Oracle Rejects Google's Settlement Offer, Aims for Android Ban in Trial
April 3, 2012 6:39 PM
comment(s) - last by
Software company holds out, hoping to bleed Google of more money
In U.S. District Court for the
Northern District of California
Magistrate Judge Paul S. Grewal
urged Google Inc. (
) and Oracle Corp. (
) to reach a settlement and licensing compromise in Oracle's
lawsuit against Google's mobile Android OS
Google, according to a
, had offered Oracle $2.8M USD in damages, a figure which Google acknowledged could grow if it loses the infringement trial (Oracle could make
as much as $100M USD
, according to recent valuations by expert witnesses). More importantly Google offered to license Oracle's two asserted patents in the case, at a rate of 0.5 percent of Android's revenue for one patent, and 0.15 percent for a second patent.
Oracle wasn't impressed, so it rejected the offer. A trial date was just set for April 16 at the San Francisco District Court. Judge William H. Alsup will preside in the trial phase.
In announcing that the settlement could not be reached and that the parties were headed to trial, Judge Grewal solemnly stated, "[T]he parties have reached an irreconcilable impasse in their settlement discussions with the undersigned... no further conferences shall be convened... [I]n the end, some cases just need to be tried."
He wished both companies' teams of lawyers "good luck" in the final battle.
Google has been dealt a bitter cup in the Java case. [Image Source: Oracle]
In the trial Oracle will try to establish that Google knowingly used the open source Apache distribution of Java, despite
knowing it was not validly licensed
and could be in infringement of Sun Microsystems' intellectual property, which Oracle inherited via its
$7B USD Jan. 2010 acquisition of Sun
Oracle's case is
built heavily around emails
indicating that Android managers were aware of this issue, but did not move aggressively to address it. Oracle also displays
Java processing source files contained in the Android repository
and how they allegedly reuse blocks of Sun's code, without holding a valid license.
Ultimately, Oracle's goal is to find Google is in infringement of its Java patents. While the damages (up to $100M USD) may not be huge, the licensing fees could be, if Google loses. It's unclear exactly how much Oracle can extract from Google in terms of licensing fees, given that Microsoft Corp. (
) is already raking in $10-15 USD per device [
]. With most Android devices already having narrow profit margins, and with Google only making a small haul on advertising, it's unclear how much revenue their really is for Oracle to gobble up, despite Android being the world's most used smartphone platform.
In addition, Apple, Inc. (
) is attempting to
ban Android handsets altogether
in the U.S., which may make licensing fees a moot point.
Google, on the other hand, will try to establish that Sun Microsystems knew about and verbally permitted its unlicensed use of Java. Google points to Sun Microsystems as having called Android a tool to "spread news and word about Java."
It quotes former Sun chief executive Jonathan Schwartz who
praised the launch of the unlicensed Android
as an "incredible" day for the Java family -- rather inconsistent language with Oracle's claims that Google flagrantly infringed on Sun's Java IP rights. (Oracle tried to delete the blog in which the former CEO wrote this, but was foiled by webpage archiving.)
We will keep you updated as the trial progresses ahead.
This article is over a month old, voting and posting comments is disabled
4/4/2012 1:36:02 PM
to be fair, a Lawyer has to pay para legals and a small army of assistants to help organize the case for trial. I am sure it still dwarfs the actual cost, but maybe its not so egregious
4/4/2012 7:17:30 PM
No, they bill about $100-$150/hr for paralegal time.
“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs
Judge's Ruling Upholds Apple Patent, Could Jeopardize Android's Future in the U.S.
April 2, 2012, 9:32 PM
Oracle's Anti-Android Java Lawsuit Likely to be Settled For Under $100M USD
March 23, 2012, 7:38 PM
Of Lawsuits and Licensing: The Full Microsoft v. Android Story
October 24, 2011, 12:36 PM
Oracle Receives Court Permission to Use Google's Email in Java Patent Case
October 21, 2011, 9:33 AM
Samsung to Pay Microsoft Royalties for All Android Phones It Sells
September 28, 2011, 3:35 PM
Moto 360 to go "Champagne Gold" for $299, According to Amazon Listing
October 30, 2014, 3:24 PM
Call-capable Samsung Gear S Smartwatch Launches Nov 7 in U.S.
October 30, 2014, 12:45 PM
Lenovo Completes $2.91B Acquisition of Motorola
October 30, 2014, 11:57 AM
Samsung Electronics Q3 Profit Falls by 60%, Mobile Division Sees 74% Profit Decline
October 30, 2014, 10:10 AM
Microsoft's $199 Fitness Band Packs in 10 Sensors, Works with Windows Phone, iOS, and Android
October 30, 2014, 8:58 AM
Google’s Project Ara Modular "LEGO" Smartphone Shown Booting Up on Video
October 29, 2014, 5:28 PM
Most Popular Articles
Amid Theater Boycott Netflix Defiantly Plans New Movies, Plus 3 TV Shows for 2015
October 24, 2014, 7:30 PM
AT&T Defeats Purpose of New Apple SIM, Locks iPad Air 2 SIMs to Its Network
October 24, 2014, 2:17 PM
CVS, Rite Aid Kill Unofficial Apple Pay Support, Burn Google Wallet Users in the Process
October 25, 2014, 5:26 PM
1 Million Credit Card Activated on Apple Pay Within 72 Hours, Walmart CEO Hopes Visa "Suffers"
October 28, 2014, 8:17 AM
Microsoft's Figures Show Desktop Users Flocking to Windows 10 Preview
October 27, 2014, 11:04 AM
Latest Blog Posts
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information