Recurring Revenue Authors: Zakia Bouachraoui, Elizabeth White, Yeshim Deniz, Pat Romanski, Xenia von Wedel

Related Topics: Recurring Revenue, Artificial Intelligence

Recurring Revenue: Article

SAP Reportedly Agrees to Pay Oracle’s Lawyers $120 Million

Briefly Public Court Docs Reveal Agreement

SAP reportedly agreed Monday to pay Oracle $120 million just to cover its "past and future reasonable attorneys' fees and costs."

Those are the fees that Oracle has wracked up pursuing its case for theft against SAP and TomorrowNow, SAP's IP-downloading cut-rate third-party maintenance subsidiary, the now shuttered unit that got SAP in the hot water it's now stewing in in a California federal court.

The joint stipulation is sealed now, carrying the notice "FILED IN ERROR. DOCUMENT LOCKED" in big bold letters on the court docket but IDG got a look at it first.

It says that in the proposed order TomorrowNow "stipulates to entry of judgment on Oracle's claims for violations of the Federal Computer Fraud and Abuse Act and California's Computer Data Access and Fraud Act, breach of contract, intentional interference, negligent interference, unfair competition, trespass to chattels, unjust enrichment/restitution and an accounting."

Under the deal - as in other deals filed in the last couple of days that aren't locked - Oracle has agreed not to seek punitive damages against SAP and TomorrowNow, but only seek "those damages available under the Copyright Act."

IDG says SAP would have pay Oracle the $120 million by next Tuesday November 9, when - theoretically of course - the trial would just be warming up. The sides picked an eight-man jury Monday and opening statements were Tuesday.

The court will have to approve and sign the deal first.

Oracle wants more than $2 billion in damages. It says that's the fair market value of all the files TomorrowNow downloaded. SAP wants to keep the damages down to around $40 million based on what Oracle actually lost in maintenance sales. It took a $160 million provision to cover the case last week.

However, the trial is really no longer about the money.

A few months ago SAP conceded so-called "vicarious" infringement - that it had profited by TomorrowNow's actions and could have controlled them.

The last it surprised everybody by stipulating to "contributory infringement," basically that its senior management knew about the thefts, to try to curb Oracle's blood lust.

It said it wanted to stop Oracle from turning the trial into a "media circus" by calling ex-SAP CEO Leo Apotheker, now HP's CEO, to the stand and pinning the whole mess on him, casting serious doubts on the wisdom of the HP board in hiring him in the process.

Ragging HP, Oracle Larry Ellison claimed to have direct evidence that Apotheker oversaw the "industrial espionage scheme." He alleged that Apotheker was "on the run" from a subpoena.

Despite SAP's concessions and the fact that the trial is just about damages, Oracle still means to get Apotheker in the witness box but it may have to settle for a virtual appearance. It has his taped deposition if he doesn't show up in person.

An Apotheker e-mail presented to the jury Tuesday said, "We need to inflict some pain on Oracle" by providing cheap TomorrowNow services to Oracle customers as a prelude to migrating them to SAP software.

Other star witnesses from SAP are also expected as well as Ellison himself, who will likely repeat his contention that SAP bought TomorrowNow in January 2005 knowing the Texas concern operated illegally from the due diligence it did and even foresaw that Oracle would sue.

According to a filed deposition of SAP executive Shai Agassi, who was on the SAP board at the time of the acquisition, SAP thought if Oracle sued TomorrowNow, customers would be "alienated" and that would be good for SAP.

Reuters also remembers that the trial might not be the end of it for SAP. There is still a Justice Department investigation going on. And the feds should be very interested in what SAP knew and when it knew it.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

IoT & Smart Cities Stories
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...