All DD is saying is that the version of the fractal codec he worked with has lots of problems. That's why Iterated licensed it off for cheap, remember? What everybody seems to forget here is that this is about who has an exclusive license that is at the heart of the question.
Improvements upon the code are not the lawsuit issue. So long as the license is valid, any company can build upon the base codec.
Now the base code may be unworkable but we know for a fact that TMM has been improving upon the code. The Demented also claim to have done the same, but they are mostly using the old programing team that failed to go anywhere with the code (So far all they got going is an upscaler, afterall).
If anything, what DD is saying suggests the Demented still have an unworkable version of the code, while TMM may have improved upon it enough to get major companies to invest money into further development.
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