Beware the Oracle Java Audit

Oracle’s Java is a programming language and development platform used across virtually all sectors, from tech giants like Amazon and Google, to local hospitals and schools. Oracle advertises that Java helps reduce costs, shortens development timeframes, drives innovation, and improves application services. It turns out, however, that downloading and using Java, without the proper license in place, can put businesses at risk of incurring substantial retroactive licensing fees.

In recent years, Oracle has made it common practice to check in with those companies who have previously downloaded or held a license for its Java products. It typically starts out as a type of “check-in,” but may quickly transition to a larger-scale audit seeking to weed out any improper use of Java. Oracle has previously identified additional unauthorized users, individual downloads by employees or subcontractors, use of third-party software that incorporates Java without a proper license, and so on.

In identifying any alleged noncompliant use of Java, Oracle will prepare a version of a demand letter, claiming that the allegedly nonconforming company owes Oracle retroactive licensing fees, often ranging anywhere from tens to hundreds of thousands of dollars. The demand is typically accompanied by or followed with an order that includes the terms of settlement. While we are able to assist in the negotiation of these settlements, including both the amounts and the attached terms, no business wants to pay unexpected fees.

So, what can companies do? Oracle isn’t persuaded by claims that an entity was unaware of the improper use or that a subcontractor or employee downloaded the licensed product without permission. Instead, businesses can conduct their own internal audits of any Java use and conduct an analysis of current Java use compared to permitted uses, whether using free or paid Java products. In this case, being proactive and modifying use to be compliant can help avoid or limit incurring any retroactive license fees.

We’ve seen an increase in claims of this nature from Oracle, and it doesn’t appear to be slowing down, so we will continue to monitor and provide any significant updates.