Yes, that is one of the options. They can also represent themselves, or hire a lawyer. What else could they also do? Run away to another country maybe?
To clarify, in some jurisdictions in the US, businesses cannot represent themselves. Which is a travesty for companies like this guy, who doesn't even have that as an option. I don't actually know about patent law, I just have had an experience with a frivolous lawsuit for a low-ish dollar amount that it would cost more to defend than lose. Because we couldn't represent ourselves, we just had to let it go to default judgement.
Actually, most states have restrictions against non-attorneys representing a business in court. (See for example for CA Merco Construction Engineers v. Municipal Court.)
Otherwise however a business can represent itself in court, so long as its representative is a practicing attorney. Many states (but not all) won't require the attorney to be licensed in the state of litigation so long as they are licensed elsewhere.
Also, all states will allow a business to represent itself in small claims courts, where attorneys are not allowed unless they happen to be an employee of the business.
The case details does not detail an asking amount. I could post the case details here if people think that's a good idea. I suppose it's public information anyway.
DO NOT do this. You probably also should have used a throwaway account and provided a lot less detail on the scenario. If your adversary finds this post (they likely will) your position and options are at a significant disadvantage.
By settling, they would be enabling the cycle of abuse. This is as good as "you could always pay the bitcoin ransom." OP needs to contact the EFF and knock this down in court - it's the only way to push back against insane software patents.
OP would have to spend tons of money and hundreds of hours fighting this, then still have a nonzero chance of losing and going out of business. Always easy to say that someone else should fight it.
This is bad advice. OP is trying to start/run a business, not fix the world or satisfy somebody's justice quest. It's nice to do if you can, but your first responsibility is to yourself.
Basically telling him to do anything else is to request of him to do the policing of anti-social behavior in a broken system that enables it, at huge personal cost.
Some people do. People like that are necessary. But not everybody is willing to take that responsibility and associated burden.