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SAP willing to pay Oracle US$120M for attorney's fees

Chris Kanaracus | Nov. 3, 2010
In exchange, Oracle will drop its punitive damages claims in the TomorrowNow lawsuit.

BOSTON, MA, NOVEMBER 2, 2010 SAP would pay Oracle US$120 million for "past and future reasonable attorneys fees and costs" under the terms of a joint stipulation filed Monday in connection with the companies' ongoing intellectual-property lawsuit.

Oracle sued SAP in 2007, alleging that its TomorrowNow subsidiary illegally downloaded Oracle software and support materials in order to lure away Oracle customers.

Under the agreement filed Monday (November 1), TomorrowNow "stipulates to entry of judgment on Oracle's claims for violations of the Federal Computer Fraud and Abuse Act and California's Computer Data Access and Fraud Act, breach of contract, intentional interference, negligent interference, unfair competition, trespass to chattels, unjust enrichment/restitution and an accounting."

In turn, Oracle will not seek punitive damages against TomorrowNow or SAP, according to the filing in U.S. District Court for the Northern District of California.

The jury in the case, which went to trial this week, will be instructed to consider "only those damages available under the Copyright Act," it adds.

SAP must pay Oracle the US$120 million by November 9.

The agreement's terms are not binding until the court approves it, and either SAP or Oracle can withdraw entirely if any provisions are not accepted, it states.

Last week, SAP said it wouldn't contest the issue of "contributory infringement" or whether its executives knew about the software theft. The move meant the trial will hinge on damages owed to Oracle.

Oracle has pegged its total damages at north of US$2 billion, while SAP had maintained they should be in the tens of millions. SAP is now poised to give Oracle far more than that sum even before the question of damages for copyright infringement is answered, despite the elimination of punitive damages.

Spokespersons for SAP and Oracle declined to comment on the stipulation.

Opening statements in the case began Tuesday (November 2).

James Niccolai of IDG News Service contributed to this story.

 

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