Would increase litigation not descrease it
Firstly IP = Trademarks + Copyright + Patents and of those only Patents require secrecy and would need ESCROW.
If a company is falsely accused of infringing a patent, they get their money BACK from the company who sued them. The only money that can be saved therefore is the money spend by an litigant. So it helps the accuser target their attacks better for maximum profit.
The company being accused can see their own code and see the patent and determine if there is a risk of the lawsuit being successful. There is no gain to them from showing their trade secrets this way, because any costs of the lawsuit they can get back when they win.
The company that sues does not know the other companies secrets, this helps them know if they have zero chance in court. But as such they can save their attack fee and go after a different company.
They do it for money, or to block a competitor from the market place. They are not interested in whether their patents have been reasonably infringed, they are only interested in whether the lawsuit will be profitable or not. By revealing the info, this helps the attacker judge the amount to spend on the lawsuit before calling it quits.
Anything that aids an patent litigant to minimize the false accusations, encourages litigation, because it means they can lower their costs by lowering the cost of a false accusation.
Biting the hand that feeds IT
