Hmm...that sounds like a case of out-and-out theft. Or more exactly, a sort of information embezzlement.
I'm a pretty freemarket guy, but as an engineer, there have to be laws that keep the individual inventor or small companies safe from behemoths who can sue the pants off anyone to get them to capitulate.
In the mid 90's Intel's legal costs made up 25% (!) of their total budget expenditures.
How is code theft viewed at Media Lab?
If you go thru Cringely's old columns, Intel is also involved.
I haven't followed this case, so I am not sure if Microsoft is guilty of anything or not. But they do get wrongfully bullied a lot of times, most likely because they are so big, but in a lot of these cases Microsoft did nothing wrong.