Judge: Oracle's SAP Award 'Excessive'

OAKLAND, Calif. (TheStreet)-- A judge in northern California has ruled against Oracle's(ORCL) $1.3 billion award for software-theft related damages against SAP(SAP), much to the dismay of the database giant.

In a ruling issued on Thursday, U.S. District Judge Phyllis Hamilton described the award as "grossly excessive" and "contrary to the weight of evidence", according to The San Jose Mercury News.

A judge has thrown out Oracle's $1.3 billion damages award against SAP.

Hamilton indicated that SAP's estimate that Oracle suffered $272 million of damages was more reasonable. The judge will reportedly order a new trial unless Oracle accepts the lower damages figure.

Oracle poured scorn on the ruling, and vowed to fight on.

"There was voluminous evidence regarding the massive scope of the theft, clear involvement of SAP management in the misconduct and the tremendous value of the IP stolen," explained the software maker, in a statement emailed to TheStreet "We believe the jury got it right and we intend to pursue the full measure of damages that we believe are owed to Oracle."

SAP, in contrast, is "very gratified" with the judge's decision, according to a statement emailed to TheStreet. "We agree with the Court's statement that 'the verdict grossly exceeded the actual harm to Oracle'," it explained. "We believed the jury's verdict was wrong and are pleased with the significant reduction in damages."

"We hope the Court's action will help drive this matter to a final resolution," added the German software giant. "SAP is focused on our customers and innovation as opposed to litigation."

Oracle was awarded $1.3 billion in damages from last November after it sued its rival for software theft. The verdict followed more than three weeks of courtroom tussles between the database giant and SAP, a headline-grabbing drama that even saw firebrand Oracle CEO Larry Ellison take the witness stand.

In his closing argument, Oracle's lawyer had demanded $1.7 billion in damages from SAP, according to media reports. SAP, which had already admitted the theft by its now-defunct TomorrowNow subsidiary, offered to pay a sum closer to $40 million.

Oracle shares closed down 23 cents, or 0.8%, at $27.84 on Thursday. SAP's stock ended the day down 75 cents, or 1.38%, at $53.76.

--Written by James Rogers in New York.

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