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Oracle Won Lawsuit against Google

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Oracle’s multi-billion dollar copyright case against Google

Last week, Oracle (ORCL) announced that it won its multi-billion dollar lawsuit against Google (GOOG). In 2010, Oracle accused Google of illegally using the company’s patented Java technology. The lawsuit stated that Google used Java API (application programming interfaces) illegally to develop its core mobile Android OS (operating system).

Initially, Oracle had sought $9 billion. Though the company has not updated the figure, Dorian Daley, Oracle’s general counsel, said in an interview, “the value has gone up.” The case will now move to a US judge in San Francisco to determine how much Google owes Oracle.
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What it means for investors

Android mobile OS, an open source software, runs on more than two billion mobile devices globally. When an open source software or resource generates a significant amount, it does attract attention, which has been the case for Google. While giving its verdict, the Federal Appeals court weighed Google’s copying 11,000 lines of Java code and found out that its usage at the core of its Android OS was “not fair.” The court said Android OS helped Google earn $42 billion in advertising revenue.

As the above presentation by Statista shows, Google’s net advertising revenues are estimated to reach $61.3 billion in 2018 from $37.6 billion in 2016. On winning the verdict against the Google, Oracle claims that copyright protection enables programmers to innovate. Oracle might get a royalty for Google’s use of Java. If this happens, the company’s stock would likely get a much-needed boost.

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