Google proposes Android revenue for Oracle-filing

Wed Mar 28, 2012 1:20pm EDT

* Oracle rebuffs offer as too low

* Trial in patent case due to begin April 16

By Dan Levine

March 28 (Reuters) – Google proposed to pay Oracle a
percentage of Android revenue if Oracle could prove patent
infringement of the mobile operating technology at an upcoming
trial, but Oracle rebuffed the offer as too low, according to a
court filing late on Tuesday.

Oracle Corp sued Google Inc in 2010,
claiming the Internet search leader’s Android technology
infringed Oracle’s Java patents. A trial is set for April 16
before U.S. District Judge William Alsup in San Francisco.

Oracle also sued for alleged copyright infringement. Oracle
has contended that Google should pay hundreds of millions of
dollars on that claim, which is separate from the patents.

Alsup asked both companies to come up with ways to
streamline the trial, which is expected to last about 8 weeks.
In response, Google proposed a deal: if Oracle succeeded in
proving patent infringement, Google would not spend time
fighting about damages if Oracle agreed to its figures.

Google offered to pay Oracle roughly $2.8 million in damages
on the two patents remaining in the case, covering the period
through 2011, according to a filing made jointly by the

For future damages, Google proposed paying Oracle 0.5
percent of Android revenue on one patent until it expires this
December and 0.015 percent on a second patent until it expires
in April 2018.

According to Google, those damages figures matched what had
been calculated by a court-appointed expert in the case.

Google makes Android available to handset manufacturers for
free, but derives revenue from the ads it sells on the system.

In October, Google said that its mobile business was
generating revenue at an annual run rate of $2.5 billion, though
that business includes revenue from ads Google serves on Android
devices as well as on Apple’s iPhone.

Oracle said Google’s offer was too low, and that Oracle
would not give up the possibility of winning an injunction
against Android.

“Oracle cannot agree to unilaterally give up its rights, on
appeal and in this court, to seek full redress for Google’s
unlawful conduct,” the company said in the filing.

Oracle acquired Java through its purchase of Sun
Microsystems in 2010. Earlier this month, Oracle agreed to
withdraw several claims after some of its patents were struck
down by the U.S. Patent and Trademark Office.

In a court hearing on Wednesday, Alsup told the companies
that any settlement should be reached by noon on April 13 at the
latest, so that potential jurors would not have to make the trip
to court.

However, the judge said that he was looking forward to the
intellectual property trial if the companies could not reach an

“This is the World Series of IP cases,” Alsup said.

The case in U.S. District Court, Northern District of
California, is Oracle America, Inc v. Google Inc, 10-3561.

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