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Oracle appeals $306M settlement in TomorrowNow lawsuit against SAP

A federal judge had earlier set aside a jury award of $1.3 billion to Oracle

By John Ribeiro
September 4, 2012 01:04 AM ET

IDG News Service - Oracle is appealing a $306 million settlement in the TomorrowNow corporate-theft case against German competitor SAP, according to court documents.

The Redwood Shores, California, business software company said in a filing on Friday 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 U.S. District Court for the Northern District of California, Oakland Division.

The case centers 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.

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 Aug. 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 Aug. 3 judgment that the parties had agreed that Oracle was paid $120 million in legal fees by SAP.

SAP could not be immediately reached for comment on Oracle's appeal.

Reprinted with permission from IDG.net. Story copyright 2014 International Data Group. All rights reserved.
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