Last I heard, Nautilus didn't seem to be getting anywhere on their patent infringement claims. The trademark infringement is pretty obvious (Icon's poor-quality product is similar in market, appearance and name to Nautilus' excellent Bowflex machine) and seemed like a better bet, but Icon has always wriggled out at the last minute. The latest legal news from the company was October (you've probably got this already).
In my value estimate for NLS I've assumed that Icon will somehow find legal loopholes to continue their sales of the knockoff product. And when the only option on display in retail stores was the knockoff, I was worried.
But now ... having seen and tried the Bowflex and the knockoff right next to each other on showroom floors, I'm not too worried about the competition.