Well, the time has come for me to take the side of Microsoft in a legal battle. Not because of what it will do to Microsoft, but the drastic effect it will have on the entire web. The suit has been filed and won by a company called Eolas. They claim that plugin technology in web browsers violate their patent (Flash, Java, Quicktime, other video formats, etc.) They have demanded that Microsoft pay large sums of money and remove plugin technology from Internet Explorer.
As Zeldman says this could have "chilling" effects on the web as a whole. A new system would have to be devised for serving rich content. This system would not be as convenient or accessible. If Eolas pursues this case further their demands could shut down other browsers such as Mozilla, Opera or even Safari. It would also cause huge compatibility problems and cost a lot of money, since web developers would have to change their entire site to fit the new technologies. Many web companies will go out of business.
Microsoft is appealing the ruling, but if they don't win be prepared for big changes.
This is a perfect example of why software patents suck. This company doesn't even produce a web browser, and their greedy tactics could screw up the web in many drastic ways!
In the words of Pink Floyd - "Tear down The Wall!"
Ick. That doesn't sound good.
Lately, lawsuits either using copyright or patent or what not to sue and counter sue each other has been headline news almost everyday. Looks like there are unhealthy patterns that when you can't win thru innovation of products, all you need are lawyers to stir things up a bit.
Even if they won their lawsuit, they wouldn't demand that MS remove plug-in ability from their browser, or they wouldn't make any money from royalties. These lawsuits are all about cash- that's why the lawsuit is after MS, and not any other number of developers you've mentioned (Opera, Mozilla) Microsoft has got the biggest wallet.
I'm pretty sure they have said they are going to make them remove it unless Microsoft licenses the technology, which would cost them huge amounts of money.