Discovery Concerning Potential Litigation Funding Is Not Relevant Or Proportional

A recent order from the Northern District of California provides some succinct guidance on the relevancy of discovery concerning litigation funding. In Space Data Corp. v. Google LLC, 5-16-cv-03260, the court denied Defendants Google and Alphabet's motion to compel discovery as to potential litigation funding allegedly considered by Plaintiff Space Data.

Space Data sued Google and its patent company Alphabet over Google's Project Loon – an Internet-beaming balloon initiative. Space Data alleged that Google unlawfully used confidential information and trade secrets disclosed during their partnership discussion in 2007 and claimed that Google infringed three of Space Data's U.S. patents.