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Oracle Sues Google for Billionshttp://www.mobiledia.com/news/94553.html

By Peter Ferenczi | Mon Jun 20, 2011 2:02 pm

Oracle is suing Google for patent violations up to $6.1 billion, raising more questions about software patents' role in competition and innovation.
Oracle, a multinational company best known for its database software, claims that Google's Android mobile platform violates patents on Java software that the company acquired when it purchased Sun Microsystems last year.

Google argues that the patents are invalid, that Android doesn't infringe on them, and that Oracle's damage estimate is "a breathtaking figure that is out of proportion to any meaningful measure of the intellectual property at issue," in part because even the lower end is twenty times what Sun made yearly from licensing Java for mobile applications.

The storm of patent litigation, especially patents on software processes rather than physical inventions, has some wondering if the patent system itself needs reform to discourage holders of overly-broad software patents from stifling innovation.

For example, Microsoft is suing Motorola for software patent infringements in its smartphones and Barnes & Noble for the same in its Nook reader.

The common link: Google's Android, which both companies use in their devices. A win would not only net Microsoft money, it would make Android, the biggest competitor to Microsoft's Windows Phone OS, less attractive to phone makers, who would face paying royalties to Microsoft as well.

Ultimately, the costs are passed on to the consumer. HTC settled with Microsoft last year when the company came knocking with its portfolio of patents that Android allegedly infringes -- it may have decided that it was cheaper than fighting an expensive court battle. As a result, an estimated $5 of the purchase price of every HTC Android handset goes to Microsoft.

Because of that, it's quite possible that Microsoft is making more money from Android than from its own mobile OS.
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http://www.geek.com/articles/news/oracle-thinks-google-owes-it-6-1-billion-in-damages-20110620/

When Oracle acquired Sun in 2009 the company got its hands on a lot of desirable technology. While OpenOffice may have fallen by the way side, Oracle isn’t about to let the Java programming language and its associated patents remain untouched if they can generate some additional revenue. In fact, the company is currently in the middle of a legal battle with Google over those patents that could potentially net Oracle billions and leave Android crippled.

In August last year Oracle sued Google for infringing Java patents and copyright by developing Android. Oracle argues that Android uses technology derived from Java and therefore infringes multiple patents. It wants compensation, but with most court documents and details not publicly available, it’s hard to know specifics.

However, new documents made available late last week revealed just how much Oracle thinks is an acceptable damages payment for Google to make. According to an expert Oracle hired, Google could be looking at a bill of between $1.4 billion and as much as $6.1 billion for its infringements.

This came to light as Google’s lawyers are obviously arguing against such figures. Google argues Sun only made a tenth of that in a year from Java licensing. They also state the large sum is to help pay for the Sun acquisition which cost Oracle $7.4 billion.

The lawsuit is set to continue with Google arguing Android does not infringe Java patents. In November last year they provided more than twenty reasons why Androind doesn’t infringe. Oracle clearly smell blood though, and the fight is set to continue.

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Google is going to pay big.
$15 Billion is a fair price considering and still may lose out to others as the future is pending the victor on these patents.

Equity Committee should be started in the near future once the petition is made. The recent news last night was just the opening round!

Watch and learn how to be a millionaire!
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Microsoft Makes More From Android Than Windows
http://www.mobiledia.com/news/91785.html

Microsoft has been making more money off HTC phones than its Windows line of smartphones thanks to a lawsuit settlement, showing how lucrative patent suits can be for companies.
The Redmond, Wash.-based company settled with HTC in April 2010 over intellectual property infringement. In the settlement, HTC agreed to pay Microsoft $5 for every Android device it shipped. Since then, HTC has sold 30 million handsets for a Microsoft payout of $150 million -- a number five times higher than it makes on its own Windows Phone line.

Since the launch of its Windows Phone line in November, Microsoft has only been able to sell two million units, accounting for just $30 million due to licensing fees that gives Microsoft $15 for each phone shipped.

Microsoft's take from HTC's phones illustrates one of the lesser-known, but lucrative, benefits of patent lawsuit settlements, which have become the latest battleground for phone makers and tech companies.

While it may appear that companies sue one another over intellectual property to protect their software and designs, they can also garner a piece of each other's pies, with settlements granting one another a portion of device sales as a licensing fee for the patent in question.

Smartphones integrate technologies from various industries, often which overlap with each other. When several companies come together each holding a portfolio of patents, lawsuits often times arise when one believes their patents are being infringed upon by the other.

Microsoft isn't the only company jumping on board the patent lawsuit cash-cow, as rivals see the potential profits at stake by suing the competition as well.

In April, Nokia filed a patent infringement suit against Apple over several patents the company claimed it owned, including multi-tasking operating systems, data synchronization and even call quality. Nokia, lacking a true competitor to the iPhone, could piggyback on the iPhone's success if granted a patent suit settlement, which may be helpful for the company as it attempts to claw its way back into the U.S. smartphone market.

Not to be left out, Apple is also suing other companies like Samsung over the technology and design of its Galaxy line. Apple, which is also involved in a web of litigation with Nokia and HTC, among others, over the patents used in smartphones, has brought 16 claims against Samsung, including unjust enrichment, trademark infringement and 10 patent claims.

Details of settlements between companies are rarely disclosed, but the Microsoft settlement with HTC shows that these cases can be a big payday. As long as there is money to be had and power from owning the rights to advanced technology, lawsuits will continue to be a staple of the courtroom.

According to Citi analyst Walter Pritchard, who released the report of Microsoft's relationship with HTC, more lawsuits target Android devices because "Google appears to have very little IP to defend itself with."

Microsoft has concrete benefits of patent royalties and shows no signs of stopping: the company has issued more lawsuits to several other Android phone makers over IP infringement, including one against Nook maker Barnes & Noble, which uses Android as its OS. Using HTC as a guide, Microsoft could charge between $7.50 and $12.50 per handset sold if settled.
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Microsoft may join Google in the Nortel purchase.

Will AT&T hook up with Apple?

Big time games will benefit the Nortel common shareholders!