Google disputes damages estimate in Oracle case

05.07.2011

Google also argues that Oracle's purchase price for Sun -- $7.4 billion -- proves that the relevant patents can't be as valuable as the upper estimate that Cockburn suggests Google owes. "Sun was much bigger than 'Java,' and ... the patents and copyrights at issue here are a small part of 'Java.' Cockburn's estimate would allow Oracle to substantially finance its entire acquisition of Sun," Google wrote.

In fact, Google says that in early 2010, Oracle valued all of Sun's software-related core technology, which would include more than Java, at $68.8 million.

Google also argues that Cockburn calculated damages through the end of 2025 even though six of the seven relevant patents expire in 2018 or earlier and that Cockburn counted international revenue while the law only allows for the recovery of damages for domestic infringement.

This dispute could drag on for years if both companies believe they can win and if they decide to appeal verdicts. The ramifications are significant for both companies, particularly if Oracle wins. In that case, Oracle stands to gain billions of dollars in revenue each year from licensing agreements. If Google is required to pay for each instance of Android in use and if it passes that cost onto handset makers, it could see Android's momentum slow.

The IDG News Service