Oracle and SAP bury the hatchet

9545Oracle and SAP have settled their long-running copyright litigation for $356.7 million over improper downloads of Oracle files.

For those who came in late, Oracle sued SAP over its TomorrowNow unit, which the German company bought to provide software support to Oracle customers at lower rates than what Oracle charged, hoping to persuade them to become SAP customers.

In 2007 Oracle noticed thousands of suspicious downloads of its software. A California jury awarded Oracle $1.3 billion in 2010, but that amount was knocked down in subsequent judicial rulings. Earlier this year a federal appeals court said Oracle could either accept $356.7 million, or opt for a retrial against SAP.

Oracle’s general counsel Dorian Daley called the end of the case a “landmark recovery “ and was “extremely gratified that our efforts to protect innovation and our shareholders’ interests are duly rewarded”.

SAP said it was pleased that the courts “ultimately accepted SAP’s arguments to limit Oracle’s excessive damages claims and that Oracle has finally chosen to end this matter.”

SAP conceded that its employees were illegally downloading Oracle files, but it could not agree with Oracle on how much it should pay. The 2010 trial between the two companies was widely watched, as top Oracle executives Larry Ellison and Safra Catz testified.
There was also a criminal probe, which SAP agreed to pay $20 million to make go away.