I haven't gone through this or anything, so maybe an actual lawyer would be happy to speak up in this thread. But my simpleminded understanding is that your typ

I haven't gone through this or anything, so maybe an actual lawyer would be happy to speak up in this thread. But my simpleminded understanding is that your typical frivolous lawsuit goes like this, only less transparently: TROLLCORP: "We're suing your company for ONE MILLION DOLLARS." CEO (through a lawyer, of course): "Well, oops, we've only got ten thousand in the bank plus a couple of old Macbooks. After that we're just going to declare bankruptcy and you won't see a dime." TROLLCORP: "Well, okay, frankly, we don't want to see you go bankrupt. Bankruptcy court is no fun at all. We don't need to pay for a tedious legal battle. We just want the money. How about you just give us the ten thousand plus 5% of all future revenue from your products?" CEO: "If I spend the ten thousand on a lawyer, I can file some motions to delay your lawsuit. Then I can go bankrupt. You'll get nothing then. So, how about one thousand bucks and 0.5% of future revenue?" TROLLCORP: "Two thousand and 2%." CEO: "Done." As with any parasitic transaction, the parasite has no rational interest in killing you. Dead companies don't pay. The danger, of course, is that they won't be reasonable and will accidentally push too hard, in their attempt to convince you to search under more sofa cushions for loose change that they can take. Or that they are, in fact, happy to kill your company because they think it will be an instructive demonstration for the other companies they sue. Or that they will gradually consume your time and suck your blood and your company will eventually die of exhaustion in 2% increments. But, you know, this is why it's good to be a small company. Having nothing means having nothing to lose.