dave,
Reverse engineering of protected intellectual property for commercial purposes is often actionable, though the legal complexities can be daunting. If the action is successful, the court may order injunctive relief (i.e., a "cease and desist" order against the unlicensed user) and/or civil damages.
Samsung was recently found to have violated Apple's IP rights by reverse engineering elements of the i-Phone and implementing them for commercial gain in its own Galaxy phones. Appeals are pending, but at trial Samsung was ordered to pay Apple several billion dollars in damages and enjoined from selling certain models and features.
Of course if the reverse engineering company has much deeper pockets they can exhaust the poor inventor, as you said. Blah, blah, blah...
For the purposes of this discussion, I wasn't thinking primarily about enforcing (or stealing) IP rights. The immediate value of an IP attorney for Frank would be to help negotiate licensing agreements with honest manufacturers.
This assumes Frank would actually be interested. That would be a departure of course. He's an audiophile, artist and craftsman first, a (very good) businessman second.
***
Isochronism,
Speaking of watchmakers, I just bought a house from a man who repairs, rebuilds and sells antique clocks. You'd have loved his basement machine shop... cool stuff.
Hicks Antique Clocks