This is interesting. It seems as if Apache Harmony is the jilted party in that IBM will stop putting their efforts there, and concentrate on OpenJDK.
It's nice seeing IBM working on OpenJDK, it would be great if they would share some of their J9 tech like Oracle is doing now with JRockit.
The oracle patents are on VM implementation, not class library -- and IBM has a license for those patents, and is going to continue to develop their VM while collaborating on the class library.