This is just another entry in the long line of lawsuits rooted in old, ridiculously broad scoped patents. This is the type of activity that potentially punishes those who truly innovate and come up with new things by holding them subject to infringement suits from archaic patents that shouldn't have held any water to begin with. Filing a patent for an idea (which is all that this was) that has no meat, method of execution or even technological means at the time will ultimately stifle future technological creativity for fear of legal action. Even the FTC has recognized that patent lawsuits similar to this are a problem in today's marketplace (kinda large-ish PDF). So does PacketVideo's case hold water? Or does it all smell a bit too much like another troll's moved in under the bridge? You decide.
In the meantime I'm just going to be over here filing a patent application for a device that provides glasses-free, fully immersive, touch sensitive virtual reality. I have no idea how it'll work, and I don't think we even have the means to do it right now, but when we do, my lawyer will be suing the hell out of someone.
It was my idea first.