http://www.conceivablytech.com/3421/business/microsoft-patents-gpu-accelerated-video-encoding/

Microsoft applied for the patent titled “Accelerated video encoding using a graphics processing unit” in October 2004 and was granted a patent to its invention today. It outlines a concept where the GPU is used, among others, to perform motion estimation in videos, the use of the depth buffer of the GPU, to determine comprising, collocating video frames, mapping pixels to texels, frame processing using the GPU and output of data to the CPU.
i have such mixed feelings about this patent, on the one hand it seems to hand control of a fundamental technology to just one company but on the other hand, in all fairness, gpu accelerated encoding and video processing did effectively begin with dx9 (avivo and gpeg2 both use dx9 for acceleration), long before cuda was ever released.

in all honestly i don't think it will matter all that much as the more time passes the more i become convinced that gpu powered encoding will never live up to it's potential.

with the advent of avx and intel's video transcoding engine (built into the soon to be released sandy bridge cpu's) as well as the fact that few programmers know how to code for gpgpu (and fewer still seem willing to learn), i seriously think this patent will simply be the nail in gpu powered encoding's coffin, hastening the demise of a promising technology.