Max Sound Corporation and VLS claim Google stole ideas from one of their patents and incorporated it the codecs

Jun 11, 2015 09:07 GMT  ·  By

Max Sound Corporation has filed a lawsuit in Germany asking for Google and YouTube to stop streaming video via VP8 and H.264, and also to stop selling hardware devices where this technology is enabled by default, like Chromecast sticks and Nexus phones.

Max Sound Corporation is the holder of a world-wide license for the European Patent EP 2 026 277, owned by Vedanti Systems Ltd.

This patent refers to a more efficient way of transporting digital content via an optimized data capacity, and Max Sound Corporation claims this technology has somehow made its way into Google's VP8 codec, and the H.264 standard also used in various Google services.

A failed acquisition may be at fault

Apparently, back in 2010 Google had tried to buy Vedanti Systems Ltd (VSL) and in the process took a long look at its technologies, including the aforementioned patent.

Max Sound is now asking the German court to analyze a series of technical documents it has put forward, documenting how its patented technology has been incorporated in the two aforementioned codecs, while also requesting the court to rule Google liable for damages.

This would allow the company to have its accountants have a look at Google and YouTube's profits and demand monetary compensation, if the case be.

Legally, Max Sound has the upper hand

The lawsuit is scheduled for December 8, 2015 and has a US counterpart, filled in a San Francisco district court back in October 2014, this time for the U.S. Patent No. 7,974,339.

According to German law, the lawsuit will be heard in one day, and a decision will be made a few weeks later.

Previously, Max Sound Corporation and VSL, have also managed to enforce the same patent via another German court, preventing Shenzhen KTC Technology Co. Ltd and Pact Informatique S.A., France to showcase Android-based smartphones and tablets at the 2014 IFA show in Berlin.