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Oracle rejected Google's damages offer in lawsuit

Posted: , by Scott H.

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Oracle rejected Google's damages offer in lawsuit
Oracle has rejected a proposal to steamline the damages portion in their ongoing lawsuit against Android. Both sides had been asked by the judge to make proposals to streamline the upcoming lawsuit, and one of Google’s proposals was to waive their right to object to damages calculations if Oracle accepted the methods calculated by a court-appointed expert.

Those damages would apply if Google were found to infringe on the two remaining patents in the case (the others having been withdrawn after the USPTO found them to be invalid). Google was offering, if Android is found to be infringing, to pay a percentage of Android royalties to Oracle until the patents expire. Based on the numbers generated by the court-appointed expert they offered to pay Oracle 0.5% for one patent, and 0.015% for another (or 0.065% if Oracle won on both patents). Google also offered to pay an additional $2.8 million in past damages.

Oracle rejected the agreement, but probably not because the numbers are too low; while Oracle does make mention of expecting higher payments, they specifically cited the “possibility of winning an injunction against Android.” Oracle has at various times claimed billions of dollars in damages, but no serious analyst feels they can win such a huge settlement at this time. Instead, Oracle is hoping to win an injunction – a court mandated cease and desist request. If Oracle could secure a “stop ship” order on Android, their leverage over Google would be immense, allowing them to extort command the type of huge cash payout that they are unlikely to win in court.

Oracle's ability to secure an injunction on Android will largely rise and fall on their copyright claims; with only two patents remaining (and serious question as to whether they can prove infringement) Oracle needs to win big on the copyright case or go home. Yet theor hopes for an injunction would probably require them to win everything, and being able to "skip" the damages portion of the patent lawsuit may make it less likely that they could secure one.

Both sides will get a chance to go home on April 9th, as the court has ordered Google and Oracle to conduct settlement negotiations to see if they can avoid going to trial. If either side is unsure about their legal prospects, this would be an ideal time to save some face and cut a deal.

source: Reuters via The Verge

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posted on 28 Mar 2012, 16:41

1. jamcito (Posts: 1; Member since: 28 Mar 2012)

Google destroyed "write once run everywhere" in Java

posted on 28 Mar 2012, 22:42 1

7. sprockkets (Posts: 1611; Member since: 16 Jan 2012)

Seeing as how Java did that themselves with allowing 10 different varieties, with MS's being the biggest destroyer of it...

...that's a pretty stupid trolling statement.

posted on 28 Mar 2012, 17:26 3

2. theBankRobber (Posts: 682; Member since: 22 Sep 2011)

Even if they could stop Google, they could never stop the Android OS. Yes OEM's would not be able to sell phones with android OS but the devs over at xda would continue support for Android OS. XDA has been able to prove oem's wrong by puttig any android os on any device. Google could stop issuing new android versions, but where one company stops, another picks up and continues.

posted on 28 Mar 2012, 21:16

6. rudlie (Posts: 205; Member since: 13 Mar 2012)

how fast to do that? if oracle and google can not meet the agreement. android development growth will stuck at least five years. I think google will choose to pay to oracle than changing a lot of things. developers and users will suffer between the evolution.

posted on 28 Mar 2012, 18:14 1

3. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

How does Oracle receive a cease and desist order on Copyright infringement? All Google has to do is change the infringing function and the order is no longer applicable. Copyright seems to be more of a matter of past infringement.

posted on 28 Mar 2012, 19:09 1

4. Scott_H (Posts: 167; Member since: 28 Oct 2011)

Honestly I think they'll be hard pressed to get an injunction. But Oracle's move here clearly smacks of them trying to hold onto "the dream" for as long as they can.

posted on 28 Mar 2012, 20:37 1

5. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

This lawsuit is getting more weird as time goes on. I wonder if Larry (Ellison) is getting a bit full of himself. Android is a completely different circumstance compared to SAP. Larry should have taken the deal Google offered. Then he could have claimed a win (however small). Now he may actually have a loss on his hands. Then Google files for malicious prosecution.

posted on 28 Mar 2012, 23:31 1

8. TheRetroReplay (Posts: 254; Member since: 20 Mar 2012)

Oracle won't get an injunction against Android, it would hurt every carrier, manufacturer and store that sells Android devices, who in turn can turn around and sue Oracle for damages due to loss of sales.

Because Oracle rejected Google's offer and said they're going for an injunction, that's not going to look good for them at all. Because if they get an injunction that means Oracle can demand whatever money they want from Google so they can lift the injunction. And the court will know that's Oracle's plan.

posted on 28 Mar 2012, 23:50

9. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

The collateral consequences of an injunction don't impact the decision to grant the injunction. If Oracle were to meet their burden of proof to be granted an injunction and were to post a bond to cover any damage sustained if the injunction gets overturned during appeal, they get the injunction. Oracle has the financial resources to cover any bonding requirement.

You have not addressed the practical reality of life after an injunction. If it covers something based on the copyright claims, Google can make a change to the infringing function(s) almost overnight and the injunction has no force or affect on sales going forward.

posted on 29 Mar 2012, 01:09

10. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)

I don't even understand how this was allowed to get this far considering that Oracle only bought into the patents which were free to use and then because Android exploded Oracle wanted to make money and decided to try to make Google pay exorbitant amounts of cash to use their patents. Really now come on justice system, really it's not like these guys created a damn thing they just happened to buy the company who owned it and was allowing free use of it for years. Ahh oh boy, let's see how this sueolopoly goes, I wonder which two remaining patents are left anyway?

posted on 29 Mar 2012, 06:56

11. GuiltyBystander (Posts: 199; Member since: 05 Mar 2012)

I hope Oracle loses this and completely bankrupts and goes completely out of business :).

posted on 29 Mar 2012, 07:02

12. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

@Guilty - not gonna happen. Although Larry is certainly deserving of the experience. Oracle is too deeply ingrained inside of the Fortune 5000 and the U.S. Federal govt. Talk about too big to fail....

posted on 29 Mar 2012, 08:50

13. GuiltyBystander (Posts: 199; Member since: 05 Mar 2012)

Oh well that sucks.. but I still hope they lose their fight with android at least :).

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