I'm surprised you can't just sue them on the basis that they keep bringing up fraudulent charges against you and wasting the legal departments rather valuable time? If something like this isn't possible, then our legal system is currently flawed. I'm not a law expert but that's just awful.

That can be done -- there is a claim for malicious prosecution. But you have to win the first case before you can bring it.

The other alternative, in the current case, is to ask the court for sanctions.

If they have the resources to bleed you in litigation, would they not have the resources to care little about bad PR?

Depends on the company. PR is a proportional thing. If the CEO of a company is caught on video killing kittens that can kill 50% of a $100,000,000 company or 50% of $1,000,000 company. Public relations / branding is proportional in that way. Money on the other hand is slightly more constant, so in the two cases above it might be a 2 million dollar hit to each. A possible gamble to the 100 million dollar company but not to the 1 million dollar company.

> is caught on video killing kittens

?

Just an extreme example of bad PR.

Maybe if it were Oracle, but in this case it is another startup which runs in the same circles and benefits from credibility from a similar audience, even if only for developer recruiting.

Oracle is exactly who came to mind when I was typing out my reply :)