SAP agrees to pay Oracle $306m in damages

By Sooraj Shah
03 Aug 2012 View Comments

SAP has agreed to pay fierce rival Oracle a minimum of $306m (£196.6m) in partial damages over copyright infringement, but the total settlement could be as much as $426m (£273.8m).

The amount includes the $120m (£77m) that Oracle said it had already received in legal fees from SAP, said Reuters.

Further reading

Oracle brought the lawsuit against SAP in a case relating to software maintenance firm TomorrowNow, which SAP acquired in 2005 for $10m (£6.4m).

TomorrowNow was claimed to have enabled SAP customers to download Oracle's software without a valid licence. It had allegedly gained access to Oracle's systems by illegally using passwords it obtained from Oracle customers.

The long-running dispute, in which SAP admitted unauthorised downloads, will now not need a retrial, as both companies agreed to the $306m (£196.6m) settlement "to save time and expense of this new trial, and to expedite the resolution of the appeal", lawyers for Oracle and SAP said in the filing.

Oracle opted for the new trial after rejecting the figure of $272m (£174.7m) awarded in September 2011.

According to the Financial Times, the amount could rise even higher if Oracle succeeds in an appeal to have the original $1.3bn (£835m) jury award in this case restored.

Federal Judge Phyllis Hamilton had slashed the £1.3bn (£835m) award made by a jury in November 2010, labelling the amount as "grossly excessive".

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