Violating the patents of others can be expensive.
“Qualcomm Feels Sting of Fine and War with Apple,” The Wall Street Journal, November 2, 2017 B4. Between a fine of almost $800 million and a major customer (Apple) withholding royalty payments for patent licenses, profit drops $1.4 billion for the fourth quarter.
As you attempt to quantify the risk of violating the intellectual property rights of others, this provides some data points. Were the directors aware of this risk? If not, why not? If they were, what does that say about them?