (ITC), Apple’s highest-grossing wearables faced unprecedented importation restrictions, marking a pivotal moment in the protracted patent dispute with medical device-maker Masimo. To put the magnitude into perspective, Apple’s wearables, home, and accessory business raked in a staggering $8.28 billion in revenue in the third quarter of 2023. This ruling disrupts the very core of Apple’s most popular and revenue-generating wearables, adding a seismic impact to the already intense legal battle with Masimo. This article delves into the transformative capabilities of Generative AI platforms, shedding light on how these technologies are reshaping both proactive and reactive litigation practices against the backdrop of such a significant industry development. Elevating Efficiency in Patent Litigation: A Generative AI Perspective Strategic Edge for Law Firms and Litigators:
  1. Streamlined Data Management:
    • Generative AI platforms streamline the upload and organization of voluminous case documents, enhancing law firms’ and litigators’ capability to manage data efficiently.
  2. Automated Analysis:
    • Leveraging Generative AI, legal professionals can automate analysis processes, extracting valuable insights from complex datasets swiftly and accurately.
  3. Dynamic Adaptability:
    • Future-ready Generative AI platforms empower law firms and litigators to dynamically adapt to new information or shifting circumstances, providing a real-time strategic advantage.
  4. Investor Collaboration:
    • Building and maintaining a comprehensive roster of investors becomes more manageable, facilitating efficient collaboration and attracting funding partners for legal fees.
  5. Tailored Content Creation:
    • Generative AI platforms excel in generating tailored content for legal motions, analyzing writing styles and logic to ensure persuasive arguments that resonate effectively.
  6. Communication Excellence:
    • Acting as central communication hubs, these platforms foster seamless collaboration and information exchange among legal professionals, enhancing overall communication efficiency.
Empowering Patent Owners in Proactive Management:
  1. Organized Patent Portfolio:
    • Generative AI facilitates the creation of well-organized rosters of patents, providing patent owners with strategic control over their portfolios.
  2. Capital Attraction:
    • Patent owners can leverage organized patent portfolios to attract funding for growth and innovation independently, reducing reliance on traditional fundraising approaches.
  3. Self-Funded Litigation:
    • Generative AI platforms empower patent owners to gain better economic control, enabling them to self-fund litigation cases when required.
  4. Global Coverage:
    • Future-ready platforms offer a comprehensive overview of patents, covering multiple regions and facilitating global enforcement.
  5. Quality Assurance:
    • While maintaining human-in-the-loop functionality, Generative AI ensures robust quality checks and efficient data management.
Masimo vs. Apple: A Glimpse into the Future of Patent Litigation The recent ITC ruling in Masimo vs. Apple serves as a poignant reminder to businesses about the critical importance of being in the driver’s seat when it comes to managing their own patents and capitalizing on innovation. While Masimo, a sizable player in the industry, successfully navigated the legal terrain to secure favorable outcomes, it prompts reflection on how smaller companies might face more significant challenges in achieving similar results. This underscores the significance of businesses taking control of their intellectual property and innovation strategies. For smaller companies, such as those without the resources of a Masimo, being in the driver’s seat is not just a strategic choice but a necessity. The Masimo vs. Apple case illuminates the power dynamic in patent disputes and the role that control over one’s intellectual property plays in shaping the outcomes. Smaller entities, with limited resources, may find themselves at a disadvantage in legal battles, making it imperative for them to proactively manage their patents, navigate legal landscapes, and capitalize on their innovations. Generative AI platforms emerge as a leveling force in this scenario. By harnessing the power of generative solutions, smaller law firms gain a more competitive edge without the need for extensive headcount. This democratization of legal capabilities levels the playing field, allowing smaller firms to stand shoulder to shoulder with their larger counterparts. The transformative potential of generative AI platforms extends beyond just litigation; it opens up avenues for smaller entities to actively participate in the competitive capital market. In essence, a more equitable competitive capital market is crucial for fostering innovation. Generative AI platforms become the key to sustaining this trend. They empower businesses, regardless of size, to actively shape their legal strategies, manage patents efficiently, and capitalize on their innovative potential. As the legal landscape continues to evolve, embracing generative AI not only ensures a fairer competitive environment but also fosters a culture of innovation where businesses of all sizes can thrive.  As the patent community adapts to the demands of complex patent disputes, Generative AI platforms emerge as indispensable tools, revolutionizing both proactive and reactive litigation practices. This nuanced approach empowers law firms, litigators, and patent owners alike, offering a glimpse into the future of patent litigation where efficiency, data-driven strategies, and collaboration take center stage amidst the landmark shifts brought on by significant industry developments. About the author: Joshua Masia, Co-founder & CEO of DealBridge.ai, brings a wealth of experience from leadership roles at JPMorgan Chase, BlackRock, and iCapital. With a BS in Electrical Engineering, Josh has spent 15 years shaping technical and business solutions. At DealBridge.ai, Josh leads the charge in transforming private markets. Their platform, powered by Generative AI, automates deal complexities, streamlining origination, due diligence, and distribution. Eliminating traditional processes, DealBridge.ai empowers seamless connections, enhancing the human experience in deal-making. Under Josh’s vision, DealBridge.ai maximizes revenue potential through automation, redefining legal, insurance, and financial transactions. As a trailblazer, Josh and DealBridge.ai usher in a transformative era in deal relationship management.

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Case Developments Commercial

Pogust Goodhead Seeks Interim Costs Payment

By John Freund |

Pogust Goodhead, the UK law firm leading one of the largest group actions ever brought in the English courts, is seeking an interim costs payment of £113.5 million in the litigation arising from the 2015 Mariana dam collapse in Brazil.

According to an article in Law Gazette, the application forms part of a much larger costs claim that could ultimately reach approximately £189 million. It follows a recent High Court ruling that allowed the claims against BHP to proceed, moving the litigation into its next procedural phase. The case involves allegations connected to the catastrophic failure of the Fundão tailings dam, which resulted in 19 deaths and widespread environmental and economic damage across affected Brazilian communities.

Pogust Goodhead argues that an interim costs award is justified given the scale of the proceedings and the substantial expenditure already incurred. The firm has highlighted the significant resources required to manage a case of this size, including claimant coordination, expert evidence, document review, and litigation infrastructure. With hundreds of thousands of claimants involved, the firm maintains that early recovery of a portion of its costs is both reasonable and proportionate.

BHP has pushed back against the application, disputing both the timing and the magnitude of the costs being sought. The mining company has argued that many of the claimed expenses are excessive and that a full assessment should only take place once the litigation has concluded and overall success can be properly evaluated.

The costs dispute underscores the financial pressures inherent in mega claims litigation, particularly where cases are run on a conditional or funded basis and require sustained upfront investment over many years.

Case Developments Commercial

Litigation Capital Management Faces AUD 12.9m Exposure After Class Action Defeat

By John Freund |

Litigation Capital Management has disclosed a significant adverse costs exposure following the unsuccessful conclusion of a funded Australian class action, underscoring the downside risk that even established funders face in large-scale proceedings.

An article in Sharecast reports that the AIM-listed funder revealed that the Federal Court of Australia has now quantified costs in a Queensland-based class action brought against state-owned energy companies Stanwell Corporation and CS Energy. The court ordered costs of AUD 16.2 million in favour of each respondent, resulting in a total adverse costs award of AUD 32.4 million. The underlying claim was dismissed earlier, and the costs decision represents the next major financial consequence of that loss.

While LCM had after-the-event insurance in place to mitigate adverse costs exposure, that coverage has now been exhausted. After insurance, an uninsured balance of AUD 19.9 million remains. LCM expects to contribute AUD 12.9 million of that amount directly, with the remaining balance to be met by investors in its Fund I vehicle.

The company has emphasized that the costs awarded were standard party-and-party costs, not indemnity costs, and stated that the outcome does not reflect adversely on the merits of the claim or the conduct of the proceedings. Nonetheless, the market reacted sharply, with LCM’s share price falling by more than 14% following the announcement.

LCM also confirmed that it has already lodged an appeal against the substantive judgment, with a two-week hearing scheduled to begin in early March. In parallel, the funder is considering whether to challenge the costs quantification itself, alongside an appeal being pursued by the claimant. The company noted that discussions with its principal lender are ongoing and that its previously announced strategic review remains active, with further updates expected in the coming months.

Commercial

Avoiding Pitfalls as Litigation Finance Takes Off

By John Freund |

The litigation finance market is poised for significant activity in 2026 after a period of uncertainty in 2025. A recent JD Supra analysis outlines key challenges that can derail deals in this evolving space and offers guidance on how industry participants can navigate them effectively.

The article explains that litigation finance sits at the intersection of law and finance and presents unique deal complexities that differ from other private credit or investment structures. While these transactions can deliver attractive returns for capital providers, they also carry risks that often cause deals to collapse if not properly managed.

A central theme in the analysis is that many deals fail for three primary reasons: a lack of trust between the parties, misunderstandings around deal terms, and the impact of time. Term sheets typically outline economic and non-economic terms but may omit finer details, leading to confusion if not addressed early. As the diligence and documentation process unfolds, delays and surprises can erode confidence and derail negotiations.

To counter these pitfalls, the piece stresses the importance of building trust from the outset. Transparent communication and good-faith behavior by both the financed party and the funder help foster long-term goodwill. The financed party is encouraged to disclose known weaknesses in the claim early, while funders are urged to present clear economic models and highlight potential sticking points so that expectations align.

Another key recommendation is ensuring all parties fully understand deal terms. Because litigation funding recipients may not regularly engage in such transactions, well-developed term sheets and upfront discussions about obligations like reporting, reimbursements, and cooperation in the underlying litigation can prevent later misunderstandings.

The analysis also underscores that time kills deals. Prolonged negotiations or sluggish responses during diligence can sap momentum and lead parties to lose interest. Setting realistic timelines and communicating clearly about responsibilities and deadlines can keep transactions on track.