The 4-Step Patent Litigation Funding Readiness Framework
The Patent Litigation Funding Readiness Framework™
Patent litigation investors evaluate cases using a structured diligence process. At Patent Intelligence Group, we developed a four-step framework designed to transform raw patents into investment-ready litigation opportunities.
Step 1 — Infringer Landscape Report
The first step is identifying companies and products that may be infringing the patent.
This report analyzes the competitive landscape to determine where patented technology is being used in the marketplace.
Key Deliverables
• Identification of potential infringing companies
• Preliminary ranking of enforcement opportunities. May also reveal that there are no infringement targets or low quality infringement targets.
The goal is to determine whether the patent has commercially meaningful enforcement targets. In some cases, the initial landscape review may determine that there is no clear evidence of infringement in the marketplace. When this occurs, the analysis does not proceed to later stages.
This early screening protects patent owners by avoiding unnecessary litigation costs, expert expenses, and investor diligence on cases that lack viable enforcement opportunities.
Step 2 — Evidence-Backed Claim Chart Report
Once potential infringers are identified, the next step is developing technical evidence of infringement.
This report maps specific product features to the elements of the patent claims.
Key Deliverables
• Mapping patented technology to real-world products
• Detailed patent claim charts
• Product feature mapping to claim elements
• Screenshots, documentation, and technical evidence
• Structured infringement analysis
This step creates evidence-backed infringement analysis that can support litigation or investor review.
Step 3 — Litigation Viability Report
After infringement evidence is developed, the case must be evaluated for legal strength and litigation risk.
This report assesses whether the patent is likely to withstand challenges during enforcement.
Key Deliverables
Includes everything from Steps 1 and 2:
• Identification of potential infringing companies
• Preliminary ranking of enforcement opportunities. May also reveal that there are no infringement targets or low quality infringement targets.
• Mapping patented technology to real-world products
• Detailed patent claim charts
• Product feature mapping to claim elements
• Screenshots, documentation, and technical evidence
• Structured infringement analysis
Step 3 also includes:
• Claim and portfolio strength evaluation. Is there a portfolio of patents or a single patent?
• Infringer analysis. Are there multiple Defendants?
• Initial damages and enforcement considerations. Damages should be a minimum of $20 million.
• Potential venue analysis
The purpose of this step is to determine whether the case is suitable for litigation or litigation finance.
Step 4 — Investment Diligence Report
The final step prepares the case for litigation finance investors.
This report provides the deeper legal and technical diligence that investors require before funding patent litigation.
Includes everything from Steps 1, 2 and 3:
• Identification of potential infringing companies
• Preliminary ranking of enforcement opportunities. May also reveal that there are no infringement targets or low quality infringement targets.
• Mapping patented technology to real-world products
• Detailed patent claim charts
• Product feature mapping to claim elements
• Screenshots, documentation, and technical evidence
• Structured infringement analysis
• Claim and portfolio strength evaluation. Is there a portfolio of patents or a single patent?
• Infringer analysis. Are there multiple Defendants?
• Initial damages and enforcement considerations. Damages should be a minimum of $20 million.
• Potential venue analysis
Step 4 also includes:
• File wrapper review and prosecution history analysis
• Prior art evaluation and risk assessment
• Patent validity analysis
• IPR vulnerability analysis. Is there settled expectations? Is the patent vulnerable to an inter partes review (IPR) challenge?
• §101 eligibility analysis (for software or business method patents)
The Investment Diligence Report transforms the opportunity into an investor-ready patent enforcement package. Step 4 is the deep-dive analysis that prepares the case for litigation finance, providing the detailed legal, technical, and market diligence that investors need to determine whether the opportunity is worth funding.
Conclusion
The Patent Litigation Funding Readiness Framework™, developed by Patent Intelligence Group, provides a structured method for evaluating patent enforcement opportunities and preparing cases for litigation finance.
By combining market analysis, infringement evidence, legal viability review, and investor diligence, the framework helps patent owners present strong, investment-grade patent cases.
