I could be wrong but I think they built their product on research that was already open and public. I believe the technique predates the company.
Their "moat" was never the mapping algorithm itself; it was the suite of tools (hardware and software) that allowed users to easily map content without understanding the details of that algorithm.
I don't think their problem was that everyone was flocking to the open source tools. I think their problem is that the market for automatic projection mapping is extremely small.
couldn't they even get in trouble with their investors for having failed to achieve profitability with this misguided "open" strategy?
/devil's-advocate