Oracle verdict against SAP overturned

A US judge slashed over $1 billion from Oracle Corp's $1.3 billion jury verdict against SAP, paving the way for a possible new trial in a years-long copyright infringement dispute.

In a ruling released today, US District Judge Phyllis Hamilton found that Oracle had proven actual damages of only $272 million. She called for a new trial unless Oracle agreed to accept that amount.

Oracle shares fell 0.8 per cent to close at $27.85 on the Nasdaq.

Oracle spokeswoman Deborah Hellinger said there was "voluminous evidence" on the "tremendous value" of Oracle's stolen intellectual property.

"We believe the jury got it right and we intend to pursue the full measure of damages that we believe are owed to Oracle," Ms Hellinger said.

A jury awarded Oracle $1.3 billion last year over accusations that SAP subsidiary TomorrowNow wrongfully downloaded millions of Oracle files.

"The award of hypothetical license damages totaling $1.3 billion was contrary to the weight of the evidence and was grossly excessive," Judge Hamilton said in her ruling. "The court grants the motion for a new trial as to actual damages" should Oracle reject the $272 million figure.

SAP spokesman Jim Dever said the company is "very gratified" by the decision as it believed the verdict was wrong.

"We hope the court's action will help drive this matter to a final resolution," he said.

Eric Goldman, a professor at Santa Clara University School of Law, said a $272 million damages award is still very rare in copyright litigation.

"Oracle still got a huge dollar amount in a copyright case, it still knocked TomorrowNow out of the marketplace, and it still got all the glory of having shined a negative spotlight on SAP," Mr Goldman said.

Either Oracle and SAP could still appeal Judge Hamilton's ruling, or they could settle, Mr Goldman said.

The legal battle between two of the software industry's largest players captivated Silicon Valley. In 2010, a three-week trial included testimony from such top executives as billionaire Oracle chief executive Larry Ellison and Oracle president Safra Catz.

SAP's lawyers accused Mr Ellison of plucking damages numbers "out of the air."

SAP co-chief executive Bill McDermott also took the stand and apologised to Oracle for the events surrounding TomorrowNow.

Reuters