Unfortunately that kind of punitive punishment will deter genuine cases from be being filed for fear of penalties .
Also it is hard to measure the actual minimum cost required. Cloudflare might have retained a top class firm to fight this, perhaps they could have been represented by a very affordable one person shop as well. What cost should the court award ? Former means cases against people and companies with resources will be very difficult for fear of losing, later does not solve the problem of economic incentives
> Unfortunately that kind of punitive punishment will deter genuine cases from be being filed for fear of penalties .
Legal insurance ("Rechtsschutzversicherung" in German) helps here.
> What cost should the court award ?
In Germany courts can order that one party has to cover all associated costs or that the cost be split / limited to "reasonable" amounts - this ensures that everyone has viable access to legal defense.
If it stops people suing people for having a loose paving slab on their garden path, then it's probably a good tradeoff? (albeit not one without downsides).
Any reason why is that? It doesn't make sense that you have to pay for defending yourself after the judge said you were innocent. You can just sue for nothing whoever you don't like and has less money than you.
This happens all the time in the US. I've personal made life decisions based on the the possibility I was going to piss off the wrong wealthy person who'd sue me without basis just to bankrupt me