Alphabet Inc (NASDAQ:GOOGL)’s Google and Oracle Corporation (NYSE:ORCL) have been battling in court for a long time over the Java software. Oracle and Google are presently in a US district court in San Francisco after the US Supreme Court refused to hear the case. Google was hoping to end the case. Oracle is looking for damages and has expanded the case to include fresh Android versions. Oracle got rights over Java after it absorbed Sun Microsystems while Google used Java to develop Android. Oracle alleges that Google used Java for free which was owned by Oracle, and desires significant compensation.
The previous week, an Oracle lawyer disclosed in court that Google earned $31 billion in revenue as well as $22 billion in profit from Android. Google requested the court to seal parts of the transcript of the public hearing as the information was very sensitive and taken from confidential financial documents sourced by Oracle in the litigation. Google has never gone public regarding Android’s financial results. According to Google’s lawyers, Android’s financial data is very sensitive and public disclosure could have considerable adverse effects on Google’s business.
It looks like Oracle computed the figure based on a number of financial documents. Oracle did not disclose the process it utilized to come up with these figures. The figures are cumulative. They are the profit and revenue over the period from 2008 till now for Android. It’s not known how much of the revenue is from the last year, so the public has no idea of the present size of the Android business.
The $22 billion profit figure most likely shows the gross profit which excludes several things such as administrative and general costs and the expenditure of developing and marketing Android. The development cost specifically is significant and complex to calculate accurately.
Oracle’s lawsuit filed six years ago charges Google of utilizing a modified version of Java to develop Android without compensating Oracle. Google prevailed in an early ruling. However, additional appeals reversed the decision and ruled in Oracle’s favor.
The previous year the Supreme Court turned down the request to hear Google’s appeal resulting in the ruling left in Oracle’s favor. Now the matter is about the amount Oracle will receive as damages from Google.