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SAP vows to fight $1.5bn Oracle fine

Simon Quicke

SAP has vowed to fight the $1.3bn fine that a judge and jury ordered it had to pay Oracle for the copyright infringement committed by its TomorrowNow subsidiary.

The announcement that it will fight what it believes has been an unfair award came in its fourth quarter financial results, which showed growth in its software and services operation, but dips in profits.

But the increases in software revenue to €1.5bn and services to €3.2bn helped overall turnover increase by 27% for the three months ended 31 December.

But drilling down into the operating expenses line  for the full year the impact of the court case was clear with SAP having to out the cost of the litigation into its figures.


"SAP has great respect for the US legal system and Court decisions. However, SAP believes that the amount awarded by the jury in Oracle v SAP/TomorrowNow is disproportionate and wrong. After the Court has entered final judgment SAP intends to file post-trial motions in the coming weeks asking the Court to reduce the amount of damages awarded, or to order a new trial" the vendor stated.

It stated that it had made a provision in its 2010 results to pay the jury fine but it would look at potentially restating the results if it managed to lower the fine.

Aside from the legal sting the results showed that SAP had a good year and returned a 4% increase in post-tax profits to €1.8bn.

"Our results prove that SAP is back to being a growth company," said Bill McDermott, co-CEO of SAP, "We showed rock solid revenues across the globe, particularly in the fast growing emerging markets."

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