The Oracle vs Google Java patent/copyright trials are approaching crucial deadlines and decision points. I would not want to repeat what I said earlier or what you could learn reading excellent websites such as Groklaw, but suffice to say Oracle's lawsuit is in big trouble because most, if not all, patents asserted are dead in the water or gasping for breath.
As to the copyright, there appears to be a very weak case based on assertions by experts. Google has been saying there are hardly a dozen files that are suspect and those too were never in any code that shipped!
What should Oracle do?
It is not as if Oracle acquired Sun to milk its patents from 'violators' like Google. It is not as if Oracle had a booming mobile Java business that Google screwed up. And it is not as if Java's adoption in the Enterprise is threatened by Android. While it is okay to spend a few million bucks on lawyers on the hope that you can strike a lottery, it is another thing to beat a dead horse and be the laughing stock of the community.
Just settle, Larry!
And focus on building a joint Android - Java unified force that can take on Microsoft, Apple and other challengers in mobile as well as in the Enterprise.