Published in News

Oracle blames falling profits on Google

by on18 May 2016


Payback is cool for Catz


Data-storage outfit Oracle is blaming the fact that Google “illegally” used Java in Android for all the woes which have befallen the company.

Oracle's co-chief executive Safra Catz told a court how longtime customers dramatically reduced the amount of licensing revenue they paid to use Oracle products after Google stole its copyrighted software to enter the smartphone market.

In a trial at San Francisco federal court, Oracle is claiming Google's Android smartphone operating system violated its copyright on parts of Java, a development platform. Alphabet Google unit said it should be able to use Java without paying a fee under the fair-use provision of copyright law.

Oracle acquired Sun in 2010 and sued Google after negotiations over its use of Java broke down. The jury was deadlocked in a trial in 2012, and if the current jury rules against Google on fair use, then it would consider Oracle's request for $9 billion in damages.

The worry for the industry is that if Oracle wins there could be shedloads of software copyright lawsuits. Catz said the decision by Google to distribute Android for free to phone manufacturers like Samsung undercut traditional licensing revenue those manufacturers paid for Java.

Samsung, for instance, reduced payments from about $40 million to about $1 million, Catz claimed.

Amazon had traditionally used Java to develop its Kindle reader, Catz said, but switched to Android for the Fire. When Amazon was developing a new reader, the Paperwhite, Catz said Oracle was forced to offer a 97.5 percent discount to entice Amazon to use Java.

However Google claims it is a true innovator and claims Oracle only turned to the courts because it could not succeed in the market. Under questioning from a Google attorney, Catz acknowledged that Oracle had considered developing its own phone but did not pursue the project.

An internal Oracle memo on its phone project showed that Oracle had "very limited internal expertise to make smart decisions."
Oracle has argued that Google violated basic moral principles by using elements of Java without a license.

Last modified on 18 May 2016
Rate this item
(6 votes)

Read more about: