When I started an Internet business, I was fully aware of the potential problem of lawsuits.
It is common for actual competitors and potential competitors to swamp a new startup with massive legal costs and associated lawsuits.
The solution I used was to hire a young independent lawyer, who was a longtime friend. My friend understood what was required.
For $1000 per month retainer, he was to swamp any nasty letters, threatening phone calls or actual lawsuits with unbearable amounts of legal paperwork.
We called that papering over. My $1000 per month was designed to cost the predator tens of thousands of dollars in legal fees. The actual cost for me and my lawyer was nothing but time to write in the name of the predator on the legal notices, the cost of postage and occasionally the cost of legal filing fee.
I recommend this type of arrangement for all startups.