Oracle Asks for $1.3 Billion Verdict Against SAP to Be Reinstated

Advertisement
By Reuters | Updated: 14 May 2014 10:36 IST
A U.S. appeals court appeared skeptical on Tuesday about reinstating a $1.3 billion jury verdict won by Oracle Corp against SAP, in a case where the European software company admitted massive copyright infringement.

At a court hearing on Tuesday, two 9th U.S. Circuit Court of Appeals judges also suggested Oracle may deserve more than the roughly $300 million it had been assigned by a lower court.

A Northern California jury awarded Oracle $1.3 billion in 2010 over accusations that SAP AG subsidiary, TomorrowNow, wrongfully downloaded millions of Oracle files. SAP had acquired TomorrowNow as part of a strategy to provide software support to Oracle customers at lower rates than what Oracle charged, and eventually convince some of those companies to become SAP customers.

The trial between the two enterprise software competitors was widely watched at the time, as top Oracle executives Larry Ellison and Safra Catz testified. However, U.S. District Judge Phyllis Hamilton in Oakland, California ruled that Oracle had proven actual damages of only $272 million.

Advertisement

Oracle has asked the 9th U.S. Circuit Court of Appeals to reverse that ruling.

Advertisement

At a court hearing on Tuesday before a three-judge 9th Circuit panel, Oracle attorney Kathleen Sullivan said internal SAP documents showed SAP had expected about $900 million in new revenue by using TomorrowNow to poach Oracle customers. That, and other evidence, was sufficient for the jury to arrive at its $1.3 billion figure, Sullivan argued.

However, 9th Circuit Judge Susan Graber questioned whether those SAP revenue figures were objective evidence of the value of the copyrighted material.

Advertisement

"It's hypothetical revenue information, which is not the same," Graber said.

"These may be pie in the sky dreaming," Judge William Fletcher added.

Advertisement

The judges did not issue a formal ruling from the bench. SAP eventually shuttered TomorrowNow, which pleaded guilty to criminal copyright infringement and other charges.

SAP admitted liability for the downloads just prior to the 2010 trial, so the only issue in dispute was how much SAP would pay Oracle in damages. Oracle said that figure should be calculated based on what SAP would have paid Oracle had it licensed the materials, instead of downloading them without permission. Oracle estimated that amount in the billions.

In her lower court ruling, however, Hamilton decided Oracle is only entitled to profits it had lost as a result of the downloads, as well as any profits SAP gained. The judge calculated that amount at $272 million.

At the 9th Circuit hearing on Tuesday, Graber said $272 million "seems low," and Fletcher said it "seems to me wrong."

SAP attorney Tharan "Greg" Lanier defended the amount, though he acknowledged that Oracle presented evidence at trial that the profits calculation could come to $487 million.

The case in the 9th Circuit is Oracle Corp et al. vs. SAP AG et al., 12-16944.

© Thomson Reuters 2014

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Apps, Internet, Oracle, SAP
Advertisement

Related Stories

Popular Mobile Brands
  1. Best Diwali 2025 Wishes, Quotes, and Facebook Statuses to Share
  2. Madam Sengupta Is Now Streaming: Know Where to Watch This Bangla Crime Thriller
  3. Diwali 2025 Gift Ideas: Mobile Phones and Gadgets to Give to Your Loved Ones
  1. Mysterious Asteroid Impact Found in Australia, But the Crater is Missing
  2. Thanal Comes to OTT: Everything You Need to Know About This Tamil Action Thriller
  3. Madam Sengupta Is Now Streaming: Know Where to Watch This Bangla Crime Thriller
  4. Ryugu Samples Reveal Ancient Water Flow on Asteroid for a Billion Years
  5. Scientists Create Most Detailed Radio Map of Early Universe Using MWA
  6. Mayor of Kingstown Season 4 OTT Release: Know When, Where to Watch Jeremy Renner's Crime Drama
  7. Our Fault Is Streaming Now: Know All About This Gabriel Guevara and Nicole Wallace Starrer
  8. The Conjuring: Last Rites Is Now Streaming Online: Know Where to Watch the Latest Installment from the Horror Franchise
  9. Delhi Crime Season 3 OTT Release: Know When to Watch This Shefali Shah Thriller Series
  10. Vast Space to Launch Haven-1, the World’s First Private Space Station in 2026
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.