Enterprise software giant Oracle has wrapped up a years-long lawsuit against its European competitor SAP by agreeing to forego a massive $1.3 billion copyright verdict it won in 2010.
Germany-based SAP bought a company called TomorrowNow, intending to compete for maintenance contracts with Oracle customers at lower rates. But TomorrowNow engaged in illegal mass-downloads of Oracle software and data, which led to a criminal investigation and a $20 million settlement payment by SAP.
It also led to a civil lawsuit from Oracle. SAP admitted its employees had misbehaved, but the two sides couldn't agree on damages, and that issue headed to a jury in 2010. Oracle won a whopping $1.3 billion copyright infringement verdict, which would have set records if it had been upheld.
In 2011, the verdict was cut down to $272 million by US District Judge Phyllis Hamilton, who called the original penalty "grossly excessive." Subsequent rulings led to an opinion from the US Court of Appeals for the 9th Circuit, ordering Oracle to accept the sum of $356.7 million or opt for a new damages trial. In today's settlement, Oracle accepted the 9th Circuit amount.
"We are thrilled about this landmark recovery and extremely gratified that our efforts to protect innovation and our shareholder's interests are duly rewarded," Dorian Daley, general counsel for Oracle, said in a statement. "This sends a strong message to those who would prefer to cheat than compete fairly and legally."
SAP's statement reads: "We are 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.”
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