Having been a co-founder of a company that was on the receiving end of IP litigation I can say that I found the whole experience incredibly stressful - I hate to think what it would have been like if it was me personally, rather than the company, being sued.
Fortunately the case was completely groundless - but it still took months of time and quite a bit of money paid to lawyers to make it go away. That's the thing that really sucks about being sued - the chances are that even if you are completely in the right you may well still end up having to spend a chunk of money on lawyers.
Does anyone advise getting insurance to cover these sorts of liability? Would General or Professional Liability or even IP liability insurance cover all the legal costs? I'm thinking that in addition to corporate structure as a way of handling this unknown (but significant) risk.
Fortunately the case was completely groundless - but it still took months of time and quite a bit of money paid to lawyers to make it go away. That's the thing that really sucks about being sued - the chances are that even if you are completely in the right you may well still end up having to spend a chunk of money on lawyers.