Lexolent

We are the world’s first globally coordinated origination network for legal finance professionals providing a unique platform where capital meets origination.

[Nick Rowles-Davies @NRD_LXT]

The real story of AI in 2025 isn’t another model launch. It’s a $1.5b settlement over training data—and courts that can’t agree on whether that training is “transformative” or outright substitution.

My new piece, “The Price of Machine Learning: How a $1.5 Billion Settlement Redefines AI’s Legal Landscape,” breaks down what changed and who will pay for training next.

#AICopyright
#FairUse
#LegalTech
#AIEthics
#MachineLearning

https://t.co/klKWOLxfp1

[Lexolent @lexolent]

RT @NRD_LXT: My newest piece on substack in AI Hallucinations in the Courtroom...

#AI #AIHallucinations #Litigation

https://t.co/pzI8QY5…

[Legal Finance Expert @legalfinanceexp]

EU Commission drops plans for bloc-wide litigation-funding rules, leaving regulation to Member States. Big win for funders: no caps, no new disclosures, more certainty. But the industry now has to prove responsible practices to avoid future EU action.

https://t.co/4FebQgUGiv

[Legal Finance Expert @legalfinanceexp]

A sharp read from editor @NRD_LXT. Trump’s “One Big Beautiful Bill” briefly floated a 40.8% tax on litigation funders—struck down, but likely to return. The future of US litigation finance sits at the crossroads.

https://t.co/ruWQgpxFsW

[Legal Finance Expert @legalfinanceexp]

Should legal funders really be investing in law firms

Funding a case isn’t the same as owning the firm running it. Ownership brings conflicts, shifts incentives and risks eroding the independence that gives litigation finance its credibility.

https://t.co/JzT2vJJXVZ

[Legal Finance Expert @legalfinanceexp]

The Supreme Court’s PACCAR ruling shook up third-party litigation funding, but the Civil Justice Council’s new report offers clarity. By urging PACCAR reversal and light-touch regulation, it aims to restore certainty and access to justice.

https://t.co/2S99w7aQDQ

[Legal Finance Expert @legalfinanceexp]

Has Germany become Europe’s hottest spot for funded securities litigation?

New KapMuG reforms enhance evidence discovery, expand claim types, and speed procedures – creating institutional investor interest. Cases like VW & Porsche show what’s ahead.

https://t.co/GjpKxqTq5r

[Legal Finance Expert @legalfinanceexp]

We've just launched Legal Finance Expert (LFE) – an independent, expertly curated journal for the fast-moving world of legal finance and litigation funding. Led by editor @NRD_LXT, LFE delivers clear, unbiased insights each week.

Explore editorial now: https://t.co/MgVcXiZaDr

[Legal Finance Expert @legalfinanceexp]

We’re proud to welcome Nick Rowles-Davies (@NRD_LXT) as Editor of Legal Finance Expert. A leading voice in litigation funding and CEO of @lexolent, Nick brings deep industry insight to help further legal finance.

Read his debut editorial this morning:

https://t.co/1VJ8U7LRuF

[Legal Finance Expert @legalfinanceexp]

The UK debate on litigation funding is being skewed by lobbying and US-style fears. With loser-pays costs and modest damages, speculation is already deterred. Post-Paccar the focus should be fixing procedures – not chasing myths of “predatory litigation".

https://t.co/sbaUmSVFlA

[Legal Finance Expert @legalfinanceexp]

Weekend read: Third-party funding is now key in high-value arbitration – but can those costs be recovered from the losing party?

From Essar v Norscot to Tenke v Katanga, outcomes remain unpredictable. Cost recovery is a powerful and uncertain lever.

https://t.co/ImVuzDUrdj

[Nick Rowles-Davies @NRD_LXT]

💡 Why this matters:

Enterprises might gain the right to recover value from unused licences.

Vendors may have to change how they control digital resale.

Could reset the rules of ownership in digital software markets.

[Nick Rowles-Davies @NRD_LXT]

📉 Competition law angle:
If Microsoft is dominant in the market and is shutting down resale of old licences, that may be abuse of dominance under EU/UK law.
ValueLicensing says the second-hand market is being destroyed.

[Nick Rowles-Davies @NRD_LXT]

📌 Legal questions the court is weighing:

Does software with non-code elements fall under a stricter regime?

What counts as a “sale” if deletion of copies can’t be enforced?

Can Microsoft legally block splitting licence bundles?

[Nick Rowles-Davies @NRD_LXT]

🛑 Microsoft’s arguments:

Their software isn’t just “code” — it includes fonts, help files, UI etc.

That moves it outside simple software resale rules.

Also: Volume licences can’t be split or resold in parts.

[Nick Rowles-Davies @NRD_LXT]

⚖️ The precedent:
In the UsedSoft case, the CJEU ruled that once a perpetual licence is sold, the buyer can resell it — as long as they delete their copy.
ValueLicensing says this should apply.
Microsoft disagrees.

[Nick Rowles-Davies @NRD_LXT]

💼 The case:
ValueLicensing is suing Microsoft, claiming it restricts resale of perpetual licences, harming competition & inflating prices.
Think: companies with unused licences they could resell — but aren’t allowed to.

[Nick Rowles-Davies @NRD_LXT]

📢 Can enterprises legally resell unused Microsoft licences like Office or Windows? A major UK tribunal case is asking just that — and the outcome could reshape software licensing & digital ownership. 🧵👇

[Nick Rowles-Davies @NRD_LXT]

The new regulator can:

Block club sales, relocations & kit changes

Enforce financial oversight

Impose licensing terms

Be challenged via the Competition Appeal Tribunal (CAT)