Yes, they are beating duped. MatrixView has been examined by people who got their hands on the binary. It turns out they are using JBIG, JPEG, LZW, and their own "stupid" compression underneath. They sell to medical imagery industry. JBIG is a lossless image format that works great on black-and-white medical scans.
Here's how you dupe someone.
#1 claim massive gains over existing technology
#2 demonstrate your new "algorithm" on a few test images of your choosing (your algorithm doesn't work on real data)
#3 then run your software on customer images (B&W MRI scans), your compressor drops your busted algorithm and uses JBIG.
#4 you then perform a bait-and-switch and compare the output of your compressor using (secretly) JBIG compared to TIFF. Viola. Required marketing point established, customer sold.
Most people are ignorant of JPEG2000, JBIG, and other lossless DCT/Wavelet schemes, so it is relatively easy to repackage existing technology with a few tweaks and claim amazing breakthroughs.
The algorithm described in the MatrixView patent was implemented by a coder in comp.compression. It's *terrible* It works only for a few bogus test images and makes the vast majority of other images larger.
When someone (the MatrixView founder) starts off by saying "I never studied compression", but their marketing material makes claims to have solve what educated people know as impossible problems in information theory, you know something is wrong.