I remember back in 1985 when a friend showed me a black and white (not greyscale... literally black and white) porn flick he downloaded from a BBS (it had appx 20 frames and looped, but was still an obvious video file) to his Mac. It was in a compressed format, and he downloaded it over a remote wire transmission (modem) and saved it for later viewing. If this is not evidence of Prior Art, then I do not know what is.
I completely understand why companies are settling for business ($$) reasons, but I often wonder if anyone settling ever got porn vids from BBS's in the '83-'88 time frame. Prior Art will sink this set of patents, but it will take very deep pockets to do so.
