I found this to be a good writeup of the situation. Looks like Java licensing is in general a mess, due to Sun using the GPL in parts but also trying to ensure the GPL doesn't come into effect for any code that touches it. Google went their own route with mobile instead of JavaME, and in doing so had other rules they may not have fully followed. Rules that were likely put in place after Microsoft tried to change Java back in the late 90s.

http://arstechnica.com/open-source/news/...credibility.ars

As for Oracle, it is a shame they are doing this with Java, as it does cast into doubt their commitment to OSS. I'm betting this is why Apple stayed away from ZFS, sensing Oracle would look for easy lawsuit money for something after millions of Macs transitioned to it.