Google Proposes To Pay Share Of Android Revenue To Oracle

Date : 03/28/2012 @ 1:47PM
Source : Dow Jones News
Stock : Oracle Corp. (ORCL)
Quote : 48.16  0.19 (0.40%) @ 7:26PM

Google Proposes To Pay Share Of Android Revenue To Oracle

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Google Inc. (GOOG) is proposing to pay Oracle Corp. (ORCL) $2.8 million if its Android mobile software is found to infringe on Oracle's Java patents in addition to a percentage of future Android-related revenues.

Google made its proposal in a court filing Tuesday. Oracle, which sued Google in August 2010 for the infringement of Java patents and copyrights by Android, objected to Google's proposed resolution as insufficient.

Google contends in the filing that an agreement over the two patents still at issue would preclude the need for a jury trial, as the court continues to examine separate copyright claims. Google's proposal for patent damages would also exclude an injunction on Android.

Oracle, of Redwood Shores, Calif., says Google's proposed damages are "lower than Oracle contends are appropriate," while arguing that it still has a right to a jury trial and the ability to seek an injunction.

Both companies made their statements in proposals aimed at streamlining a trial in the matter, which has been expected to begin next month. A judge has also ordered executives at the companies to restart settlement talks in the case, which stalled last year.

The ongoing legal spat between the Silicon Valley giants illustrates the heightened tension among technology firms seeking to mark their territory with intellectual property.

Google argues in the filing Tuesday that if it's found to infringe on Oracle's patents it is willing to stipulate about $2.72 million in damages for one of the patents at issue through 2011, and $80,000 for the other.

In addition, the Mountain View, Calif. company proposes future damages for the first patent should be "0.5% of Android revenues through the expiration of that patent" in December of this year. Future damages for the second patent should be 0.015% of Android revenues through its expiration in April 2018, Google says.

Android is developed according to an open source model that utilizes outside engineering, and is provided for free to device makers. The software does help produce related online advertising revenue, though the exact amount is unclear.

Android captured a 50.9% share of the worldwide smartphone market in the fourth quarter of last year, according to Gartner Inc. data, compared to a 30.5% share during the same period in the prior year.

A Google spokesman declined to comment. An Oracle spokeswoman also declined to comment.

-By John Letzing, Dow Jones Newswires; 415-765-8230;

--Steven D. Jones contributed to this article.

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