A real-life story about how a big company with a lot of money threatened a small start-up company with patent infringement.

The other day, I received a phone call from a friend who has been building a kick-ass startup. That friend had been contacted by a much larger competitor with what amounted to an ultimatum: shut down and come work for us, or we’ll crush you with a patent infringement suit. My friend’s startup didn’t cave in–in fact, my friend even went through the trouble of sharing a pile of incontrovertible prior art with the competitor. The competitor was unimpressed, and my friend’s startup is now facing a potentially ruinous lawsuit.