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November 14, 2014

SAP settles long running piracy dispute with Oracle

SAP's TomorrowNow had been sued over illegally downloading copyrighted software developed by Oracle's PeopleSoft.

By CBR Staff Writer

SAP has agreed to pay Oracle $359m over illegal downloads of patented instruction manuals and other technical data, bringing an end to the long running copyright battle between the two companies.

The case involved SAP’s TomorrowNow, which had been accused of illegally downloading copyrighted software developed by Oracle’s PeopleSoft.

SAP acquired TomorrowNow with plans to deliver software support to Oracle customers at lower rates than Oracle, hoping to convince them to turn out to be SAP customers.

Oracle’s general counsel Dorian Daley said in a statement: "We are thrilled about this landmark recovery and extremely gratified that our efforts to protect innovation and our shareholders’ interests are duly rewarded.

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

Oracle was initially awarded $1.3bn in damages, while a federal judge brought down the amount to $272m.

Judges agreed to a motion for a new trial if Oracle turns down the lesser award and backed a lower court’s verdict to prohibit Oracle from presenting hypothetical-license damages at the new trial and allow SAP’s professional to give proof.

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However, an appeals court in August turned down Oracle’s request to restore the original damages and stated Oracle was entitled to $356.7m in damages or a new trial.

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