Tangentially...

[greyorm]

Tangentially -- based on Chris' recent query about mythological names -- what sort of costs are involved in being sued by a company? (besides lawyers, saying you decide to represent yourself)

Has anyone had the experience that can comment on it? Or is the cost and pain of it simply Urban Legend at this point, which "everyone" knows to be true because of X and Y without actual verification?

I know it costs quite a bit to sue someone (filing paperwork and court fees and so forth), but to be sued? How can being sued specifically cost you money (again, besides a lawyer's fees), unless you are found guilty?

I'm curious about this issue...no "X happened to X in the 80s" or "well I think" sorts of posts or "logical" thought on the issue, please (because I know some of you are quite fond of that latter one). I'm looking for direct, actual experience or informed anecdote that showcases the reality.

[Clay]

Raven,

I'm not a lawyer, but lived for a while with a lawyer who's first case she had to deal with was an intellectual property case. The legal fees, the potential inability to market your product (sale and promotion may be restricted until the trial is settled), and potential damages are usually sufficient to scare anybody.  The problem is generally that an intellectual property case rests on the preponderance of evidence. Since collecting, processing and delivering that evidence all takes time, the legal fees alone can be a real killer.  Even if you win, the victory may be a moral victory only.

There are a couple of lawyers floating around the boards now.  They might be able to enlighten you further.

[jrients]

I'm no lawyer.  When my bank sues its customers for loan defaults I'm the point man.  I see a lot of people stumbling through defending themselves.

A key issue in these matters can just be showing up to court.  Some judges will not brook no-shows or even tardiness, especially if you are defending yourself.  One case in which I was involved was decided in my company's favor because the other guy was five minutes late.  He was defending himself and the judge was in no mood for waiting long enough to see if he was actually going to show.  We passed each other in the hall not long after the gavel fell.  I was walking out as he was rushing in.

I was pretty pleased.  My position was shakier than I would have liked had he managed to properly grill me on the stand.

[Gordon C. Landis]

Personally -

(The following will be somewhat vague due to actual legal agreements and/or an overabundance of caution on my part)

About 11 years back, I did some consulting work for a new, small service-oriented company.  A well-established company providing (at best) tangentially-related services thought the name picked was too close to their name.  I, and most reasonable folks I knew, thought this was REALLY stretching the argument - in terms of both name and the degree of "likely confusion."  After the lowest estimate just to BEGIN fighting the case came in at $25,000, they decided they'd represent themselves.  Six months, hundreds of pages of paperwork and an injunction against using the name in any marketing material later, they gave up, changed the name, and moved on.  The several thousand dollars in "wasted" business cards, letterhead and the like were bad.  The lost "reputation" on the old name - well, they were just getting started, and maybe that wasn't a big deal.  In that area, maybe Big Company did them a favor by going after 'em early.

But that is NOTHING compared to how disruptive it was trying to deal with this at the same time they were trying to get a new company started.  These were 7 bright guys and gals busting their butts to build a little company, a hard thing to do on its own.  Add in this headache, and . . . the stress was too much for some of 'em.  The company survived, and still does, last I heard.  But one of the founding couples just couldn't take the stress and went back to "normal" jobs.

These things can be quite ugly and expensive, in more ways than one.  
On the other hand, as I mentioned in the other thread, I know a guy who paid a lawyer a couple hundred bucks to draft a letter stating why the use of a questionable term was NOT a violation.  Sure enough, he got a letter from the expected lawyers (estate lawyers can be the worst - some of 'em search out any possible use and just automatically fire off a letter), but when he sent back HIS letter . . . he never heard from them again.

That's what I know.  Unfortunately, "it costs a fortune to GET sued" is no urban legend, best as I can tell.  But again, *sometimes* just a little effort CAN make the problem go away surprisingly quickly.

Gordon