Oracle Rejects Judges Decision
Oracle Corp. (NASDAQ:ORCL) plans to seek a new trial against SAP AG (NYSE:SAP) for copyright infringement rather than accept the judgment to reduce the $1.3 billion verdict to $272 million.
“Oracle’s objective is to obtain clarification of the law and, if it is right about what the law is and what the evidence supports in this case, to vindicate the verdict of the jury and Oracle’s intellectual property rights as a copyright owner,” Oracle attorney Geoffrey Howard said in a filing yesterday.
Oracle sued SAP last year saying its TomorrowNow software-maintenance unit made large amounts of illegal downloads and copies of Oracle’s software to avoid paying licensing fees and to steal customers. SAP didn’t dispute the accusations. The jury awarded Oracle what they felt was the value of a hypothetical license that SAP would have needed to use Oracle’s software.
Hamilton, the judge presiding over the case, said there was no evidence that Oracle had ever granted a license that would permit a competitor to use its software to compete for Oracle customers. Without such evidence, Oracle can’t recover lost license fees because any award would be subjective and speculative and not based on objective evidence.
Here’s how these companies’ stocks are reacting to the news:
Oracle Corp. (NASDAQ:ORCL): ORCL shares recently traded at $28.92, down $0.08, or 0.28%. They have traded in a 52-week range of $24.72 to $36.50. Volume today was 7,154,353 shares versus a 3-month average volume of 32,334,600 shares. The company’s trailing P/E is 15.90, while trailing earnings are $1.82 per share.
SAP AG (NYSE:SAP): SAP shares recently traded at $63.66, up $0.67, or 1.06%. They have traded in a 52-week range of $47.39 to $68.39. Volume today was 250,606 shares versus a 3-month average volume of 1,779,180 shares. The company’s trailing P/E is 16.74, while trailing earnings are $3.80 per share.