Commercial Litigation Rights and Licensing Case Study

Commercial Litigation: Rights and Licencing

Deal overview

Settlement of a rights and licensing dispute
High value: >£5 million
Complex project: multiple funds in over extended time period

The deal was working on behalf of the defendant’s in-house counsel to settle a dispute for £m’s in a commercial litigation case, with multiple payments collected in from individuals, corporates and from an insurance policy before settling with the plaintiff’s solicitors.

THE CHALLENGE

Complex settlement structure

The defendant in a dispute over rights and licensing needed to find a solution to support a complex settlement process, collecting the damages from multiple parties, and facilitating a cross-border settlement of funds. As the settlement involved employees and suppliers to the defendant, they wanted to work with an industry expert, capable of successfully navigating the transactional complexities of the funds flow and provide outstanding payment experiences to complete this settlement.

THE SOLUTION

Flexibility and breadth of payment structuring and facilitation

Shieldpay was identified as the defendant’s preferred solution and approach for our ability to structure complex transactions, simplify and optimise large cross-border settlements, and our capability to provide robust verification and due diligence to accommodate several different types of payers and payees to the settlement.

Shieldpay’s platform expertly brings together the capabilities needed to facilitate complex transactions that can be easily tailored to the needs of the deal:

Verify: Flexible and robust due diligence
Shieldpay worked with the defendant to structure the contracted nature of the escrow to streamline the due diligence requirements, delivering tailored information collection journeys to the different parties of the transaction, where only specific essential documentation was required, reducing the time and burden associated with completing verification.
Hold: Safeguarding
Shieldpay leverages a Tier 1 and BoE banking infrastructure to deliver robust safeguarding of funds, green-rated by external auditors for the last 3 years. For a significant sized transaction, knowing that Shieldpay has a fully segregated escrow solution gave all parties to the settlement, and the law firms on both sides of the settlement the trust they required that funds were protected.
Disburse: Large cross-border settlements
Shieldpay has global payment capabilities to receive and settle funds in 120+ currencies and 140+ jurisdictions, offering competitive FX margins to optimise the collection and disbursement of funds for all parties. We were able to leverage our currency designated account to receive funds and settle to the plaintiff’s law firm, avoiding potentially inflated fees from banking FX fees, and settling the funds fast.

THE OUTCOME

The complex structure of this settlement meant that the defendant needed to find an alternative solution to using their law firm’s client money account, and needed an expert payments partner to advise and guide them on optimising the transaction to simplify what was already a multi-faceted deal.

Working with Shieldpay, the defendant was able to de-risk the collection and processing of different party’s verification, leverage a global cross-border payment solution and safeguard funds during the collection process, successfully mitigating their administrative burden, and expediently concluding the dispute. Shieldpay's expertise in simplifying payment processes for commercial litigation settlements emerged as an invaluable asset for the defendant.

Case study: Commercial Litigation Rights and Licencing

Commercial Litigation: Rights and Licencing

Deal overview

Complex settlement structure

Flexibility and breadth of payment structuring and facilitation

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