A jury handed Alphabet's (GOOGL) - Get Report Google unit a victory late Thursday in a patent suit brought by Oracle (ORCL) - Get Report , but Larry Ellison's software company vowed Thursday that the fight isn't over.
"We strongly believe that Google developed Android by illegally copying core Java technology to rush into the mobile device market," Oracle General Counsel Dorian Daley said in a prepared statement.
"We believe there are numerous grounds for appeal and we plan to bring this case back to the Federal Circuit on appeal," Daley added.
Shares of Oracle dropped 8 cents, or .2%, to $39.87 in after-hours trading Thursday. Alphabet rose $2.17, or .3%, to $739.10.
Google said the verdict has wide-reaching benefits for the mobile technology community and clarifies the rules regarding application programming interfaces, or APIs, which allow applications to interact.
"Today's verdict that Android makes fair use of Java APIs represents a win for the Android ecosystem, for the Java programming community, and for software developers who rely on open and free programming languages to build innovative consumer products," a spokesperson said.
Oracle first filed its suit in late 2010. The software company argued that Google's Android wireless operating system borrowed heavily from Oracle's Java software development language without obtaining licenses, and sought $8.8 billion in copyright damages and $475 million in lost revenue.
With Google facing a serious threat as consumers moved from PCs to mobile devices, Oracle claimed that the search giant made improper use of Java APIs to develop its own Android mobile operating system. "It copied thousands of lines of Oracle's computer code as well as the structure, sequence, and organization of the 37 Java API packages into Android," Oracle's lawyers argue in a trial brief.
Google countered that Sun, which Oracle acquired in early 2010, had promoted the use of APIs to further the use of Java and claimed that it made fair use of the application interfaces.
Further, Google argued that Oracle was trying to do through the courts what it could not accomplish in the marketplace. "Only when Oracle concluded it lacked the engineering skill to build its own 'Java phone' did it choose Plan B -- this lawsuit," Google's trial brief states.
Google won the first round in 2012, when the San Francisco District Court ruled that the Java APIs were not entitled to copyright. But Oracle scored a victory in 2014, when an appellate court reversed the ruling. The court did not decide whether Google had made fair use of the API, however, and remanded the case for retrial. The Supreme Court then declined to hear Google's appeal last year, which brought the matter back to San Francisco.
The decision could have a much wider impact beyond just Alphabet's balance sheet.
In a letter to the Supreme Court, Hewlett Packard (HPQ) - Get Report , Red Hat (RHT) - Get Report and Yahoo! (YHOO) argued that the ability of APIs to enable the interaction of applications provides the "very foundation of the Internet and all of the computers, phones, smart thermostats and other devices we connect to it."
"The use of computer program interfaces, including for compatibility and interoperability, without the need to negotiate a copyright license, is both ubiquitous and essential to the operation of information technology and infrastructure," they wrote.
Without the protections of copyright, the group wrote, they would have to restrict information about their applications. "That would strike a devastating blow to innovation in the software industry, cross-industry collaboration and ultimately to downstream consumers," they wrote.