SAP sued by Oracle for corporate ‘theft’
Oracle Corp. has filed a suit today against SAP alleging violations of U.S. fraud legislation, unfair competition and civil conspiracy.
Oracle filed the lawsuit against SAP, its SAP America division and its TomorrowNow subsidiary in U.S. Federal District Court in the Northern District of California. Details of the complaint can be found here. TomorrowNow provides third-party maintenance and support in large part for Oracle applications drawn from its PeopleSoft, Siebel and JD Edwards product families.
In the suit, the database, applications and middleware vendor alleges that SAP violated the Federal Computer Fraud and Abuse Act and California Computer Data Access and Fraud Act. Oracle also charges SAP with intentional and negligent interference with prospective economic advantage, unfair competition and civil conspiracy. The vendor demands a jury trial and is seeking both damages and injunctive relief. Through the complaint, Oracle seeks to stop SAP’s illegal intrusions into its computer systems and theft, to prevent SAP from using the materials it has illegally acquired to compete with Oracle, and to recover damages and attorneys’ fees,” the lawsuit states.
“Through this scheme, SAP has stolen thousands of proprietary, copyrighted software products and other confidential materials that Oracle developed to service its own support customers,” the lawsuit states.
The suit points to a period of unusually heavy download activity from Oracle’s Customer Connection user support Web site for its PeopleSoft and JD Edwards applications in late November and December 2006. The site contains Oracle copyright material including software updates, bug fixes and patches. Customers paying Oracle for support log into the site with their passwords and download the software they require. Instead of genuine users, the suit alleges SAP employees used the log-in credentials of Oracle customers whose support rights had already expired or were about to expire in a few days’ time. Those staffers then allegedly copied Oracle’s software and support materials.
