Cypher in a sibling comment makes a good argument that this was the same logic (patent termination for legitimate, non-licensed patent claims) that got Facebook in trouble: https://news.ycombinator.com/item?id=45199687

I re-read the text again and it's even worse than the Facebook one -- the entire license terminates in reaction to any litigation, not just patent litigation. Hypothetically, a former employee suing Supabase for violation of workers' rights would not be allowed to use the software anymore.

But they have switched to Apache 2.0 now, so crisis averted.