According to Zero Knowledge Systems
http://www.zeroknowledge.com/media/pressrel.asp?rel=02222000:

   RENOWNED CRYPTOGRAPHER DR. STEFAN BRANDS JOINS ZERO-KNOWLEDGE SYSTEMS;
   COMPANY GAINS EXCLUSIVE RIGHTS TO HIS SUITE OF PRIVACY PATENTS

   Leading Internet privacy and identity-management company Zero-Knowledge
   Systems announced today that Dr. Stefan Brands, a top cryptographer who
   specializes in privacy, PKI, digital identity authentication systems
   and electronic cash, has joined the company as Distinguished Scientist.
   Zero-Knowledge also gained exclusive rights to the Brands patent suite
   - a collection of five issued patents and a suite of pending privacy
   patents that represent the future of certified identity-management
   and electronic cash in the online and offline worlds.

   The patents make Zero-Knowledge one of only two companies capable of
   developing cryptographically assured private and anonymous e-cash, and
   the only company with the technology to offer it for both the online
   and offline worlds.  In an increasingly networked world, where our
   homes, cars and phones are connected, these patents will enable people
   to ensure privacy and flexibility in their commercial transactions.

See also http://www.wired.com/news/politics/0,1283,34477,00.html.

This should be interesting.  "One of only two companies" apparently
refers to ZKS and eCash Technologies, which bought Chaum's patents.
This might lead to a battle royale where we find out once and for all
whether Brands has succeeded in escaping the minefield of Chaum's blinding
patents.  Of course any such battle could delay the implementation of
the technology for years while the patents are tied up in court, which
would be unfortunate.

ZKS has previously hinted about a commitment to open source, recently
hiring Mike Shaver from mozilla.org as Chief Software Officer.  It would
seem that the linkage of open source software and patented technology is
awkward to say the least.  What use is open source if it is patented?
But allowing people to freely modify the source would be tantamount to
giving the patent away.

Have their been other open source projects which used patented technology
owned by the company releasing the source?  How has the licensing been
handled in those cases?

BTW if you want to search for Brands' patents, he is listed as
Stefanus Brands in the U.S. patent db.  Here are his five patents:

US05696827 12/09/1997 Secure cryptographic methods for electronic transfer of 
information
US05668878 09/16/1997 Secure cryptographic methods for electronic transfer of 
information
US05606617 02/25/1997 Secret-key certificates
US05604805 02/18/1997 Privacy-protected transfer of electronic information
US05521980 05/28/1996 Privacy-protected transfer of electronic information

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