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SAP Ordered to Post $1.3 Billion Bond in Oracle Case

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SAP to Seek Reduction of $1.3 Billion Oracle Judgment
Signs bearing the company logo are displayed at the headquarters of SAP AG in Walldorf, Germany. Photographer: Wolfgang von Brauchitsch/Bloomberg

April 29 (Bloomberg) -- SAP AG, the business software maker ordered in November to pay $1.3 billion to rival Oracle Corp., must get a bond for that amount while it seeks to reduce or appeal the damage award, a judge ordered.

Oracle accused SAP’s U.S.-based TomorrowNow software-maintenance unit of making hundreds of thousands of illegal downloads and several thousand copies of Oracle’s software to avoid paying licensing fees and to steal customers. A jury awarded the damages after an 11-day trial in Oakland, California. It was the largest U.S. jury award of 2010.

U.S. District Judge Phyllis Hamilton in Oakland today granted SAP’s request to delay payment to Redwood City, California-based Oracle. She gave Walldorf, Germany-based SAP 21 days to post a bond for the full amount.

SAP has said it will ask Hamilton to reduce the award or grant a new trial and, if necessary, will appeal the verdict, which it called excessive.

Oracle, the second-biggest maker of business software, sued SAP in 2007.

Deborah Hellinger, an Oracle spokeswoman, declined to comment. Jim Dever, an SAP spokesman, had no immediate comment.

The case is Oracle Corp. v SAP AG, 07-01658, U.S. District Court, Northern District of California (San Francisco).

To contact the reporter on this story: Karen Gullo in San Francisco federal court at kgullo@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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