The Strategist

Google won $ 9 billion-worth patent dispute with Oracle

05/27/2016 - 17:02

Alphabet, owns Google, has won a legal dispute with Oracle on patent rights to use Java software, reports Reuters. Court in San Francisco rejected Oracle's compensation in the amount of $ 9 billion, according to the company’s statement.

Peter Kaminski
Peter Kaminski
Oracle filed a lawsuit, which indicated that Google had received $ 8.8 billion as a result of violation of Oracle’s copyright. The company has filed a lawsuit against Google six years ago, claiming that the "Don’t be evil" corporation should have paid for a license to use Java components in Android mobile OSes. Google has copied parts of Java for developers more easily create software for Android, as they were already familiar with the Java language.

Earlier this year, Oracle's lawyer at the court hearing on the case that during the existence of Android, that is little more than seven years, the mobile OSes brought Google $ 31 billion in revenues and $ 22 billion in net profit.

The indicators were calculated on the basis of values that  Oracle obtained from Google’s confidential financial documents. Google Inc. itself has never revealed the amount. Therefore, having learnt that Oracle’s lawyer announced them publicly, demanded from the court to impose prohibitive measures on this information. 

"Google has never published volume of proceeds and profits from Android apart from the overall financial results. It's confidential information and its public disclosure may cause substantial negative effect on Google's business", - stated Google in its address to the court.

Android operating system is free by itself, but Alphabet earns money through advertising and a share of sales of applications, games and content on Google Play store.

Java is used to write client applications and server software. The technology’s advantage is its complete independence of the bytecode from operating system and hardware. This makes Java-based applications suitable for any device for which there is a corresponding virtual machine.

Another important feature of Java technology is a flexible security system, in which the program’s execution is fully controlled by the virtual machine. Any transactions that exceed established authority of the program (for example, an unauthorized attempt to access the data or connect to another computer), cause an immediate interrupt.

Java was developed by Sun Microsystems, which was acquired by Oracle in 2010.

Oracle stated that the right to a programming language application, used in Java, belong to the company. Eventually, however, the court sided with Alphabet, ruling that use of Java platform in Android does not require a license or permission from Oracle.

Oracle now intends to appeal this decision.