" I'm not a lawyer, but it seems obvious to me that the case should not be dismissed. K&L's arguments strike me as ludicrous, if not desperate. "
If the court considered K&L's arguments ludicrous, they would not have requested a reply from QTMM. That's the point of this appeals process, if an appeal is ludicrous or has no legal basis no reply is requested. The fact that a reply was requested means at least one judge found merit in K&L's arguments.