You'll note Schwartz's quote sounds like any other corporate PR-speak when companies partner up and in no way constitutes the grant of a license. The thing then was that Sun still had hopes of getting Google to license Java without a lawsuit, simply because they couldn't afford one a they circled the drain. There are other accounts from people at Sun that corroborate that account. Nobody at Sun, including Schwartz, as incompetent as he was, liked what Google was doing.

Yeah, Google tried the "Schwartz said it's OK" defense during their trial, even putting him on the stand. Nobody bought it. That is the most telling thing of all.