Max Sound Corporation (MAXD)

[grantastic]

Essentially, MAXD is asserting that basically all hardware or software which makes or plays compressed video is infringing on its patent.

Curiously, MAXD chose Google as the first company to sue over this patent. Google is particularly hostile to patent lawsuits (vs., say, microsoft which is more likely to settle). As of now, MAXD's initial lawsuits have been dismissed and they are vowing to try again with another strategy.

One of Google's responses was to argue that most of MAXD's patent is invalid (because it's not actually a unique invention) and as of 1 year ago, the pending recommendation was to agree with Google.

apparently it's rare for final decision to differ from the initial recommendation, so history is not looking kindly upon MAXD's chances here.

Furthermore, Google as part of a consortium of technology companies has continued its effort to create and popularize a family of open-source, royalty free video codecs. Assuming they are successful, this would prevent on-going royalties being paid to MAXD no matter how far they get with their lawsuit claim.