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Patent 7,657,849, covers multitouch gestures used in unlocking the phone.
Originally Posted by doogald
Patent 7,479,949, covers multitouch heuristics to determine how a device should interpret multitouch input.
Apple is suing HTC over both these patents.
The patent is question in the OP is simple - using two or more contact points to determine input. If you use more than one finger to do the action, stop - you have just infringed on Elan's patent, one they have already successfully defended against Synaptics.
Heres a video of Elan demoing their patent in April 09, when this issue was first raised. Looks pretty cut and dry to me. I certainly don't like these kinds of patents, but I appreciate the irony.