Alphabet Inc (NASDAQ:GOOGL) To Face Off Against Oracle Corporation (NYSE:ORCL) Next Week In $8.8 Billion Lawsuit

The copyright suit retrial between Alphabet Inc (NASDAQ:GOOGL) and Oracle Corporation (NYSE:ORCL) is about to begin.

Oracle which offers a comprehensive and fully integrated stack of cloud applications and platform services claims that Google’s Android infringed its copyright regarding Java programming language. On the other hand, Google argues that it should use Java without paying any fee whatsoever. This is in accordance with the fair-use provision of copyright law.

Oracle is also seeking an injunction against use of Java in Android by Google. If the injunction goes through, then, Oracle will have more leverage to negotiate an ongoing royalty.

The case between these two tech giants previously went on trial in 2012, but the jury made no progress. If the new jury, in the trial that is scheduled to begin on Monday, rules in favor of Oracle concerning the fair-use copyright, then it will consider the damages.

After the initial trial, William Alsup, a United States District Judge, gave the verdict that the material in the issue in case at hand is not supposed to be subject to copyright. However, a federal appeals court reversed this ruling, arguing that the structure of any programming language can be protected.

This is not likely to have any impact on Google’s revenue

According to Reuters, even if the verdict requires Google to pay the full $8.8 billion sought by Oracle in an upcoming copyright trial in San Francisco over the Android operating system, analysts and most stakeholders believe that it will have very little impact on the giant search engine’s bottom line.

Mike Bailey, a director of research at FBB Capital Partners and a shareholder in Alphabet, Google’s parent company said that in 2015, Google generated $75 billion revenue. Therefore, according to Mike, even a large verdict for Oracle will have very low impact on the investors since it is a one-time charge.

However, it is worth noting that such an injunction has to be issued by a judge, not a jury. With that, most legal experts believe that such issuance, in this case, is a remote possibility.

This Little Known Stocks Could Turn Every $10,000 into $42,749!

Learn how you could trade stocks with 91% to 100% success rate by using this revolutionary indicator that predicts when certain stocks are on the move.
You could be making up to 199% on a single trade in only 14 days.

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these