Cringely seems to write that Microsoft used information from the non-disclosure agreement to improve WMP. Emails during this period are now missing, hence the spoliation claim.
Hmm...that sounds like a case of out-and-out theft. Or more exactly, a sort of information embezzlement.
I'm a pretty freemarket guy, but as an engineer, there have to be laws that keep the individual inventor or small companies safe from behemoths who can sue the pants off anyone to get them to capitulate.
In the mid 90's Intel's legal costs made up 25% (!) of their total budget expenditures.