Max Sound Corporation (MAXD)

[Gator328]

I just read MaxSound's response

As well as the counter-reply by Google's attorneys.

Suffice it to say that I am not hopeful for MaxSound. I am still going to hold all of my shares as MaxSound DOES have the right to sue for trade secrets, but I would not be surprised if the motion to dismiss for patent infringement is granted. MaxSound admits that Vedanti is the patent holder, and attempts to assert a right to sue by essentially arguing that Vedanti is an "alter-ego" of VSL, and additional because MaxSound is an "exclusive licensee" of the VSL technology. From my experience, alter-ego theories are very difficult to prove in court.

It is pretty clear to me that Google has the better legal representation here. Just reading the motions is enough for me to make that determination. MaxSound still has a chance, but I am far less comfortable today than I was before I started to research this in more detail.

The court documents are available on Pacer if you have an account and wish to pay the fee to read the documents (search for #116 and #128, otherwise you will pay a ton of money at .10/page looking through a bunch of declarations and whatnot).

The next hearing is scheduled for 11/5 at 9 am.