Facts & Figures: Litigation financing is here to stay
From patent trolls to shrinking law school classes, an inside look at the numbers that count
December 14, 2012 at 07:37 AM
16 minute read
The original version of this story was published on Law.com
Terrible Trolls
According to a recent study by law professor Colleen Chien, more patent trolls than ever are emerging from underneath their proverbial bridges to wreak havoc on companies—particularly startups—despite the fact that they have no valid claim on technologies. In fact, this year for the first time, most patent lawsuits have come courtesy of these trolls. Read on for more survey results.
61% Percentage of patent lawsuits that were filed by trolls (through Dec. 1)
45% Percentage of patent suits that trolls filed in 2011
23% Percentage of patent suits filed by trolls in 2006
35% Percentage of startups that have raised between $50 million and $100 million that have faced a patent suit
Court Costs
It's no secret that litigation is expensive, and in an effort to cover trial costs, some organizations have turned to third-party litigation financing. Supporters argue that it helps to level the playing field between companies with more resources and those with less; detractors say that it could pose ethical conflicts and drag out litigation. But love it or hate it, most litigators expect third-party litigation financing to grow in the next year and a half, according to a new survey from litigation financing provider Burford Group.
96% General counsel who are familiar with the idea of third-party financing
60% General counsel who expect third-party litigation finance to increase in the next 18 months
59% GCs surveyed who believe that it would legal the playing field between parties with unequal financial resources
38% General counsel who have worked on a case that could have benefited from litigation financing
Cutting Class
Finals time is fast approaching, but fewer aspiring attorneys will be hitting the books this term, according to a new survey from Kaplan Test Prep. More than half of U.S. schools reduced their class sizes for the 2012-2013 school year, largely because of the sad state of the legal jobs market. And the smaller class sizes aren't the only difference at these schools: Institutions are also revising their curricula to give students more practical skills training.
51% Law schools that cut the size of their 2012 entering classes
63% Admissions officers who said the decrease is due to the contraction of the legal jobs market
28% Law school that will likely cut classes for the current application cycle
68% Schools that have modified their curriculum to make graduates more “practice ready”
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