Thursday, November 04, 2010

GreenBkk Tech | SAP agrees to pay $120 million to Oracle: sources

SAP agrees to pay $120 million to Oracle: sources

German software maker SAP AG has agreed to pay $120 million to help archrival Oracle Corp cover legal fees in a partial settlement of a Silicon Valley trial over theft of intellectual property, according to sources familiar with the agreement.

In exchange, Oracle has promised not to seek punitive damages, the people said, speaking on condition of anonymity because the judge in the case has ordered both sides to keep the matter quiet.

The two sides are still fighting over the compensatory damages that SAP will have to pay, anywhere from tens of millions to billions of dollars. The trial began this week.

Compensatory damages are awarded for specific losses, while punitive damages punish a defendant for wrongdoing.

SAP has admitted fault in the case, accepted liability and shut down its TomorrowNow subsidiary, which improperly downloaded millions of files from Oracle's customer service website.

The agreement needs final approval by U.S. District Court Judge Phyllis Hamilton in Oakland, California, according to the sources.

SAP and Oracle declined comment on the matter.

(Reporting by Jim Finkle. Editing by Robert MacMillan)

Credit: Reuters


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