It seems you're conflating an entity exercising it's legal duty, with entities using the legal system to harass and bully others into complying with unreasonabl

It seems you're conflating an entity exercising it's legal duty, with entities using the legal system to harass and bully others into complying with unreasonable demands. Magic leap has created IP using Investor Money. That IP has monetary value, and that value in-part belongs to investors. If the company fails to protect that IP, the IP could lose value, impacting the value to investors. Losing that value because the company failed to act could open up the CEO to breach of fiduciary duty.