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03 May 12 Judge says Google’s Android lost money in 2010

Thu May 3, 2012 3:49pm EDT

SAN FRANCISCO May 3 (Reuters) – Google Inc’s
Android mobile platform resulted in a net loss for the company
in every quarter of 2010, despite generating roughly $97.7
million in revenue for the first quarter of that year, a U.S.
judge said in court.

The discussion on Thursday of the finances of what has
become the world’s leading mobile operating software in just
four years came during a damages hearing in high stakes
litigation between Oracle and Google over smartphone technology.

A jury is deliberating on Oracle’s allegation that Google,
the top Internet search engine, violated its copyright to parts
of the Java programming language.

In a hearing outside the jury’s presence on Thursday, U.S.
District Judge William Alsup quizzed attorneys for both
companies about some of the Android financial information
submitted in the case.

Alsup had sealed an internal 2011 Google document which
contains profit and loss numbers for Android in 2010. However,
the judge read aloud certain portions of it in court on

The judge did not disclose the specific loss figures for
Android, but said it lost money in each quarter of 2010.

“That adds up to a big loss for the whole year,” Alsup said.

Google does not publicly report financial information about
Android. The company announced the operating system in 2007, and
the first Android phone was shipped in 2008.

Oracle contends that Google should not be able to deduct
certain Android expenses for the purposes of copyright damages
in the case. However, Google spokesman Jim Prosser said Oracle
misrepresented its financial numbers.

Oracle sued Google in August 2010, saying Android infringes
on its intellectual property rights to the Java programming
language. Google says it does not violate Oracle’s patents and
that Oracle cannot copyright certain parts of Java, an
“open-source,” or publicly available, software language.

The trial has been divided into three phases: copyright
liability, patent claims, and damages. It began in April and is
expected to last at least eight weeks.

The case in U.S. District Court, Northern District of
California, is Oracle America, Inc v. Google Inc, 10-3561.

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