In the past, lawyers for multiple small companies have accused search engine giant, Google Inc., of stealing and profiting from their clients’ trade secrets. In the case of VSL Communications, lawyers claim that Google did the same thing and left a paper trail of Post-it notes as evidence.
London-based VSL Communications is accusing Google of stealing its proprietary method for shrinking video and audio files without any sacrifice in sound or image quality. The suit, filed in Santa Clara County Superior Court this past month, claims that Google used those trade secrets to enhance all of its streaming and downloading technology including YouTube, Google Play and Google Earth.
The complaint alleges that Google coerced VSL into handing over trade secret information. A Google executive contacted VSL’s CEO to discuss the possibility of buying VSL’s video streaming and downloading technology. Google signed a nondisclosure agreement and VSL then provided the Google team with three CDs that contained working versions of its technology, 400 files and photocopies of additional VSL trade secrets as well as charts comparing the VSL technology with that of its competitors’. The complaint states that VSL did not know that”… behind the scenes, Google had devised a scheme to steal the VSL trade secrets and incorporate them into Google’s own products without compensating VSL for their use.”
After discussions between the two companies came to a standstill over eight months later, VSL decided the deal was not going to go through and asked Google to return its intellectual property. Google returned the disks but the files and material were now covered with Post-it notes that contained information including the following:
- Google employees should delete any incriminating emails
- Google was concerned over the possibility of infringement regarding products in development
- Engineers at Google should “close eyes to existing IP”
- Google needed to speak with outside counsel about a non-infringement opinion
- Google should consider infringement lawsuit risk
- Concern over recklessness label on its infringement
The complaint alleges that Google began to amend its preexisting patent applications and file new applications using VSL’s technology. In early 2012, VSL noticed that Google’s software showed significant improvement after VSL had provided access to its files and, upon examination, VSL staff found that VSL technology had been used in the company’s publicly available code. The complaint states that “Defendants’ theft of VSL’s trade secrets pervades virtually every website and product offered by defendants.”