September 2, 2011 – A federal judge ruled that the $1.3 billion verdict to be paid by SAP to Oracle is inflated and “contrary to the weight of the evidence” in a lawsuit regarding infringement and copyright violations from the now-defunct TomorrowNow division.

In her ruling, Judge Phyllis Hamilton of the U.S. District Court in Northern California said SAP’s payout was “grossly excessive” and based largely on hypothetical software licensing fees.

SAP requested a verdict closer to the amount of $408.7 million, and both sides have filed motions for a new trial, according to online court documents.

Oracle, in a statement on the ruling, will “pursue the full measure of damages” from the initial verdict in a new trial.

In its own statement, SAP expressed gratitude at the decision.

“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,” the statement read.

The initial award came after a three-week trial where the jury found the German software provider guilty of illegally downloading software and customer documents from Oracle through SAP’s TomorrowNow division. SAP shuttered TomorrowNow after the downloads were discovered in 2008.

To download a PDF of Thursday’s ruling, click on “Oracle v. SAP AG” here.

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