Market Overview

Oracle Vs. Google Is Coming Up...Again

Oracle Vs. Google Is Coming Up...Again

Within the next week, the U.S. Supreme Court could come to a decision in Oracle Corporation (NYSE: ORCL) vs. Google Inc (NASDAQ: GOOG), in which the former sued the latter for royalties stemming from Google's use of APIs.

A May 9, 2014 decision by the United States Court of Appeals for the Federal Circuit sided with Oracle, meaning that if the Supreme Court declines to hear the case, that decision stands. Conversely, if the Supreme Court takes up the case, it means that at least four justices thought the decision was worthy of review.

The origin of this case started with a suit that was first decided in May 2012, when a jury found that Google did not infringe on Oracle's patents and a judge said that the APIs used were not copyrightable. The Federal Circuit decision reversed the prior judge's ruling.

Upon Google's appeal, the U.S. Supreme Court also sought input from the Solicitor General. In that opinion, the Solicitor General recommended that Google's petition should be denied, effectively supporting Oracle's position.

According to a research note from Patrick Walravens at JMP Securities, a decision in favor of Oracle would mean that Oracle can "demand a royalty from Google for each mobile device sold using the Android platform."

Additionally, it could "potentially" complicate the "API economy with a new set of legal concerns."

JMP Securities has a Market Perform rating on Oracle. Year-to-date, Oracle has drastically underperformed Google, falling 8.3 percent compared with gains of 2.5 percent in Google.

Latest Ratings for ORCL

Mar 2019WedbushMaintainsNeutralNeutral
Mar 2019Raymond JamesMaintainsOutperformOutperform
Mar 2019BMO CapitalDowngradesOutperformMarket Perform

View More Analyst Ratings for ORCL
View the Latest Analyst Ratings

Posted-In: JMP Securities Patrick WalravensAnalyst Color Legal Analyst Ratings Tech Best of Benzinga


Related Articles (GOOG + ORCL)

View Comments and Join the Discussion!

Latest Ratings

PLXSSidoti & Co.Initiates Coverage On0.0
TIFBank of AmericaReiterates104.0
MOBank of AmericaReiterates66.0
FDXBank of AmericaReiterates188.0
AUPHRaymond JamesMaintains11.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Trader Essentials
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Avis Budget Group and Southwest Airlines Sign New Multi-Year Partnership Marketing Agreement

Disney Sprints To New All-Time High Amid Dividend Increase