Because they don't expect to win the lawsuit. Their odds of winning a lawsuit aren't that good, so their goal is to badger a founder into settling. A founder would likely be killing their creative endeavor to become their own lawyer and go to court for themselves, and the trolls choose targets for whom paying a lawyer for the length of one of these trials would be prohibitively costly.
In other words, their real business model, the reason that they can be considered a "safe investment" is that they operate as an extortion racket at scale with the justice system itself as their (free) muscle.
The defense to this is multiple LLCs and licensing schemes. Just like the troll, don't hold any assets in the vulnerable LLC. If Walmart sells a bootleg shirt the IP holder can't sue the company that cleans the parking lot.
conartist6|11 months ago
In other words, their real business model, the reason that they can be considered a "safe investment" is that they operate as an extortion racket at scale with the justice system itself as their (free) muscle.
whatshisface|11 months ago
1. You buy "litigation insurance."
2. You state that you are insured on your website.
3. The insurance company is required to defend in all patent cases that arise, so there is no doubt that you will be represented in court.
4. Nobody sues.
5. The insurance company makes a profit with no cost or risk.
hattmall|11 months ago
ziddoap|11 months ago
Send out 1,000s of dubious demand letters which don't cost much. Some percent of those will settle with minimal effort on the troll's side. Profit.
Drop the ones that look expensive and hope they don't counter sue.
HeatrayEnjoyer|11 months ago
Someone1234|11 months ago
mmooss|11 months ago