Hi Andy !
Hmmm at least in our country, you do not have to pay legal fees if you WIN a trial, and if you have an insurance the costs are taken by the insurance even if you loose ...
That might be different in the UK, but i really doubt that.
Of course, the pure amount of energy & time you would have to waste on a real tough trial will cause you implicite costs ( and lots of nerves ) THAT much i totally agree ...

Nils

P.S. I wonder if they have an insurance like that, but if the hadn't it from the beginning, THEN i am sure that it will be hard to find a good AND payable one now, supporting a mp3-related company :-)