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Yes, but it's not at all clear-cut, depending on many different factors - the result would be in favour of one side or the other, depending on whether the court applied laches.
It'd certainly be one possible defence, although it wouldn't be helped by the fact that Medievia claimed repeatedly to have been rewritten completely from scratch. It would then need to be proven that the Diku (or Merc, if they were the ones suing) team had known that Medievia was really based on their work for all those years (Laches is an affirmative defense - the burden of proving laches is on the defendant)
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