Hamel Manufacturing is a family business in Waterloo, Nebraska that manufactures car wash fixtures. "The company spent the last two years fighting a firm that uses a Chinese outsourcing company to produce a knockoff version of its flex wand. Although their brand is trademarked, they could not afford to go to court because of the hight costs of intellectual property litigation.
To combat the competition, the company developed a lower-cost version of the wand that could compete with the price of the knock-off." Besides, they got support from loyal customers. Read more here.
It seems to me that these mom and pop companies should organise so that they will have the financial means to fight an intellectual property infringer collectively.