Oracle and Google lock horns over $2.6bn Java infringement

published 30 June 2011

Oracle has declared it wants $2.6 billion from Google for alleged Android-based Java patent infringements. The company, which acquired Java rights through the $7 billion acquisition of Sun Microsystems in 2009, claimsGoogle deliberately infringed on its intellectual property with the development and release of Android after licensing negotiations between the companies ended without agreement.

"Google repeatedly rejected the reasonable licensing terms that Sun offered and ultimately chose to wilfully infringe Oracle's intellectual property and release the Java-based Android platform," claimed Oracle.

"Google did so because it was unwilling to accept the terms that Sun proposed, which would have obliged Google to pay up-front royalties and an additional royalty expressed as a percentage of Android-based advertising revenues, and to share control over the Android ecosystem with Sun (thereby providing Sun a substantial revenue stream in addition to royalties paid by Google)."

Oracle asserted the total value of this type of royalty model would have amounted to billions of dollars.

Intellectual property expert Iain Cockburn from the Boston University School of Management was hired by Oracle to investigate the case. His report outlined the $2.6 billion he believes Oracle is owed.

Google has since dismissed the report and the latest documents were filed by Oracle on 28 June to challenge Google's rebuttal.

In the document, Oracle said: "Google's motion rests on mischaracterisations of Cockburn's methodology, factual disputes, and erroneous statements of the law."

"Google falsely claims that Professor Cockburn concludes that Oracle is owed anywhere from $1.4 billion to $6.1 billion in damages. He does not. His opinion is that the total damages that should be awarded to Oracle is $2.6 billion."