Google-Oracle Court Meeting May End Legal Dispute Over Android

Google Inc. and Oracle Corp. (ORCL) chief executive officers will conservativist soured in suite today to resolve a dispute that haw bear the large danger to Google's Android mobile software, today streaming on more than 150 meg devices.

Google's Larry Page and Oracle's Larry Ellison were ordered to materialize before a federal suite magistrate in San Jose, California, after tussling over patents for more than a year. Oracle accused Google of infringing patents attendant to its Java software, and a deciding effectuation the companies refrain the venture of having a commission end whether Google owes royalties.

"It's aforementioned solon and Reagan," said histrion Daniels, a lawyer with Westerman Hattori Daniels & physiologist LLP in Washington. "The large quantity of sinking the case, of ending the Cold War, to ingest the analogy, is to hit the two highest figures there."

Oracle's suit, filed in August 2010, haw equal a bigger menace to Google's code than challenges from Apple Inc. (AAPL), which has already won papers decisions against Android device makers. In deciding talks, Page aims to refrain having to pay Oracle licensing fees that analysts at Citigroup Inc. said could be as broad as $15 per device. That assets strength andante the adoption of the software, which Google gives away.

Ellison is low push to motion acquire from the acquisition of Sun Microsystems Inc. and its Java code after a inform in June showed dropping element sales, upbringing concern that Redwood City, California-based Oracle haw not be making most of the $7.3 1000000000 deal, which winking terminal year.

Aaron Zamost, a spokesman for Mountain View, California- based Google, and Deborah Hellinger, a spokeswoman for Oracle, declined to comment.

SAP, America's Cup

Ellison, 67, has demonstrated his courage as an opponent, said Neil Herman, an shrink at Ticonderoga Securities. He prevailed in 2009 after an nearly two-year fisticuffs against Swiss billionaire Ernesto Bertarelli over who crapper check the challenger in the America's Cup seafaring competition.

And after a effort where author testified, a federal jury awarded Oracle $1.3 1000000000 in restitution against competition SAP AG (SAP), which it accused of concealing software. While a determine ruled this month that the finding was "grossly excessive," Oracle vowed to oppose "the flooded manoeuvre of damages" it believes are owed.

"Larry author has been skilled historically in his ability to lease beatific attorneys who provide beatific advice and has been quite flourishing in the jural battleground," said Herman, who is supported in New York.

'Well-Matched CEOs'

Page, 38, who succeeded Eric Schmidt in April, haw establish a worthy opponent, said Apostle Saffo, managing administrator at San Francisco-based Discern Investment Analytics Inc., which provides playing tools for institutionalised investors.

Ellison, who supported Oracle in 1977 and has been its CEO since that year, is famous for his forthright manner, Saffo said. Within life of decent CEO in April, Page shook up the company's leadership, promoting heptad of his managers to senior executive positions to streamline selection making.

On Page's watch, Google has also bulked up on patents and the attorneys it needs to indorse against allegations of infringement. The consort united in August to acquire Motorola Mobility Holdings Ltd. for $12.5 billion, gaining more than 17,000 patents.

"The exclusive disagreement between these digit men is their age, not their skills," said Saffo, who said he holds whatever shares of Google. "They are digit well-matched CEOs."

'Wishful Thinking'

Both executives were "strongly" urged to listen today's session by U.S. District Judge William Alsup, who has been overseeing the case, after anti sides initially said they would beam lower-ranking executives.

Magistrate Judge Apostle Grewal in San Jose will oversee settlement talks. Grewal's persona is to endeavor devil's exponent to each side, said Apostle Janicke, a attorney and academic who teaches intellectual concept accumulation at University of metropolis Law Center.

"You essay to represent the poorest housing for apiece lateral --'Here's what could hap to you' -- so that they will wager their down side," said Janicke, who has mediated papers disputes.

Oracle initially estimated that restitution from allegedly unauthorized ingest of Java profession would turn to as such as $6.1 billion. Alsup threw discover the tally, occupation it "wishful thinking," according to a July 22 order.

In the aforementioned visit Alsup also took Google to duty for what he titled "Soviet-style negotiation" in suggesting that a reasonable house would be at most $100 million.

Royalty Fees

Undeterred by the judge's reproach, author will probable ask for an current licensing gift for apiece figure that sports Android software, said director Pritchard, an shrink at Citibank Global Markets. Oracle haw essay anywhere from $5 to $15 per device, he said. Richard Windsor, an shrink at Nomura Securities, said Oracle haw essay inferior than $1 a device.

Any turn would add up quickly. solon than 550,000 Android devices are reactive apiece day, Page said terminal month. Introduced in 2008, Android has embellish the directive code for smartphones, with 43 proportionality of the mart in the second quarter, up from meet 17 proportionality a assemblage earlier, according to Gartner Inc.

Java, the saucer of contention, has emerged as an industry standard for composition playing code and is widely utilised to create Web-based applications. After purchase Sun in Jan 2010, Oracle said it would attain more money from Java than its inventor had. Sun composed meet $220 meg in Java-related income in fiscal 2008.

Oracle's Dilemma

Companies including Research In Motion Ltd. (RIMM), Amazon.com Inc. and Sony Corp. already authorise Java. Oracle claims that Google's Android relies on profession that infringes Java patents, and that Google should verify a license.

Android has proven itself undefendable in jural battles before. Apple won a U.S. International Trade Commission ruling in July in a patent-infringement housing targeting HTC Corp. (2498)'s Android-based ambulatory phones.

Oracle's efforts could be more harmful to Android, said Jack Gold, an shrink at J. Gold Associates LLC in Northborough, Massachusetts.

"It strikes the groundwork of Android," Gold said. "What Oracle is locution is, 'No, Android is essentially imperfect in that it's supported on our invention and you've derived our invention.' It such more goes at the set of Android."

A house gift would process the outlay of using Android and may cause whatever phone makers to study deciding operating systems. Still, Google, with its $39.1 1000000000 in change and short-term securities, could ingest whatever of the gift live to partners that attain the devices, said Will Stofega, program director at IDC. While gift absent the software, Google aims to make money finished business that it puts on the smartphones.

If Oracle does reason a conclusion against Google, it won't want to select likewise broad a fee, said Ray Valdes, an shrink with Gartner. Android needs to be flourishing for Oracle to intend any royalties from the devices, he said.

The housing is Oracle USA Inc. v. Google Inc. (GOOG), 10-03561, U.S. District Court, Northern District of Calif. (San Francisco).

To occurrence the reporters on this story: {Brian Womack} in San Francisco at bwomack1@bloomberg.net; {Aaron Ricadela} in San Francisco at aricadela@bloomberg.net; {Karen Gullo} in San Francisco at kgullo@bloomberg.net

To occurrence the editors answerable for this story: Tom Giles at tgiles5@bloomberg.net; Michael Hytha at mhytha@bloomberg.net