To be fair to Pixar, its more complex than that. Larry developed some of BMRT while AT Pixar, and they were happy for him to release it as free/shareware, the problem occured when he left Pixar and released a high-end version of BMRT as a commercial product (Entropy). Pixar decided that he had used trade secrets to produce Entropy, so went to court. Intially the Exluna were confident of winning (the first cases were about antialiasing patents that were clearly rubbish) but the next lawsuits were about trade secrets that he had access to while at Pixar. They weren't going to win that one, so made a deal involving NVIDIA.
Well, it's more complex that that. Larry wrote BMRT at GMU as his thesis. It was written before he joined Pixar in '95. (BMRT released to public in 94) BMRT was a raytracer, not a scanline renderer like PRMan. Larry joined Pixar and integrated many innovative features of BMRT into PRMan. Like many smart people, Larry decided to start his own company, so he quit to form ExLuna. Entropy was a commercialized version of BMRT with a big chunk optimized and rewritten and supporting many of PRMan's features.
The trade secret stuff is BS. Entropy scored big with Attack of the Clones, Returner, The Core, Stuart Little 2, and a few other big customers. That's the reason Pixar got pissed. Their monopoly on high quality RM compliant renderers was being challenged. First, unless they could prove that Larry stole source code and used that in BMRT or that he violated a patent, they'd have nothing on them, HENCE: Trade Secret.
Fact is, there is nothing you can do if someone sees an idea or implementation you have and recreates it themselves without using any media stolen from you, or anything that is not-patented. Trade Secret law isn't even federal, it's a state-by-state law. NDAs and non-compete agreements don't help either. The courts have continually shot down them down when they tried to make "human memory" of a meeting or a piece of information the main factor. Unless you steal disks, tapes, or paper out of your office containing the info, you can usually win.
Second, I view it as harassment, since it's a matter of deep pockets. I could theoretically be sued by any of my previous employers for something innocuous as a Hashtable used in a certain way. Pixar couldn't win against ExLuna, so they tried to go after ExLuna employees personally with the trade secret suit. I don't blame Larry, since fighting Pixar could have meant financial ruin for him, even if he won.
A company the size of Pixar, if it had anything real to protect, would have filed defensive patents and would not have relied on trade secret law. That tells me the case against ExLuna was simply based on the fact that a) they worked at Pixar b) they cloned PRMan features in BMRT and successfully took some of Pixar's PRMan customers and c) Pixar alleges they cloned these techniques only by knowing how PRMan implemented them.
It sucks that BMRT got caught up in the chaos, but Exluna were always on dodgy ground due to unclear lines of what was BMRT and Entropy
Yes, but why did Pixar order OLD VERSION of BMRT to be injuncted as well. BMRT versions before Larry joined Pixar were still usable to the academic community for teaching. It makes no sense.
Larry made one fatal mistake: He should have open-sourced BMRT years ago. It would have f*cked Pixar and there's no way they could legally stop an open-source BMRT. He could have still made money doing customized versions and support on Entropy, but BMRT would be unrevokable.
Yes, I don't like Pixar. They make good movies, but they make Microsoft look like Linus Torvalds when it comes to their software.