Empowering Israeli Innovators to Take on Industry Giants
Innovative Israeli technology companies are inherently disadvantaged when facing litigation against larger parties with deeper pockets. Leveling the playing field by utilizing litigation funds can provide smaller companies a chance to protect themselves risk-free.
December 5, 2018
Leading Israeli news source News1 recently featured Kobre & Kim’s Israel team discussing the unequal playing field Israeli tech companies face in IP disputes with global giants. You can read the original article (in Hebrew) here, or an English version below.
Kobre & Kim and litigation finance firm Bentham IMF recently partnered to deliver a first-of-its-kind litigation funding solution for Israeli individuals and companies with cross-border claims. The fund provides the necessary legal and financial resources to guard trade secrets and pursue intellectual property and commercial litigation claims against deep-pocketed, multinational competitors and other wrongdoers. Learn more here:www.kobrekim.com/litigationfund.
Innovative, emerging technology Israeli companies are inherently disadvantaged when facing litigation against larger parties with deeper pockets. A lack of resources can prevent these smaller companies from pursuing legal action, even in cases where they have clearly established grounds and claims. Litigation funding can be a way for these companies to more effectively compete against resource-rich multinational corporations.
Leveling the Playing Field
Litigation funding can bridge the resource gap between smaller technology companies and the multi-national companies (MNCs) who may disregard their rights. Many MNCs have the resources and experience to delay cases and thus “bury” their rivals in preliminary proceedings. This strategy not only forces smaller companies to spend an exorbitant amount of money (which they often don’t have), but also stops the legal process before it can even begin. Having financial support through a litigation fund can help to mitigate this problem, extend the life of court proceedings and balance the legal forces at play.
Risk-Free Financial Support
Litigation funding benefits smaller Israeli companies seeking to protect their rights. First, litigation funds assess the opportunity, including the company’s claims, anticipated timeline and the potential returns in case of success. If they are comfortable with the opportunity, the litigation fund will provide financing throughout the legal process (including any and all associated costs) in exchange for a percentage of the amount that will be awarded in favor of the plaintiff. Importantly, the litigation fund assumes all the risk; the claimant bears no costs should they lose.
Litigation financing provides startups and growth-stage technology companies with the necessary resources to develop a strong case without being impeded by high costs. Litigation funding provides the flexibility and resources for a wide range of disputes, such as patent infringement, breach of contract, breach of trade secrets, failed joint ventures and other common cases that threaten many growing technology companies.
About Kobre & Kim's Israel Team
Kobre & Kim is a conflict-free Am Law 200 law firm focused exclusively on disputes and investigations, with particular experience in representing Israeli clients in cross-border matters involving Israel, the U.S., Europe, Asia and other jurisdictions.
Our first-of-its-kind litigation fund provides Israeli innovators with the legal and financial leverage they need to pursue claims against large, deep-pocketed adversaries, as well as access to a global network of cross-border litigators capable of acting against virtually any entity (due to our “conflict-free” approach). Our intellectual property litigation team has considerable experience leading large-scale patent enforcement involving internationally recognized patent applications, where we have recovered hundreds of millions of dollars on behalf of our clients.
As the only firm with on-the-ground representation from a former U.S. federal prosecutor in the country, we have been deeply involved in investigations by the U.S. authorities into Israel. Our criminal and regulatory practice is primarily cross-border, often involving simultaneous investigations by law enforcement authorities in several countries.