Oracle is trying to claim that Dalvik, Android's virtual machine infringes on mobile java patents. Mobile java was not included when Java received it's current "open" licensing.
And I'm sure part of the reason why Mobile Java wasn't in the "open licensing" was the carriers. That is, Sun had already extracted some money out of the carriers and met with a very nice bit of success there. Remember, before Apple's iPhone and Google's Android, JavaME was a big success in offering advanced features (that sucks compared to today's offerings). It was a big success for Sun licensing wise--something the original Java was not.
But with that money came a very, very hefty price. They had to bend over backwards to give the carriers what they wanted in order to "add value". One of those was charging developers $500+ a pop to be able to release applications for their network. Another for the developers to pay extra to access certain features (location). And another still was for companies like Verizon and Sprint to just flat out turn off certain features.
Which is why Apple didn't do JavaME (I remember being pretty bummed when they didn't)--they wanted complete control, and they would never get that with JavaME.
And Google had similar needs--but also didn't want to pay the licensing costs everyone else did.
JavaME was a money maker for Sun (unlike the standard Java VM), but the process of making money off of it made it a nightmare to deploy apps on. Development--writing code--was ok, but getting it to work on multiple headsets (nevermind multiple carriers) was a huge headache. And it was a huge headache because of all the compromises Sun made to get the carriers on board. And that nightmare (in addition to licensing costs) is why Google came up with their own VM implementation.
I used to be a big Java proponent for mobile development. I'm not anymore. But it is interesting to see how all those bad decisions (I cursed Sun weekly as I tried to wrestle another carrier or headset down) played out into what we have now.
Google didn't want to pay the money. Microsoft (via Miguel) likes to say they would have been better, but they are just as bad on the licensing (see HTC and now Motorola). Sounds to me like Google got used to their free ride on Java and balked at the idea of giving anyone a slice of their work and money on Android.
I'm not saying Ellison is not squeezing them (he definitely is), just that Google is kind of getting a bucket of cold water in their face about how the tech companies "collaborate" in new tech fields. Not "fair", but it is kind of predictable.