The internal Google emails are pretty damning as well I.e. show prior knowledge that they should have obtained a licensed agreement, yet they went ahead when internally they acknowledged negotiations with Sun were difficult.
Andy Rubin, Google co-founders Larry Page and Sergey Brin were all advised by Tim Lindholm that they need to go with Java vs alternate solutions:
"We've been over a bunch of these, and think they all suck. We conclude that we need to negotiate a license for Java under the terms we need."
Further more Tim advised them to use Objective-C to improve their negotiations, basically reveal it as a viable alternative (even though it was not deemed so at the time) basically to improve their odds with Sun at the negotiating table.
Yet amongst all this they chose to go ahead and try to hide details (as more internal emails indicate).
This could be be a very costly error for both Google and it's Android partners; possibly penalty for Google and new licensing terms; for its partners additional licensing cost for "free" Android.
Yet I don't believe this to be Android's biggest risk; that IMO is linked with the Motorola purchase, which strongly proposes that Google could try to replicate Apple's model and abandon the Nexus model. Massive mistake if they do, but you have to ask yourself how else do they derive value from Motorola (a company who had been bordering on liquidity for a while) -- clearly the patent pool is not going to a massive revenue generator.
This case and the Motorola acquisitions I believe will be pivotal cornerstone events for Android. How that plays out with its partners is anyone's guess (But I expect Microsoft will make themselves look like a very attractive alternative just in case)
