August 3, 2012 – SAP agreed to resolve the infringement case related to its shuttered TomorrowNow operations by paying prosecuting vendor Oracle $306 million, according to filings in federal appeals court.

SAP and Oracle agreed to the payout Thursday in a filing with the 9th U.S. District Court of Appeals, in which SAP has already reportedly paid Oracle an additional $120 million in court costs.

After a three-week trial in November 2010, a jury found the German software provider guilty of illegally downloading software and customer documents from Oracle through SAP’s TomorrowNow branch. The initial ruling put SAP’s damage payout at $1.3 billion, though an appeals judge later threw out that claim amount, calling it “grossly excessive.” At that time, SAP had requested a verdict closer to $408 million, and a federal judge gave Oracle the option of accepting a $272 million judgment to close the suit and avoid a new trial.

SAP closed TomorrowNow in 2008 after the downloads were discovered.

It was the second notable federal court action involving Oracle this week, after a separate decision Thursday found that the vendor is obligated to continue development of software for HP’s Itanium servers. Oracle stated it plans to appeal that ruling.

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