Google Wins Supreme Court Ruling in Dispute With Oracle

The Supreme Court overturns a 2018 Federal Circuit Court ruling that went against Alphabet’s Google in favor of Oracle.
Author:
Publish date:

Alphabet  (GOOGL) - Get Report shares rose on Monday after the Supreme Court, overturning a federal appeals court decision, ruled in its favor in a copyright dispute with fellow tech giant Oracle  (ORCL) - Get Report.

The justices determined in a 6-2 vote that Google’s use of Oracle’s software code in creating the Android operating system didn’t violate federal copyright law.

The Supreme Court decision overturned a 2018 ruling against Alphabet's Google subsidiary from the U.S. Court of Appeals for the Federal Circuit in Washington.

Oracle, the Austin software giant, had sought more than $8 billion, and perhaps up to $30 billion, of damages from the Mountain View, Calif., search, advertising and cloud-technology titan, knowledgeable sources told Reuters.

Alphabet recently traded at $2,198, up 3.2%, and Oracle at $73.53, up 2.4%.

Oracle originally sued in 2010, alleging that Google copied 11,330 lines of its Java code. Google holds that it didn’t copy a computer program, using just parts of Java.

Meanwhile, on March 30, Stifel analyst Scott Devitt upgraded Alphabet to buy from hold and lifted his price target to $2,350 from $2,025.

"The resilience and speedy recovery of Alphabet's digital advertising businesses through the course of the pandemic has impressed us," he said.

"The bounce in advertising-dollar flows have followed online consumer engagement, a quick return and redistribution of advertiser appetite, and digital transaction proliferation."

For More on the FAANG Group, Follow the Experts on RealMoney

On the Oracle front, last month it reported fiscal third-quarter adjusted earnings that beat analyst estimates and revenue that met them. Adjusted EPS totaled $1.16 vs. $1.11 expected for the quarter ending in February.

Alphabet is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells GOOGL? Learn more now.