Google v. Oracle: Software Theft or Fair Use?

This case explores a current but also enduring and widely relevant intersection of challenges facing managers who compete in rapidly evolving technology markets. In the landmark US$9 billion Google LLC v. Oracle America, Inc. case, Google LLC (Google) leads development of the now-ubiquitous Android mobile operating system, used by billions of people globally. However, many of the laws governing development were unclear, having been written before the technologies being developed were even imagined. Thus, Google must balance competitive risks with other risks, such as legal uncertainty.

Students are prompted to weigh several key decisions intended to illuminate the tensions that managers must balance, including timing (time-to-market versus greater legal clarity), completeness (how certain can a company ever be?), and ethics (what is legal versus what is ethical?). Although set in the context of modern software development, the lessons are broadly applicable to information goods in many other business contexts. The case can be used in a variety of courses and at multiple program levels; typical undergraduate audiences may explore managerial tensions, while graduate and executive audiences may further explore the tactical and strategic choices. Instructors have the flexibility to emphasize features that are most relevant to their particular course and audience, as the teaching note offers guidance in tailoring discussions to different audiences.<br><br>This teaching note is constructed with several pastures that can be explored by instructors according to their individual course needs. Congruent with the magnitude of the legal case, the potential content of the teaching case exceeds what can be reasonably explored in a typical 80-minute class period. We encourage instructors to emphasize the pastures of greatest importance according to their specific course and audience needs. Depending on the course and the topic, the instructor can highlight any number of possible links, such as the following:<ul><li>Information Technology (IT): Managers of all types are increasingly asked to oversee software development as a normal part of their work, even in roles that seem unrelated to programming; all managers need to have some understanding of the rules of the road.</li><li>Platform Effects: From both an economic and a strategic perspective, how does the race to achieve a dominant technology shape management choices?</li><li>Risk Management: Leveraging important market factors can magnify the significance of innovations that change entire markets. However, this leverage works both ways, as disruptive innovations may themselves be disrupted subsequently. How can managers manage the risks of these ventures?</li><li>Technological Change: In many areas, laws and regulations are playing catch-up with technological changes. How can managers recognize and prepare for these circumstances?</li><li>Legality: How much legal certainty can managers expect in technologically advanced fields, and how should managers make decisions in the face of legal uncertainty?</li><li>Ethics: Given the possible widespread impacts of business decisions, how can managers incorporate ethical thinking into their decision-making processes?</li></ul>

• software development
• strategy
• ethics
• platform markets
• winner-take-all
• partnerships
• licensing
• law
• regulatory compliance
• IT