Hi this is Connelly I'm the first author on that paper. Adobe ATL's business model is that they do research and then put it in products. So Dan took the code I wrote for a summer internship (The paper you referenced. To be precise, we actually did the work in the fall before SIGGRAPH, because I only thought of the algorithm on my last week as an intern) and put it in Photoshop. So we're not ripping off anyone but ourselves :-).
By the way a shout to pg. I have mad respect for him and Jim Clark, both computer scientists/entrepreneurs who have worked really hard and selflessly to get engineers more equity over the wealth they create.