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Analysis / Cloud

Oracle Wins Record 10-Figure In Damages

Oracle has finally won the legal fight with SAP. Last week the US Federal Court announced its decision – SAP are to pay Oracle £820m ($1.3bn) in damages for copyright theft. Of course, SAP will fight back.

The outcome has definitely fallen in Oracle’s half – SAP had admitted liability but wanted to pay Oracle a maximum $40m. SAP acquired TomorrowNow five years ago – they may rue the day the deal ever went through following the court judgment (TomorrowNow downloaded files illegally).

In a statement SAP stressed they would fight the outcome. “We are, of course, disappointed by this verdict and will pursue all available options, including post-trial motions and appeal if necessary.”

SAP obviously feels the outcome does not reflect their willingness to accept responsibility and offer compensation. “The mark of a leading company is the way it handles its mistakes. As stated in court, we regret the actions of TomorrowNow, we have accepted liability, and have been willing to fairly compensate Oracle.”

Oracle’s president Safra Catz has no sympathy – and Oracle’s view of the whole sorry tale goes deeper. TomorrowNow did not go about the copyright theft by keeping SAP in the dark.

Safra Catz is clear in his statement. “For more than three years, SAP stole thousands of copies of Oracle software and then resold that software and related services to Oracle’s own customers. Right before the trial began, SAP admitted its guilt and liability; then the trial made it clear that SAPs most senior executives were aware of the illegal activity from the very beginning.”

SAP recently announced its hybrid cloud and on-premises, mobile strategy – which seems to have had a good reaction. The last thing they want looming over them is a dark cloud. Oracle may have to wait for the money to reach the bank.

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Chris Baker is the Global Sales and Marketing Director responsible for the expansion of Calsoft Enterprise Solutions internationally. Formerly co-owner of acquired business, Inatech, Chris has been responsible for developing and promoting the company’s position as a specialist in Oracle solutions within the global IT industry. Chris co-founded Inatech in November 2002 merging with Calsoft in 2008. In a career spanning 23 years, Chris has held influential positions at Accenture, Easams, and Marconi. He was a Member of the Oracle UK Consulting Board during his time at Oracle Corporation UK, where he spent 15 years. Chris has a Higher National Diploma in Computing Studies from Farnborough College with distinction.