yup...just proves the suspicion: the software guys just copy/pasted some boilerplate and inserted a few specific clauses without re-reading the whole document or double-checking what it really says.
The OP is correct, though: Google has an army of lawyers and should have caught this.
Google should spend ts considerable resources coming up with a "compiler" for legal docs. You just type in s few one line sentences describing the rights you'd like to have and the compiler checks for consistency errors and then generates a legal document (probably 100 pages long) filled with all of the right "magic words".
The OP is correct, though: Google has an army of lawyers and should have caught this.