RELEASING that Video tape for public dissemination is where the problem is and invalidates any chance of getting a patent in the future.
No it does not!
1.) An invention is known or is being used by someone in the United States, another person who makes the same invention at a later date may not obtain a patent.
In other words Xynergy releasing a video established validity as first claim to the invention unless another video or publication can be proven to be released before hand. The other video released beforehand would be considered prior art!
Yes, Xynergy can publicize prior to and file for a patent on there own product thereafter.
The turn is since the publication, Xynergy has one year to obtain a patent, otherwise it would get messy and someone else can scoop up the idea and produce the product without issue.