Google proposes Android revenue for Oracle: filing

Wed Mar 28, 2012 5:50pm EDT
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By Dan Levine

(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 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 companies.

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.   Continued...

Google Inc. CEO Larry Page arrives at the Robert F. Peckham Federal Courthouse in San Jose, California September 19, 2011. Page and Oracle CEO Larry Ellison appeared in court Monday after a judge ordered two of Silicon Valley's most influential corporate leaders to attend mediation talks aimed at settling a year-long Java-patent infringement lawsuit leveled against Google. REUTERS/Norbert von der Groeben