Leveraging Patent Litigation Settlements for Strategic Investor Returns: The Via vs. RideCo Case Study

In the evolving landscape of intellectual property (IP) enforcement, patent litigation settlements have emerged as a critical tool for unlocking strategic investor returns. The recent case of Via Transportation v. RideCo—a landmark ruling in the U.S. District Court for the Western District of Texas—offers a compelling case study in how patent holders can leverage litigation to secure both immediate and long-term financial gains. For investors, the verdict underscores the importance of analyzing not just the legal merits of a case, but also the quantifiable financial upside embedded in royalty awards and supplemental damages.

The Immediate Financial Impact: Supplemental Damages and Royalty Structure

According to a report by Bloomberg Law, RideCo was ordered to pay Via $1.4 million in supplemental damages following a unanimous jury verdict in January 2025RideCo Owes $1.4 Million in Via Transportation Patent Suit (2)^[5]. This one-time payment represents a direct return on Via's legal investment, but the more significant opportunity lies in the court's ruling to impose a 10% running royalty on all future U.S. sales of RideCo's infringing productsVia Awarded Ongoing Royalties and Supplemental Damages …^[1]. This structure ensures a recurring revenue stream for Via, contingent on RideCo's continued use of the patented virtual bus stop technology.

Data from CompWorth indicates that RideCo generates an estimated $14.5 million in annual revenue, with a workforce productivity of $145,000 per employeeRideCo: Revenue, Worth, Valuation & Competitors 2025^[3]. While the court did not specify the exact proportion of U.S. sales attributable to infringing products, the 10% royalty rate aligns with industry benchmarks for software patents, which typically range between 8% and 12%Average Royalty Rates by Industry: Patent Licensing and Key Factors^[2]. This suggests that Via's award is both competitive and defensible, minimizing the risk of renegotiation or judicial adjustment.

Strategic Implications for Investors

For investors, the Via-RideCo settlement highlights two key advantages of patent litigation as a financial strategy: predictability and leverage. The running royalty creates a predictable income stream, provided RideCo complies with quarterly payment obligations. The court's refusal to issue a permanent injunction—while reserving the right to do so if payments lapse—further reduces short-term volatilityVia Awarded Ongoing Royalties and Supplemental Damages …^[1].

However, the financial upside is not without risks. RideCo's CEO has publicly contested the award, noting that Via's initial damages request was reduced by over 85% during the judicial processRideCo Responds to Verdict in Patent Infringement Case^[4]. This discrepancy underscores the importance of monitoring RideCo's compliance and the potential for future appeals. Investors should also consider RideCo's broader financial health: with $30.9 million in total funding and a workforce of 122 employeesAverage Royalty Rates by Industry: Patent Licensing and Key Factors^[2], the company appears capable of meeting its obligations, but its reliance on U.S. markets (where Q2 2025 sales data remains undisclosedRideCo Responds to Verdict in Patent Infringement Case^[4]) introduces uncertainty.

Industry Benchmarks and Long-Term Projections

To contextualize Via's award, industry royalty benchmarks provide a useful framework. According to a 2025 report by UPCounsel, software patents typically command royalties between 8% and 12% of net sales, with higher rates for technologies offering significant competitive advantagesAverage Royalty Rates by Industry: Patent Licensing and Key Factors^[2]. Via's 10% rate falls squarely within this range, suggesting that the court's decision reflects market realities rather than arbitrary judicial discretion.

For investors, this alignment with industry standards enhances the credibility of long-term projections. Assuming RideCo's U.S. sales account for 50% of its $14.5 million annual revenue (a conservative estimate), the 10% royalty would generate approximately $725,000 annually for Via. Over a five-year period, this could yield cumulative returns exceeding $3.6 million—assuming stable sales and no material changes in RideCo's business model.

Conclusion: A Model for IP-Driven Investment

The Via-RideCo case exemplifies how patent litigation can be strategically deployed to generate both immediate and sustained investor returns. By securing a running royalty and supplemental damages, Via has created a financial structure that balances risk and reward. For investors, the key takeaway is clear: in industries where IP is a core asset, litigation settlements should be evaluated not just as legal victories, but as revenue-generating instruments.

As the automotive and mobility sectors continue to innovate, similar cases will likely emerge. Investors who prioritize rigorous analysis of royalty structures, industry benchmarks, and defendant compliance will be best positioned to capitalize on these opportunities.