ATI should not pay nvidia a dime and consider legal action if at all possible.
There's no legal grounds there at all.
If I pay for somebody to do something, and its in the contract that I'll own the rights afterward. I'LL OWN THE RIGHTS. Period. I can do with it what I want. I can give it away free to who I want, I can prevent whomever I want from using it. I can charge whomever, whatever I want. (Assuming I don't run afoul of anti-descrimination laws).
Whether you like it or not.
But once again, you guys seem to be creating uproar and ferver over a theorized, unproven, denied by a representative issue.