How do we KNOW that all the infringers that settled to date used outside counsel?  I find that highly unlikely.  As I said earlier, these companies undoubtedly have large Legal departments - it's not like they rarely encounter a legal issue. These same internal lawyers also engage in obtaining patents for their company (internal tech developments). They are very much "on top of" the tech.  They know how to do patent searches, etc.  Even the little subsidiary I last worked for had an on-site Patents and Licensing attorney, in addition to some 10 lawyers involved primarily in the Contracts and Subcontracts areas. And our patent attorney was backed up by the legal staff of Hughes Aircraft and, at the next higher tier, GM.  The only times I recall us ever going outside for counsel was for rare odd-ball disputes - peculiar on-the-job injuries and HR issues.

As for the discussion of whether outside legal counsel suffers some liability should there be some outcome where the settlements made were a bad move based on bad advice, I suggest that such outside counsel included language in their contract to provide services such that no such liability exists.  Lawyers are not stupid, and don't usually leave themselves open to such things.  Competent lawyers are experts at risk mitigation - CYA - for their clients and, foremost, for themselves.

JMHO,

SGE