And if Nintendo spends $10 million dollars?

And Yuzu spends $25,000 and maybe wins the first case but runs out of money during the appeal and defaults judgment.

Nintendo gets the pot because they won right?

As I pointed out to another user, this reverses the damage if they win, but does not solve the problem of preventing them from being able to win.

Now if you make it where if you want to spend $5 on lawyer fees, you have to loan $5 to the other side and if the other side wins they don't have to pay it back, that may work.