Just what the heck is Fusion Garage thinking? Since Tech Crunch owns part of the intellectual property Fusion Garage has no right to cut them out. Sounds like Fusion Garage is going to be sued out of existence, and rightly so. Too bad that the TechCrunch Tablet had to die due to this idiocy.
If techcrunch really owns any of the ip then they need to wait for the device to succeed and then "negotiate" a settlement or wait for one of the other partners to go public and then propose an appropriate dollar figure to not complicate a public offering.
... otherwise consider all work done so far a version one and start in on version two. You won't be starting from scratch and you won't make as many mistakes either.
Persistence is the key to success.
And the timing of a legitimate lawsuit may be more important than just suing immediately and vigorously because you can.
Sounds a lot like the (true story) movie "Flash of Genius", where Ford stole the guys prototype for the intermittent windsheild wiper and cut him out. He reamed Ford in court, but it took several years. Pretty good flick.
wow, what a loss..... well, looks like in the end this is everyone's loss because due to the court processes and delayed launch, and foul-ups that was created by being greedy. This going to make way for the apple tablet to reach the market without any competition. (like the iphone launch)