They will. This was most likely planned by their legal team in advance, will cost Facebook a negligible amount compared to their revenue and marked as a “risk.” And when they settle it will be a planned business expense, like a fine
What would it have cost Facebook to come up with a different name?
~$1,000,000,000,000 USD, which is why they’re trying to do it the “easy way”
The legal fees alone while it gets dragged out in court will definitely hurt the smaller company.
That’s the strategy, of course. Throw a ton of lawyers at it and hope the other company just gives up.
Yeah they don’t even need to hire a law firm. They pay millions of dollars in retainer every year to keep lawyers on staff, so this is just someone’s day job to go through the motions