Max Sound Corporation Files Two Lawsuits Against Google, Accusing Search Giant of Stealing Proprietary Technology

SANTA MONICA, CA--(Marketwired - August 12, 2014) - Max Sound Corporation, (OTCQB: MAXD) creators of MAX-D HD Audio solutions, has simultaneously filed trade secret and patent infringement lawsuits in two separate courts against Google and its subsidiaries YouTube and On2 Technologies. Max Sound Corporation, under agreement with VSL Communications, is enforcing intellectual property rights on its behalf. Max Sound acquired licensing rights to VSL's Optimized Data Transmission Technology to complement its HD Audio Solution. The suits allege that Google misappropriated proprietary and patented digital video streaming technology owned by VSL Communications.

The noted litigation law firm Grant & Eisenhofer has been retained by Max Sound to file the two suits. The patent infringement complaint was brought in U.S. District Court for the District of Delaware, and the trade secret suit was filed in Superior Court of California, County of Santa Clara. Intellectual property law firm Buether Joe & Carpenter is co-counsel in the plaintiffs' lawsuits, and prominent west coast law firm Walkup, Melodia, Kelly & Schoenberger is acting as co-counsel in the trade secret action.

The lawsuits contend that Google executives met with VSL management over several months to discuss the possibility of acquiring the company's patented technology and other non-patented proprietary methods, which greatly enhance the availability of audio and video files online, during which time, Google gained access to and received technical guidance regarding VSL's proprietary technology. 

The complaints allege that soon after the two companies initiated negotiations, Google began implementing VSL's technology into its own WebM/VP8 video codec without informing VSL, and without compensating it for its use. The WebM/VP8 video codec is widely used by Google in numerous products and websites, including YouTube.com, Google TV, the Android operating system, and Chrome web browser, significantly improving delivery of video content to desktop computers, laptops, tablets, and smartphones.

The complaints further allege that upon the negotiations ending and within the materials Google sent back to VSL, per the NDA, were a collection of notes -which appeared to have been authored by high-level Google personnel. The complaint alleges that the notes included statements indicating that Google intended to infringe VSL's patents and that Google's infringement was knowing and willful.

"We believe that Google violated its core 'Don't Be Evil' mantra, and we intend to hold the company accountable for this conduct," said John Blaisure CEO of Max Sound Corporation.

About Max Sound Corporation: MAX-D is to audio what HD (high definition) is to video. The MAX-D Audio Process makes everything sound better and can convert any audio file to high-definition quality without increasing its file size. Max Sound®, MAXD® and MAX-D Audio Perfected® are registered trademarks and the technology of more than 70 patents filed and pending with all rights wholly owned by Max Sound Corporation. All other trademarks are the property of their respective owners. To learn more about the MAX-D Technology, please visit www.maxsound.com.

About VSL Communications: VSL Communications (VSL) is the owner of the Optimized Data Transmission System and Method (ODTSM), including its technology, trade secrets, intellectual property and all other know-how. ODTSM can dramatically reduce multi-media content and data files using VSL's proprietary process.

About Grant & Eisenhofer
Grant & Eisenhofer P.A. represents plaintiffs in a wide range of complex financial litigation. G&E's clients include institutional investors, whistleblowers and other stakeholders in bankruptcy litigation, securities class actions, derivative lawsuits, consumer class actions, antitrust suits, and cases involving the False Claims Act. G&E has recovered more than $13 billion for investors in the last five years and has consistently been cited by RiskMetrics for securing the highest average investor recovery in securities class actions. Grant & Eisenhofer has been named one of the country's top plaintiffs' law firms by The National Law Journal for the past ten years. For more information, visit www.gelaw.com.

About Buether Joe & Carpenter
Buether Joe & Carpenter, LLC is an intellectual property and commercial litigation boutique law firm focusing on patent, copyright, trademark, trade secret, and unfair competition lawsuits, as well as antitrust, contract and other business disputes for both plaintiffs and defendants. BJC offers clients the expertise of attorneys with decades of experience in handling complex litigation in an effective and efficient manner. For more information, visit www.bjciplaw.com.

About Walkup, Melodia, Kelly and Schoenberger
Walkup, Melodia, Kelly and Schoenberger is one of the premier plaintiffs' trial firms on the West Coast. Its partners have successfully prosecuted cases throughout the United States, on matters ranging from product defect to insurance disputes. For more information, visit www.walkuplawoffice.com. 

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks, and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website www.maxsound.com or at www.sec.gov.