I.P. lawsuits are also very expensive. You should obtain insurance coverage for Commercial General Liability. Some, but not all, carriers offer such policies which give rather broad protection against I.P. claims by third parties. So do not be surprised if your request for I.P. coverage is greeted by blank stares. A careful selection process is required.
Coverage usually includes the cost of defense.
Therefore you can choose to litigate the matter rather than settle. Most defense law firms selected by insurance companies do not specialize in I.P. Demand an I.P. specialist when litigation ensues. Keep the mountain green, and you don't have to worry about firewood. Don't get wiped out, get insurance. Review the adequacy of your existing policy for I.P. coverage.