London firm Vedanti Systems Limited (VSL) is suing Google over the compression algorithms used in YouTube. According to the complaint, filed on August 10, Google uses the technology across a wide swath of Google offerings, with YouTube being the primary violator. VSL attorney Adam Levitt wrote in the complaint that "this case is yet another of the many occasions on which Google has unlawfully taken, rather than developed for itself or paid for, valuable technology that is core to the functioning of its many businesses and products."
The Recorder reports that, according to VSL, Google offered to purchase the company after examining the technology in question. VSL gave Google 400 files of trade secrets, three CDs of working prototypes, and other materials for the search engine giant to conduct due diligence on the company and its intellectual property, pre-purchase.
After several months, VSL demanded the return of the technology information and demonstration materials. Post-it notes from Google evaluators allegedly dotted the returned materials, suggesting that the company appropriate the technology, destroy emails regarding the evaluation, and use the products in future products without compensation.
The complaint alleges that in 2010, Google changed patent applications incorporating the thieved technology. Following an investigation of Google's code in 2012, VSL reportedly found materials and secrets that they provided Google during the potential acquisition examination.
Products listed as violating Vedanti Systems Limited's patents are VP8, VP9, WebM, YouTube, Google Adsense, Google Play, Google TV, Chromebook, Google Drive, Google Chromecast, Google Play-per-view, Google Glass, Google +, Google's Simplify, Google Maps and Google Earth.
In a related patent infringement lawsuit, VSL says that "despite Google's well-publicized Code of Conduct -- 'Don't be Evil' -- which it explains is 'about doing the right thing,' 'following the law,' and 'acting honorably,' Google, in fact, has an established pattern of conduct which is the exact opposite of its claimed piety." Google has no comment about the California suit, or the patent infringement suit between the pair currently filed and awaiting hearings in Delaware federal court.
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