There may be some arrangement in place to pay the attorneys a success fee if they successfully defend the Scanbuy v. Neomedia case. I do not know. But I find it extaordinarily doubtful that an attorney would accept a defense action except on a fee basis.
Perhaps there could be an arrangement like: 1. client pays all litigation expenses on a monthly basis, and 2. If attorney prevails, he gets to bill client for all recorded time and he gets a success fee of $X. But the defense attorney would still want a lot of security for the money that is to be paid at the end if he wins. In a normal case, a plaintiff's attorney working on contingency is paid directly out of the damage award he gets for the plaintiff. In a defense case, there is rarely a damage award to the defendant, so the attorney will want to know where his money will come from if he wins.
BTW, I have never seen Neomedia disclose how their attorneys ae compensated. So no one but an officer or director would know.
The engagment agreement is normally held in pretty strict confidence. The attorney certainly can't disclose it, and the client can but rarely does.
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