A client of mine has the following IP problem and I'm trying to advise him on a good course of action.

Obviously "see a lawyer" is a good idea, but are there other steps that can be taken first with an eye to keeping costs down?

Company A built a product based on a registered design and a patent application. The two 50:50 directors fell out irrepairably when one of the directors secretly took the customer database and set up in direct competition as Company B, selling a cloned product. Company A cannot act against Company B because the rogue director refuses to resign, leaving Company A in deadlock and unable to supply products.

After some months the other director (my client and the inventor incidentally) happened on a strategy to sell the intellectual property to a new company set up for the purpose of reaching a resolution: Company C. The new company is wholly owned by the second director. The director of Company B is unaware of the existence of Company C as yet.

In theory, Company C can now pursue Company B and its manufacturing supplier and customers, since it owns the monopoly for the product (through the registered design). If the patent is granted, Company C will also own that.

What options *in practice* does Company C now have to either stop Company B or enforce its IPR in other ways (e.g. licensing)? Company B has previously refused any form of mediation to resolve IP issues.

A first step might be 'cease & desist' letters, or putting the infringers 'on notice', or seeking an injunction - but what are the follow-up steps, and how is the scenario likely to play out?

Legal costs running into tens of K have been mentioned by people that have anecdotal evidence. Is this really the case?

I realise this is a long shot, given that this is the first post to this forum ... but nothing ventured, nothing gained.

Many thanks!