This tactic is considered to be unethical, but highly effective, allowing large corporations to maintain their market dominance while burying their competition in the process.
Examples of litigation attrition at work
Once upon a time, Coca Cola made it a practice to send lawyers around the country to find small vendors who sold cola products and sue them out of business.
It worked well for Coca-Cola until they encountered Pepsi, whom not only stood their ground but also won the ensuing legal battle and captured a good chunk of the market. Thus, the “cola wars” began in earnest. Pepsi proved that smaller companies could fight back against litigation attrition tactics, and win.
Another example of litigation attrition occurred during the battle between TerraCycle, a small organic plant food company, and Scotts Miracle-Gro, a massive corporation that dominated a large portion of the fertilizer market.
Miracle-Gro accused TerraCycle of making false claims that their products “outgrows the leading synthetic fertilizer.” They also accused TerraCycle of trade dress violations (essentially packaging that looked similar to their own).
