UPDATED 10:34 EDT / AUGUST 13 2010

Oracle Google Java Android Lawsuit – Google Innovation or Oracle Extortion – Is The Patent System Relevant?

SiliconANGLE was the first to have the detailed accurate analysis on the Oracle Google Java lawsuit that was filed today by Oracle.  I think that Oracle has a case in that Google clearly knew it was infringing on the key piece of technology called Dalvik.  Dalvik is a Google developed virtual machine that allowed the company to skirt Sun’s original licensing terms when Android was released.

SiliconANGLE contribtutor and industry analyst from Wikibon Dave Vellante wrote:

In a terse press release yesterday released by Oracle, the company announced it is suing Google over patent infringement related to Google’s Android operating system. The release simply cited a statement from spokesperson Karen Tillman as follows:

“In developing Android, Google knowingly, directly and repeatedly infringed Oracle’s Java-related intellectual property. This lawsuit seeks appropriate remedies for their infringement…”

This unexpected move by Oracle sends a strong and threatening message to Google and the entire Android community—specifically that Oracle will use its intellectual property rights to get compensated for innovations around the exploding mobile marketplace. Oracle’s CEO Larry Ellison is inserting himself in the middle of an ever-evolving battle between Google CEO (and former Apple Director) Eric Schmidt, Apple CEO Steve Jobs, a long-time friend of Ellison’s.

Oracle is doing what any firm in its position would do, although probably more in a more aggressive posture than McNealy would have taken with Schmidt.

Specifically, the key question is how (or even if) Oracle approached Google. This will tell us a lot about the intent of Oracle. In other words, if it went to Google and asked for some type of cross licensing agreement, and Google sent Oracle packing, this is perfectly understandable. If on the other hand, Oracle pulled a “Pearl Harbor” and blindsided Google then its intentions are much more threatening.

Dave brings up a great point and great analysis. My big view is the impact to cloud computing and for Google in particular App Engine. Will Oracle’s move scare the small companies developing on Google App Engine and Android from moving forward. I expect Google to fight this to the death. It’s a religious war. What I am watching for is how both companies play the “Innovation Card”.

Patent Troll or Innovator? Pick Your Side Of The Debate

The big debate here is that Oracle is being a patent troll and that Google has the right to reverse engineer around the license.  IIt’s a classic story of two sides innovation verses extortion.  Also, many analysts are saying that because the rights came from SUN that Oracle is acting in their corporations best interest.  While others are saying that Oracle is putting the shakedown on Google and being a classic patent troll just like SCO (www.groklaw.net covers this in depth).

This begs the question is IP patent rights relevant. Patents seem like an abomination in the open source web industry. The lawyers are all rolling over saying no way, but patents seem less valuable than in the past. Two issues emerge: 1) how do you manage what is rights and open; and 2) government involvement makes it worse. It’s f’d up big time.

It is rare that patents have the make-up to constitute a business model and I have seen that patents as a business model hurts innovation. Patent battles are like the cold war in that it’s a passive strategy (like holding weapons of mass destruction) but no intent on using them or if they even exist. The right approach is to see active innovation or direct warfare through product innovation.

As an entrepreneurs it might be great to file tons of patents which is great for validation and funding, but patents enforcement is rarely used or rarely a good strategy. Best strategy is to build value.

Lets see if Oracle can do that then they won’t be patent trolls.

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