WASHINGTON (January 12, 2026) – Tomorrow, the House Judiciary Committee will mark up the Protecting Third Party Litigation Funding From Abuse Act. The Inventors Defense Alliance strongly opposes this legislation because it would harm America’s small businesses, deter investment, and weaken the innovation ecosystem.
IDA’s chief policy counselor, Kristen Osenga, made the following statement ahead of the markup
“The Inventors Defense Alliance strongly opposes the so-called “Protecting Third Party Litigation Funding From Abuse Act” because it would make it far harder for small inventors and startups to protect their ideas in court. For many innovators, third-party litigation funding is not optional—it is the only way to stand up to large corporations that rely on delay and intimidation to avoid accountability. The Act’s disclosure requirements would expose sensitive legal strategies and financial relationships, giving powerful defendants an unfair advantage and opening the door to harassment of investors.
“Critically, the bill is far broader than litigation funding alone. Its language would require disclosure of all investors in any non-public company, including individual investors, venture capital backers and other sources of equity financing that have nothing to do with a specific lawsuit. It would also require disclosure of any investment-related agreements. This sweeping approach would chill investment across the innovation ecosystem, not just in litigation finance.
“At a time when inventors and startups support more than 62 million jobs nationwide, this legislation would tilt the legal system even further in favor of those with the deepest pockets.”
About the Inventor’s Defense Alliance: The Inventors Defense Alliance is a nonpartisan, nonprofit, 501(c)(4) advocacy organization that works to build support for inventors’ rights, safeguard justice, and protect access to capital. Learn more at www.InventorsDefense.org.