{"id":21876,"date":"2011-06-22T14:15:53","date_gmt":"2011-06-22T18:15:53","guid":{"rendered":"http:\/\/www.investmentu.com\/?p=21352"},"modified":"2011-06-22T14:15:53","modified_gmt":"2011-06-22T18:15:53","slug":"has-google-been-caught-stealing-by-oracle","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/22\/has-google-been-caught-stealing-by-oracle\/","title":{"rendered":"Has Google Been Caught Stealing by Oracle?"},"content":{"rendered":"<p><a class=\"post_title\" href=\"http:\/\/www.investmentu.com\/2011\/June\/oracle-vs-google.html\">Has Google Been Caught Stealing by Oracle?<\/a><\/p>\n<p>by <a href=\"http:\/\/www.investmentu.com\/investment-experts\/justin-dove-archive.html\" >Justin Dove<\/a>, <em>Investment U<\/em> Research<br \/>\nWednesday, June 22, 2011<\/p>\n<p>It&#8217;s hard to imagine <strong>Google<\/strong> (Nasdaq: <a href=\"http:\/\/www.google.com\/finance?q=NASDAQ:GOOG\" >GOOG<\/a>) making mistakes.<\/p>\n<p>They haven&#8217;t made many, but this one could hurt if <strong>Oracle<\/strong> (Nasdaq: <a href=\"http:\/\/www.google.com\/finance?q=NASDAQ:ORCL\" >ORCL<\/a>) gets its way.<\/p>\n<p>Oracle claims that Google infringed upon Java patents when  creating its successful Android mobile device platform. And now, it&#8217;s become a  major patent lawsuit.<\/p>\n<p>Google could stand to lose up to $6.1 billion, plus court costs,  if they lose.<\/p>\n<p>But a ruling in Google&#8217;s favor may seriously hinder the future  relevance of Sun Microsystems, Inc. and hurt Oracle&#8217;s stock&#8230;<\/p>\n<p><strong>Did Google Create Dalvik  to Avoid Java&#8217;s Virtual Fees?<\/strong><\/p>\n<p>Many products such as the <strong>Amazon<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=NASDAQ:AMZN\" >AMZN<\/a>) Kindle and <strong>Apple<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=NASDAQ:AAPL\" >AAPL<\/a>) iPhone use Java&#8217;s virtual machine; however, the use of this  virtual machine requires licensing fees. Oracle claims that Google created a  new virtual machine called Dalvik to avoid these licensing fees in connection  with the Android platform.<\/p>\n<p>As far back as 2006, there were whispers that cash-rich <a href=\"http:\/\/dealbook.nytimes.com\/2006\/03\/14\/chatter-should-google-buy-sun-microsystems\/\" >Google might buy Sun Microsystems, Inc<\/a>. Ultimately Google  decided not to purchase Sun and the company was bought by Oracle for $7.4  billion in 2009.<\/p>\n<p>Instead, Google decided just to develop a spin-off and save  money. It was a clever move by Google, but it could now come back to bite them.<\/p>\n<p><strong>The Ruling Implications on Mobile Devices Everywhere&#8230; <\/strong><\/p>\n<p>The implications of the ruling on <a href=\"http:\/\/www.investmentu.com\/2010\/September\/nokia-and-the-mobile-phone-industry.html\" >the mobile device market<\/a> could be huge.<\/p>\n<ul>\n<li>If Oracle wins, companies will still need to pay licensing  fees for the use of Java and Java-like virtual machines. This would make Sun a  big deal as the smartphone technology takes off. It&#8217;s also likely that Oracle  would cash-in on licensing fees on all Androids sold.<\/li>\n<\/ul>\n<ul>\n<li>Should Google win, it would mean that other platforms, such  as the iPhone, could also create their own spin-offs to Java. This would  seriously hurt the future growth of Sun, which could benefit greatly in the  growing mobile market through its Java virtual machine.<\/li>\n<\/ul>\n<p>It appears Oracle has the advantage. Last November the same  team of lawyers won Oracle a $1.3 billion suit against competitor <a href=\"http:\/\/www.investmentu.com\/2011\/January\/time-is-running-out-for-sap.html\" >SAP<\/a>.<\/p>\n<p>There is  no real consensus whether there is a technical advantage to Dalvik over Java.  If Oracle can prove there is no technical advantage, it will be much easier to  argue that Google created Dalvik simply to avoid fees.<\/p>\n<p>Good investing,<\/p>\n<p>Justin Dove<\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=JwL_9GIlI84:_nhNlRdNTx4:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=JwL_9GIlI84:_nhNlRdNTx4:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=JwL_9GIlI84:_nhNlRdNTx4:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=JwL_9GIlI84:_nhNlRdNTx4:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=JwL_9GIlI84:_nhNlRdNTx4:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=JwL_9GIlI84:_nhNlRdNTx4:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=JwL_9GIlI84:_nhNlRdNTx4:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=JwL_9GIlI84:_nhNlRdNTx4:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/JwL_9GIlI84\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oracle claims that Google infringed upon Java patents when creating its successful Android mobile device platform. And now, it&#8217;s become a major patent lawsuit. Google could stand to lose up to&#8230; <strong><a href=\"http:\/\/www.investmentu.com\/2011\/June\/oracle-vs-google.html\">Oracle vs. Google&#8230; &gt;&gt;<\/a><\/strong><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-21876","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/21876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=21876"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/21876\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=21876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=21876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=21876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}