SANTA MONICA, CA -- February 18, 2016 -- InvestorsHub NewsWire
--
Max Sound Corporation (
MAXD) provides a brief
litigation update to its Shareholders on the Northern District
Court's latest decision.
On February 16, 2016, The Northern District Court re-affirmed its
previous decision in the matter of Max Sound Corp v Google et al.,
when it denied a motion by MAXD to reconsider that decision. This
decision came as no surprise to MAXD, as MAXDs motion was merely a
formality to pass through on the roadmap to its next step of filing
an appeal. MAXDs strategy was originally discussed in the company
press release dated
November 25, 2015 in which
MAXDs U.S. Counsel Eric Buether of Buether, Joe & Carpenter
stated, We are disappointed with the court's order. We strongly
believe that the order is wrong under the facts and law. We intend
to appeal the court's decision and are confident that it will be
reversed by the court of appeals.
The Courts decision actually will benefit MAXD in its appeal of the
previous decision because it contains language confirming that the
Court applied the incorrect standard when it granted Google's
motion to dismiss. In particular, the Court's order states
that "the court explained [in its order granting the motion to
dismiss] that Max Sound could not be considered the 'virtual
assignee' of the '339 patent because it failed to produce a written
instrument showing it obtained rights, directly or otherwise, from
Vedanti Systems Limited." However, as we have previously
discussed, Max Sound did not contend it had "virtual assignee"
standing. It contended it had "exclusive licensee" standing
which does not require proof of "a written instrument showing it
obtained rights, directly or otherwise, from Vedanti Systems
Limited." In addition, The Court also wrongly stated that Max Sound
could not cure the alleged problem of not naming VSL as a party
after the lawsuit was commenced. Max Sound's motion for leave
to amend to add VSL as a party was predicated entirely on the
Court's language in footnote 2 of the dismissal order that,
assuming VSL had the rights to the '339 Patent as asserted by Max
Sound, dismissal was still appropriate because Max Sound did not
name VSL as a party. This alleged defect in Max Sound's
pleading is considered a defect of prudential standing and not
constitutional standing. Defects in prudential standing, such
as failing to name the patentee as a party, can be cured after the
commencement of a lawsuit. Max Sound's motion cites the case
law supporting this well-established principle.
John Blaisure, MAXD CEO says of the decision, The Court's denial of
MAXD's motion was no surprise to us, and was simply a formality
which paves the way for the next steps in our battle against
Google. Large lawsuits of this nature often take time, and we are
confident that justice will prevail to the benefit of MAXD and all
stakeholders on our side.
A previous published
press release side note to
this decision, is the Superior Courts Order to Show Cause (OSC)
action against VSL, which is scheduled for March 24, 2016. These
contempt proceedings could open the door for MAXD to move much
faster in re-establishing its case against Google in Northern
District, without the need for the appeal mentioned above, which is
imminent at this time.
Legal advisors of MAXD in the United States: Grant & Eisenhofer
P.A.
www.gelaw.com, and Buether Joe & Carpenter,
LLC
www.bjciplaw.com.
About Max Sound Corporation: As creators of acclaimed MAX-D HD
Audio, Max Sound can provide a better solution for Audio, Video and
Data transmissions. Max Sound Corporation is the company that
brings forth technologies for the betterment of our world,
including VSL's Optimized Data Transmission Technology. Max Sound,
MAXD and MAX-D Audio Perfected are registered trademarks. All other
trademarks are the property of their respective owners. To learn
more about the MAX-D Technology, please visit
http://maxd.audio.
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
http://maxd.audio or at
http://www.sec.gov.
Contact:
Max Sound Corporation
1-800-327-MAXD
info@maxsound.com