The latest twist in the long-running legal saga

Oracle claim Android activation generates $10 million in annual ad revenues – per day!

Chris Mayer
gavel

New plea by Oracle shows a change of tact in legal battle plus a frank view of Android’s business model

It might seem less clearer to actually getting the two into
court, after March’s judgement day was left in doubt, but the
crossfire between Oracle and Google over Java patent infringement
trial keeps on coming.

Firstly, Oracle have made a surprising move proposing to the
court that it halt (or dismiss without prejudice) its
patent infringement claims against Google for nine months, thus
pushing forward for near-term copyright trial in the spring of
2012

Intellectual property expert, Florian Mueller broke the story
on FOSS
Patents
, outlining Oracle’s decision that would also see them
waive another right to submit a new (third) damages
report
 and states his theory behind Oracle’s reasons
for this move.

Oracle’s priorities are clear: more than anything else, it
wants an injunction. I have said all along that damages in this
case could amount to billions of dollars, but the strategic value
of an injunction far exceeds that of even the most aggressive
damages award. Oracle wants that injunction as soon as possible,
and it is willing to bet, in the near term, on the copyright part
of its case.

It appears that Oracle believe its best chance of winning
this case is through copyright infringement claims, a
big shift from their original stance opposing a stay on the patent
claims, whilst Android welcomed it.

Oracle’s letter to the court reveals their intention
to write another petition to the Federal Circuit should the judge
rule against them

Oracle believes the Court has taken an unduly
strict and improperly narrow approach to the analysis of damages in
this case, and reserves its right to appeal the
Court’s
Daubert and in
limine
 orders.

What was more revealing within Oracle’s letter
was their depiction of Android and how Google was making economic
headway Java patents, providing the strongest evidence for them
wanting to resolves the infringement lawsuit as quickly as
possible. They say:

While this case awaits trial, more than
700,000 Android-based devices are activated 
every
day
, all fundamentally built around the copyrighted Java
APIs and the enhanced performance enabled by Oracle’s
patents.

“Each day’s worth of activations
likely generates approximately $10 million in annual mobile
advertising revenue for
Google.”

Whilst
the first quote appears to be well founded, given that you have to
say Java has been part of Android’s success, the second is an
estimate that could be working on the assumption that $14 of annual
advertising is made per Android
user. 

From simple math, we can
ascertain that Oracle clearly values Android’s total mobile ad
revenue higher than the $2.5billion that Google previously stated
back in October, although this was not based on activation as
Oracle’s figure is, so it could be even higher. With Google set to
release their annual financial report tomorrow, it will be
interesting to see if this is discounted by
them.

Oracle
fervently argue that Android is much more to Google than a
money-spinner, as it says in a
footnote

This revenue does not even
include all the other value Android generates for Google, ranging
from Android Market revenue, to other Android-related services, to
ensuring that Google will not be locked out of the mobile business,
to lucrative relationships with manufacturers of myriad devices on
which Android can and does run, to the inordinately valuable access
Android provides to customers for its new social network service,
Google+. Indeed, Android has enabled Google to wield such power
with regard to search and other services that its Android
distribution and licensing practices — far from the ‘open’
practices Google has proclaimed it lives by — are under
investigation by competition law agencies in the United States,
Europe and elsewhere.

You could argue that Oracle is
on a warpath against Google, but a fairer assessment is that Oracle
wants to be recompensed for providing part of Android success. This
trial is far from over just yet (surprise, surprise), but the
gauntlet has been thrown down by
Oracle.

Author
Comments
comments powered by Disqus