Silicon Valley loses if Oracle wins versus Google

Published Tue, May 10 20163:34 PM EDT

Breakingviews

Reynolds Holding

If Oracle wins against Google in court, Silicon Valley loses. The software company run by Larry Ellison alleges that the web-search titan illegally used Java programming language for its Android smartphone systems. Despite one favorable ruling, the copyright case looks weak. Worse, it could stifle computer coders and others in the high-tech epicenter. Google, now a part of Alphabet , already parried Oracle's challenge once. A judge ruled in 2012 that the relevant parts of Java, which connect various types of software, could not be copyrighted because they were in effect tools rather than ideas. The decision squared with two decades of legal precedent. Two years later, an appeals court reversed the ruling and returned the case for trial on the issue of fair use: whether the infringement was minor enough to be legal. Oracle is seeking $8.8 billion in damages, based on Android profit, and an order blocking Google from using Java without paying a fee. More from Breakingviews : From Allergan to Zoetis: new drug M & A perspectives An Oracle victory would be troubling. The software behemoth got hold of Java by acquiring Sun Microsystems, which in true Silicon Valley spirit never objected to Android. Many techies now consider Oracle a copyright troll, buying legal rights just to sue. What's more, squabbling over intellectual property goes against Silicon Valley tradition. It's easy to forget that Boston's Route 128 was once America's technology hub. The area's hierarchy, hostile to the ideas of competitors, quickly fell behind West Coast rivals that were allowing employees to share discoveries freely. Oracle is hardly the only technology powerhouse to seek court assistance for protection. Apple , Microsoft and others have, for example, waged multi-billion dollar patent battles, largely fighting to a draw. Yet Oracle's efforts to levy a costly toll on computer code – the lifeblood of technology – seem especially shortsighted. The $160 billion company has managed to keep pace with industry changes that have caught out Hewlett-Packard and other aging icons. New rivals such as Salesforce.com and Workday , however, are challenging its dominance with cloud-based software and other services. While it would be foolish to bet against Oracle and Ellison, they do themselves no favors by daring to undermine a pervasive culture of sharing. For more independent commentary and analysisfrom Reuters Breakingviews, visit breakingviews.com

A traffic sign with the Oracle logo sits outside Oracle headquarters on Dec. 16, 2014, in Redwood City, California.

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