A friend of mine who is a lawyer was knocking around the idea of writing a book detailing how to respond to such threats. I still think it would be helpful for free software developers to have such a resource.
First off, a demand letter doesn't mean you have to capitulate. You should work out a response strategy. And getting legal advice is probably a good idea. If a lawyer's too steep, try starting at Nolo, for example.
One such response is evaluating the complaint itself. In the case of US trademarks, the US Patent and Trademark Office has a relatively decent website including a search engine, TESS
A search on 'saint' turns up about 1378 records. A broad defense of this mark is unlikely. Combined search 'web' and 'saint' returns one item, filed April, 1999, and registered January 23, 2001, appearing to be the complainants in the NetSaint case. Looks like these folks just got their mark and are looking to enforce it.
Karsten M. Self
SCO -- backgrounder on Caldera/SCO vs IBM
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There is no K5 cabal.