Life for a startup on the receiving end of a patent law suit

I have an LLC (US), but this is one of the blunders I've made and I plan on dissolving it soon. There are many reasons to my answer, here are some:

The problem with a US based LLC is that you open up free access to thousands of patent trolls waiting to eat your hard earned money. This isn't a problem if you can afford a decent Lawyer for $5000-15000, but for businesses like mine, which are bootstrapped, it's totally unaffordable.

Well funded startups usually have a separate legal department to resolve these issues, but when you're running a startup totally from your own pocket, it becomes extremely hard and annoying. I was wondering for a solution until a very good friend of mine suggested me something nice.

If you set up a company somewhere in India (or some other popular, Start-up friendly developing country), these patent trolls have little access to you in terms of licensing, etc. Usually a patent troll will send you a legal letter threatening you about violation of some kind of absurd technology patent, etc. But, when you start up elsewhere, these become nulled[1]. Meaning, they can't touch you. Worse-case scenario, even if someone DID sue you, the lawyers are really cheap in such developing countries. We're talking about price ranges of $50-1000. And for $500 bucks you can get some really nice lawyers to get the job done.

There's also a LOT of start-up friendly exemptions for companies in such developing countries simply because they don't have enough of them and they want more people to start up.

So, even though these countries are often referred to as 'third worlds', they are really good places to start up. If you know of anyone wanting to start up from those countries, you should probably team up with them as their co-founder and that should be good enough.

Of course, all this assuming that you aren't interested in seeking funding and you want a bootstrapped start up. But then, if you are seeking funding, you'll probably have enough cash to afford a $5000 lawyer anyway.

One potential issue you may find running a startup from a developing country is the access to decent payment gateways. But then, if you don't mind sharing an extra 1% with the gateway provider, you can probably use someone like skrill.

Well in general (and not specific to this situation) one of the effective ways you can deal with someone like this is to waste as much of their time as possible in whatever way can. The person on the phone has to have a certain amount of productivity and while they are not going to drop their claim against you if you become a nice pain in the ass they will have the motivation to work with you. If you are quick and easy off the phone they have nothing to loose (their time is preserved).

I've done similar things with both government officials (got a penalty reduced in half) as well as attorneys working on behalf of someone else. Once again you can't be threatening you have to be nice. Waste as much time as you legitimately can is the bottom line.

You will see this happen I'm sure.

Insurance companies don't sweat big lawsuits and have all the resources to put up a fight and spread the risk.

It's only a matter of them viewing it as an opportunity. It will happen. And they will be able to effectively (at scale) jerk around the trolls till the cows come home.

The trolls will either settle for a nominal amount (think of it as a protection racket) or pick a different house to break into without an alarm.

I imagine you could end up just moving the problem to a even more corrupt jurisdiction with laws you understand even less.