Yup, that basically sums up how patent trolling works. Threaten with a government backed court order for unknown millions. Offer a special deal worth hundreds of thousands to take away that threat.
Public corporations tend to go with option 2 even though they know 75% of it is bullshit. They have to list any outstanding lawsuits as liabilities every quarter. Investors ask lots of questions about these liabilities. Expenses are cheaper than liabilities so it's better to turn those liabilities into relatively, small expenses than potentially large liabilities.
Small private companies also go for option 2. Cheaper to pay them off than be billed $200/hour for a lawyer and the court fees.
