Plaintiff Max Sound Corporation ("Max Sound") filed a First Amended Complaint ("FAC") against three defendants: Google, Inc., YouTube, LLC and On2 Technologies (collectively, "Defendants"), for the infringement of Patent No. 7,974,339 (the "'339 patent"). As part of the complaint, Max Sound also included the owner of the '339 patent, Vedanti Systems Limited ("Vedanti"), as a party to the lawsuit.
Defendants filed a motion to dismiss pursuant to Fed.R.Civ.Pro. 12(b)(1), asserting that this action must be dismissed because Max Sound lacks standing to sue. As explained by the district court, "[a]ccording to Defendants, VSL had no authority to confer any rights under the '339 patent to Max Sound on June 20, 2014, because the true owner of the '339 patent at that time was Vedanti. Moreover, Defendants believe the plain language of the June 20th license agreement makes clear that the contract was only between VSL and Max Sound - not Vedanti."