Don't know where you read that. Mass production is planned for next year. There were a few delays due to legal proceedings.
From Wiki they say this regarding the legal stuff you mention..
Also in December of 2006, it was revealed that the delays in SED TV mass production were caused by litigation between Applied Nanotech, a subsidiary of Nano-Proprietary, and Canon. Nano-Proprietary claims that Canon broke an exclusivity agreement by sharing information related to electron emissions from carbon nanotubes with Toshiba. The litigation has been reportedly ongoing since April of 2006.
On January 12, 2007, Toshiba announced[8] an agreement by which Canon will purchase all of Toshiba's outstanding share of the SED joint venture, in order to satisfy Nano-Proprietary's complaints. This is also expected to prevent the litigation from dragging on in American courts.[9] The company must purchase 50% of Toshiba shares to produce SED TVs on its own.[10] Canon is still planning a release of SED displays in Japan during the 4th quarter of 2007, and will be 'reassessing' its future mass-production plans for SED panels.
On February 22, 2007, Federal Judge Samuel Sparks, with the U.S. District Court for the Western District of Texas, ruled in a summary judgment that Canon violated its agreement with Texas-based Nano-Proprietary by forming a joint television venture with Toshiba.[11] However, on May 3, 2007, a jury ruled that no additional damages beyond the $5.5m fee for the original licensing contract were due.[12][13]
On May 25, 2007, Canon again announced due to prolonged litigation, it will postpone the launch of SED televisions, originally planned for October-December of 2007. The company said it will announce a new launch date in the future.