Sun Microsystems

A jury decided this last month that Google did not infringe upon Oracle’s patents, but it has recently come to light that Oracle must pay Google’s steep legal fees accrued during the trial.

Oracle, a database software giant based in Redwood City, Calif., sued Google in August 2010, while alleging the Android operating system violated a number of patents and copyrights within Java, which Oracle acquired through Sun Microsystems. Android currently powers more than 150 million mobile devices. Google, based in Mountain View, Calif., adamantly denied Oracle’s contention, and claimed the Android team was unaware of Sun’s patents before the suit.

Google spokesperson Jim Prosser told Business Insider that Oracle did not succeed in landing a $6 billion settlement from Google, but it did win the responsibility of paying Google’s $300,000 in legal expenses.

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A jury decided this morning that Google did not infringe upon Oracle’s patents.

The verdict came unanimously as jurors in the Google vs. Oracle trial found six claims in U.S. Patent RE38,104, including two claims in U.S. Patent number 6,061,520, did not infringe.

“Today’s jury verdict that Android does not infringe Oracle’s patents was a victory not just for Google but the entire Android ecosystem,” announced Google in a public statement, according to CNET.

Oh, and here is Oracle’s public statement on the decision: “Oracle presented overwhelming evidence at trial that Google knew it would fragment and damage Java. We plan to continue to defend and uphold Java’s core write once run anywhere principle and ensure it is protected for the nine million Java developers and the community that depend on Java compatibility.”

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The ongoing Oracle v. Google trial is churning up some doozies regarding the history of Android, and this latest one is almost unbelievable: Google projected to sell roughly 10 million Android tablets a year for 2011 and 2012 while seizing a third of the marketshare.

A presentation by former Android Inc. CEO Andy Rubin in July 2010, exhibited during the trial, revealed those hefty figures. Obviously, Google’s view was a little optimistic, especially because the search engine also expected Android tablets to reap $110 million in search revenue for 2011 and $220 million for 2012.

The company’s ballpark figures derived from a then-current Morgan Stanley estimate that placed the tablet market around 46 million units for 2012. Needless to say, Google missed its target. Rubin admitted last February that only 12 million Android tablets sold in the previous two years. Apple, on the other hand, has a stronghold on the market with over 67 million iPads sold, of which 11.8 million moved in Q2 2012 alone. 

Today’s two-year-old slide deck is significant, because it unearthed the first-ever Android revenue numbers, as well as early user-interface designs for Android 3.0 Honeycomb.

The gallery of slides is below.

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Google’s former CEO Eric Schmidt took the stand at 9 a.m. PST this morning to give his direct testimony during the Oracle v. Google trial, and while the questioning hulked along, the executive’s answers glimmered with cynicism.

Oracle’s counsel immediately showcased a plethora of documents from 2005 and 2006 that seemingly depicted the Internet giant as having prior knowledge about needing Sun software licensing agreements to apply Java in the Android mobile operating system, but the Executive Chairman denied the exhibited emails and presentations and remained steadfast to his defense that he was unaware Google even needed permission to employ the open-source software.

Oracle, a database software giant based in Redwood City, Calif., sued Google in August 2010, and alleged the Android operating system violated a number of patents and copyrights within Java, which Oracle acquired through Sun Microsystems. Android currently runs on more than 150 million mobile devices. Google, based in Mountain View, Calif., denies the contention.

In today’s court appearance, Oracle is essentially alleging that Schmidt and Google had clear knowledge that they did not have explicit rights to use Java in Android. Meanwhile, many Google officials, including Schmidt, profess otherwise.

[Schmidt’s testimony lasted until 12 p.m. PST—see below for details.]

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Google gave a testimony to Congress last year claiming it earned two-thirds of its mobile revenue from iOS devices, but now it seems as though the company’s estimate might have been low.

Google made less than $550 million in revenues for Android between 2008 and 2011, while making four times as much revenue during the same period with Apple products that employ Google services like Search and Maps.

According to The Guardian, the settlement offer provided yesterday by Google to Oracle depicted Android’s revenue streams. Settlement discussions ordered by Judge William Alsup were derailed when Oracle rejected Google’s low offer to pay royalties on Android if alleged patent infringements deem true in court.

Reuters reported yesterday that the settlement stems from a 2010 lawsuit where Oracle claimed its Java-related patents were infringed by Android. Oracle acquired the intellectual property in question when it purchased Sun Microsystems in 2010.

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Oracle purchased Sun for $7.4B in 2009.  The deal closed at the outset of 2010 and some wondered why Oracle had outbid IBM for the hardware/software giant.  Today we finally hear how much Oracle is after in its suit against Google over Android’s use of Java: $1.5 – $6 Billion.  That means that Oracle could recover more than half of the purchase price.  Perhaps most?  Just from one intellectual property suit.

Java pioneer and recent Google hire James Gosling gave a hint to what was to come when he resigned from Oracle right after the purchase

During the integration meetings between Sun and Oracle where we were being grilled about the patent situation between Sun and Google, we could see the Oracle lawyer’s eyes sparkle. Filing patent suits was never in Sun’s genetic code.

So, it seems that Oracle always had some Google Java money baked into its purchase price.  That’s why it could outbid IBM so spectacularly. 
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