Added by Gary Dunn on November 5, 2010
The 3.5 year dispute between Germany’s SAP and Oracle took an interesting turn now that SAP is said to have agreed to pay $120m to the latter if it would promise not to insist on receiving punitive damages.
Compensation damages would be given for loss suffered by the victim while punitive damages would be awarded for penalizing the offender. SAP wishes to avoid the latter by accepting liability and admitting its fault. It has also shut down the subsidiary which downloaded from the customer care web site of Oracle millions of files in an improper manner.
Adding to the tension and excitement was the fact that Hewlett-Packard Co had refused subpoena for Leo Apotheker. He was SAP’s former CEO and is the current CEO of HP Co. HP has achieved this by keeping Leo beyond the jurisdiction of the court. Oracle insists that it shall try to serve the summons till the trail concludes.
The agreement, although finalized, requires approval by Oakland, California’s U.S. district judge before becoming binding. Arguments for compensatory damages and trial against the $1 billion quarterly profit earning company will continue.
Oracle also has the option of demanding reimbursement of attorney fees as soon as the trial ends because the agreement has SAP accepting its fault and liability.