July 21 (Bloomberg) -- SAP AG, the world's largest business-management software maker, said it will wind down its TomorrowNow unit after the division sparked a dispute with Oracle Corp.

SAP plans to conclude the process before Oct. 31, the Walldorf, Germany-based company said in a statement today.

A trial is scheduled for February in Oracle's suit claiming workers at SAP's TomorrowNow unit hacked into a Web site and stole Oracle's copyrighted software. SAP has denied gaining access to Oracle's intellectual property, and said last year it wanted a ``prompt resolution'' to the legal dispute.

SAP and Oracle are the largest competitors in the market for software that helps companies manage payroll and accounting operations.

SAP bought TomorrowNow in 2005 as part of its Safe Passage program to lure customers from Oracle acquisitions including PeopleSoft Inc., J.D. Edwards & Co. and Siebel Systems Inc. by providing software support.

The German company today said it is working with TomorrowNow's more than 225 customers to help them return to support from Oracle for PeopleSoft, JDEdwards or Siebel applications.

Oracle's attorneys said in a June 24 filing in San Francisco federal court that the company may seek at least $1 billion in the computer-fraud lawsuit.

SAP's employees used customer names such as Merck & Co. and Bear Stearns & Co. to conduct illegal downloads, according to the lawsuit. Oracle also has said that SAP stole applications to service customers, train employees and create software fixes and updates.

Last year, SAP said that TomorrowNow Chief Executive Officer Andrew Nelson resigned and it may sell the Bryan, Texas-based unit.

To contact the reporters on this story: Simon Thiel in London at sthiel1@bloomberg.net;

Last Updated: July 21, 2008 10:06 EDT