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Cloudscout
I don't think it's that. Google distributed the code in violation of the license. They didn't distribute it with the devices themselves but they did distribute it. That means they would, presumably, owe Oracle something. I think the idea is that Oracle is going to try and strong-arm Google into a settlement. Oracle will try to pain the settlement as something that relates to actual devices shipped in order to get a sort of psychological "win" over Google.
Google won't settle on this one, though. I bet they take it to trial to let a jury decide what actual "damages" there may have been. Given the fact that the code itself was released under the GPL, it's unlikely they will be able to claim any significant monetary damages. Without a settlement, the best Oracle could likely hope for would be a symoblic win in the form of some kind of restraining order. This would only be symbolic since Google has already pulled the code.
Copyright can be tricky, because in place of actual damages, a plaintiff who proves infringement may instead recover statutory damages of $750 to $30,000 per infringement (or more, up to $150,000, if the violation is proved to be willful). "Infringement" here, however, is measured by the inclusion of copyrighted code, not by the number of times that code is distributed, so the possibility of statutory damages wouldn't give Oracle an incentive to sue. And I agree with Cloudscout that actual damages appear to be nominal. The Copyright Act does allow a prevailing party to recover attorneys' fees--which might give Oracle's
lawyers an incentive to sue, I suppose. But really, unless I'm missing something, this all looks like posturing.