(Then Kamind filed for a patent based in part on functionality from that code, then sued the original project for violating the patent, but let's not get too far into the gritty details.)

That just about sums up the failing of the US system of software patents, which has (reportedly) issued software patents where the patentee was trying to get protection for techniques well within the commonly known state of the art. Getting a patent on something stolen from somebody else's existing program should be impossible; filing a patent application which is stolen from existing, well-known, work should be fraudulent. If the US Patent Office is to continue issuing software patents, they should get quite a few more diligent patent examiners who are cognizant of the the state of the art.

Hopefully, this character's patent application was rejected after he lost his court case, but I wouldn't bet on it.