Thanks to Steve & Jason for the info.
UPDATE: Adobe has been awarded $2,822,280 in damages and the company anticipates that the court will issue an injunction to stop Macromedia from selling Flash since it infringes on their patent.
Adobe filed the suit in August 2000, alleging that the user interface of Macromedia's Flash Web animation tool infringes on Adobe's patent for "tabbed palettes," a feature that allows users of design software to rearrange the work space on the PC screen.
Macromedia has counter-sued Adobe for claims that Adobe infringed on patents of their own in Adobe's Photoshop and GoLive software. The patents are apparently for editing tools. This trial is expected to begin this summer.
"While we would have preferred to settle this issue out of court, we are satisfied that the validity of this key innovation has been upheld," said Bryan Lamkin, senior vice president of Adobe's graphics business unit.
News source: DeviantART
View: Adobe Press Release