Unified Patents Rule Suggestion on disclosure of third-party litigation funding

Unified Patents LLC, a membership organization dedicated to deterring unmeritorious patent assertions, endorses the LCJ/ILR proposal on TPLF disclosure in a Rules Suggestion filed with the Advisory Committee on Civil Rules, and urges consideration of enhancements to the proposed rule amendment which would address patent litigation issues.

Unified Patents details the impact of undisclosed third-party funding on patent litigation. It highlights the importance of disclosing the funder to “judgement enforceability,” particularly when many non-performing entities (NPEs) making patent claims are single-purpose entities with no operations and assets beyond the patent being asserted. Disclosure is also important to addressing stalled settlements, unexplained behavior, and case delays.

The Rules Suggestion details the sophisticated structures used by funders and their counsel to avoid disclosure. It urges that a rule amendment encompassing portfolio- and campaign-level funding arrangements and requiring disclosure of any entity with a direct financial interest in the outcome of a case.

The Rules Suggestion, filed on October 5, 2026, is signed by Jonathan Stroud, Unified Patents’ head of operations. Click here to read the Rules Suggestion.