SAP to pay Oracle over $300 mn in copyright-infringement lawsuit

German enterprise software giant SAP AG will pay its larger rival Oracle Corp at least $306 million in damages in a copyright-infringement lawsuit for its defunct US subsidiary Tomorrow Now's illegal downloads of Oracle's software.

In 2010, Oracle, the world's largest business software maker was awarded $1.3 billion in the case, but on SAP's appeal, a District Judge in Oakland, California reduced the damages to $272 million, calling the earlier damages awarded as ''grossly excessive.'' (See: US court overturns $1.3-bn copyright infringement verdict against SAP)

Oracle, which pledged to fight for the full amount it was awarded, opted for a new trial, which was scheduled for hearing on 27 August.

But Oracle yesterday agreed on a judgment of $306 million in damages in order ''to save time and expense of this new trial,'' both companies said in a filing in the federal court in Oakland.

Under the deal hammered out by attorney's of both companies, SAP, which has already paid Oracle $120 million in legal fees, will  pay Oracle $306 million in damages, and Oracle will seek the appeals court in San Francisco to reinstate the $1.3-billion award without another trial.

"This case has gone on long enough," SAP said in its own statement. "Although we believe that $306 million is more than the appropriate damages amount, we agreed to this in an effort to bring this case to a reasonable resolution.''