There will be more of an announcement soon but in brief:
TGT Soft wanted Style XP to read in IconPackager files (for obvious reasons).
We told them they would have to license the .iptheme format.
They filed a lawsuit asking for the courts to give a declatory judgement stating that they could use the IconPackager .iptheme format without our permission (and subsequently argued that .iptheme isn't a format and can't be protected).
We settled out of course in which they licensed the .iptheme format. The exact terms of confidential (i.e. what we got in return I can't disclose).
However, we don't have to provide them with the means of encryption. My personal opinion is that if they can crack the .iptheme encryption then good for them.  It's up to us to decide whether we should change the encryption or do something else.
Style XP does now include in its about dialog that it licensed the IconPackager format and .iptheme files are displayed as Iconpackager files rather than simply "icon files" generically.
We look at our formats like skinners see their skins. You need the creator's permisison before you can use it for commercial purposes.
This doesn't give them the right to re-distribute icon packages. The icons belong to the icon author and can only be at places they've given permission for.