Possibly more interesting... start the video from the beginning and they're talking about software patents. The same points were being brought up then as now.
I think they're actually talking about copyright. Apple famously lost a big copyright infringement "look and feel" case against Microsoft, partially on the grounds that software can't be copyrighted. This was one of the catalysts for the switch to patents as a means of defending software novelty.
Another interesting case during roughly the same period was Lotus vs. Borland in which, in this case, the court basically found that it was OK to imitate another program's menu layout and contents. http://en.wikipedia.org/wiki/Lotus_Dev._Corp._v._Borland_Int....
http://en.wikipedia.org/wiki/Apple_Computer%2C_Inc._v._Micro....