Oracle and Hewlett-Packard Sticking to BATTLE Positions

A two-day recess in the court trial hearing a dispute between Oracle (NASDAQ:ORCL) and Hewlett-Packard (NYSE:HPQ) — allowed to enable a rapprochement between the warring companies — failed to break the ice, and the trial resumed June 13.

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According to a Reuters report, Judge James Kleinberg, of the Santa Clara County Superior Court, had asked the companies to try to settle their differences across the table with Judge Brian Walsh as a facilitator.

The suit filed by HP alleges that Oracle discontinued support for Intel’s (NASDAQ:INTC) Itanium chips platform, which is the basis for HP’s premium Integrity and NonStop server lines, despite a 2010 agreement in which Oracle allegedly promised to continue support to the line.

Oracle has taken the defense that the decision to halt development and support was made only after Intel made known that it intended to shut down the development of the Itanium chip. However, both Intel and HP have denied Oracle’s claim.

HP has also accused Oracle of taking the step with the ulterior motive of damaging its server business and thereby helping it to acquire HP’s server customers for its own SPARC/Solaris systems. According to HP, it incurred severe losses in its server business due to Oracle’s decision. It is seeking $4 billion in damages from Oracle and asked the court to direct Oracle to continue supporting Itanium.

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