SAP Readying Next Legal Steps In $1.3 Billion Copyright Infringement Case
Failing that, SAP will likely seek a new trial in the case or file an appeal.
Thursday the judge in the case entered the jury verdict, a procedural matter that occurs after a trial, opening the way for SAP to file a motion to change the jury's award or seek a new trial.
On Nov. 23 a U.S. District Court jury in Oakland concluded that SAP, Oracle's chief rival in the applications business, owed Oracle $1.3 billion in damages after a now-shuttered SAP subsidiary illegally downloaded Oracle software and support materials. The verdict came after a three-week trial that riveted Silicon Valley.
The case reached back to 2005 when SAP acquired TomorrowNow, which provided support services for Oracle applications. TomorrowNow, which SAP shut down in 2008, downloaded copyrighted software and documents from Oracle support Web sites. Oracle sued in 2007. Before the trial SAP admitted liability in the case, leaving only the question of damages, which Oracle argued were as much as $2.3 billion while SAP said were around $40 million.
Last month SAP, as part of its fourth-quarter earnings comments, made it clear that it will take steps to have the $1.3 billion judgment overturned. The company, nevertheless, took a charge of $1.33 billion against earnings to cover the judgment.
"We have accepted liability for the actions of TomorrowNow and have been willing to fairly compensate Oracle, but we believe that the amount awarded by the jury is disproportionate and wrong," SAP said in a statement issued late Thursday.
"Once the judgment is entered, SAP is permitted to challenge the jury's award by way of post-trial motions, which are made to the trial judge. SAP will file these motions in the coming weeks asking the court to reduce the amount of damages awarded or to order a new trial," SAP said. "We look forward to the court's resolution of the issues we will raise in our post-trial motions. Depending on the outcome of the post-trial motion process, SAP may also consider an appeal."
Oracle also issued a statement late Thursday after the judge entered the jury verdict. "We are very pleased that the court's final judgment for $1.3 billion, plus the court-awarded interest and the $120 million SAP paid during trial to settle additional charges, confirms the jury's verdict against SAP for its massive intentional copyright infringement," the company said.