By Brent Kendall And Shira Ovide 

WASHINGTON--The Supreme Court on Monday denied a Google Inc. appeal that sought to stop a billion-dollar Oracle Corp. lawsuit by seeking limits on software copyright protections.

The high court's move is the latest development in a case dating back to 2010, when Oracle alleged Google's Android smartphone operating system infringed its copyrights to its Java platform.

The justices, without comment, declined to disturb a May 2014 appeals court ruling in Oracle's favor that reinvigorated the company's case against Google. The appeals court, overruling a trial judge, said 37 packages of prewritten Java programs, known as application programming interfaces or APIs, were entitled to copyright protection.

The decision is a win for Oracle, which sells corporate databases and owns Java, a widely used software-programming language. Oracle had fought vigorously the idea that Google or any other company should be allowed to use any part of Java in software or apps without paying Oracle a fee. Each side had said a win for its opponent would seriously impede innovation.

The case had been closely watched in the tech industry because it centered on the ability to copyright APIs, an increasingly prevalent way for different software programs to interact with one another. The 2014 ruling asserted that APIs can, indeed, be copyrighted. However, it left unsettled Google's separate argument that, even if the Java APIs were subject to copyright, it could use its APIs under copyright law's provision for fair use--so the legal wrangling in the case is by no means over.

In the case, Oracle has sought more than $1 billion in damages. A jury originally held that Google infringed the Oracle copyrights, but it deadlocked on Google's defense that its copying amounted to fair use. That issue will have to be retried in a lower court.

Google had asked the Supreme Court to hear the case and limit how software makers could use copyright law to assert exclusive rights over computer programs. It argued Oracle shouldn't be able to claim copyrights on basic software commands.

Oracle said its computer code was original and creative, and argued that Google's position would undermine important legal protections for software. It said Google should have paid for a license or written all of its own code separately.

The Supreme Court showed some initial interest in the case, asking the Obama administration for its views on whether the court should intervene.

U.S. Solicitor General Donald Verrilli responded with a brief that urged the court to sidestep the case, particularly because the fair-use issue hadn't been resolved in the lower court. Mr. Verrilli also said one of Google's key arguments against copyrights on the Java packages was without merit.

A Google spokesman said, "We will continue to defend the interoperability that has fostered innovation and competition in the software industry."

Oracle General Counsel Dorian Daley said the high court's action "is a win for innovation and for the technology industry that relies on copyright protection to fuel innovation."

Write to Brent Kendall at brent.kendall@wsj.com and Shira Ovide at shira.ovide@wsj.com

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