The RPX session “NPEs and Litigation Finance are Coming to Europe. Are you prepared?” asked a direct question. The answer, broadly, was: not yet.
Moderated by Dr Oliver Scherenberg, Head of RPX Europe, the panel brought together perspectives from litigation finance, operating companies, and private practice. Speakers included senior representatives from Parabellum, Pretium, Sonos, HP, and Kather Augenstein.
The discussion made clear that Europe is becoming a more attractive forum for non-practising entities and litigation funders. The UPC, Germany’s fast-moving patent courts, and the availability of powerful remedies all contribute to a litigation environment that can create pressure on defendants.
Yet funders emphasised that not every patent dispute is financeable. Patent quality remains the primary filter. Funders look closely at validity, infringement, technology area, damages potential and procedural strategy. According to the discussion, around 97% of opportunities reviewed are turned down. But the 3% that proceed are selected with precision.
That selectivity matters. When a funder backs a case, defendants should not assume it is speculative. It may indicate that the patents, facts and litigation strategy have already passed a demanding commercial and legal screen.
Germany was singled out as particularly important. As one speaker put it: “When it’s in Germany, the timeline is so fast. That is really a lot of pressure.” Speed can be a tactical advantage for claimants and a serious challenge for defendants, especially where internal decision-making, technical analysis and settlement strategy must move quickly.
Provenance also matters. Patents originating from operating companies with strong portfolios are often viewed as more credible than patents assembled purely for litigation. That provides a practical lesson for rights holders: how a portfolio is built, documented and presented can affect its litigation value.
For operating companies, the message was equally practical. NPE and litigation finance activity in Europe should not be treated as a distant U.S.-style phenomenon. It is already becoming part of the European patent landscape.
The panel’s warning was clear: companies need to understand their exposure, assess portfolio risk, prepare defence strategies and take litigation finance seriously. NPEs and funders are coming to Europe. The question is whether Europe’s technology companies are prepared.
Disclaimer: This article is based on the author’s recollection of the panel discussion. It reflects comments made by speakers in their personal capacity and should not be read as a verbatim or complete factual summary of the debate, nor as representing the views of the organiser.