Android's use of Java infringes Oracle's copyright? Google may pay $8.8 billion

Google and Oracle are nearing the end of a years-long legal battle that could see Google pay Oracle $8.8 billion over its use of Oracle-owned Java programming code in its Android mobile operating system, an appeals court said.

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The U.S. Federal Circuit Court of Appeals ruled on Tuesday that Google's use of Java to develop the Android system violated Oracle's copyright. The lawsuit, which began in 2010, has been transferred to a federal court in California to determine how much damages Google's parent company Alphabet needs to pay Oracle. Oracle previously demanded $8.8 billion in damages, but the company may also increase the amount it demands.

Google expressed disappointment with the outcome and said it was considering further action.

The lawsuit between Google and Oracle is likely to have a huge impact on the entire software industry. The lawsuit has also divided Silicon Valley software practitioners into two camps. One camp believes that there is nothing wrong with using other people's code to develop software; while the other camp believes that this practice violates the law.

"This is a huge decision," said Mark Schonfeld, a Boston-based attorney with the firm. "The court's decision is very important for the entire software industry. I think this is going to end up in the Supreme Court because the Federal Circuit made a very controversial decision."