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Oracle And SAP Settle Piracy Dispute

November 24, 2014 by  
Filed under Computing

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Oracle has won a limited victory in its long-running lawsuit with rival SAP.

The action was taken in reference to events dating back to 2007, which saw employees of SAP’s TomorrowNow unit accused of illegally downloading Oracle software.

German company TomorrowNow was bought by SAP as a means to undercut Oracle’s internal tech support rates, with the ambition of getting customers to migrate to SAP solutions, reports Reuters.

In 2006, TomorrowNow started the process of undermining its parent’s position, offering cut-price support to users of the Siebel database and CRM.

Oracle was originally awarded $1.3bn back in 2010, but this was adjusted downwards on multiple appeals.

SAP acknowledged that its employees had been in the wrong, but disputed the damages awarded. SAP offered a $306m payment in 2012, but did so more in hope than expectation given its admissions.

Earlier in the year, a federal judge gave Oracle the option to settle for $356.7m or force a retrial, and the company has now decided on the former with a further $2.5m in interest.

“We are thrilled about this landmark recovery and extremely gratified that our efforts to protect innovation and our shareholders’ interests are duly rewarded,” said Oracle’s general counsel Dorian Daley.

“This sends a strong message to those who would prefer to cheat than compete fairly and legally.”

SAP agreed: “We are also pleased that, overall, the courts hearing this case ultimately accepted SAP’s arguments to limit Oracle’s excessive damages claims and that Oracle has finally chosen to end this matter.”

SAP announced a partnership with IBM last month to bring its HANA service to enterprise cloud users.

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