The case filed by Oracle Corporation (NYSE:ORCL) in 2007 concerning illegal downloading of Oracle files against SAP SE (ADR) (NYSE:SAP) has finally arrived into its conclusive stages. The two tech giants have agreed to end the matter for a sum of $356.7 million.
It was in 2007 when Oracle identified thousands of fishy downloads of its primary software to which SAP agreed. However, the later was not ready to accept the damage charges put forward by the company. Oracle Corporation (NYSE:ORCL) was awarded $1.3 billion by a California jury in 2010 but the settlement was ruled out in the subsequent hearings of the matter. Following the new hearing, the federal curt proposed settlements of $356.7 million or asked Oracle to apply for retrial.
It seems as if the company has agreed with the settlement, Dorian Daley, general counsel of Oracle, mentioned in a statement,
“We are thrilled about this landmark recovery and extremely gratified that our efforts to protect innovation and our shareholders’ interests are duly rewarded.”
In response to the court ruling, even SAP SE (ADR) (NYSE:SAP) was relieved that the court “ultimately accepted SAP’s arguments to limit Oracle’s excessive damages claims and that Oracle has finally chosen to end this matter.” In addition to the settlement amount, SAP agreed to pay additional $20 million to settle the criminal probe originating from illegal downloads.
Before this verdict, a federal judge in Oakland considered the $1.3 billion excessive, which was released after considering the hypothetical license value that SAP SE (ADR) (NYSE:SAP) would have paid Oracle, and announced a reduction with final settlement of $272 million. However, Oracle Corporation (NYSE:ORCL) went for retrial and hence, the settlement amount of $356.7 million was issued by San Francisco federal appeals court.
This article has been written by Prakash Pandey.
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