Oracle CEO Larry Ellison rejects settlement and demands $1bn from SAP
Oracle appeals $306 million settlement in TomorrowNow lawsuit against SAP
By John Ribeiro | Published: 12:11, 04 September 2012
Oracle is appealing a $306 million settlement in the TomorrowNow corporate-theft case against SAP, according to court documents.
The Redwood Shores, California, business software company said in a filing last week that it was serving notice of its appeal to the United States Court of Appeals for the Ninth Circuit from a final judgement entered last month by the US District Court for the Northern District of California, Oakland Division.
The case centres around a corporate theft trial, in which SAP admitted liability for illegal downloads of Oracle software and support materials by a former subsidiary, TomorrowNow, which provided low-cost support for Oracle applications.
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A jury awarded Oracle $1.3 billion in damages in 2010, which was set aside last year by the Judge Phyllis J. Hamilton, who gave Oracle the option of accepting $272 million or seeking a new trial to determine damages.
Oracle opted for a new trial which was scheduled to begin last month, but the two companies entered into an agreement ahead of the trial in which SAP agreed to pay Oracle the $306 million in relief. Oracle and SAP said in a joint filing on August 2 that they were stipulating a final judgement to save time and expense on a new trial, and to expedite the resolution of an appeal.
The parties also reserved the right "to seek all appropriate appellate relief, including without limitation reinstatement of the original $1.3 billion judgment."
The agreement meant that Oracle could immediately file its appeal of the ruling that rejected the $1.3 billion award, the company said in a statement last month.
Pursuant to the stipulation by both parties, Judge Hamilton ordered payment of $306 million to Oracle as relief. The judge also noted in the August 3 judgment that the parties had agreed that Oracle was paid $120 million in legal fees by SAP.